MIRA INFORM REPORT

Report Date :

23.11.2012

IDENTIFICATION DETAILS

Name :	Hoang Tien Production Commerce Joint Stock Company

Registered Office :	Zone 5, Hai Hoa Ward, Mong Cai City, Quang Ninh Province

Country :	Vietnam

Financials (as on) :	31.12.2011

Date of Incorporation :	2008

Com. Reg. No.:	5700730868

Legal Form :	Joint Stock Company

Line of Business :	Warehouse and transportation services like frozen seafood, frozen meat, alcohol etc.

No. of Employees :	200

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^th, 2012

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Vietnam

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

VIETNAM - ECONOMIC OVERVIEW

Vietnam is a densely-populated developing country that in the last 30 years has had to recover from the ravages of war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy. While Vietnam's economy remains dominated by state-owned enterprises, which still produce about 40% of GDP, Vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive export-driven industries. Vietnam joined the World Trade Organization in January 2007 following more than a decade-long negotiation process. Vietnam became an official negotiating partner in the developing Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to about 22% in 2011, while industry's share increased from 36% to 40% in the same period. Deep poverty has declined significantly, and Vietnam is working to create jobs to meet the challenge of a labor force that is growing by more than one million people every year. The global recession has hurt Vietnam's export-oriented economy, with GDP in 2009-11 growing less than the 7% per annum average achieved during the last decade. In 2011, exports increased by more than 33%, year-on-year, and the trade deficit, while reduced from 2010, remained high, prompting the government to maintain administrative trade measures to limit the trade deficit. Vietnam's managed currency, the dong, continues to face downward pressure due to a persistent trade imbalance. Since 2008, the government devalued it in excess of 20% through a series of small devaluations. Foreign donors pledged nearly $8 billion in new development assistance for 2011. However, the government's strong growth-oriented economic policies have caused it to struggle to control one of the region's highest inflation rates, which reached as high as 23% in August 2011 and averaged 18% for the year. In February 2011, Vietnam shifted its focus away from economic growth to stabilizing its economy and tightened fiscal and monetary policies. In early 2012 Vietnam unveiled a broad "three pillar" economic reform program, proposing the restructuring of public investment, state-owned enterprises and the banking sector. Vietnam's economy continues to face challenges from low foreign exchange reserves, an undercapitalized banking sector, and high borrowing costs. The near-bankruptcy and subsequent default of the state-owned-enterprise Vinashin, a leading shipbuilder, led to a ratings downgrade of Vietnam's sovereign debt, exacerbating Vietnam's borrowing difficulties.

Source : CIA

SUBJECT IDENTIFICATION & LEGAL FORM
Current legal status
English Name		HOANG TIEN PRODUCTION COMMERCE JOINT STOCK COMPANY
Vietnamese Name		CONG TY CO PHAN SAN XUAT THUONG MAI HOANG TIEN
Short name		HOANG TIEN JSC
Type of Business		Joint stock company
Year Established		2008
Business Registration No.		5700730868
Date of Registration		19 Oct 2011
Place of Registration		Quang Ninh Department of Planning and Investment
Chartered capital		VND 100,000,000,000
Status		Unlisted
Tax code		5700730868
Total Employees		200
Size		Medium
Note: The correct name of the subject is as above.

Historical Identification & Legal form

List

Changed Items

Date of changes

Subject has got former Business Registration No: 0802000414

Changed to: 5700730868

19 Oct 2011

ADDRESSES

Head Office
Address	Zone 5, Hai Hoa Ward, Mong Cai City, Quang Ninh Province, Vietnam
Telephone	(84-33) 3778828/ 3884186
Fax	(84-33) 3778818/ 3884433
Email	hoangtienjsc@gmail.com
Website	http://hoangtien.com.vn

SUBSIDIARIES AND RELATED COMPANIES
1. HOANG CAU TRADING JOINT STOCK COMPANY
Business Registration		0200406582
Date of Registration		05 Nov 2010
Place of Registration		Hai Phong City Department of Planning and Investment
Registered Capital		VND 24,000,000,000
Tax code		0200406582
Address		Km 2 Dinh Vu St. - Hai An Ward, Hai An District, Hai Phong City, Vietnam
Tel		(84-31) 362 9988
Fax		(84-31) 362 9445

DIRECTORS
1. NAME		Mr. HOANG TRUNG TUYEN
Position		Chairman cum General Director
Date of Birth		23 Jul 1965
ID Number/Passport		100548521
ID Issue Date		09 Nov 1998
ID Issue Place		Quang Ninh Public Security Department
Current resident		No.24 Van Don Str, group 1, zone 2, Tran Phu ward, Mong Cai City, Quang Ninh Province, Vietnam
Nationality		Vietnamese

2. NAME		Mr. NGUYEN VAN TUYEN
Position		Vice General Director
Nationality		Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject focuses on:
- Warehouse and transportation service.
- Temporary import and re-export services (goods include frozen foods, alcohol, etc).

