MIRA INFORM REPORT

Report Date :

18.01.2012

IDENTIFICATION DETAILS

Name :	THIEN LONG GROUP CORPORATION
Registered Office :	Lot 6-8-10-12 Road No.3 - Tan Tao Industrial Park - Tan Tao A Ward – Binh Tan District - Ho Chi Minh City
Country :	Vietnam
Financials (as on) :	30.09.2011
Year of Establishment :	1981
Com. Reg. No.:	0301464830
Legal Form :	Joint Stock Company
Line of Business :	Wholesale of other machinery and equipment
No. of Employees :	3,000

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	b2	b2

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

SUBJECT IDENTIFICATION & LEGAL FORM

Registration English Name	THIEN LONG GROUP CORPORATION
Registration Vietnamese Name	CONG TY CO PHAN TAP DOAN THIEN LONG
Registration short name	CONG TY CP TAP DOAN THIEN LONG
Type of Business	Joint stock company
Year Established	1981
Business Registration No.	0301464830
Date of 6^th Adjustment	11 Aug 2011
Place of Registration	Business Registration Office – Planning and Investment Department of Hochiminh city
Current registered capital	VND 176,500,000,000
Status	Listed
Stock symbol	TLP
Stock Market	HOSE
Tax code	0301464830
Total Employees	3,000

company ADDRESSES

Head Office
Address	Lot 6-8-10-12 Road No.3 - Tan Tao Industrial Park - Tan Tao A Ward – Binh Tan District - Ho Chi Minh City - Vietnam
Telephone	(84.8) 3750 5555
Fax	(84.8) 3750 5577
Email	info@thienlonggroup.com
Website	www.thienlonggroup.com
Branch in Can Tho
Address	No. 4/1/51 Bui Thi Xuan Str - Thoi Binh Ward - Ninh Kieu District - Can Tho City - Vietnam
Branch in Da Nang
Address	No. 276/5 Hai Phong Str - Thanh Khe District - Da Nang City - Vietnam

SUBSIDIARIES AND RELATED COMPANIES

1. THIEN LONG LONG THANH MANUFACTURING - TRADING COMPANY LIMITED
Business Registration	472041000036
Date of Registration	20 Dec 2006
Place of Registration	Dong Nai Industrial Zones Management Authority
Registered Capital	VND 80,000,000,000
Tax code	3600869037
Address	Lot C2+3 - Road 7 - Long Thanh Industrial Park - Long Thanh District - Dong Nai Province - Vietnam
Tel	(84-61) 3514 367
Fax	(84-61) 3514365
2. THIEN LONG GLOBAL TRADING AND SERVICE COMPANY LIMITED
Business Registration	4104002492
Date of Registration	15 Nov 2007
Place of Registration	Business Registration Office - Business Registration Office of Hochiminh city
Registered Capital	VND 20,000,000,000
Tax code	0305341389
Address	Block 6-8-10-12 Str 03^rd - Tan Tao Industrial Park - Tan Tao Ward - Binh Tan District - Ho Chi Minh City - Vietnam
3. TAN LUC TRADING AND SERVICE COMPANY LIMITED
Business Registration	0309489650
Tax code	0309489650
Address	No. 368 Cao Thang Str - Ward 12 – District 10 – Ho Chi Minh City - Vietnam

