MIRA INFORM REPORT

 

 

Report Date :           

20.03.2012

 

IDENTIFICATION DETAILS

 

Name :

DANANG CHEMICAL AND ELECTRICAL MATERIALS JOINT STOCK COMPANY 

 

 

Registered Office :

No. 89, Thai Phien Str., Phuoc Ninh Ward, Hai Chau District, Da Nang City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2010

 

 

Year of Establishment :

1976

 

 

Com. Reg. No.:

0400432621

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Trading, Importing and Exporting polypropylene resin, polyethylene resin, chemicals, paints and paints materials, zinc ingot, base metals, solvents, light Bulbs, welding electrodes, vehicles, agricultural machinery and other equipments of production

 

 

No. of Employees :

55

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

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 – September 30th, 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

 

DANANG CHEMICAL AND ELECTRICAL MATERIALS JOINT STOCK COMPANY

Vietnamese Name

 

CONG TY CO PHAN HOA CHAT VAT LIEU DIEN DA NANG

Short name

 

CEMACO DANANG

Type of Business

 

Joint stock company

Year Established

 

1976

Business Registration No.

 

0400432621

Date of Registration

 

31 Jul 2009

Place of Registration

 

Da Nang Province Department of Planning and Investment

Current registered capital

 

VND 18,492,000,000

Status

 

Unlisted

Tax code

 

0400432621

Total Employees

 

55

Size

 

Medium

 

Historical Identification & Legal form

List

Changed Items

Date of changes

1

Subject has got former Address: No. 245, Phan Chau Trinh Str., Phuoc Ninh Ward, Hai Chau Dist., Da Nang City

Changed to: No. 89, Thai Phien Str., Phuoc Ninh Ward, Hai Chau Dist., Da Nang City

31 Mar 2009

2

Subject has got former Business Registration No: 3203000051 (Date on October 7th 2002) Changed to: 0400432621

31 Jul 2009

3

Subject has got former registered capital: VND 8,515,500,000

Changed to: VND 15,016,500,000

31 Jul 2009

4

Subject has got former Registered capital: VND 15,016,500,000 Changed to: VND 18,492,000,000

01 Jul 2010

 


company ADDRESSES

 

Head Office

Address

 

No. 89, Thai Phien Str., Phuoc Ninh Ward, Hai Chau District, Da Nang City, Vietnam

Telephone

 

(84-511) 3827598/  382 2630/ 3822 803

Fax

 

(84-511) 382 1212/ 3561 849

Email

 

cemacodanang@vnn.vn

Website

 

http://www.cemaco.com.vn

 

Branch in Da Nang

Address

 

No. 92A, Phan Thanh Str., Thach Giam Ward, Thanh Khe District, Da Nang City, Vietnam

Telephone

 

(84-511) 365 3331

Fax

 

(84-511) 382 5309

 

Branch in Ho Chi Minh

Address

 

No. 33A1, Dinh Bo Linh Str., Ward 26, Binh Thanh District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 511 4404

Fax

 

(84-8) 511 4404

 

Branch in Ha Noi

Address

 

No. 10, Alley 62, Mai Dong Str., Mai Dong Ward, Hoang Mai District, Ha Noi City, Vietnam

Telephone

 

(84-4) 3633 9050/ 3633 9051

Fax

 

(84-4) 3633 9052

 

Branch in Da Nang

Address

 

No. 600A, Ong Ich Khiem Str., Hai Chau District, Da Nang City, Vietnam

Telephone

 

(84 511) 358 4070

Fax

 

(84 511) 358 4070

 


SUBSIDIARIES COMPANIES

 

1. VIET PHAT PACKING AND PLASTICS COMPANY LIMITED

Business Registration

 

3300483843

Date of Registration

 

01 Nov 2011

Place of Registration

 

Planning and Investment Department of Thua Thien-Hue Province

Tax code

 

3300483843

Address

 

Road No. 4, Phu Bai Industrial Zone, Huong Thuy District, Thua Thien-Hue Province, Vietnam

Tel

 

(84-54) 3242412

Fax

 

(84-53) 3951323

 

 

DIRECTORS

 

1. NAME

 

Mr. NGUYEN VAN PHUC

Position

 

Chairman and General Director

Date of Birth

 

01 Jan 1960

ID Number/Passport

 

201110203

ID Issue Date

 

05 May 1995

ID Issue Place

 

Da Nang Police Department

Resident

 

No. 21, Nguyen Thai Hoc Str., Hai Chau District, Da Nang City, Vietnam

Nationality

 

Vietnamese

Tel/Mobil phone

 

(84) 903509535

 

2. NAME

 

Mr. DOAN ANH MY

Position

 

Deputy General Director

Resident

 

74 Thai Phien, Hai Chau District, Da Nang City, Vietnam

Nationality

 

Vietnamese

 

3. NAME

 

Mr. LE TU TRUNG TIN

Position

 

Chief Accountant

Nationality

 

Vietnamese

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject registers on:

- Trading, Importing and Exporting polypropylene resin, polyethylene resin, chemicals, paints and paints materials, zinc ingot, base metals, solvents, light Bulbs, welding electrodes, vehicles, agricultural machinery and other equipments of production;

- Renting warehouse, storage;

- Transportation services.