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products		Frozen seafood, frozen meat, alcohol
· Market		USA, Brazil, Germany
· Ratio		Large
· Mode of payment		T/T, L/C

EXPORT:
· Market		China
· Ratio		100%
· Mode of payment		Negotiable

BANKERS
1. DONG A COMMERCIAL JOINT STOCK BANK MONG CAI BRANCH
Address		No.01 Hung Vuong Street, Hoa Lac Ward, Mong Cai City, Quang Ninh Province, Vietnam
Telephone		(84-33) 3777 177
Fax		(84-33) 3777 175

SHAREHOLDERS
1. NAME		Mr. HOANG TRUNG TUYEN
Position		Chairman cum General Director
Date of Birth		23 Jul 1965
ID Number/Passport		100548521
Issued on		09 Nov 1998
Issued Place		Quang Ninh Public Security Department
Current Resident		No.24 Van Don Str, group 1, zone 2, Tran Phu ward, Mong Cai City, Quang Ninh Province, Vietnam
Nationality		Vietnamese
Value of shares		VND 26,000,000,000
Percentage		26%

2. NAME		Mr. LE VAN PHONG
ID Number/Passport		101014689
Current Resident		Group 3, zone 1 Thuong mai road, Tran Phu ward, Mong Cai City, Quang Ninh Province, Vietnam
Nationality		Vietnamese
Value of shares		VND 14,000,000,000
Percentage		14%

3. NAME		Ms. TO THI LA
ID Number/Passport		100810120
Current Resident		No.3 Dao Phuc Loc Str, group 2 - Tran Phu ward, Mong Cai City, Quang Ninh Province, Vietnam
Nationality		Vietnamese
Value of shares		VND 20,000,000,000
Percentage		20%

FINANCIAL DATA

Note: FS 2010 is not yet available in our source.

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2011	31/12/2009
Number of weeks	52	52
ASSETS
A – CURRENT ASSETS	19,466,000,000	22,965,000,000
I. Cash and cash equivalents	1,017,000,000	14,075,000,000
1. Cash	1,017,000,000	14,075,000,000
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	16,537,000,000	8,622,000,000
1. Receivable from customers	61,000,000	8,015,000,000
2. Prepayments to suppliers	16,476,000,000	607,000,000
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	0	43,000,000
1. Inventories	0	43,000,000
2. Provisions for devaluation of inventories	0	0
V. Other Current Assets	1,912,000,000	225,000,000
1. Short-term prepaid expenses	1,357,000,000	0
2. VAT to be deducted	438,000,000	225,000,000
3. Taxes and other accounts receivable from the State	117,000,000	0
4. Other current assets	0	0
B. LONG-TERM ASSETS	26,993,000,000	27,820,000,000
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	26,993,000,000	27,820,000,000
1. Tangible assets	26,993,000,000	27,820,000,000
- Historical costs	31,552,000,000	27,820,000,000
- Accumulated depreciation	-4,559,000,000	0
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	0	0
1. Long-term prepaid expenses	0	0
2. Deferred income tax assets	0	0
3. Other long-term assets	0	0
VI. Goodwill	0	0
1. Goodwill	0	0
TOTAL ASSETS	46,459,000,000	50,785,000,000

LIABILITIES
A- LIABILITIES	6,660,000,000	20,174,000,000
I. Current liabilities	6,660,000,000	20,174,000,000
1. Short-term debts and loans	4,802,000,000	15,000,000,000
2. Payable to suppliers	1,502,000,000	4,282,000,000
3. Advances from customers	356,000,000	744,000,000
4. Taxes and other obligations to the State Budget	0	148,000,000
5. Payable to employees	0	0
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	0	0
10. Provisions for short-term accounts payable	0	0
11. Bonus and welfare funds	0
II. Long-Term Liabilities	0	0
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	0	0
7. Provisions for long-term accounts payable	0	0
8. Unearned Revenue	0	0
9. Science and technology development fund	0	0
B- OWNER’S EQUITY	39,799,000,000	30,611,000,000
I. OWNER’S EQUITY	39,799,000,000	30,611,000,000
1. Capital	39,000,000,000	30,000,000,000
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	115,000,000	0
8. Financial reserved fund	0	0
9. Other funds	0	0
10. Retained earnings	684,000,000	611,000,000
11. Construction investment fund	0	0
12. Business arrangement supporting fund	0	0
II. Other sources and funds	0	0
1. Bonus and welfare funds (Elder form)	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	46,459,000,000	50,785,000,000

