MIRA INFORM REPORT

Report Date :

28.03.2012

IDENTIFICATION DETAILS

Name :	QUANG NINH SEAPRODUCTS IMPORT - EXPORT JOINT STOCK COMPANY
Registered Office :	No. 35, Ben Tau Str., Ha Long City, Quang Ninh Province
Country :	Vietnam
Financials (as on) :	31.12.2010
Year of Establishment :	1983
Com. Reg. No.:	5700100714
Legal Form :	Joint Stock Company
Line of Business :	Processing and trading in seafood products, agricultural products
No. of Employees :	250

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 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
Viet Nam	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	QUANG NINH SEAPRODUCTS IMPORT - EXPORT JOINT STOCK COMPANY
Vietnamese Name	CONG TY CO PHAN XUAT NHAP KHAU THUY SAN QUANG NINH
Short name	QUANG NINH SEAPRODEX CO
Type of Business	Joint stock company
Year Established	1983
Business Registration No.	5700100714
Date of Registration	20 Oct 2011
Place of Registration	Planning and Investment Department of Quang Ninh Province
Current registered capital	VND 10,000,000,000
Status	Unlisted
Tax code	5700100714
Total Employees	250
Size	Medium
Note: The correct name of the subject is above.

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Type of Business: State owned company Changed to: Joint stock company	2000
2	Subject has got former Registered Vietnamese Name: XI NGHIEP XUAT KHAU THUY SAN QUANG NINH Changed to: CONG TY CO PHAN XUAT NHAP KHAU THUY SAN QUANG NINH	2000
3	Subject has got former Business Registration No: 2203000764 (issued on Aug 30^th 2000) Changed to: 5700100714	20 Oct 2011

ADDRESSES
Head Office
Address	No. 35, Ben Tau Str., Ha Long City, Quang Ninh Province, Vietnam
Telephone	(84-33) 3825196 /190 /3821789
Fax	(84-33) 3826683
Email	spef41.qn@hn.vnn.vn
Website	http://quangninhseaprodex.com.vn
Representative office in Quang Ninh
Address	Ninh Duong Ward, Mong Cai City, Quang Ninh Province, Vietnam
Representative office in Hai Phong
Address	Van My Ward, Ngo Quyen District, Hai Phong City, Vietnam
Notes: Besides, the subject also has two restaurants: Bien Mo Floating restaurant and Bien Mo 2 restaurant in Quang Ninh province.

DIRECTORS
1. NAME	Mr. DO QUANG SANG
Position	Chairman & Director
Date of Birth	29 Dec 1950
ID Number/Passport	100297577
ID Issue Date	26 Oct 1996
ID Issue Place	Quang Ninh Police Department
Resident	No. 60 Cang Moi, Bach Dang Ward, Ha Long City, Quang Ninh Province, Vietnam
Nationality	Vietnamese
Tel/Mobil phone	+84 913262115
Email	dosangts@gmail.com
2. NAME	Mr. LE XUAN CAU
Position	Vice Director & Vice Chairman
ID Number/Passport	100562361
Resident	Group 11, Area 1, Bach Dang Ward, Ha Long City, Quang Ninh Province, Vietnam
Nationality	Vietnamese
3. NAME	Mr. NGUYEN THUONG UYEN
Position	Deputy Director - Business Department
ID Number/Passport	101070388
Resident	Group 4, Area 1, Bach Dang Ward, Ha Long City, Quang Ninh Province, Vietnam
Nationality	Vietnamese
4. NAME	Mr. VU QUANG HUY
Position	Deputy Director of Production
ID Number/Passport	011258712
Resident	Group 4, Area 1, Cao Thang Ward, Ha Long City, Quang Ninh Province, Vietnam
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

- Processing and trading in seafood products, agricultural products;
- Trading in materials, equipment, industrial and consumer goods;
- Restaurants services;
- Renting of assets.

