MIRA INFORM REPORT

Report Date :

16.02.2008

IDENTIFICATION DETAILS

Name :	KINH DO CORPORATION
Registered Office :	No. 6/134, 13^th National Highway, Hiep Binh Phuoc Ward, Thu Duc Dist, HoChiMinh City
Country :	Vietnam
Financials (as on) :	30.09.2007
Date of Incorporation :	26.11.2002
Com. Reg. No.:	4103001184
Legal Form :	Joint - Stock Company
Line of Business :	Producing and Trading in Confectionery including Cookies, Snacks, Crackers, Chocolate, Candies, Pipe, Cake, and Moon Cake.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English Name			KINH DO CORPORATION
Vietnamese name			CONG TY CO PHAN KINH DO
Former Vietnamese Name			CONG TY CO PHAN KINH DO MIEN NAM
Abbreviation			KIDO CORP
Type of Business			Joint - Stock Company
Business Registration			No. 4103001184
Issued on			September 06^th 2002
1^st adjustment on			November 26^th 2002
2^nd adjustment on			September 22^nd 2003
3^rd adjustment on			December 11^th 2003
4^th adjustment on			August 03^rd 2004
5^th adjustment on			October 07^th 2004
6^th adjustment on			May 11^th 2005
7^th adjustment on			May 18^th 2006
8^th adjustment on			July 06^th 2006
Issued by			Business Registration Office of Ho Chi Minh City
Current Registered Capital			470,000,000,000 VND
Former Registered Capital			299,999,800,000 VND
Tax Code			0302705302
Total Employees			2,220 employees
Qualification			Qualified
Stock exchange status			Listed Company
Stock code			KDC
Note: Currently, Kinh Do is a group of companies. Kinh Do Food Processing and Construction Limited Company is regarded as the parent company of this group and Kinh Do Food Processing and Construction Limited was changed name to be “Kinh Do Investment Company Limited”. The subject (Kinh Do Corporation- KDC), North Kinh Do Food Joint Stock Company (NKD), Kinh Do Sai Gon Bakery Joint Stock Corporation (Kinh Do Sai Gon Bakery Corp), Kinh Do Real Estate Corporation, Kido Corporation, Sai Gon Beverages Joint Stock Company, Kinh Do Binh Duong, Binh Duong Tri Be Co Joint Stock Company and Ha Noi Trading And International Construction Operation Joint Stock Company are unit members in this group.
ADDRESSES
Head office
Address			No. 6/134, 13^th National Highway, Hiep Binh Phuoc Ward, Thu Duc Dist, HoChiMinh City
Country			Vietnam
Tel			(84-8) 726 9473 - 726 9474 – 7268981
Fax			(84-8) 7269472
Email			kidoco@hcm.vnn.vn
Website			www.kinhdofood.com
DIRECTORS
1. NAME			Mr. TRAN KIM THANH
Position			Chairman
Qualification			Management
ID Number			022007873
Date of birth			July 7^th, 1960
Place of birth			Hochiminh city
Nationality			Vietnamese
Resident			650/13 Dien Bien Phu Str, Ward 11, Dist 10, Hochiminh City
Office number			(84-8) 726 9474
Email			Tran-kim-thanh@hcm.vnn.vn
2. NAME			Mr. TRAN LE NGUYEN
position			General Director
Qualification			Bachelor
Indent. No.			023062528
Date of birth			October 12^th, 1968
Place of birth			Hochiminh city
Nationality			Vietnamese
Registered Resident			53 Nguyen Tieu La Str, Ward 5, Dist 10, Hochiminh city
Permanent resident			No. 203 Phu Gia, Phu My Hung, Tan Phong Ward, Dist 7, Hochiminh City
Note: Mr. Tran Le Nguyen is the younger brother of Mr. Tran Kim Thanh.
