MIRA INFORM REPORT

Report Date :

05.11.2008

IDENTIFICATION DETAILS

Name :	ASIA NUTRITION TECHNOLOGIES (VN) COMPANY LIMITED
Formerly Known As :	CHINFON LIVESTOCK COMPANY LIMITED
Registered Office :	Song May Processing Zone, Bac Son Hamlet, Trang Bom Dist, Dong Nai Province
Country :	Vietnam
Financials (as on) :	31.12.2007
Date of Incorporation :	14.05. 2008
Legal Form :	100% Foreign Invested Enterprise
Line of Business :	Manufactured of Animal Feed, Seafood, Additive for Animal Feed and Seafood, Medicine for Animal

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 :	Good
Payment Behaviour :	No Complaints
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
Current English Name	ASIA NUTRITION TECHNOLOGIES (VN) COMPANY LIMITED
Current Vietnamese Name	CONG TY TNHH DINH DUONG A CHAU
Abbreviated Name	ANT (VN)
Former English Name	CHINFON LIVESTOCK COMPANY LIMITED
Former Vietnamese Name	CONG TY SUC SAN CHINFON
Type of business	100% Foreign Invested Enterprise
New Investment License	No.472043000470
Issuance on	May, 14^th 2008
Issuance by	Management board of Industrial Zones of Dong Nai Province
Former Investment License	No. 1219/GP
Issuance on	April 29^th, 1995
Issuance by	Ministry of Planning and Investment
Investment Capital	USD 23,000,000
Legal Capital	USD 6,903,100
Investment Duration	50 years
Tax code	3600233805
Total Employees	586 employees
ADDRESSES
Head Office and factory:
Current Address	Song May Processing Zone, Bac Son Hamlet, Trang Bom Dist, Dong Nai Province
Former Address	Song May Industrial Zone, Bac Son Hamlet, Thong Nhat Dist, Dong Nai Province
Country	Vietnam
Tel	(84-61) 3869111 - 3869235
Fax	(84-61) 3869110 – 3869202 – 3968077
Email	Antfinance@hcm.vnn.vn
Note: The current address of the subject is only changed at name of the district because of splitting districts of the State. In fact, the subject is still located at the same place.
RELATED COMPANIES
The subject invested 100% investment capital to ASIA NUTRITION TECHNOLOGIES (LA) COMPANY LIMITED (ANT (LA) Co., Ltd). Mr. Chang Yu Lung – general director of the subject is also the general director of this company. Following is information of ANT (LA) CO., LTD.
English Name	ASIA NUTRITION TECHNOLOGIES (LA) COMPANY LIMITED
Vietnamese name	CONG TY TNHH ANT (LA)
Abbreviation name	ANT (LA) CO., LTD
Founded	2007
Type of Business	Liability Limited Company
Investment License	No.501043000028
Issuance on	April 17^th, 2007
Issuance by	Long An Industrial Zones Authority
Investment Capital	USD 9,000,000
Legal Capital	USD 3,000,000
Tax code	1100780073
Capacity	300,000 tons per annum
The subject and ASIA NUTRITION TECHNOLOGIES (HN) COMPANY LIMITED (ANT (HN) Co., Ltd) have the same investor named ASIA NUTRION TECHNOLOGIES (VN) INVESTMENT CO., LTD. Following is information of ANT (HN) Co., Ltd.
English Name	ASIA NUTRITION TECHNOLOGIES (HN) COMPANY LIMITED
Vietnamese name	CONG TY TNHH ANT (HN)
Abbreviation name	ANT (HN) CO., LTD
Founded	2003
Investment License	No.30/GP-HD
Issuance on	January 22^nd 2003
Issuance by	Hai Duong People’s Committee
Investment Capital	USD 10,000,000
Legal Capital	USD 3,000,000
Tax code	0800274232
Address	Tan Truong Industrial Zone, Cam Giang Dist, Hai Duong province
Tel / Fax	(84-320) 3785123/ 3785122
DIRECTORS
1. NAME	Mr. CHANG YU LUNG
Position	General Director
Date of birth	1957
Qualification	Management
Experience	12 years
Nationality	Taiwanese
2. NAME	Mr. CHANG CHING CHIA
Position	Deputy General Director (In charge of business and purchasing)
Qualification	Bachelor
Nationality	Chinese
BUSINESS NATURE AND ACTIVITIES
The subject registers and operates in the following business activities: - Manufactured of animal feed, seafood, additive for animal feed and seafood, medicine for animal
IMPORT & EXPORT ACTIVITIES
IMPORT: The main materials source of the subject is imported from the parent company of the Subject and in India, USA, Brazil, Malaysia, Indonesia, Sri Lanka, Taiwan (70 percent) and also purchased in domestic market.
EXPORT: Formerly, the subject exported to Laos and Combodia, but now, it main exports to Cambodia and a little to Taiwan.
Products and Brands: - Products: kinds of feeds for cattle, poultry, shrimp and fish - Brand name: NUPAK, DACHAN, REDSTAR, NUBOSS, and NU-HI
BANKERS
1. ANZ BANK
Address	No. 11, Me Linh Square, Ben Nghe Ward, Dist 1, Hochiminh city
Country	Vietnam
Tel	(84-8) 8299319
Fax	(84-8) 8299316
2. MEGA INTERNATIONAL COMMERCIAL BANK
Address	No. 5B Ton Duc Thang, Dist 1, Hochiminh city
