MIRA INFORM REPORT

Report Date :

01.04.2008

IDENTIFICATION DETAILS

Name :	HOCHIMINH CITY GENERAL MATERIAL IMPORT EXPORT JOINT STOCK COMPANY
Formerly Known as :	GENERAL MATERIAL IMPORT EXPORT COMPANY
Registered Office :	No. 117, Cong Quynh Str, Nguyen Cu Trinh Ward, Dist 1, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	1992
Com. Reg. No.:	4103003543
Legal Form :	Joint Stock Company
Line of Business :	Trading in general such as raw material, steel and iron machinery and equipments, being chemical agents… Trading in consumer goods, building materials, restaurant trading, real estate…

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
Current English Name	HOCHIMINH CITY GENERAL MATERIAL IMPORT EXPORT JOINT STOCK COMPANY
Current Vietnamese Name	CONG TY CO PHAN VAT TU TONG HOP THANH PHO HO CHI MINH
Current Trade name	GEMEXIM JSC
Former English Name	GENERAL MATERIAL IMPORT EXPORT COMPANY
Former Vietnamese Name	CONG TY VAT TU TONG HOP THANH PHO HO CHI MINH
Former Trade name	GEMEXIM CO
Type of Business	Joint Stock Company
Founded	1992
Current Business Registration	No. 4103003543
Issuance on	June 29^th, 2005
Issuance by	Planning and Investment Department of Hochiminh City
Former Business Registration	No. 103288
Issuance on	January 7^th, 1993
Issuance By	Economic Arbitration Board of Hochiminh City
Current Registered Capital	32,500,000,000 VND
Former Registered Capital	17,786,173,530 VND
Tax code	0300587741
Total Employees	117 Employees
Qualification	Average
ADDRESSES
Head Office and factory:
Address	No. 117, Cong Quynh Str, Nguyen Cu Trinh Ward, Dist 1, Hochiminh City
Country	Vietnam
Tel	(84-8) 836 8043, 836 9603, 8369453
Fax	(84-8) 836 8392
Email	gemeximco@hcm.vnn.vn
Branch No. 1:
Address	No. 17, Ta Uyen Str, Dist 5, Hochiminh City, Vietnam
Tel	(84-8) 855 5222
Fax	(84-8) 855 5922
Branch No. 2-Metal and material service factory
Address	No. 299, Ly Thuong Kiet Str, Dist 11, Hochiminh City, Vietnam
Tel	(84-8) 865 2518
Fax	(84-8) 865 4562
Branch No. 3-Chemical and electrical equipment Shop
Address	No. 7/3, Au Co Str, Ward 13, Tan Binh Dist, Hochiminh City, Vietnam
Tel	(84-8) 810 5923
Fax	(84-8) 949 0023
Branch No. 4-Trading equipment Shop No. 5
Address	No. 28, Nguyen Thi Nho Str, Ward 2, Dist 6, Hochiminh City, Vietnam
Tel	(84-8) 960 1010
Branch No. 5-Trading equipment shop No. 4
Address	No. 214, Le Thanh Ton Str, Ben Thanh Ward, Dist 1, Hochiminh City
Tel	(84-8) 825 1280
Fax	(84-8) 825 1288
Branch No. 6-Trading equipment shop No. 6
Address	No. 42, Tran Dinh Xu Str, Co Giang Ward, Dist 1, Hochiminh City
Tel	(84-8) 836 7110
Branch No. 7-Trading equipment shop No. 2
Address	No. 117, Cong Quynh Str, Nguyen Cu Trinh Ward, Dist 1, Hochiminh City
Country	Viet Nam
Tel	(84-8) 836 7436
Branch No. 8-Export agricultural products, food and rubber processing factory
Address	No. 7/3, Au Co Str, Tan Binh Dist, Hochiminh City
Tel	(84-8) 849 6107
Branch in Ha Noi
Address	No. 95 Phung Hung, Hoan Kiem Dist, Ha Noi Capital
Country	Vietnam
Tel	(84-4) 8255293
Fax	(84-4) 8283188
Director	Ms. DO NGOC SUONG
DIRECTORS
1. NAME	Mr. TRINH VIET TRUNG
Position	Director, Legal Representative
Qualification	Management
Date of birth	February 1^st, 1951
ID No	020406330
Issued on	February 2^nd, 1996
Issued by	Police station of Hochiminh City
Resident	No. 9, Nam Quoc Cang Str, Dist 1, Hochiminh City
Nationality	Vietnamese
2. NAME	Ms. NGUYEN THI CHIEN
Position	Chairman & Vice Director
Qualification	Management
Resident	No. 340C/3-5, Hoang Van Thu Str, Ward 4, Tan Binh Dist, Hochiminh City
Nationality	Vietnamese
3. NAME	Mr. NGUYEN ANH CUNG
Position	Sales Manager
Qualification	Management
Resident	No. 14/18, Au Co Str, Ward 14, Tan Binh Dist, Hochiminh City
Nationality	Vietnamese
4. NAME	Mr. HA MINH HUNG
Position	Chief Account
Resident	Hochiminh City
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject specializing in following activities: Trading in general such as raw material, steel and iron machinery and equipments, being chemical agents… Trading in consumer goods, building materials, restaurant trading, real estate…
IMPORT & EXPORT ACTIVITIES
IMPORT: The Subject imports many kind of goods from Japan, Germany, Italy, Russia, China, Singapore and Malaysia
EXPORT: The Subject exports much kind of goods to Japan, Germany, Italy, Holland, Russia, China and Asian Countries…