3. NAME			Ms. VUONG BUU LINH
Position			Deputy General Director (Material Department)
Qualification			Management
Date of birth			June 26^th, 1965
Place of birth			Hochiminh city
Nationality			Vietnamese
Resident			650/13 Dien Bien Phu Str., Ward 11, Dist 10, Hochiminh city
Office number			(84-8) 726 9474
4. NAME			Mr. WANG CHING HUA (VUONG CAM SANG)
Position			Deputy General Director (Production Department)
Date of birth			July 4^th, 1967
Place of birth			Vietnam
Nationality			Taiwanese
Resident			41/78 Str No 13, Ward 5, Go Vap Dist, Hochiminh city
Tel			(84-8) 727 0096
5. NAME			Mr. PATRICK HO LOKE YIN
Position			Deputy General Director
Date of birth			July 20^th, 1957
Place of birth			Singapore
Nationality			Singaporean
Resident			Binh Hoa Village, Lai Thieu Town, Thuan An Dist, Binh Duong Province
Office number			(84-8) 726 9474
Resident in Singapore			Block 268 A, BoonLay Drive # 07-582, Singapore 641268
6. NAME			Mrs. VUONG NGOC XIEM
Position			Deputy general Director (Auditing department)
Qualification			Management
Date of birth			November 25^th, 1962
Place of birth			Hochiminh city
Nationality			Vietnamese
Resident			53 Nguyen Tieu La Str., Dist 10, Hochiminh city
Permanent resident			No. 203 Phu Gia, Phu My Hung, Tan Phong Ward, Dist 7, Hochiminh City
Note: She is the wife of Mr. Tran Le Nguyen.
7. NAME			Mr. LE PHUNG HAO
Position			Deputy General Director (Public Relation Department)
Qualification			Bachelor
Date of birth			April 14^th, 1964
Place of birth			Hue city
Nationality			Vietnamese
Resident			120/17 Tran Dinh Xu Str., Nguyen Cu Trinh Ward, Dist 1, Hochiminh city
8. NAME			Mr. NGUYEN XUAN LUAN
Position			Deputy General Director (Trade department)
Qualification			Bachelor
Date of birth			November 8^th, 1967
Place of birth			Bac Giang Province
Nationality			Vietnamese
Resident			21 Str No. 7 Hoang Hoa Tham, ward 13, Tan Binh Dist, Hochiminh city
9. NAME			Mr. HUYNH TAN VU
Position			Chief accountant
Resident			Hochiminh City
Nationality			Vietnamese
BUSINESS NATURE AND ACTIVITIES
This subject specializes in producing and trading in confectionery including cookies, snacks, crackers, chocolate, candies, pipe, cake, and moon cake.
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject mainly uses domestic materials for producing and some are imported from several principal markets such as Japan, EU.
EXPORT: Till now, products of the Subject have been exported to about 30 countries all over the world, the main export markets of the Subject are USA and Japan
BANKERS
1. INDUSTRIAL AND COMMERCIAL BANK OF VIETNAM (INCOMBANK) BRANCH NO. 8
Address			No. 196 – 202 Hung Phu Str, Ward 8, Dist 8, Hochiminh city
Country			Vietnam
Tel			(84-8) 8598110 – 8598001
Fax			(84-8) 8596540
Swift			ICBVVNVX926
2. INDOVINA BANK (IVB)
Address			No. 36 Ton That Dam Str, Nguyen Thai Binh Ward, Dist 1, Hochiminh city, Vietnam
Tel			(84-8) 8224995 – 8230130
Fax			(84-8) 8230131
Swift			IABBVNVX
3. CHINA TRUST COMMERCIAL BANK
Address		No. 37 Ton Duc Thanh Str, Ben Nghe Ward, Dist 1, Hochiminh City
Country		Vietnam
Tel		(84-8) 9103890
Fax		(84-8) 9103891
Telex		811208CTCBVNVT
Swift		TCCBVNVX
4. HONGKONG SHANGHAI BANK CORPORATION (HSBC)
Address		No.235 Dong Khoi Str, Dist No.1, Hochiminh City
Telephone		(84-8) 829 2288
Fax		(84-8) 823 0530
Swift		HSBCVNVX
5. CITI BANK – BRANCH IN HOCHIMINH CITY
Address		No. 115 Nguyen Hue Str, Ben Nghe Ward, Dist 1, Hochiminh City
Country		Vietnam
Tel		(84-8) 8242118
Fax		(84-8) 8242267
