MIRA INFORM REPORT

Report Date :

24.01.2011

IDENTIFICATION DETAILS

Name :	HA LONG EXPORT SEAFOOD PROCESSING JOINT STOCK COMPANY

Registered Office :	No. 178 Le Thanh Tong, May Chai Ward - Ngo Quyen District - Hai Phong City

Country :	Vietnam

Financials (as on) :	31.12.2009

Date of Incorporation :	18.09.2010

Com. Reg. No.:	0200682800

Legal Form :	Joint Stock Company

Line of Business :	Purchasing, processing of aquatic products and food types

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2010

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

Vietnam

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

SUBJECT IDENTIFICATION & LEGAL FORM

Current legal status
English Name		HA LONG EXPORT SEAFOOD PROCESSING JOINT STOCK COMPANY
Vietnamese Name		CONG TY CO PHAN CHE BIEN THUY SAN XUAT KHAU HA LONG
Short name		HA LONG SEAFOCO
Type of Business		Joint stock company
Year Established		2006
Business Registration No.		0200682800
Date of Registration		18 Sep 2010
Place of Registration		Hai phong Planning and Investment Department
Current registered capital		6,898,811,688 VND
Status		Unlisted
Total Employees		100

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Business Registration No: 0203002469, granted on 28 July 2006 Changed to: 0200682800, (same to the tax code number according to the new law of Vietnam)	18 Sep 2010

company ADDRESSES

Head Office
Address		No. 178 Le Thanh Tong, May Chai Ward - Ngo Quyen District - Hai Phong City - Vietnam
Telephone		(84-31) 3837369/ 3827866
Fax		(84-31) 3767 085
Email		mien_thuysan_hl@hn.vnn.vn
Website		www.mienseapro.com

Representative office in Ha Noi
Address		No. 23 - Alley 43/125 Group 9 - Trung Hoa Ward - Cau Giay District - Ha Noi City - Vietnam

DIRECTORS

1 . NAME		Mr. NGUYEN HUU MIEN
Position		Director
Date of Birth		27 Sep 1961
ID Number/Passport		030912233
Resident		No. 178 Le Thanh Tong, May Chai Ward - Ngo Quyen District - Hai Phong City - Vietnam
Nationality		Vietnamese
Tel/Mobil phone		+84 903408215

2 . NAME		Ms. LE THI GAI
Position		Deputy Director
ID Number/Passport		150506800
Resident		No. 178 Le Thanh Tong, May Chai Ward - Ngo Quyen District - Hai Phong City - Vietnam
Nationality		Vietnamese
Tel/Mobil phone		++84 983 827 866

3 . NAME		Mr. PHAM DANG QUYNH
Position		Deputy Director
Nationality		Vietnamese

BUSINESS NATURE AND ACTIVITIES

- Purchasing, processing of aquatic products and food types.
- Business fisheries, food and agricultural products.
Besides, the subject registered business line:
- Trading iron, steel
- Trading cement;
- Trading chemical
- etc

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products		Material
· Market		China, Taiwan, Korea, Japan
· Ratio		N/A
· Mode of payment		TTR

EXPORT:
· Types of products		Finished Products
· Market		China
· Ratio		N/A
· Mode of payment		TTR

BANKERS

BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM HAI PHONG BRANCH
Address		No. 68-70 Dien Bien Phu - Hong Bang District - Hai Phong City - Vietnam
Telephone		(84-31) 3841475
Fax		(84-31) 3841060

SHAREHOLDERS

1 . NAME		Mr. NGUYEN HUU MIEN
Position		Director
Date of Birth		27 Sep 1961
ID Number/Passport		030912233
Issued on		16 Apr 2010
Issued Place		Police Station of Haiphong City
Resident		No. 178 Le Thanh Tong May Chai Ward - Ngo Quyen District - Hai Phong City - Vietnam
Nationality		Vietnamese
Number of Shares		371,766
Value of shares		4,159,320,000 VND
Percentage		60.29%

2 . NAME		Ms. LE THI GAI
Position		Deputy Director
ID Number/Passport		150506800
Resident		No. 178 Le Thanh Tong May Chai Ward - Ngo Quyen District - Hai Phong City - Vietnam
Nationality		Vietnamese
Number of Shares		209,308
Value of shares		2,341,740,000 VND
Percentage		33.94%