Country	Vietnam
Tel	(84-8) 8225697
Fax	(84-8) 8229191
3. CHINA TRUST COMMERCIAL BANK
Address	No. 37, Ton Duc Thang Str, Ben Nghe Ward, Dist 1, Hochiminh city
Country	Vietnam
Tel	(84-8) 9103890
Fax	(84-8) 9103891
4. FAR EAST NATIONAL BANK
Address	Sai Gon Riverside Trade building, No.2A-4A, Ton Duc Thang Str, Dist 1, Hochiminh city
Country	Vietnam
Note: Besides, the subject also has transaction with HSBC Bank, Bangkok Bank…
SHAREHOLDER(S)
The subject is a foreign invested company. Following is its investor in legal document:
Name	ASIA NUTRITION TECHNOLOGIES (VN) INVESTMENT CO., LTD
Registered Address	Suite 1010A, Tower 2, China Hong Kong City, 33 Canton Road, Tsimshatsui, Kowloon, Hongkong
Ratio	100%
FINANCIAL DATA
BALANCE SHEET
Unit: VND in Million
Balance sheet date		31/12/2007	31/12/2006	31/12/2005
Number of weeks		52	52	52
ASSETS
A – CURRENT ASSETS		543,898	301,209	206,505
I. Cash and cash equivalents		62,522	38,102	26,446
1.Cash		62,522	38,102	26,446
2.Cash equivalents		0	0	0
II. Short-term investments		0	0	0
1. Short-term investments		0	0	0
2. Provisions for devaluation of short-term investments		0	0	0
III. Accounts receivable		120,103	48,977	42,138
1. Receivable from customers		39,215	45,036	37,142
2. Prepayments to suppliers		2,018	619	487
3. Value-added tax deducted		49,760	1,999	0
4. Inter-company receivable		0	0	2,701
5. Other receivable		33,913	5,526	4,530
6. Provisions for bad debts		-4,803	-4,203	-2,722
IV. Inventories		352,284	206,887	135,035
1. Inventories		352,284	206,887	135,035
2. Provisions for devaluation of inventories		0	0	0
V. Other Current Assets		8,989	7,243	2,886
1. Short-term prepaid expenses		1,003	-	-
2. VAT to be deducted		7,773	-	-
3. Taxes and other accounts receivable from the State		213	-	-
4. Other current assets		0	-	-
B. LONG-TERM ASSETS		168,838	117,349	82,028
I. Long term account receivable		0	0	0
1. Long term account receivable from customers		0	0	0
2. Working capital in affiliates		0	0	0
3. Long-term inter-company receivable		0	0	0
4. Other long-term receivable		0	0	0
5. Provisions for bad debts from customers		0	0	0
II. Fixed assets		120,302	92,272	82,028
1. Tangible assets		116,052	90,158	79,602
Historical costs		196,800	157,918	137,636
Accumulated depreciation		-80,748	-67,760	-58,034
2. Financial leasehold assets		0	0	0
Historical costs		0	0	0
Accumulated depreciation		0	0	0
3. Intangible assets		1,986	2,114	2,375
Initial costs		4,273	4,124	4,125
Accumulated amortization		-2,287	-2,010	-1,750
4. Construction-in-progress		2,264	0	51
III. Investment property		0	0	0
Historical costs		0	0	0
Accumulated depreciation		0	0	0
IV. Long-term investments		48,000	24,609	0
1. Investments in affiliates		48,000	0	0
2. Investments in business concerns and joint ventures		0	24,609	0
3. Other long-term investments		0	0	0
4. Provisions for devaluation of long-term investments		0	0	0
VI. Other long-term assets		536	468	0
1. Long-term prepaid expenses		0	468	0
2. Deferred income tax assets		536	0	0
3. Other long-term assets		0	0	0
TOTAL ASSETS		712,736	418,558	288,533
LIABILITIES
A- LIABILITIES		506,342	283,161	204,734
I. Current liabilities		504,004	263,424	193,405
1. Short-term debts and loans		247,024	146,490	126,422
2. Payable to suppliers		155,890	51,169	35,850
3. Advances from customers		2,616	1,287	977
4. Taxes and other obligations to the State Budget		81	179	2,660
5. Payable to employees		1,507	1,200	836
6. Accrued expenses		51,528	0	0
7. Inter-company payable		3,668	24,340	3,738
8. Payable according to the progress of construction contracts		0	0	0
9. Other payable		41,690	38,759	22922
10. Provisions for short-term accounts payable		0	0	0
II. Long-Term Liabilities		2,338	19,737	11,329
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		0	19,737	11,329
5. Deferred income tax payable		0	0	0
6. Provisions for unemployment allowances		2,338	0	0
7. Provisions for long-term accounts payable		0	0	0
B- OWNER'S EQUITY		206,394	135,397	83,799
I. Owner's equity		206,394	135,397	83,799
1. Capital		76,931	76,931	76,931
2. Share premiums		0	0	0
3. Other sources of capital		0	0	0
4. Treasury stocks		0	0	0
5. Differences on asset revaluation		0	58,466	0
6. Foreign exchange differences		0	0	0
7. Business promotion fund		0	0	0
8. Financial reserved fund		0	0	0
9. Other funds		0	0	0
10.Retained earnings		129,463	0	6,868
11. Construction investment fund		0	0	0
II. Other sources and funds		0	0	0
1. Bonus and welfare funds		0	0	0
2. Sources of expenditure		0	0	0
3. Fund to form fixed assets		0	0	0
