MIRA INFORM REPORT

Report Date :

04.01.2012

IDENTIFICATION DETAILS

Name :	CJ VINA AGRI CO., LTD
Registered Office :	National Highway No.1 My Yen Commune, Ben Luc District, Long An Province
Country :	Vietnam
Financials (as on) :	31.12.2010
Year of Establishment :	1999
Legal Form :	Foreign Invested Company
Line of Business :	manufacturing and trading animal feed, poultry and aquatic products
No. of Employees :	520

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

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 – September 30^th, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
Vietnam	b1	b1

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	CJ VINA AGRI CO., LTD
Vietnamese Name	CONG TY TNHH CJ VINA AGRI
Type of Business	Foreign invested company
Year Established	1999
Investment Certificate No	501043000120
Date Of Issuance	25 Jun 2008
Place of Issuance	People’s Committee of Long An Province
Registered Investment Capital	USD 20,000,000
Chartered capital	USD 6,000,000
Investment Duration	50 years
Tax code	1100439762
Total Employees	520
Size	Large
Note: The given name (CJ VINA AGRI CORPORATION LIMITED) is not correct.

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Board Of Director: Mr. SHON BYEONG DOO- General Director Changed to: Mr. PARK YONG DUK	01 Dec 2009
2	Subject has got former Investment Certificate No: No. 2142/GP, Issuance on November 12th 1999 by Ministry of Planning and Investment. Changed to: 501043000120 Issuance by People’s Committee of Long An Province	25 Jun 2008

company ADDRESSES

Head Office
Address	National Highway No.1 My Yen Commune, Ben Luc District, Long An Province, Vietnam
Telephone	(84-72) 387 0363 / 387 0364 / 387 0365
Fax	(84-72) 387 0366
Email	cjvinaagri@hcm.vnn.vn
Website	www.cjvina.com
Occupied Area	38,531 m2
Land-use Right	Leased
Factory Address
Address	Lot D Pho Noi A Industrial Zone, Lac Hong Commune, Van Lam District, Hung Yen Province, Vietnam
Telephone	(84-321) 396 7489/ 396 7643
Fax	(84-321) 396 7644/ 396 7485
Note: Tax Code 1100439762-001
Factory Address
Address	Lot B3 Hoa Phu Industrial Park, Hoa Phu Commune, Long Ho District, Vinh Long Province, Vietnam
Note: Tax Code 1100439762-002
Other
Address	8 Hamlet Long Nguyen Commune, Ben Cat District, Binh Duong Province, Vietnam

DIRECTORS

1. NAME	Mr. PARK YONG DUK
Position	General director – Chairman
Date of Birth	03 Oct 1965
ID Number/Passport	JR2608782
ID Issue Date	10 Nov 2003
ID Issue Place	Korea
Resident	No. 1006 Building 2 Mock Hwa APT, 30 Youido-Dong, Young Deung Po-Gu,, , Seoul , Korea, South
Current resident	No. 12A2-1-20 Panorama Building - Tan Phong Ward, 7 District, Ho Chi Minh City, Vietnam
Nationality	Korean
2. NAME	Mr. SON HOON
Position	Deputy General Director
Nationality	Korean
3. NAME	Mr. SHIM WON BO
Position	Deputy General Director
Date of Birth	21 Feb 1965
Resident	Hung Vuong, Phu My Hung, 7 District, Ho Chi Minh City, Vietnam
Nationality	Korean
Tel/Mobil phone	+84 918029356
Qualification	Veterinarian
4. NAME	Mr. TRUONG XUAN VIET
Position	Chief Accountant
Date of Birth	1979
Nationality	Vietnamese
Tel/Mobil phone	(84-72) 3870363 - Ext: 110
Email	xuanviet79@hcm.fpt.vn

BUSINESS NATURE AND ACTIVITIES

The subject is specialized in manufacturing and trading animal feed, poultry and aquatic products.

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products	Materials
· Market	China, Argentina, Korea, India, USA
EXPORT:
· Types of products	Finished Products
· Market	Korea, India, Philippines, Indonesia, Cambodia

BANKERS

1. CITI BANK
Address	No. 115 Nguyen Hue Str, Ben Nghe Ward,, 1 District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3824 2118
Fax	(84-8) 3824 2267
2. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM LONG AN BRANCH
Address	No.134-136-138 Nguyen Huu Tho str,Ben Luc Town, Ben Luc District, Long An Province, Vietnam
Telephone	(84-72) 363 3680
Fax	(84-72) 363 3687
3. SHINHANVINA JOINT VENTURE BANK
Address	100 Nguyen Thi Minh Khai Street- Ward 6-, 3 District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3829 1581
Fax	(84-8) 3821 1648
4. NATEXIS BANK
Address	No.11 Me Linh Square, 1 District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3822 2830
Fax	(84-8) 3829 9128
5. KOREA EXCHANGE BANK
Address	No.34 Le Duan Str, 1 District, Ho Chi Minh City, Vietnam
Telephone	(84-8)3827 4273
6. SHINHAN VIETNAM BANK LIMITED
Address	#11, Centec Bld - No. 72-74 Nguyen Thi Minh Khai Street - ward 6, 3 District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3823 0012
Fax	(84-8) 3823 0009