6. BANK FOR INVESTMENT & DEVELOPMENT OF VIETNAM- HCM CITY BRANCH
Address			No. 134 Nguyen Cong Tru Str, Dist 1, Hochiminh city, Vietnam
Tel			(84-8) 8230125, 8297384
Fax			(84-8) 8298862
Swift			BIDVVNVX310
SHAREHOLDERS(S)
The Subject, Kinh Do Corporation is a listed company. Its shares are public sold. Following are the registered shareholders of the subject:
1. Current Name			KINH DO INVESTMENT COMPANY LIMITED
Vietnamese Name			CONG TY TNHH DAU TU DAU TU KINH DO
Former name			Kinh Do Food Processing and Construction Limited Company
Type of Business			Limited Liability Company
Established Decision			216/GP-UB
Issued on			February 27^th 1993
Issued by			People’s Committee of Ho Chi Minh City
Business registration			No.048307
Issued on			March 02^nd 1993
Issued by			Planning and Investment Department of Ho Chi Minh City
Registered Capital			110,000,000,000 VND
Tax Code			0301442121
Representative person			Ms. VUONG THU LE
ID No.			023024900
Resident			No.585 Tung Thien Vuong, Ward 12, Dist 8, Hochiminh City
Share			10.638%
2. NAME			Mr. CO GIA THO
ID Number			022031273
Resident			391/37A Hung Vuong, Ward 12, Dist 6, Hochiminh City
Nationality			Vietnamese
Share			0.532%
3. NAME			Mr. MA THANH DANH
ID Number			022457071
Resident			138/25 Nguyen Trai, Ward 3, Dist 5, Hochiminh City
Nationality			Vietnamese
Share			0.532%
4. NAME			Mr. TRAN KIM THANH
ID Number			022007873
Date of birth			July 7th, 1960
Place of birth			Hochiminh city
Nationality			Vietnamese
Resident			650/13 Dien Bien Phu Str, Ward 11, Dist 10, Hochiminh City
Email			Tran-kim-thanh@hcm.vnn.vn
Share			4.255%
5. NAME			Mr. TRAN LE NGUYEN
ID. No.			023062528
Date of birth			October 12^th, 1968
Place of birth			Hochiminh city
Nationality			Vietnamese
Registered Resident			53 Nguyen Tieu La Str, Ward 5, Dist 10, Hochiminh city
Permanent resident			No. 203 Phu Gia, Phu My Hung, Tan Phong Ward, Dist 7, Hochiminh City
Share			4.255%
6. NAME			Mr. TRAN QUOC DUNG
ID Number			022790441
Resident			106 Trieu Quang Phuc, Ward 12, Dist 6, Hochiminh City
Nationality			Vietnamese
Share			0.532%
7. NAME			Mr. TRAN QUOC NGUYEN
ID Number			022007871
Resident			53 Nguyen Tieu La Str, Ward 5, Dist 10, Hochiminh City
Nationality			Vietnamese
Share			1.598%
8. NAME			Mr. TRAN VINH NGUYEN
ID Number			022007875
Resident			53 Nguyen Tieu La Str, Ward 5, Dist 10, Hochiminh city
Nationality			Vietnamese
Share			1.489%
9. NAME			Mr. TRINH HIEU TU
ID Number			000230774
Resident			325 - 327 Ben Phu Lam, Ward 9, Dist 6, Hochiminh city
Nationality			Vietnamese
Share			0.532%
10. NAME			Ms. VUONG BUU DINH
ID Number			022381910
Resident			60/40 Tran Hung Dao, Ward 7, Dist 5, Hochiminh City
Nationality			Vietnamese
Share			0.532%
11. NAME			Mrs. VUONG BUU LINH
ID Number			022008216
Resident			650/13 Dien Bien Phu Str, Ward 11, Dist 10, Hochiminh city
Nationality			Vietnamese
Share			3.191%
12. NAME			Mr. VUONG NGOC XIEM
ID Number			021829287
Resident			53 Nguyen Tieu La Str, Ward 5, Dist 10, Hochiminh City
Nationality			Vietnamese
Share			3.191%
13. NAME			Mr. VUONG THU BINH
ID Number			021829286
Resident			361/6/4 A Nguyen Van Luong, Dist 6, Hochiminh City
Nationality			Vietnamese
Share			0.532%
PAYMENT HISTORY AND EXPERIENCES
Trade Morality			Fairly good
Liquidity			Good
Previous Payment Status			Good
Current Payment Status			Good
Past Financial Situation			Developed
Current Financial Situation			Good
Legal Action			No recorded
Bankruptcy			No recorded