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products	Materials
· Market	American, Canada, Japan and other many countries
· Mode of payment	T/T (mostly), L/C, DA
EXPORT:
· Types of products	Seafood products
· Market	Some Asia and European countries
· Mode of payment	T/T (mostly), L/C, DA

BANKERS
1. BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM QUANG NINH BRANCH
Address	No. 737 Le Thanh Tong, Ha Long City, Quang Ninh Province, Vietnam
Telephone	(84-33) 3825502
2. VIET NAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT HA LONG CITY BRANCH
Address	5 Hong Hai Ward, Ha Long City, Quang Ninh Province, Vietnam

SHAREHOLDERS
Below is list of foundation shareholders:
1. NAME	Mr. DO QUANG SANG
Position	Chairman & Director
Date of Birth	29 Dec 1950
ID Number/Passport	100297577
Issued on	26 Oct 1996
Issued Place	Quang Ninh Police Department
Resident	No. 60 Cang Moi, Bach Dang Ward, Ha Long City, Quang Ninh Province, Vietnam
Email	dosangts@gmail.com
Mobile phone	+84 913262115
Nationality	Vietnamese
Number of Shares	90,765
Value of shares	VND 907,650,000
Percentage	9.08%
2. NAME	Mr. NGUYEN THUONG UYEN
Position	Deputy Director - Business Department
ID Number/Passport	101070388
Resident	Group 4, Area 1, Bach Dang Ward, Ha Long City, Quang Ninh Province, Vietnam
Nationality	Vietnamese
Number of Shares	21,210
Value of shares	VND 212,100,000
Percentage	2.12%
3. NAME	Mr. VU QUANG HUY
Position	Deputy Director of Production
ID Number/Passport	011258712
Resident	Group 4, Area 1, Cao Thang Ward, Ha Long City, Quang Ninh Province, Vietnam
Nationality	Vietnamese
Number of Shares	15,150
Value of shares	VND 151,500,000
Percentage	1.52%
4. NAME	Mr. LE XUAN CAU
Position	Vice Director & Vice Chairman
ID Number/Passport	100562361
Resident	Group 11, Area 1, Bach Dang Ward, Ha Long City, Quang Ninh Province, Vietnam
Nationality	Vietnamese
Number of Shares	13,015
Value of shares	VND 130,150,000
Percentage	1.3%
5. NAME	Ms. CHAU HOA
Date of Birth	02 Sep 1960
ID Number/Passport	200995460
Issued on	22 Sep 2003
Issued Place	Police Station of Da Nang City
Resident	Group 60C, Hoa Cuong Collective Zone, Hoa Cuong Ward, Hai Chau District, Da Nang City, Vietnam
Nationality	Vietnamese
Number of Shares	114,840
Value of shares	VND 1,148,400,000
Percentage	11.48%