TOTAL LIABILITIES AND OWNER'S EQUITY		712,736	418,558	288,533
PROFIT & LOSE STATEMENT
Description		FY 2007	FY 2006	FY 2005
Revenue		1,571,842	1,092,241	765,067
Deductions Items		133,847	84,718	43,814
Net Revenue		1,437,995	1,007,523	721,253
Costs of goods sold		1,285,143	894,322	636,583
Gross profit		152,852	113,201	84,670
Financial income		3,134	709	398
Financial expenses		21,614	7,992	9,069
In which: Loan interest expenses		0	0	0
Selling expenses		38,710	37,450	37,856
Administrative overheads		19,997	13,878	20,849
Net operating profit		75,665	54,590	17,294
Other income		2,299	3,124	1,620
Other expenses		1,210	155	1,320
Other profit /(loss)		1,089	2,969	300
Total accounting profit before tax		76,754	57,559	17,594
Current corporate income tax		5,825	0	2,132
Deferred corporate income tax		68	0	0
Profit after tax		70,997	57,559	15,462
FINANCIAL FACTORS
Description		2007	2006	2005
Current liquidity ratio		1.08	1.14	1.07
Quick Liquidity ratio		0.38	0.36	0.37
Inventory circle		4.60	5.23	4.71
Average receive period		30.49	17.74	21.32
Utilizing Asset Performance		2.02	2.41	2.50
Liability/ Total Asset (%)		71.04	67.65	70.96
Liability/ Owner's equity (%)		245.33	209.13	244.32
EBIT / Total asset (%) ROA		10.77	13.75	6.10
EBIT Owner's equity (%) ROE		37.19	42.51	21.00
EBIT / Total revenue (%) NPM		4.88	5.27	2.30
Gross Profit / Total revenue (%) GPM		9.72	10.36	11.07
PAYMENT HISTORY AND EXPERIENCES
Trade Morality	Fairly good
Liquidity	Average
Payment status	Relative
Financial Situation	Developing
Development trend	Up trend
Litigation data	No recorded
Bankruptcy	No recorded
Payment Methods	L/C, T/T
Sale Methods	Directly or through agents, retailers, etc.
INTERPRETATION ON THE SCORES
The subject was established in 1995 under the investment license no. 1219/GP. It is specialized in the manufacture of animal feed, seafood, additive for animal feed and seafood, medicine for animal. In May 2008, the subject’s investment license was registered to fit new law of Vietnam with the new investment license no. 472043000470. The subject was invested by ASIA NUTRITION TECHNOLOGIES (VN) INVESTMENT CO., LTD, which belonged to Great Wall Enterprise (Taiwan). Besides, the subject’s parent company also invested to ASIA NUTRITION TECHNOLOGIES (HN) CO., LTD in Hai Duong province. The production capacity of the subject is very high. This amount is about 60,000 tons per year. It has become a strong competitor to others in the same field in the South of Vietnam now. The business scales of these companies are fairly big. The premises and facilities of the subject are fairly good. The subject is located in Song May industrial zone - Dong Nai province, occupying more than 47,000 m^2, therein 22,500m^2 is floor space with three workshops at that location. The subject is equipped with modern machines. Its products are high quality and are highly evaluated by customer. In 2007, the subject invested to establish a subsidiary in Long An province with the name ASIA NUTRITION TECHNOLOGIES (LA) CO., LTD and total investment capital is 9,000,000 USD. In 2005, the subject received the award “Vietnamese High Quality Product”. The market share is increased. The subject’s products are now distributed in domestic market mainly in the South of Vietnam. The subject’s management capacity is fairly good. Now, it has total nearly 600 employees. As far as the balance sheet is concerned, the total Asset and Liability increased gradually over three continuing years. It shows that the subject expanded the scale year after year. As for the Profit and loss statement, the subject earned 1,571,842 million VND in revenue in the year 2007. Another striking feature is that, there was a significant increase in the profit after tax of 70,997 million VND in comparison with 57,559 million in 2006 and 15,462 million VND in 2005. It improved the subjects business operation was highly efficient. As can be seen from the financial factors, most of factors were changed a little between years. In general, they were moderately good compared with the industry. In conclusion, the subject is a strong enterprise operating regularly and having good developing potential. The subject is capable to meet normal financial commitments. No caution needed for normal business transactions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.47.18
UK Pound	1	Rs.75.05
Euro	1	Rs.60.89

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%)

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