Reputation			Good
Mode of Payment			Direct payment or through its corresponding bank. Foreign remittance by letter of credit (L/C), by telegraphic transfer (T/T)
Sales methods			Directly to clients & through its network agents.
FINANCIAL DATA
BALANCE SHEET
Unit: VND
Balance sheet date			30/9/2007	30/6/2007				31/3/2007
ASSETS
A – CURRENT ASSETS			589,480,709,299		440,181,037,932			454,111,617,725
I. Cash and cash equivalents			19,271,763,711		24,334,970,443			44,359,033,867
1.Cash			19,271,763,711		24,334,970,443			44,359,033,867
2.Cash equivalents			0		0			0
II. Short-term investments			131,844,262,908		80,562,810,908			91,429,369,239
1. Short-term investments			131,844,262,908		80,562,810,908			91,429,369,239
2. Provisions for devaluation of short-term investments			0		0			0
III. Accounts receivable			334,273,142,314		232,194,577,881			206,711,757,201
1. Receivable from customers			57,787,665,515		27,154,810,015			-
2. Prepayments to suppliers			191,826,930,808		134,112,635,826			-
3. Inter-company receivable			0		0			0
4. Receivable according to the progress of construction			0		0			0
5. Other receivable			84,748,012,837		71,016,598,886			0
6. Provisions for bad debts			(89,466,846)		(89,466,846)			-
IV. Inventories			95,802,944,123		91,859,486,313			101,485,851,432
1. Inventories			96,378,609,230		92,435,151,420			-
2. Provisions for devaluation of inventories			(575,665,107)		(575,665,107)			-
V. Other Current Assets			8,288,596,243		11,229,192,387			10,125,605,986
1. Short-term prepaid expenses			8,279,640,867		11,202,693,864			-
2. VAT to be deducted			-		17,543,147			-
3. Taxes and other accounts receivable from the State			8,955,376		8,955,376			-
4. Other current assets			0		0			0
B. LONG-TERM ASSETS			803,611,800,508		618,304,566,322			501,340,863,384
I. Long term account receivable			15,579,715,631		95,160,105,265			40,280,648,599
1. Long term account receivable from customers			0		0			0
2. Working capital in affiliates			0		0			0
3. Long-term inter-company receivable			15,579,715,631		95,160,105,265			-
4. Other long-term receivable			0		0			0
5. Provisions for bad debts from customers			340,334,839,837		250,924,462,602			251,507,544,832
II. Fixed assets			210,274,385,953		135,943,569,967			139,099,036,105
1. Tangible assets			322,552,474,082		238,384,356,105			234,647,137,416
Historical costs			(112,278,088,129)		(102,440,786,138)			(95,548,101,311)
Accumulated depreciation			23,972,227,945		25,609,173,849			27,180,452,880
2. Financial leasehold assets			34,758,862,354		34,758,862,354			36,124,000,222
Historical costs			(10,786,634,409)		(9,149,688,505)			(8,943,547,342)
Accumulated depreciation			91,283,220,383		83,886,898,632			84,511,898,631
3. Intangible assets			103,605,787,030		95,584,465,280			95,584,465,280
Initial costs			(12,322,566,647)		(11,697,566,648)			(11,072,566,649)
Accumulated amortization			14,805,005,556		5,484,820,154			716,157,216
4. Construction-in-progress			0		0			0
III. Investment property			0		0			0
Historical costs			0		0			0
Accumulated depreciation			0		0			0
IV. Long-term investments			445,631,129,452		270,153,882,867			207,086,554,365
1. Investments in affiliates			0		0			0
2. Investments in business concerns and joint ventures			28,705,459,452		26,529,212,867			-
3. Other long-term investments			416,925,670,000		243,624,670,000			-
4. Provisions for devaluation of long-term investments			0		0			0
VI. Other long-term assets			2,066,115,588		2,066,115,588			2,466,115,588