SHAREHOLDERS

NAME	C.J GLOBAL HOLDINGS LIMITED
Business Registration	36859291-000-06-06-A
Date of Registration	16 Jun 2006
Place of Registration	Companies Registry
Address	Suite 3003 30/F Central Plaza 18 Harbour - Road Wanchai, Central , Hong Kong
Percentage	100%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2010	31/12/2009
Number of weeks	52	52
ASSETS
A – CURRENT ASSETS	529,070,047,000	413,845,000,000
I. Cash and cash equivalents	12,304,984,000	31,465,000,000
1. Cash	12,304,984,000	31,465,000,000
2. Cash equivalents	0	0
II. Short-term investments	0	1,249,000,000
1. Short-term investments	0	1,249,000,000
2. Provisions for devaluation of short-term investments	0	0
III. Accounts receivable	244,782,046,000	152,712,000,000
1. Receivable from customers	213,123,180,000	153,195,000,000
2. Prepayments to suppliers	17,575,233,000	2,572,000,000
3. Inter-company receivable	0	0
4. Receivable according to the progress of construction	0	0
5. Other receivable	24,201,623,000	4,107,000,000
6. Provisions for bad debts	-10,117,990,000	-7,162,000,000
IV. Inventories	262,223,800,000	222,662,000,000
1. Inventories	262,223,800,000	222,662,000,000
2. Provisions for devaluation of inventories	0	0
V. Other Current Assets	9,759,217,000	5,757,000,000
1. Short-term prepaid expenses	3,485,630,000	3,028,000,000
2. VAT to be deducted	4,177,018,000	0
3. Taxes and other accounts receivable from the State	0	0
4. Other current assets	2,096,569,000	2,729,000,000
B. LONG-TERM ASSETS	156,535,334,000	178,258,000,000
I. Long term accounts 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	139,859,456,000	145,460,000,000
1. Tangible assets	132,516,174,000	137,805,000,000
- Historical costs	232,670,872,000	219,781,000,000
- Accumulated depreciation	-100,154,698,000	-81,976,000,000
2. Financial leasehold assets	0	0
- Historical costs	0	0
- Accumulated depreciation	0	0
3. Intangible assets	7,165,382,000	7,477,000,000
- Initial costs	9,590,885,000	9,591,000,000
- Accumulated amortization	-2,425,503,000	-2,114,000,000
4. Construction-in-progress	177,900,000	178,000,000
III. Investment property	0	0
Historical costs	0	0
Accumulated depreciation	0	0
IV. Long-term investments	4,810,268,000	23,665,000,000
1. Investments in affiliates	0	23,665,000,000
2. Investments in business concerns and joint ventures	30,813,786,000	0
3. Other long-term investments	0	0
4. Provisions for devaluation of long-term investments	-26,003,518,000	0
V. Other long-term assets	11,865,610,000	9,133,000,000
1. Long-term prepaid expenses	10,505,097,000	8,920,000,000
2. Deferred income tax assets	584,679,000	0
3. Other long-term assets	775,834,000	213,000,000
VI. Goodwill	0	0
1. Goodwill	0	0
TOTAL ASSETS	685,605,381,000	592,103,000,000
LIABILITIES
A- LIABILITIES	333,253,849,000	294,347,000,000
I. Current liabilities	330,554,121,000	291,912,000,000
1. Short-term debts and loans	129,486,472,000	96,724,000,000
2. Payable to suppliers	120,839,106,000	113,185,000,000
3. Advances from customers	393,407,000	8,420,000,000
4. Taxes and other obligations to the State Budget	1,268,068,000	2,052,000,000
5. Payable to employees	588,226,000	2,292,000,000
6. Accrued expenses	3,042,707,000	1,699,000,000
7. Inter-company payable	0	0
8. Payable according to the progress of construction contracts	0	0
9. Other payable	74,936,135,000	67,540,000,000
10. Provisions for short-term accounts payable	0	0
II. Long-Term Liabilities	2,699,728,000	2,435,000,000
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	53,000,000
6. Provisions for unemployment allowances	2,699,728,000	2,382,000,000
7. Provisions for long-term accounts payable	0	0
B- OWNER’S EQUITY	352,351,532,000	297,756,000,000
I. OWNER’S EQUITY	352,351,532,000	297,756,000,000
1. Capital	87,446,640,000	87,447,000,000
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	264,904,892,000	210,309,000,000
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	685,605,381,000	592,103,000,000