3 . NAME		Ms. NGUYEN THI HIEN
ID Number/Passport		031180163
Resident		No. 178 Le Thanh Tong May Chai Ward - Ngo Quyen District - Hai Phong City - Vietnam
Nationality		Vietnamese
Number of Shares		35,552
Value of shares		397,760,000 VND
Percentage		5.77%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2009	31/12/2008
Number of weeks	52	52
ASSETS
A – CURRENT ASSETS	32,098,067,354	29,304,293,978
I. Cash and cash equivalents	173,133,613	827,050,035
1. Cash	173,133,613	827,050,035
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	5,161,402,902	4,030,418,157
1. Receivable from customers	4,814,923,542	3,529,804,347
2. Prepayments to suppliers	346,479,360	500,613,810
3. Inter-company receivable	0	0
4. Receivable according to the progress of construction	0	0
5. Other receivable	0	0
6. Provisions for bad debts	0	0
IV. Inventories	26,678,253,146	24,416,428,252
1. Inventories	26,678,253,146	24,416,428,252
2. Provisions for devaluation of inventories	0	0
V. Other Current Assets	85,277,693	30,397,534
1. Short-term prepaid expenses	0	0
2. VAT to be deducted	0	0
3. Taxes and other accounts receivable from the State	85,277,693	30,397,534
4. Other current assets	0	0
B. LONG-TERM ASSETS	3,593,190,821	3,811,952,337
I. Long term account receivable	0	0
1. Long term account receivable from customers	0	0
2. Working capital in affiliates	0	0
3. Long-term inter-company receivable	0	0
4. Other long-term receivable	0	0
5. Provisions for bad debts from customers	0	0
II. Fixed assets	3,239,165,665	3,180,292,423
1. Tangible assets	3,239,165,665	3,180,292,423
- Historical costs	3,812,663,090	3,598,005,948
- Accumulated depreciation	-573,497,425	-417,713,525
2. Financial leasehold assets	0	0
- Historical costs	0	0
- Accumulated depreciation	0	0
3. Intangible assets	0	0
- Initial costs	0	0
- Accumulated amortization	0	0
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
V. Other long-term assets	354,025,156	631,659,914
1. Long-term prepaid expenses	0	0
2. Deferred income tax assets	0	0
3. Other long-term assets	354,025,156	631,659,914
TOTAL ASSETS	35,691,258,175	33,116,246,315
LIABILITIES
A- LIABILITIES	31,299,241,775	29,231,358,010
I. Current liabilities	31,215,147,298	29,186,693,980
1. Short-term debts and loans	10,758,000,000	13,158,000,000
2. Payable to suppliers	16,347,912,271	15,485,540,607
3. Advances from customers	3,737,003,854	198,936,199
4. Taxes and other obligations to the State Budget	232,702,606	181,749,738
5. Payable to employees	89,428,981	132,206,875
6. Accrued expenses	0	0
7. Inter-company payable	0	0
8. Payable according to the progress of construction contracts	0	0
9. Other payable	50,099,586	30,260,561
10. Provisions for short-term accounts payable	0	0
II. Long-Term Liabilities	84,094,477	44,664,030
1. Long-term accounts payable to suppliers	0	0
2. Long-term inter-company payable	0	0
3. Other long-term payable	0	0
4. Long-term debts and loans	0	0
5. Deferred income tax payable	0	0
6. Provisions for unemployment allowances	84,094,477	44,664,030
7. Provisions for long-term accounts payable	0	0
B- OWNER’S EQUITY	4,392,016,400	3,884,888,305
I. OWNER’S EQUITY	4,392,016,400	3,884,888,305
1. Capital	3,882,607,501	3,547,644,522
2. Share premiums	0	0
3. Other sources of capital	0	0
4. Treasury stocks	0	0
5. Differences on asset revaluation	0	0
6. Foreign exchange differences	0	0
7. Business promotion fund	0	0
8. Financial reserved fund	0	0
9. Other funds	0	0
10. Retained earnings	509,408,899	337,243,783
11. Construction investment fund	0	0
II. Other sources and funds	0	0
1. Bonus and welfare funds	0	0
2. Sources of expenditure	0	0
3. Fund to form fixed assets	0	0
MINORITY’S INTEREST	0	0
TOTAL LIABILITIES AND OWNER’S EQUITY	35,691,258,175	33,116,246,315