1. Long-term prepaid expenses			0		0			0
2. Deferred income tax assets			2,066,115,588		2,066,115,588			2,466,115,588
3. Other long-term assets			0		0			0
TOTAL ASSETS			1,393,092,509,807		1,058,485,604,254			955,452,481,109
LIABILITIES
A- LIABILITIES			666,114,184,864		429,584,287,434		330,662,940,743
I. Current liabilities			580,697,516,277		380,073,973,009		283,674,879,419
1. Short-term debts and loans			410,707,770,667		234,266,604,268		-
2. Payable to suppliers			106,104,867,864		94,114,004,161		-
3. Advances from customers			25,971,154,403		33,437,060,268		-
4. Taxes and other obligations to the State Budget			12,096,302,076		4,830,989,976		-
5. Payable to employees			5,473,336,939		1,832,099,677		-
6. Accrued expenses			11,471,673,072		3,236,571,034		-
7. Inter-company payable			0		0		0
8. Payable according to the progress of construction contracts			0		0		0
9. Other payable			8,872,411,256		8,356,643,625		-
10. Provisions for short-term accounts payable			0		0		0
II. Long-Term Liabilities			85,416,668,587		49,510,314,425		46,988,061,324
1. Long-term accounts payable to suppliers			0		0		0
2. Long-term inter-company payable			0		0		0
3. Other long-term payable			0		0		0
4. Long-term debts and loans			74,223,186,969		37,923,186,967		-
5. Deferred income tax payable			0		11,587,127,458		-
6. Provisions for unemployment allowances			11,193,481,618		0		0
7. Provisions for long-term accounts payable			0		0		0
B- OWNER'S EQUITY			726,978,324,943		628,901,316,820		624,789,540,366
I. Owner's equity			726,954,580,813		628,569,552,689		624,029,096,235
1. Capital			379,996,650,000		369,996,650,000		299,999,800,000
2. Share premiums			123,844,881,955		123,844,881,956		123,844,881,955
3. Other sources of capital			0		0		0
4. Treasury stocks			(172,326,400)		(172,326,400)		(94,464,000)
5. Differences on asset revaluation			0		0		0
6. Foreign exchange differences			(896,301,730)		(881,805,730)		(881,805,730)
7. Business promotion fund			13,862,280,515		13,862,280,515		13,862,280,515
8. Financial reserved fund			14,284,635,752		14,284,635,752		14,284,635,752
9. Other funds			5,494,430,550		5,494,430,550		5,494,430,550
10.Retained earnings			190,540,330,171		102,140,806,046		167,519,337,193
11. Construction investment fund
II. Other sources and funds			23,744,131		331,764,131		760,444,131
1. Bonus and welfare funds			23,744,131		331,764,131		760,444,131
2. Sources of expenditure			0		0		0
3. Fund to form fixed assets			0		0		0
TOTAL LIABILITIES AND OWNER'S EQUITY			1,393,092,509,807		1,058,485,604,254		955,452,481,109
PROFIT & LOSE STATEMENT
Description			3^rd Q 2007		2^nd Q 2007		1^st Q 2007
Revenue			408,180,588,674		233,488,303,721		226,738,215,661
Deductions Items			462,737,984		606,858,245		345,840,250
Net Revenue			407,717,850,690		232,881,445,476		226,392,375,411
Costs of goods sold			264,532,281,854		189,892,936,204		168,667,766,384
Gross profit			143,185,568,836		42,988,509,272		57,724,609,027
Financial income			2,754,106,354		9,947,612,273		20,788,316,555
Financial expenses			7,317,558,092		7,429,214,245		6,770,757,027
In which: Loan interest expenses			7,238,372,372		6,661,164,854		-
Selling expenses			31,625,908,869		18,476,257,745		14,099,115,629
Administrative overheads			18,568,844,012		14,933,278,557		14,139,129,062
Net operating profit			88,427,364,217		12,097,370,998		43,503,923,864
Other income			2,141,613,315		7,470,564,850		5,443,877,674
Other expenses			906,433,871		832,589,498		1,522,705,325