DIRECTORS

1. NAME	Mr. CO GIA THO
Position	Chairman
Date of Birth	04 Sep 1958
ID Number/Passport	022031273
ID Issue Date	21 Oct 2003
ID Issue Place	Police Station of Ho Chi Minh City
Resident	No.7 Road No. 10 - Binh Tri Dong B – Tan Binh District - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
2. NAME	Mr. VO VAN THANH NGHIA
Position	General Director
Nationality	Vietnamese
3. NAME	Mr. PHAN NHUT PHUONG
Position	Deputy General Director
Date of Birth	25 Oct 1973
ID Number/Passport	022389356
ID Issue Date	01 Jul 1997
Resident	No. 7 Road 32 B - Binh Tri Dong - Binh Tan District - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
4. NAME	Mr. NGUYEN DINH TAM
Position	Deputy General Director
Date of Birth	28 Jan 1966
ID Number/Passport	021593852
ID Issue Date	25 Mar 2004
Resident	No. B131/8 Xom chieu - Ward 18 – District 4 - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
5. NAME	Mr. BUI VAN HUONG
Position	Deputy General Director
Date of Birth	02 Aug 1970
ID Number/Passport	024545594
ID Issue Date	02 Aug 2006
Resident	Block 279/41 Au Co Apartment - District 11 - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
6. NAME	Ms. NGUYEN THI NHU HUONG
Position	Deputy Director
Nationality	Vietnamese
7. NAME	Mr. HO NGOC CANH
Position	Chief Accountant
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

Other manufacturing n.e.c
Wholesale of other machinery and equipment n.e.c
Wholesale of other household products
Printing

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products	Materials
· Market	USA, Germany, Taiwan, Korea, Thailand, Switzerland, Japan and Italia.
EXPORT:
· Types of products	Products
· Market	Mexico, China, Laos, Cambodia, India, Singapore, Philippines, Brunei, Japan, Indonesia, France, Spain, Switzerland, Denmark and Turkey.

BANKERS

1. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE NO.8 BRANCH
Address	No.196 Hung Phu Str – District 8 - Ho Chi Minh City - Vietnam
Telephone	(84-8) 3596 532
2. ASIA COMMERCIAL BANK ONG ICH KHIEM BRANCH
Address	No.132 Ong Ich Khiem - District 11 - Ho Chi Minh City - Vietnam
Telephone	(84-8) 5406 5500
Fax	(84-8) 5406 6650
3. BANK FOR INVESTMENT & DEVELOPMENT OF VIETNAM TAN TAO BRANCH
Address	No. 140 Pho Co Dieu Str - Ward 6 - District 11 - Ho Chi Minh City - Vietnam
Telephone	(84-8) 3855 9357
Fax	(84-8) 3856 4153
4. SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK
Address	No. 266-268 Nam Ky Khoi Nghia Str - Ward 8 - District 3 - Ho Chi Minh City - Vietnam
Telephone	(84-8) 3932 0420 /3932 0643
Fax	(84-8) 3932 2488
5. HSBC BANK (VIETNAM) LTD
Address	06^th Floor, The Metropolitan Building No. 235 Dong Khoi Str – District 1 - Ho Chi Minh City - Vietnam
Telephone	(84 8) 3829 2288
Fax	(84 8) 3299 0018