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Plastic granules and chemical

·         Market

 

Korea, India, Singapore, Japan, Thailand and Indonesia etc

·         Mode of payment

 

L/C, T/T

 

EXPORT:

·         Types of products

 

Plastic packing and granules

·         Market

 

China, Italy, Indonesia

·         Mode of payment

 

T/T, L/C

 

 

 

BANKERS

 

1. VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK DA NANG BRANCH

Address

 

No. 244 - 248, Nguyen Van Linh Str., Hai Chau District, Da Nang City, Vietnam

Telephone

 

(84-511) 3655 118

Fax

 

(84-511) 3655 455

 

2. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM DA NANG BRANCH

Address

 

No. 140 - 142 Le Loi Str, Hai Chau District, Da Nang City, Vietnam

Telephone

 

(84-511) 3822110

Fax

 

(84-511) 3826062

 

SHAREHOLDERS

 

1. NAME

 

Mr. NGUYEN VAN PHUC

Position

 

Chairman and General Director

Date of Birth

 

01 Jan 1960

ID Number/Passport

 

201110203

Issued on

 

05 May 1995

Issued Place

 

Da Nang City Department of Police

Resident

 

No. 21, Nguyen Thai Hoc Str., Hai Chau District, Da Nang City, Vietnam

Mobile phone

 

+84 903509535

Nationality

 

Vietnamese

Number of Shares

 

84,791

 

2. NAME

 

Mr. LE CONG XINH

Resident

 

No. 02, Ba Huyen Thanh Quan Str., Ngu Hanh Son District, Da Nang City, Vietnam

Nationality

 

Vietnamese

Number of Shares

 

6,005

 

3. NAME

 

Ms. NGUYEN THI HONG HOA

Resident

 

No. 49/33, Ong Ich Khiem Str., Hai Chau District, Da Nang City, Vietnam

Nationality

 

Vietnamese

Number of Shares

 

10,789

 

4. NAME

 

Mr. DOAN ANH MY

Position

 

Deputy General Director

Resident

 

No. 74, Thai Phien Str., Hai Chau District, Da Nang City, Vietnam

Nationality

 

Vietnamese

Number of Shares

 

16,837

 

5. NAME

 

Mr. DANG QUANG SINH

Resident

 

No. 71, Thai Phien Str., Hai Chau District, Da Nang City, Vietnam

Nationality

 

Vietnamese

Number of Shares

 

9,379

 

6. NAME

 

OTHER SHAREHOLDRES

Number of Shares

 