Other profit /(loss)			1,235,179,444		6,637,975,352		3,921,172,349
Profit (loss) from joint venture company			2,176,246,585		5,902,658,503		1,009,624,962
Total accounting profit before tax			91,838,790,246		24,638,004,853		48,434,721,175
Current corporate income tax			-		-		-
Deferred corporate income tax			-		-		-
Profit after tax			91,838,790,246		24,638,004,853		48,434,721,175
Following is the financial statement of the Subject in the year 2006 & 2005
BALANCE SHEET
Unit: 01 VND
Balance sheet date						31/12/2006			31/12/2005
Number of weeks						52			52
ASSETS
A -	CURRENT ASSETS					492,325,980,589			380,346,230,532
I.	Cash and cash equivalents					50,825,784,725			44,723,601,059
1.	Cash					50,825,784,725			44,723,601,059
2.	Cash equivalents					0			0
II.	Short-term investments					92,109,378,674			29,808,299,961
1.	Short-term investments					92,109,378,674			29,808,299,961
2.	Provisions for short-term investment of short- term investments in securities					0			0
III.	Accounts receivable					230,211,462,652			215,988,827,260
1.	Receivable from customers					37,673,456,786			54,829,223,181
2.	Repayments to suppliers					117,800,879,170			108,042,112,425
3.	Value-added tax deducted					0			0
4.	Inter- company receivable					0			0
5.	Receivable according to the process of construction contracts					74,826,593,542			53,117,491,654
6.	Other receivable					0			0
7.	Provisions for bad debts					-89,466,846			0
IV.	Inventories					118,848,909,650			65,952,989,048
1.	Inventories					118,848,909,650			65,952,989,048
2.	Provisions for devaluation of inventories					0			0
V.	Other current assets					330,444,888			23,872,513,204
1.	Short-term repaid expenses					321,487,290			21,946,035,060
2.	Taxes receivable					2,222			1,926,478,144
3.	Other current assets					8,955,376			0
B -	LONG TERM ASSETS					439,925,315,695			403,901,265,818
I.	Long term accounts receivable					666,868,000			25,103,898,428
1.	Long term accounts receivable from customers					0			0
2.	Long term inter- company receivable					0			0
3.	Other long term receivable					666,868,000			25,103,898,428
4.	Provisions for bad debts					0			0
II.	Fixed assets					259,749,402,934			227,554,408,778
1.	Tangible assets					141,744,558,854			135,028,686,600
	Original costs					229,977,201,701			193,011,151,293
	Accumulated depreciation					88,232,642,847			57,982,464,693
2.	Financial leasehold assets					32,397,755,865			50,432,947,157
	Original costs					41,107,675,510			57,568,885,382
	Accumulated depreciation					8,709,919,645			7,135,938,225
3.	In-tangible assets					85,328,908,173			42,092,775,021
	Original costs					95,776,474,823			50,030,900,000
	Accumulated depreciation					10,447,566,650			7,938,124,979
4.	Construction in progress					278,180,042			0
III.	Investment property					0			0
	History costs					0			0
	Accumulated depreciation					0			0
IV.	Long term investments					179,509,044,761			131,349,740,089
1.	Investments in affiliates					0			0
2.	Investments in business concerns and joint ventures					22,899,044,761			18,749,740,089
3.	Other long term investments					156,610,000,000			112,600,000,000
4.	Provisions for devaluation of investments in securities					0			0
V.	Other long term assets					0			19,893,218,523
1.	Long term repaid expenses					0			19,893,218,523
2.	Deferred income tax					0			0
3.	Other long term assets					0			0
	TOTAL ASSETS					932,251,296,284			784,247,496,350
LIABILITIES