SHAREHOLDERS

1. NAME	Mr. CO GIA THO
Position	Chairman
Date of Birth	04 Sep 1958
ID Number/Passport	022031273
Issued on	21 Oct 2003
Issued Place	Police Station of Ho Chi Minh City
Resident	No.7 Road No. 10 - Binh Tri Dong B - Binh Tan District - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Number of Shares	4,200,000
Value of shares	VND 42,000,000,000
Percentage	23.80%
2. NAME	Ms. CO NGAN BINH
Date of Birth	18 Aug 1961
ID Number/Passport	022031274
Issued on	13 Jul 2005
Resident	No. 743/31P/5 Hong Bang Str - Ward 6 - District 6 - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Number of Shares	1,200,000
Value of shares	VND 12,000,000,000
Percentage	6.80%
3. NAME	Ms. CO CAM NGUYET
Date of Birth	12 Sep 1972
ID Number/Passport	022587993
Issued on	10 Aug 2004
Resident	No.7 Road No. 32A - Binh Tri Dong B - Binh Tan District - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Number of Shares	300,000
Value of shares	VND 3,000,000,000
Percentage	1.70%
4. NAME	Mr. CO GIA DUC
ID Number/Passport	022347784
Resident	No. 40 Le Quang Sung Str – Ward 6 – District 6 – Ho Chi Minh City – Vietnam
Nationality	Vietnamese
Number of Shares	300,000
Value of shares	VND 3,000,000,000
Percentage	1.70%
5. NAME	Ms. CO NGUU TU
ID Number/Passport	022031271
Resident	No. 743/31P/5 Hong Bang Str - Ward 6 - District 6 - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Number of Shares	200,000
Value of shares	VND 2,000,000,000
Percentage	1.13%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	30/09/2011	31/12/2010	31/12/2009
Number of weeks	39	52	52
ASSETS
A – CURRENT ASSETS	591,182,179,572	452,462,476,000	327,000,166,000
I. Cash and cash equivalents	48,736,975,224	37,398,608,000	49,724,587,000
1. Cash	38,736,975,224	31,998,608,000	49,724,587,000
2. Cash equivalents	10,000,000,000	5,400,000,000	0
II. Short-term investments	7,471,656,000	15,064,056,000	6,143,240,000
1. Short-term investments	14,162,286,787	20,577,646,000	8,657,651,000
2. Provisions for devaluation of short-term investments	-6,690,630,787	-5,513,590,000	-2,514,411,000
III. Accounts receivable	72,317,075,979	51,729,708,000	37,160,777,000
1. Receivable from customers	60,263,929,226	41,962,634,000	30,218,780,000
2. Prepayments to suppliers	9,984,877,678	6,992,928,000	6,061,865,000
3. Inter-company receivable			0
4. Receivable according to the progress of construction			0
5. Other receivable	3,055,565,302	3,761,442,000	2,171,041,000
6. Provisions for bad debts	-987,296,227	-987,296,000	-1,290,909,000
IV. Inventories	445,027,212,855	339,876,797,000	223,879,972,000
1. Inventories	451,060,153,337	343,423,084,000	229,647,418,000
2. Provisions for devaluation of inventories	-6,032,940,482	-3,546,287,000	-5,767,446,000
V. Other Current Assets	17,629,259,514	8,393,307,000	10,091,590,000
1. Short-term prepaid expenses	4,786,046,287	3,933,785,000	2,534,820,000
2. VAT to be deducted	8,838,086,450	971,028,000	0
3. Taxes and other accounts receivable from the State	514,664,179	0	2,036,855,000
4. Other current assets	3,490,462,598	3,488,494,000	5,519,915,000
B. LONG-TERM ASSETS	312,075,927,903	299,652,867,000	266,751,646,000
I. Long term accounts receivable	0	0	0
1. Long term account receivable from customers			0
2. Working capital in affiliates			0
3. Long-term inter-company receivable			0
4. Other long-term receivable			0
5. Provisions for bad debts from customers			0
II. Fixed assets	251,405,744,187	250,622,421,000	217,264,420,000
1. Tangible assets	206,733,718,130	172,369,720,000	171,051,996,000
- Historical costs	372,878,031,029	325,656,056,000	297,115,690,000
- Accumulated depreciation	-166,144,312,899	-153,286,336,000	-126,063,694,000
2. Financial leasehold assets	0	0	0
- Historical costs			0
- Accumulated depreciation			0
3. Intangible assets	25,013,412,621	23,234,894,000	23,653,932,000
- Initial costs	29,988,232,559	27,577,587,000	27,268,787,000
- Accumulated amortization	-4,974,819,938	-4,342,693,000	-3,614,855,000
4. Construction-in-progress	19,658,613,436	55,017,807,000	22,558,492,000
III. Investment property		33,748,714,000	0
Historical costs		38,599,924,000	0
Accumulated depreciation		-4,851,210,000	0
IV. Long-term investments	27,923,610,637		40,690,846,000
1. Investments in affiliates			0
2. Investments in business concerns and joint ventures			0
3. Other long-term investments	38,599,924,383		43,308,684,000
4. Provisions for devaluation of long-term investments	-10,676,313,746		-2,617,838,000
V. Other long-term assets	32,746,573,079	15,281,732,000	8,796,380,000
1. Long-term prepaid expenses	13,158,525,715	6,017,394,000	4,352,440,000
2. Deferred income tax assets	18,300,064,864	8,662,872,000	4,402,473,000
3. Other long-term assets	1,287,982,500	601,466,000	41,467,000
VI. Goodwill
1. Goodwill
TOTAL ASSETS	903,258,107,475	752,115,343,000	593,751,812,000
LIABILITIES
A- LIABILITIES	436,713,589,627	344,136,854,000	213,108,612,000
I. Current liabilities	376,921,291,752	311,397,746,000	169,237,668,000
1. Short-term debts and loans	257,206,697,621	197,356,153,000	102,512,922,000
2. Payable to suppliers	56,721,608,770	71,361,627,000	32,328,686,000
3. Advances from customers	1,239,225,278	1,769,030,000	1,160,653,000
4. Taxes and other obligations to the State Budget	13,853,106,016	7,995,327,000	12,253,724,000
5. Payable to employees	8,367,839,461	6,056,999,000	5,334,486,000
6. Accrued expenses	23,099,938,238	18,735,475,000	13,363,825,000
7. Inter-company payable			0
8. Payable according to the progress of construction contracts			0
9. Other payable	14,978,116,368	3,626,199,000	2,283,372,000
10. Provisions for short-term accounts payable	1,454,760,000	4,496,936,000	0
II. Long-Term Liabilities	59,792,297,875	32,739,108,000	43,870,944,000
1. Long-term accounts payable to suppliers			0
2. Long-term inter-company payable			0
3. Other long-term payable			0
4. Long-term debts and loans	49,254,347,117	24,869,315,000	37,445,982,000
5. Deferred income tax payable			0
6. Provisions for unemployment allowances	10,537,950,758	7,869,793,000	6,424,962,000
7. Provisions for long-term accounts payable			0
B- OWNER’S EQUITY	466,544,517,848	391,561,705,000	361,964,038,000
I. OWNER’S EQUITY	466,544,517,848	391,561,705,000	358,568,680,000
1. Capital	176,500,000,000	155,000,000,000	155,000,000,000
2. Share premiums	145,866,873,000	130,816,873,000	130,754,353,000
3. Other sources of capital			0
4. Treasury stocks		0	-187,200,000
5. Differences on asset revaluation			0
6. Foreign exchange differences			0
7. Business promotion fund	18,553,251,402	14,997,827,000	12,066,785,000
8. Financial reserved fund	15,272,347,958	11,716,925,000	8,785,882,000
9. Other funds			0
10. Retained earnings	110,352,045,488	79,030,080,000	52,148,860,000
11. Construction investment fund			0
II. Other sources and funds			3,395,358,000
1. Bonus and welfare funds			3,395,358,000
2. Sources of expenditure			0
3. Fund to form fixed assets			0
MINORITY’S INTEREST	0	16,416,784,000	18,679,162,000
TOTAL LIABILITIES AND OWNER’S EQUITY	903,258,107,475	752,115,343,000	593,751,812,000