FINANCIAL DATA
BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2010
Number of weeks	52
ASSETS
A – CURRENT ASSETS	52,654,485,430
I. Cash and cash equivalents	1,065,466,789
1. Cash	1,065,466,789
2. Cash equivalents	0
II. Short-term investments	0
1. Short-term investments	0
2. Provisions for devaluation of short-term investments	0
III. Accounts receivable	6,815,772,587
1. Receivable from customers	3,187,521,319
2. Prepayments to suppliers	3,119,887,206
3. Inter-company receivable	0
4. Receivable according to the progress of construction	0
5. Other receivable	508,364,062
6. Provisions for bad debts	0
IV. Inventories	41,557,910,275
1. Inventories	41,557,910,275
2. Provisions for devaluation of inventories	0
V. Other Current Assets	3,215,335,779
1. Short-term prepaid expenses	1,477,772,335
2. VAT to be deducted	204,932,923
3. Taxes and other accounts receivable from the State	41,559,421
4. Other current assets	1,491,071,100
B. LONG-TERM ASSETS	28,473,711,634
I. Long term accounts receivable	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	27,210,708,873
1. Tangible assets	25,979,408,026
- Historical costs	46,573,779,201
- Accumulated depreciation	-20,594,371,175
2. Financial leasehold assets	0
- Historical costs	0
- Accumulated depreciation	0
3. Intangible assets	0
- Initial costs	0
- Accumulated amortization	0
4. Construction-in-progress	1,231,300,847
III. Investment property	1,263,002,761
Historical costs	1,615,620,427
Accumulated depreciation	-352,617,666
IV. Long-term investments	0
1. Investments in affiliates	0
2. Investments in business concerns and joint ventures	0
3. Other long-term investments	0
4. Provisions for devaluation of long-term investments	0
V. Other long-term assets	0
1. Long-term prepaid expenses	0
2. Deferred income tax assets	0
3. Other long-term assets	0
VI. Goodwill	0
1. Goodwill	0
TOTAL ASSETS	81,128,197,064
LIABILITIES
A- LIABILITIES	70,840,996,436
I. Current liabilities	65,934,508,664
1. Short-term debts and loans	40,101,453,393
2. Payable to suppliers	12,117,363,600
3. Advances from customers	3,948,854,770
4. Taxes and other obligations to the State Budget	318,757,530
5. Payable to employees	575,209,600
6. Accrued expenses	251,550,300
7. Inter-company payable	0
8. Payable according to the progress of construction contracts	0
9. Other payable	8,621,319,471
10. Provisions for short-term accounts payable	0
II. Long-Term Liabilities	4,906,487,772
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	4,849,670,600
5. Deferred income tax payable	0
6. Provisions for unemployment allowances	56,817,172
7. Provisions for long-term accounts payable	0
B- OWNER’S EQUITY	10,287,200,628
I. OWNER’S EQUITY	10,224,746,009
1. Capital	10,018,450,000
2. Share premiums	2,608,310,000
3. Other sources of capital	0
4. Treasury stocks	-4,641,560,000
5. Differences on asset revaluation	0
6. Foreign exchange differences	0
7. Business promotion fund	56,705,179
8. Financial reserved fund	391,195,002
9. Other funds	0
10. Retained earnings	1,791,645,828
11. Construction investment fund	0
II. Other sources and funds	62,454,619
1. Bonus and welfare funds	62,454,619
2. Sources of expenditure	0
3. Fund to form fixed assets	0
MINORITY’S INTEREST	0
TOTAL LIABILITIES AND OWNER’S EQUITY	81,128,197,064

PROFIT & LOSS STATEMENT
Description	FY2010
1. Total Sales	196,376,550,134
2. Deduction item	0
3. Net revenue	196,376,550,134
4. Costs of goods sold	182,602,769,583
5. Gross profit	13,773,780,551
6. Financial income	27,864,589
7. Financial expenses	4,916,767,760
- In which: Loan interest expenses	4,916,767,760
8. Selling expenses	3,776,103,202
9. Administrative overheads	3,799,138,856
10. Net operating profit	1,309,635,322
11. Other income	312,817,981
12. Other expenses	112,227,050
13. Other profit /(loss)	200,590,931
14. Total accounting profit before tax	1,510,226,253
15. Current corporate income tax	377,556,563
16. Deferred corporate income tax	0
17. Interest from subsidiaries/related companies	0
18. Profit after tax	1,132,669,690

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2010	Average Industry
Current liquidity ratio	0.80	1.32
Quick liquidity ratio	0.17	0.69
Inventory circle	4.39	4.18
Average receive period	12.67	69.24
Utilizing asset performance	2.42	1.47
Liability by total assets	87.32	64.25
Liability by owner's equity	688.63	263.88
Ebit / Total assets (ROA)	7.92	9.37
Ebit / Owner's equity (ROE)	62.48	32.97
Ebit / Total revenue (NPM)	3.27	6.94
Gross profit / Total revenue (GPM)	7.01	13.08
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