A -	LIABILITIES					336,535,572,463			269,845,499,640
I.	Short term liabilities					278,339,406,351			207,989,817,546
1.	Short term debts and loans					148,341,462,807			74,469,086,901
2.	Payable to suppliers					97,447,055,798			97,150,446,289
3.	Advances from customers					5,834,744,572			3,755,491,077
4.	Taxes and other obligations to the State Budget					6,538,457,945			16,090,519,227
5.	Payable to employees					5,090,251,760			4,120,349,642
6.	Accrued expenses					1,441,935,150			1,507,427,405
7.	Inter- company payable					0			0
8.	Payable according to the progress of construction contracts					13,645,498,319			10,896,497,005
9.	Other payables					0			0
II.	Long term liabilities					58,196,166,112			61,855,682,094
1.	Long term account payable to suppliers					0			0
2.	Long term inter- company payable					57,789,148,271			61,855,682,094
3.	Other long term payable					0			0
4.	Long term debts and loans					407,017,841			0
5.	Deferred income tax					0			0
B -	OWNER’S EQUITY					595,715,723,821			514,401,996,710
I.	Owner’s equity					590,007,263,680			509,729,217,345
1.	Capital					299,999,800,000			250,000,000,000
2.	Share premiums					123,844,881,955			123,844,881,955
3.	Treasury stocks					-94,464,000			0
4.	Differences on asset re-valuation					0			0
5.	Foreign exchange differences					0			0
6.	Business promotion fund					13,862,280,515			5,907,849,859
7.	Financial reserved fund					14,284,635,752			6,330,205,096
8.	Other funds					5,494,430,550			0
9.	Retained earnings					132,615,698,908			123,646,280,435
II.	Other sources and funds					5,708,460,141			4,672,779,365
1.	Bonus and welfare funds					5,708,460,141			4,672,779,365
2.	Sources of expenditure					0			0
3.	Funds to form fixed assets					0			0
	TOTAL LIABILITIES AND OWNER’S EQUITY					932,251,296,284			784,247,496,350
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
	Items					F/Y 2006			F/Y 2005
1.	Sales					1,009,017,684,999			803,692,309,764
2.	Deductions					3,717,543,687			4,941,736,661
3.	Net sales					1,005,300,141,312			798,750,573,103
4.	Costs of goods sold					719,668,793,732			568,689,189,894
5.	Gross profit					285,631,347,580			230,061,383,209
6.	Financial income					47,464,109,883			4,953,686,233
7.	Financial expenses					21,721,405,752			18,098,846,666
	- In which : Loan interest expenses					14,526,836,357			15,335,402,264
8.	Selling expenses					96,372,382,725			63,684,421,157
9.	Administrative overheads					62,435,504,711			51,234,589,991
10.	Net operating profit					152,566,164,275			101,997,211,628
11.	Other income					8,934,279,389			11,565,749,824
12.	Other expenses					4,969,457,523			5,169,665,491
13.	Other profits					3,964,821,866			6,396,084,333
14.	Profit (loss) from joint venture company					4,149,304,672			3,636,924,774
15.	Total Profit (loss) before tax					160,680,290,813			112,030,220,735
16.	Income tax					0			12,855,605,588
17.	Total Profit (loss) after tax					160,680,290,813			99,174,615,147
FINANCIAL FACTORS
Description						FY 2006			FY 2005
Current Liquidity Ratio						1.77			1.83
Quick Liquidity Ratio						1.34			1.51
Inventory Circle						7.79			8.62
Average Receive Period						83.58			98.70
Utilizing Asset Performance						1.08			1.02
Liability / Total Asset (%)						36.10			34.41
Liability / Owner's Equity (%)						56.49			52.46
Income Before Tax / Total Asset (%) ROA						17.24			14.29
Income Before Tax / Owner's Equity (%) ROE						26.97			21.78
Income Before Tax / Total Revenue (%) NPM						15.92			13.94