PROFIT & LOSS STATEMENT
Description	9 months of FY2011	FY2010	FY2009
1. Total Sales	799,112,005,090	821,332,458,000	626,740,377,000
2. Deduction item	7,306,733,438	7,964,864,000	8,230,518,000
3. Net sale	791,805,271,652	813,367,594,000	618,509,859,000
4. Costs of goods sold	480,853,965,107	521,341,894,000	383,749,025,000
5. Gross profit	310,951,306,545	292,025,700,000	234,760,834,000
6. Financial income	8,642,863,015	9,332,831,000	11,095,405,000
7. Financial expenses	51,914,010,303	35,258,962,000	21,540,227,000
- In which: Loan interest expenses	30,247,685,162	23,258,962,000
8. Selling expenses	100,468,295,089	95,708,718,000	84,638,428,000
9. Administrative overheads	84,340,879,519	79,504,826,000	60,210,664,000
10. Net operating profit	82,870,984,649	90,886,025,000	79,466,920,000
11. Other income	8,179,678,218	5,254,144,000	4,267,356,000
12. Other expenses	6,056,040,233	2,675,728,000	4,813,498,000
13. Other profit /(loss)	2,123,637,985	2,578,416,000	-546,142,000
14. Total accounting profit before tax	84,994,622,634	93,464,441,000	78,920,778,000
15. Current corporate income tax	27,420,123,604	25,423,887,000	28,947,368,000
16. Deferred corporate income tax	9,637,193,077	2,907,082,000	992,098,000
17. Interest from subsidiaries/related companies
18. Profit after tax	67,211,692,107	70,947,636,000	50,965,508,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2010	FY2009	Average Industry
Current liquidity ratio	1.45	1.93	1.33
Quick liquidity ratio	0.36	0.61	0.83
Inventory circle	1.53	1.89	5.61
Average receive period	23.21	21.93	148.37
Utilizing asset performance	1.08	1.04	1.00
Liability by total assets	45.76	35.89	68.62
Liability by owner's equity	87.89	55.99	353.53
Ebit / Total assets (ROA)	15.52	13.29	6.96
Ebit / Owner's equity (ROE)	29.81	20.73	25.50
Ebit / Total sale (NPM)	14.21	12.59	7.11
Gross profit / Total sale (GPM)	35.56	37.46	14.39
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Good
Liquidity	Medium
Payment status	Above Average
Financial Situation	Above Average
Development trend	Even
Litigation data	No
Bankruptcy	No
Payment Methods	By cash or through the bank
Sale Methods	Retailer and Wholesaler