57,119

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: Million VND

Balance sheet date

31/12/2010

31/12/2009

31/12/2008

Number of weeks

52

52

52

ASSETS

A – CURRENT ASSETS

200,838

143,243

97,933

I. Cash and cash equivalents

22,765

12,496

1,639

1. Cash

22,765

12,496

1,639

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

90,244

90,808

52,763

1. Receivable from customers

67,421

27,075

13,925

2. Prepayments to suppliers

22,809

3,607

6,122

3. Inter-company receivable

0

59,610

29,231

4. Receivable according to the progress of construction

0

0

0

5. Other receivable

14

516

3,485

6. Provisions for bad debts

0

0

0

IV. Inventories

70,648

29,179

32,937

1. Inventories

70,648

29,179

32,937

2. Provisions for devaluation of inventories

0

0

0

V. Other Current Assets

17,181

10,760

10,594

1. Short-term prepaid expenses

191

52

8

2. VAT to be deducted

15,707

10,708

10,586

3. Taxes and other accounts receivable from the State

0

0

0

4. Other current assets

1,283

0

0

B. LONG-TERM ASSETS

36,430

26,272

20,666

I. Long term accounts receivable

0

13,633

13,633

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

13,633

13,633

4. Other long-term receivable

0

0

0

5. Provisions for bad debts from customers

0

0

0

II. Fixed assets

21,053

11,132

5,526

1. Tangible assets

3,757

2,251

1,271

- Historical costs

9,329

8,256

8,131

- Accumulated depreciation

-5,572

-6,005

-6,860

2. Financial leasehold assets

0

0

0

- Historical costs

0

0

0

- Accumulated depreciation

0

0

0

3. Intangible assets

17,296

8,881

2,533

- Initial costs

17,341

8,926

2,578

- Accumulated amortization

-45

-45

-45

4. Construction-in-progress

0

0

1,722

III. Investment property

0

0

0

Historical costs

0

0

0

Accumulated depreciation

0

0

0

IV. Long-term investments

15,140

1,507

1,507

1. Investments in affiliates

15,140

0

0

2. Investments in business concerns and joint ventures

0

0

0

3. Other long-term investments

0

1,507

1,507

4. Provisions for devaluation of long-term investments

0

0

0

V. Other long-term assets

237

0

0

1. Long-term prepaid expenses

0

0

0

2. Deferred income tax assets

237

0

0

3. Other long-term assets

0

0

0

VI. Goodwill

0

 

 

1. Goodwill

0

 

 

TOTAL ASSETS

237,268

169,515

118,599

 

LIABILITIES

A- LIABILITIES

213,474

150,513

103,072

I. Current liabilities

213,294

126,612

73,170

1. Short-term debts and loans

135,650

77,309

44,105

2. Payable to suppliers

35,411

0

0

3. Advances from customers

14,548

0

0

4. Taxes and other obligations to the State Budget

6,491

8,665

4,854

5. Payable to employees

249

600

0

6. Accrued expenses

516

876

349

7. Inter-company payable

0

37,235

23,474

8. Payable according to the progress of construction contracts

0

0

0

9. Other payable

20,429

1,927

388

10. Provisions for short-term accounts payable

0

0

0

II. Long-Term Liabilities

180

23,901

29,902

1. Long-term accounts payable to suppliers

0

0

0

2. Long-term inter-company payable

0

0

0

3. Other long-term payable

180

0

0

4. Long-term debts and loans

0

23,901

29,902

5. Deferred income tax payable

0

0

0

6. Provisions for unemployment allowances

0

0

0

7. Provisions for long-term accounts payable

0

0

0

B- OWNER’S EQUITY

23,794

19,002

15,527

I. OWNER’S EQUITY

23,794

19,001

15,526

1. Capital

18,492

18,492

15,016

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

0

0

6. Foreign exchange differences

1,175

0

0

7. Business promotion fund

510

509

510

8. Financial reserved fund

0

0

0

9. Other funds

0

0

0

10. Retained earnings

3,617

0

0

11. Construction investment fund

0

0

0

II. Other sources and funds

0

1

1

1. Bonus and welfare funds

0

1

1

2. Sources of expenditure

0

0

0

3. Fund to form fixed assets

0

0

0

MINORITY’S INTEREST

0

0

0

TOTAL LIABILITIES AND OWNER’S EQUITY

237,268

169,515

118,599

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2010

FY2009

FY2008

1. Total Sales

833,101

1,016,933

934,778

2. Deduction item

56

0

79

3. Net revenue

833,045

1,016,933

934,699

4. Costs of goods sold

797,993

984,089

908,962

5. Gross profit

35,052

32,844

25,737

6. Financial income

2,191

10,360

3,970

7. Financial expenses

12,719

13,318

16,258

- In which: Loan interest expenses

9,961

6,164

9,922

8. Selling expenses

19,304

14,648

10,037

9. Administrative overheads

5,304

8,159

3,231

10. Net operating profit

-84

7,079

181

11. Other income

5,207

9,889

1,039

12. Other expenses

616

7,116

55

13. Other profit /(loss)

4,591

2,773

984

14. Total accounting profit before tax

4,507

9,852

1,165

15. Current corporate income tax

1,127

903

46

16. Deferred corporate income tax

-237

0

0

17. Interest from subsidiaries/related companies

0

0

0

18. Profit after tax

3,617

8,949

1,119

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2010

FY2009

FY2008

Average Industry

Current liquidity ratio

0.94

1.13

1.34

1.92

Quick liquidity ratio

0.61

0.90

0.89

1.02

Inventory circle

15.99

33.73

27.49

5.97

Average receive period

39.54

32.59

20.60

66.39

Utilizing asset performance

3.51

6.00

7.88

2.29

Liability by total assets

89.97

88.79

86.91

65.45

Liability by owner's equity

897.18

792.09

663.82

290.21

Ebit / Total assets (ROA)

6.10

9.45

9.35

10.65

Ebit / Owner's equity (ROE)

60.81

84.29

71.40

31.58

Ebit / Total revenue (NPM)

1.74

1.57

1.19

4.98

Gross profit / Total revenue (GPM)

4.21

3.23

2.75

14.19

Note: The Average Industry was calculated by Vietnam Credit based on our own statistical data

 

CASH FLOW STATEMENT

(Indirect method)