FINANCIAL HIGHLIGHT
BALANCE SHEET
Unit: Million VND
Balance sheet date	31/12/2009
Number of weeks	52
ASSETS
A. Current Asset	53,233
Receivables	13,305
Inventory	35,652
Cash and other current assets	-
B. Long term Asset	26,025
1. Long term account receivable	-
2. Fixed assets	26,025
Tangible fixed assets	26,005
+ Original cost	43,305
+ Accumulated depreciation value	17,300
Financial leasehold assets	-
Intangible fixed assets	-
Construction in progress and other long term asset	-
TOTAL ASSETS	79,258
LIABILITIES
Payable loans	68,387
Owner’s Equity	10,871
TOTAL LIABILITY AND EQUITY	79,258
PROFIT & LOSS STATEMENT
1. Total Sales	125,880
2. Deduction item	-
3. Net revenue	125,880
4. Costs of goods sold	116,977
5. Gross profit	8,903
6. Financial income	229
7. Financial expenses	2,313
8. Selling expenses and Administrative overheads	6,046
9. Net operating profit	773
10. Other income	1,324
11. Other expenses	75
12. Other profit /(loss)	1,249
13. Total accounting profit before tax	2,022
14. Current corporate income tax	355
15. Deferred corporate income tax	-
16. Interest from subsidiaries/related companies	-
17. Profit after tax	1,667

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Fair
Liquidity	Low/Medium
Payment status	Normal
Financial Situation	Average
Development trend	Stable
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	T/T, L/C, DA
Sale Methods	To contracts
Public opinion	Good

INTERPRETATION ON THE SCORES

The subject's precursor is a state owned company which was established in 1983. Then, in 2000 the subject equitized and changed its name into QUANG NINH SEAPRODUCTS IMPORT - EXPORT JOINT STOCK COMPANY. Currently, it is operating under the business code number 5700100714 with VND 10 billion of registered capital and labor force is 250 employees.

Head office is locating at No. 35, Ben Tau Str., Ha Long City, Quang Ninh Province. The subject has a representative office and two restaurants named Bien Mo floating and Bien Mo 2 in the same province. Besides, it also has a representative office in Hai Phong City.

Main business activities of the subject is processing and trading in seafood products. The subject has two processing workshops which were awarded: "Certificate of safety in seafood processing" by National Agro - Forestry - Fisheries Quality Assurance Department (NAFIQAD) - Ministry of Agricultural and Rural Development. Its products were also granted code for exporting to EU. Mainly seafood products are frozen shrimp, cuttle and fish such as HLSO white shrimp, PDTP shrimp, tube semi pro squid, Sugarta cuttle, Sushi cuttle... Currently, the subject exports seafood products to some Asia and European countries. Materials for processing are imported from American, Canada, Japan and other many countries. Besides, it is also operating in restaurant service; Renting of assets…

Base on financial statement in 2010 of the subject, we see that inventories occupied a large amount in current asset (78.9%) and held to 51% in total assets. In addition, current liabilities were high with amount VND 65,934 million. This is reason why current liquidity ratio was rather slow with rate as 0.17 units. The subject used mostly debt to finance the total assets (87.32%). In 2010, although revenue attained VND 196,376 million, increased 56% comparison with 2009 but the subject did not have much profit as previous year due to other profit was small, thus its profit was mostly received from doing business.

According to Mr. Do Quang Sang (Director), T/T was main payment method of the subject. L/C and D/A method are also used but not much. He also shared more: in 2011 the subject reached VND 644 billion of total sale and VND 1,188 million of profit after tax.

In general, seafood processing is the field which is developing in Vietnam. However, the subject is not much well-known yet in comparison with other many companies in the industry. Currently, it has capacity to meet small commitments. For bigger transactions, caution is necessary.

----------- 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.50.91
UK Pound	1	Rs.81.27
Euro	1	Rs.67.98

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.