CREDIT INQUIRY: USD 125,000 against DA in terms

Accepted!

INTERPRETATION ON THE SCORES

THIEN LONG GROUP CORPORATION was established in 1981 as a small- scale family business with a few staff to manually produce simple products. In 2005, the subject has changed from limited liability company to joint stock company called “Thien Long Trading And Manufacturing Joint Stock Company”. Since 2008, the subject has changed to “Thien Long Group Corporation”. Currently, the subject is operating under the business registration No. 0301464830 with registered capital VND 176,500 million.

Its head office is located at “Lot 6-8-10-12 Road No.3 - Tan Tao Industrial Park - Tan Tao A Ward – Binh Tan District - Ho Chi Minh City – Vietnam”. Total workforce is about 3000 employees.

The subject is specializing in manufacturing and trading pens ( premium pens, ball point pens, gel pens, butter gelpens..), office supplies ( files, while board marker, permanent markers..), school supplies (pencil, pencil leads, rulers, glues, boards), art supplies, plastic household appliances, tampon printing, silk-screen-printing, latex pressing in company packaging and products and trading machines and equipment used for company manufacturing activities…. Most of materials are imported from foreign market such as USA, Germany, Taiwan, Korea, Thailand, Switzerland, Japan and Italia. Its products have been distributed over 63 nation-wide cities and provinces, with more than 100 distributors and approximately 40,000 points of sale. On the other hand, its products are also exported to over 30 foreign countries such as Mexico, China, Laos, Cambodia, India, Singapore, Philippines, Brunei, Japan, Indonesia, France, Spain, Switzerland, Denmark and Turkey... In local market, the subject is competing with Ben Nghe, Hong Ha, MIC and suppliers come from overseas such as PaperMate, Zebra, Steadler, Pentel, Hero, Parker…

Currently, it has established its representative offices in China and many other ASEAN countries.

Although the economy in 2011 was forecast to be challenging and complex, the subject maintained its stable growth. In our opinion, it has financial capacity to meet all normal transactions.

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.51.06
UK Pound	1	Rs.78.48
Euro	1	Rs.64.99

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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