PROFIT & LOSS STATEMENT

Description	FY2009	FY2008
1. Total Sale	77,154,620,516	37,483,129,783
2. Deduction item	205,019,945	135,755,940
3. Net sale	76,949,600,571	37,347,373,843
4. Costs of goods sold	65,357,016,357	31,789,738,245
5. Gross profit	11,592,584,214	5,557,635,598
6. Financial income	28,160,649	3,386,586
7. Financial expenses	4,034,508,507	1,255,034,980
- In which: Loan interest expenses	1,580,727,888	783,427,772
8. Selling expenses	5,965,694,238	3,368,768,529
9. Administrative overheads	1,109,654,139	577,179,587
10. Net operating profit	510,887,979	360,039,088
11. Other income	3,284,371	0
12. Other expenses	7,514,697	423,340
13. Other profit /(loss)	-4,230,326	-423,340
14. Total accounting profit before tax	506,657,653	359,615,748
15. Current corporate income tax	109,496,532	0
16. Deferred corporate income tax	0	0
17. Profit after tax	397,161,121	359,615,748

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2009	FY2008	Average Industry
Current liquidity ratio	1.03	1.00	1.23
Quick liquidity ratio	0.17	0.17	0.71
Inventory circle	2.56	1.30	5.40
Average receive period	24.48	39.39	117.55
Utilizing asset performance	2.16	1.13	1.67
Liability by total asset	87.69	88.27	66.66
Liability by owner equity	712.64	752.44	358.60
Ebit / Total asset (ROA)	5.85	3.45	7.03
Ebit / Owner's equity (ROE)	47.53	29.42	29.74
Ebit / Total sale (NPM)	2.71	3.05	5.06
Gross profit / Total sale (GPM)	15.03	14.83	14.43
Note: The Average Industry was calculated by Vietnam Credit based on our owned statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality		Fair
Liquidity		Medium
Payment status		Average
Financial Situation		Average
Development trend		Stable
Litigation data		No Record
Bankruptcy		No Record
Payment Methods		T/T, L/C
Sale Methods		Wholesaler
Public opinion		Normal

CREDIT INQUIRY: 125,000 USD Against DA in terms

Caution needed with this transaction

INTERPRETATION ON THE SCORES

HA LONG EXPORT SEAFOOD PROCESSING JOINT STOCK COMPANY precursor is Seafood Import Export Business Department of Ha Long Import Export and Services Company – Ha Long Seafood Corporation.

In June 2006, Ha Long Import Export and Services Company changed into Joint Stock Company and then in July 2006, the subject was separated and operates independently according the business registration No. 0203002469, signed by Planning and Investment Department of Hai Phong City.

The headquarter of the subject is located at No. 178 Le Thanh Tong, Ngo Quyen Dist., Hai Phong City. It has two factories in Hai Phong and a Representative office in Ha Noi city. The capacity of goods production of the subject is 3,000 to 5,000 tons of frozen seafood per year. The total number of employees of the subject is about 100 persons, mainly is manual workers.

With brand is “Mien Ha Long”, its products are distributed mainly in domestic market and export to China market. The material is imported from China, Taiwan, Korea and Japan.

The financial situation of the subject is average. Total sale in 2009 increased 108% as compared with 2008. However expenses of the subject in 2009 were relative high, as financial expenses up 221%, selling expenses up 77% and Administrative overheads up 92% in compared with 2008, so the profit is only equivalent to one of 2008. The liquidity ratios were lower than industry average, especial quick liquidity ratio reached 0.17 units, while the average industry is 0.71 units.

In 2010, exports of seafood from Vietnam reached over $ 4.9 billion, up 17.6% over the same period last year. However, the industry also meets some difficulties like disease, anti-dumping duty from EU and U.S. markets, etc and competition from other countries such as: India, Thailand, Indonesia and Philippines. These problems will be effect to consumer goods of the industry in the next time.

APPENDIXES

INDUSTRY DATA

Industry code	Growth speed (%)		Total employees 2009 (Thousand)		Total enterprises	Annual average capital of enterprises
	Predict 2010	2009
Agriculture, Forestry and Fishing	2.8	3.0	24,788.5		2,399	50,530
Trade and Services	7.5	11	10,517.9		79,181	1,754,973
Construction	7	11.3	2,692.8		17,783	248,268
Manufacturing	12	7.6	7,591.2		30,786	967,068

ECONOMIC INDICATORS

			2009	2008		2007
Population (Million person)			87	86.1		85.1
Gross Domestic Products (US$ billion)			91	84.9		71.2
GDP Growth (%)			5.32	6.2		8.5
GDP Per Capita (US$)			1,080	1,040		814
Inflation (% Change in Composite CPI)			6.88	24.4		8.3

SERVICE TRADE PERFORMANCE

Billion USD			2009	2008		2007
Exports			56.6	62.9		48.6
Imports			68.8	76.6		58.9
Trade Balance			-12.2	-14.6		-10.3

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.70
UK Pound	1	Rs.72.78
Euro	1	Rs.61.65

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	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

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.