Gross Profit / Total Revenue (%) GPM						28.31			28.63
INTERPRETATION ON THE SCORES
Kinh Do Corporation is a joint stock company which was officially established in 2002 with current registered capital of 470 billion VND. The Subject Company is located at the same address with Kinh Do Investment Company Limited (Former Kinh Do Food Processing & Construction Co., Ltd) and has the same management board. Kinh Do Investment Company Limited is regarded as the parent of Kinh Do group of companies. Kinh Do Corporation is specialized in confectionary fields with 06 kinds of products: snacks, cookies, crackers, fresh cakes (sweet breads, sponge cakes, and moon cakes), baked cakes (gatos, cookies, and pies), chocolate candies, and various kinds of candy. Kinh Do is one of few successful local food brands. The company reported a 22 percent rise in net profit in 2005 to VND 91.1 billion. And in 2006 the revenue was up 125%, the profit after tax was higher more 160% than 2005. The profit after tax in 3^rd quarter 2007 is 91,838,790,246 VND, increased 272.75 percent in comparison with in 2^nd quarter 2007 (24,638,004,853 VND). Currently, Kinh Do's distributor systems include 200 distributors and nearly 65.000 retail stores that spread out in all 64 provinces and cities in Vietnam. They gained 80% turnover of the subject. To expand its operations nationwide, Kinh Do has begun to franchise its Kinh Do bakery, allowing businesses to open and run franchised shops under its supervision. The company currently has 24 bakeries in Hanoi and Hochiminh city. It targets 100 new bakeries in the next three years. The company's products have exported to 30 markets in the world such as USA, Europe, Australia, The Middle- East, Singapore, and Taiwan. Currently, in comparison with other manufacturers' products, Kinh Do's products are sold from average to fairly high price. Products of Hai Ha company, Hai Chau company, Quang Ngai sugar company, BIBICA ... are sold with lower prices. Besides these companies, Kinh Do is facing with hard competitions with foreign invested competitors such as VINABICO-KOTOBUKI joint venture and Perfetti Vietnam company. Kinh Do's products hold up about 10% inland produced confectionary. At present, this field in Vietnam is still wide because inland production is only satisfied approximately 47% the country needs. Annually, the country imports many products from foreign countries such as Thailand, Malaysia, Indonesia, Hong Kong and China. Vietnam Opportunity Fund (VOF, VF1, Prodential, Citigroup Global Market Ltd & Citigroup Market Financial Products Ltd, Seletar Investment Pte Ltd are some of the subject foreign shareholders.
In the year 2007, Kinh do corporation has real estate investment projects of: Investing 70 percent of total investment in projects of Apartment Building at Hiep Binh Phuoc (Thu Duc district) and Le Loi Office Building. Investing 30 percent of total investment in the project of Cong Hoa Garden. Besides, the subject will invest in the projects of Nguyen Binh Khiem complex Building, Vimec complex building, Tao Dan Complex. In the next time, the subject intends to merge Kido Corporation before first quarter of 2008, then to merge North Kinh Do Food Joint Stock Company.
To be rated at A, The company has STRONG capacity to meet its financial commitments.
CREDIT INQUIRY: 5,000,000 USD
The Subject has capacity to meet this credit inquiry.

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