PROFIT & LOSS STATEMENT

Description	FY2011	FY2009
1. Total Sales	626,810,000,000	54,178,000,000
2. Deduction item	0	0
3. Net revenue	626,810,000,000	54,178,000,000
4. Costs of goods sold	603,349,000,000	39,094,000,000
5. Gross profit	23,461,000,000	15,084,000,000
6. Financial income	1,134,000,000	20,000,000
7. Financial expenses	605,000,000	1,034,000,000
- In which: Loan interest expenses	605,000,000	1,034,000,000
8. Selling expenses	22,210,000,000	12,642,000,000
9. Administrative overheads	1,207,000,000	680,000,000
10. Net operating profit	573,000,000	748,000,000
11. Other income	0	61,000,000
12. Other expenses	0	0
13. Other profit /(loss)	0	61,000,000
14. Total accounting profit before tax	573,000,000	809,000,000
15. Current corporate income tax	143,000,000	202,000,000
16. Deferred corporate income tax	0	0
17. Interest from subsidiaries/related companies	0	0
18. Profit after tax	430,000,000	607,000,000

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2011	FY2009	Average Industry
Current liquidity ratio	2.92	1.14	1.21
Quick liquidity ratio	2.92	1.14	0.72
Inventory circle	0	909.16	12.25
Average receive period	9.63	58.09	51.49
Utilizing asset performance	13.49	1.07	2.30
Liability by total assets	14.34	39.72	59.32
Liability by owner's equity	16.73	65.90	229.17
Ebit / Total assets (ROA)	2.54	3.63	8.16
Ebit / Owner's equity (ROE)	2.96	6.02	24.08
Ebit / Total revenue (NPM)	0.19	3.40	6.61
Gross profit / Total revenue (GPM)	3.74	27.84	16.82
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality			Normal
Liquidity			Medium/High
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





























































INTERPRETATION ON THE SCORES
The subject was officially established in year 2008 in Quang Ninh province. However, its forerunner was a brand office in Quang Ninh of Hoang Cau Trading Joint Stock Company, which is located in Hai Phong city. Hoang Cau Trading Jsc and the subject have close relation and have similar business lines. The subject has chartered capital of VND 100 billion. So far, the subject has had 4 years in business operation. It focuses on service of import and export. The subject temporary imports goods from many foreign countries then re-exports these goods to third nation. It only supplies the service, including the customs service, transportation service, import and export and it gets benefit from these services. Goods that subject imports include frozen foods, meat (pork, beef…), alcohol, and so on. After these products come to Vietnam via Hai Phong port (subject has an office in Hai Phong to respond for taking goods), then these goods are transported via truck to Mong Cai city and subject re-exports to China via Mong Cai port. The operation of subject is fairly busy with around nearly 200 employees (including office and seasonal staffs). The facilities of subject are fair. Beside the head office, subject also has an office in Hai Phong, a warehouse and a port in Mong Cai city. Here, the subject owns some trucks for transport goods. On the hand of finance, the current assets stood at VND 19.4 billion in FY2011 and took up 41.8% of total assets. In its asset structure of fiscal year 2009, the subject’s cash and cash equivalents accounted for large amount (more than VND 14 billion in total nearly VND 23 billion of total current assets). Coming to 2011, the cash and cash equivalents were sharply reduced with over VND 1 billion. Whereas, the accounts receivable were increased. Total sales of subject in 2011 were VND 626.8 billion but the profit after tax was still modest. In terms of financial ratios, liquidity ratios were fairly good and the debt rate was controllable. In general, subject is a small company. Its future prospect is average. The subject is suitable for small financial commitments.

INDUSTRY DATA
Industry code	Growth speed by price compared with 1994 (%)		Total enterprises 2010		Total employees 2011 (Thous.pers.)	Annual average capital of enterprises 2010 (billion dongs)
	2011	2010
Agriculture, Forestry and Fishing	4.00	2.78	8,887		24,362.9	95,227
Industry and Construction	5.53	7.70	95,217		10,718.9	3,641,376
Trade and Services	6.69	7.52	187,195		15,270.2	6,957,082

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.16
UK Pound	1	Rs.88.03
Euro	1	Rs.70.86

INFORMATION DETAILS

Report Prepared by :

NIT

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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

MIRA INFORM REPORT

SUBJECT IDENTIFICATION & LEGAL FORM

Current legal status

ADDRESSES

SUBSIDIARIES AND RELATED COMPANIES

DIRECTORS

BUSINESS NATURE AND ACTIVITIES

IMPORT & EXPORT ACTIVITIES

BANKERS

SHAREHOLDERS

FINANCIAL DATA

Unit: One VND

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

INTERPRETATION ON THE SCORES

INDUSTRY DATA

Unit