BANKERS
1. VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Address		No. 7, Ben Chuong Duong Str, Hochiminh City, Vietnam
Tel		(84-8) 821 0565
Fax		(84-8) 829 2213
Telex		411-322 VBAVT
Swift		VBAAVNVX
2. VIETNAM BANK FOR FOREIGN TRADE (VIETCOMBANK) BINH TAY BRANCH
Address		No. 129 - 129A, Hau Giang Str, Ward 5, Dist 6, Hochiminh City
Country		Vietnam
Tel		(84-8) 960 0477 - 960 0478
Fax		(84-8) 960 6217
3. INDUSTRIAL AND COMMERCIAL BANK OF VIETNAM (INCOMBANK) BRANCH NO. 1
Address		No. 93 - 95, Ham Nghi Str, Nguyen Thai Binh Ward, Dist 1, Hochiminh city, Vietnam
Tel		(84-8) 821 5388 - 821 0089
Fax		(84-8) 829 0696
Swift		ICBVVNVX
4. INDUSTRIAL AND COMMERCIAL BANK OF VIETNAM (INCOMBANK) BRANCH NO. 7
Address		No. 346, Bui Huu Nghia Str, Ward 2, Binh Thanh Dist, Hochiminh city
Country		Vietnam
Tel		(84-8) 8412329
Fax		(84-8) 8412165
Swift		ICBVVNVX
SHAREHOLDER(S)
The subject is a former state owned enterprise. Formerly, the subject was under management of SAI GON TRADING GROUP (SATRA). It has been equitized since June of 2005. Its current shareholder as follows:
I. STATE OWNED SHARES: 180,960 SHARES.
Representative by SAIGON TRADING GROUP and following persons:
1. NAME		Mr. NGUYEN MINH DUC
Position		Former Chairman
Qualification		Management
Resident		No. 260, Lac Long Quan Str, Ward 10, Dist 11, Hochiminh City
2. NAME		Ms. NGUYEN THI CHIEN
Position		Current Chairman & Vice Director
Qualification		Management
Resident		No. 340C/3-5, Hoang Van Thu str, Ward 4, Tan Binh Dist, Hochiminh City
Nationality		Vietnamese
3. NAME		Mr. NGUYEN ANH CUNG
Position		Sales manager
Qualification		Management
Resident		No. 14/18, Au Co Str, Ward 14, Tan Binh Dist, Hochiminh City
Nationality		Vietnamese
Cell phone		+84 913 925 186
II. INDIVIDUAL SHAREHOLDERS
1. NAME		Mr. NGUYEN MINH VIEN
Position		Shareholder
Resident		No. 320A, Ham Tu Str, Ward 5, Dist 5, Hochiminh City
Nationality		Vietnamese
Share		30,000 Shares
2. NAME		Ms. HUYNH THI KIM LUU
Position		Shareholder
Resident		No. 243/7, Bui Thi Xuan Str, Ward 1, Tan Binh Dist, Hochiminh City
Nationality		Vietnamese
Share		29,722 Shares
III. AND 220 other shareholders take 84,318 left shares
FINANCIAL DATA
BALANCE SHEET
Unit: 1,000,000VND
Balance sheet date			31/12/2006	31/12/2005
Number of weeks			52	52
ASSETS
A – CURRENT ASSETS			49,966	55,324
I. Cash and cash equivalents			7,832	5,818
1.Cash			7,832	5,818
2.Cash equivalents			0	0
II. Short-term investments			0	0
1. Short-term investments			0	0
2. Provisions for devaluation of short-term investments			0	0
III. Accounts receivable			8,771	5,846
1. Receivable from customers			5,603	1,465
2. Prepayments to suppliers			2,258	2,780
3. Inter-company receivable			0	0
4. Receivable according to the progress of construction			0	0
5. Other receivable			910	1,601
6. Provisions for bad debts			0	0
IV. Inventories			32,828	42,423
1. Inventories			32,828	42,423
2. Provisions for devaluation of inventories			0	0
V. Other Current Assets			535	1,237
1. Short-term prepaid expenses			125	86
2. VAT to be deducted			410	1,151
3. Other current assets			0	0
B. LONG-TERM ASSETS			18,677	20,879
I. Long term account receivable			1,025	0
1. Long term account receivable from customers			1,022	0
2. Long-term inter-company receivable			0	0
3. Other long-term receivable			3	0
4. Provisions for bad debts from customers			0	0
II. Fixed assets			17,640	19,758
1. Tangible assets			17,625	19,728
Historical costs			35,861	36,757
Accumulated depreciation			18,236	17,028
2. Financial leasehold assets			0	0
Historical costs			0	0
Accumulated depreciation			0	0
3. Intangible assets			15	30
Initial costs			45	45
Accumulated amortization			30	15
4. Construction-in-progress			0	0
III. Investment property			0	0
Historical costs			0	0
Accumulated depreciation			0	0
IV. Long-term investments			0	0
1. Investments in affiliates			0	0
2. Investments in business concerns and joint ventures			0	0
3. Other long-term investments			0	0
4. Provisions for devaluation of long-term investments			0	0
VI. Other long-term assets			12	1,120
1. Long-term prepaid expenses			12	0
2. Deferred income tax assets			0	0
3. Other long-term assets			0	1,120
TOTAL ASSETS			68,643	76,203
LIABILITIES
A- LIABILITIES			38,943	50,145
I. Current liabilities			37,885	48,061