PROFIT & LOSS STATEMENT
Description	FY2010	FY2009
1. Total Sales	2,065,595,039,000	1,599,863,000,000
2. Deduction item	146,534,928,000	109,256,000,000
3. Net sale	1,919,060,111,000	1,490,607,000,000
4. Costs of goods sold	1,699,023,945,000	1,306,479,000,000
5. Gross profit	220,036,166,000	184,128,000,000
6. Financial income	1,164,177,000	7,173,000,000
7. Financial expenses	53,576,796,000	25,754,000,000
- In which: Loan interest expenses	-	-
8. Selling expenses	64,470,664,000	47,805,000,000
9. Administrative overheads	45,879,606,000	50,774,000,000
10. Net operating profit	57,273,277,000	66,968,000,000
11. Other income	2,866,481,000	1,863,000,000
12. Other expenses	186,513,000	2,067,000,000
13. Other profit /(loss)	2,679,968,000	-204,000,000
14. Total accounting profit before tax	59,953,245,000	66,764,000,000
15. Current corporate income tax	5,995,465,000	3,469,000,000
16. Deferred corporate income tax	637,610,000	347,000,000
17. Interest from subsidiaries/related companies	0	0
18. Profit after tax	54,595,390,000	63,642,000,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2010	FY2009	Average Industry
Current liquidity ratio	1.60	1.42	1.47
Quick liquidity ratio	0.81	0.65	0.70
Inventory circle	6.48	5.87	8.31
Average receive period	46.56	37.39	28.57
Utilizing asset performance	2.80	2.52	2.64
Liability by total assets	48.61	49.71	58.07
Liability by owner's equity	94.58	98.86	182.19
Ebit / Total assets (ROA)	8.74	11.28	10.02
Ebit / Owner's equity (ROE)	17.02	22.42	25.93
Ebit / Total sale (NPM)	2.90	4.17	3.82
Gross profit / Total sale (GPM)	10.65	11.51	8.54
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Fair
Liquidity	Medium
Payment status	Above Average
Financial Situation	Above Average
Development trend	Positive
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	TT, L/C
Sale Methods	Retailer and Wholesaler
Public opinion	Good

CREDIT INQUIRY: 125,000 USD

Acceptable!

INTERPRETATION ON THE SCORES

CJ VINA AGRI CO., LTD was established in 1999 under the investment license No.2142/GP. The subject is a wholly owned foreign company which was invested by C.J GLOBAL HOLDINGS LTD in Hongkong. The subject is also a member of CJ Corporation, which is a big one in the food field, having network all over the world. In June 2008, the investment license was adjusted to new one No. 501043000120 according to the new law in Vietnam. Its investment capital is currently USD 20 million and the chartered capital is USD 6 million.
The subject is specialized in manufacturing, processing and trading in feeds for animal and aquatic products. It imports materials from some country such as: China, Argentina, Korea, India, and USA. Its products are distributed in domestic market and export to Korea, India, Philippines, Indonesia, and Cambodia.
The premises of the subject are large. Currently, the subject has 3 factories. Besides the factory in Long An province, it also has 2 other factories in Hung Yen and Vinh Long province. Currently, the subject has about 500 people in whole of company. The infrastructure is fair. The management capacity is relatively good.
About financial status, in 2010, the total sale of the subject was increased VND 465,732 million (equal to 29.11%). However, its profit after tax went up VND 9,046 million (equal to 14.21%). This caused mainly by high financial expenses and selling expenses. In addition, we can see that its profitability ratios were also decreased. Specially, its ROE ratios gone down significantly (from 22.42 to 17.02).
In term of liquidity ability, its current liquidity ratio and quick liquidity ratio in 2009 were higher than its ones in 2008. The financial leverage was lower. This was safer for its investor. The operational ratios of the subject were also improved. Its inventory circle increased from 5.87 to 6.48.
In general, the company has a long-term operation in the market. Its brand name is popular and its position is fairly good but it should be tried to increase its profit. Currently, the subject has ability to meet all normal financial commitments.

APPENDIX

INDUSTRY DATA
Industry code	Growth speed by price compared with 1994 (%)		Total enterprises 2009		Total employees 2010 (Thous.pers.)	Annual average capital of enterprises 2009 (billion dongs)
	2010	2009
Agriculture, Forestry and Fishing	2.78	1.82	8,749		23,896.3	81,559
Industry and Construction	7.70	5.52	85,115		10,630	2,751,975
Trade and Services	7.52	6.63	154,978		14,522	4,939,069
ECONOMIC INDICATORS
			2010	2009		2008
Population (Million person)			86.93	86.02		86.1
Gross Domestic Products (US$ billion)			102.2	91		84.9
GDP Growth (%)			6.78	5.32		6.2
GDP Per Capita (US$)			1,160	1,080		1,040
Inflation (% Change in Composite CPI)			11.75	6.88		24.4
SERVICE TRADE PERFORMANCE
Billion USD			2010	2009		2008
Exports			72.2	57.1		62.7
Imports			84.8	69.9		80.7
Trade Balance			-12.6	-12.8		-18

Source: General Statistics Office

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.23
UK Pound	1	Rs.82.87
Euro	1	Rs.69.13

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
----	NB	New Business	----

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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