Items

FY2010

I. Cash flows from operating activities

1. Profit before tax

4,507

 

2. Adjustments

 

 

- Depreciation and amortization

1,413

 

- Provisions

0

 

- Unrealized foreign exchange difference

0

 

- Gain/loss from investing activities

-2,061

 

- Interest expense

9,961

 

3. Operating profit before movements in working capital

13,820

 

- (Increase)/Decrease in receivables

-38,084

 

- (Increase)/Decrease in inventories

-41,469

 

- Increase/(Decrease) in accounts payable

58,613

 

- (Increase)/Decrease in prepaid expenses

-139

 

- Interest paid

-9,445

 

- Corporate income tax paid

-1,090

 

- Other cash inflows

0

 

- Other cash outflows

0

 

Net cash from (used in) operating activities

-17,794

 

II. Cash flows from investing activities

1. Acquisition of fixed assets and other long - term assets

-11,580

 

2. Proceeds from fixed assets and long - term assets disposal

2,432

 

3. Cash outflow for lending, buying debt instruments of other companies

0

 

4. Cash recovered from lending, selling debt instruments of other companies

0

 

5. Investment in other entities

0

 

6. Cash recovered from investments in other entities

0

 

7. Interest income, dividend and profit paid

76

 

Net cash from (used in) investing activities

-9,072

 

III. Cash flows from financing activities

 

1. Proceeds from issuing stocks, receiving capital from owners

0

 

2. Capital withdrawal, buying back issued stocks

0

 

3. Proceeds from borrowings

757,588

 

4. Repayment of borrowings

-720,452

 

5. Repayment of obligations under finance leased

0

 

6. Dividends paid

0

 

Net cash from (used in) financing activities

37,136

 

Net increase/(decrease) in cash and cash equivalents

10,270

 

Cash and cash equivalents at beginning of year

12,497

 

Effect from changing foreign exchange rate

-2

 

Cash and cash equivalents at end of year

22,765

 

 

 

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

 

L/C, T/T

Sale Methods

 

To contracts

 

 

INTERPRETATION ON THE SCORES

 

Established in 1976 as a state owned company, till 2002, subject equitizated and became a joint stock company with the name DANANG CHEMICAL AND ELECTRICAL MATERIALS JOINT STOCK COMPANY. Now, it operates under the business code number 0400432621 with registered capital is VND 18,492,000,000.

The head office locates at No. 89 Thai Phien Str., Phuoc Ninh Ward, Hai Chau District, Da Nang City, Vietnam. Moreover, the subject has got two branches in the same city and one branch in Hanoi City. It also has a subsidiary company in Thua Thien-Hue Province.

The major activities of subject is trading, importing and exporting polypropylene and polyethylene resin, chemicals, paints and paint materials… Besides, it also operates in the fields: renting warehouse and storage; transportation services.

Subject imports plastic granules from a lot of countries in the world such as Korea, India, Singapore, Japan, Thailand and Indonesia. The products sold in the domestic market and exported to Italy, China and Indonesia.

Base on financial data in recent years, we see that total assets increase year by year, reflecting that subject expanded business scale more. However, business result in 2010 was not very good, both revenue and profit reduced considerably compared with 2009. In addition, current liabilities occupied a large amount (89.89%) in total assets showed the subject used much external finance for its business activities. Liquidity ratios also decreased due to increase in inventories.

According to Mr. Hien (Administrative Department), total sales of subject in 2011 reached about VND 1,000 billion.

In general, after nearly a decade equitization, subject has been trying to affirm its position. Its prospect is expected to develop in the future. At the moment, subject has ability to meet small-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)

2011

2010

Agriculture, Forestry and Fishing

4.00

2.78

8,749

23,896.3

81,559

Industry and Construction

5.53

7.70

85,115

10,630

2,751,975

Trade and Services

6.69

7.52

154,978

14,522

4,939,069

 

ECONOMIC INDICATORS

 

 

2011 

2010 

2009 

Population (Million person)

87.84

86.93

86.02

Gross Domestic Products (USD billion)

119

102.2

91

GDP Growth (%)

5.89

6.78

5.32

GDP Per Capita (USD/person/year)

1,300

1,160

1,080

Inflation (% Change in Composite CPI)

18.58

11.75

6.88

State Budget Deficit compared with GDP (%)

4.9

5.8

6.9

 

SERVICE TRADE PERFORMANCE

 

Billion USD 

2011 

2010 

2009 

Exports

96.3

72.2

57.1

Imports

105.8

84.8

69.9

Trade Balance

-9.5

-12.6

-12.8

Source: General Statistics Office


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.50.12

UK Pound

1

Rs.79.37

Euro

1

Rs.66.02

 

 

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