1. Short-term debts and loans			11,479	7,430
2. Payable to suppliers			5,019	12,860
3. Advances from customers			6,505	4,698
4. Taxes and other obligations to the State Budget			1,386	1,346
5. Payable to employees			1,030	786
6. Accrued expenses			77	139
7. Inter-company payable			0	0
8. Payable according to the progress of construction contracts			0	0
9. Provisions for short-term accounts payable			12,389	20,803
II. Long-Term Liabilities			1,058	2,084
1. Long-term accounts payable to suppliers			0	0
2. Long-term inter-company payable			0	0
3. Other long-term payable			471	0
4. Long-term debts and loans			536	2,084
5. Provisions for unemployment allowances			51	0
B- OWNER'S EQUITY			29,700	26,058
I. Owner's equity			29,585	25,839
1. Capital			26,367	26,367
2. Share premiums			55	0
3. Other sources of capital			0	0
4. Differences on asset revaluation			0	0
5. Foreign exchange differences			0	0
6.Business promotion fund			290	346
7.Financial reserved fund			108	72
8. Retained earnings			2,235	-1,477
9. Construction investment fund			530	530
II. Other sources and funds			115	219
1. Bonus and welfare funds			115	219
2. Sources of expenditure			0	0
3. Fund to form fixed assets			0	0
TOTAL LIABILITIES AND OWNER'S EQUITY			68,643	76,203
PROFIT & LOSE STATEMENT
	Description		F/Y 2006
1.	Sales		316,987
2.	Deductions		12
3.	Net sales		316,975
4.	Costs of goods sold		300,457
5.	Gross profit		16.518
6.	Financial income		508
7.	Financial expenses		1,627
	- In which : Loan interest expenses		1,315
8.	Selling expenses		8,357
9.	Administrative overheads		2,092
10.	Net operating profit		4.950
11.	Other income		842
12.	Other expenses		368
13.	Other profits		474
14.	Profit (loss) before tax		5,424
15.	Income tax		1,519
16.	Profit (loss) after tax		3,905
FINANCIAL FACTORS
Description			2006
Current liquidity ratio			1.32
Quick Liquidity ratio			0.45
Inventory circle			7.99
Average receive period			10.10
Utilizing Asset Performance			4.62
Liability/ Total Asset (%)			56.73
Liability/ Owner's equity (%)			131.12
Income before tax/ Total asset (%) ROA			7.90
Income before tax/ Owner's equity (%) ROE			18.26
Income before tax/ Total revenue (%) NPM			1.71
Gross Profit / Total revenue (%) GPM			5.21
PAYMENT HISTORY AND EXPERIENCES
Trade Morality		Normal
Liquidity		Average
Payment status		Average
Financial Situation		Fairly good
Development trend		Normal
Litigation data		Recorded
Bankruptcy		No Recorded
Payment Methods		Direct payment or through its corresponding bank, L/C, D/P, T.T
Sale Methods		Direct sale to clients
Note: On July 28^th, 2005, Ms. HUA HONG HANH - the subject’s former accountant was suggested to be sentenced to life-imprisonment for embezzling company property (nearly 3.3 billion VND), Ms. TU THI HUE HUONG-the subject former chief accountant and Ms. NGUYEN MAI DUNG- the subject former accountant was suggested to be sentenced 4 to 5 years imprisonment and Ms. NGUYEN THI HUONG-the subject former accountant manager from 3 to 4 years imprisonment for breaking the law of business management intentionally
INTERPRETATION ON THE SCORES
HOCHIMINH CITY GENERAL MATERIAL IMPORT EXPORT JOINT STOCK COMPANY formerly was the state owned enterprise. It has just equitized since June of 2005. Formerly, the subject was member of Sai Gon Trading Corporation. The subject started export-import activities long time ago. The subject has been reputed company, was strongly supported from government in the past. The subject has been equitized so its structure and board of management mostly renewed and changed to catch up with the demand of an active economy and to have competitive capability to other competitors in the same field. In the past, the subject had big un-effective economy management apparatus so its business operation was not effective. It meets difficulties in integrating progress nowadays such as small market share, scale source of good and strong competitors. It is expected to pass over these difficulties fast to have a good position in the industry. The subject’s premise and facility are average. Its business activities seem to be not much busy. The market share of the subject is normal.
The company is expected to be VULNERABLE TO ADVERSE changes in circumstances and economic conditions.

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions