MIRA INFORM REPORT

 

 

Report Date :

16.04.2013

 

IDENTIFICATION DETAILS

 

Name :

HOANG KIM CO., LTD

 

 

Registered Office :

No.383 To Hien Thanh Street, Ward 14, District 10, Ho Chi Minh City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Year of Incorporation :

2001

 

 

Com. Reg. No.:

0302488753

 

 

Legal Form :

Limited liability company

 

 

Line of Business :

The subject is specializing in distributing and trading equipment and medical instrument.

 

 

No. of Employees :

45

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Vietnam

B1

B1

 

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

 

Registered English Name

 

HOANG KIM CO., LTD

Registered Vietnamese Name

 

CONG TY TNHH TRANG THIET BI Y TE HOANG KIM

Registered Short name

 

HK CO., LTD

Type of Business

 

Limited liability company

Year Established

 

2001

Business Registration No.

 

0302488753

Date of Registration

 

26 Dec 2001

Date of latest adjustment (6th)

 

28 Feb 2011

Place of Registration

 

Business registration office - Planning and Investment Department of Hochiminh City

Chartered capital

 

VND 4,000,000,000

Tax code

 

0302488753

Total Employees

 

45

 

ADDRESSES

 

Head Office

Address

 

No.383 To Hien Thanh Street, Ward 14, District 10, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3866 5909 - 3866 3920

Fax

 

(84-8) 3864 9581

 

Branch in Ho Chi Minh

Address

 

T4 Hong Linh, Bac Hai Housing Compound, Ward 15, District 10, Ho Chi Minh City, Vietnam

 

Branch in Ho Chi Minh

Address

 

Lot 102, No.334 To Hien Thanh Street, Ward 14, 10 District, Ho Chi Minh City, Vietnam

 

 


 


 

DIRECTORS

 

1. NAME

 

Mrs. DO THI KIM CO

Position

 

Director – Legal representative

Date of Birth

 

01 Mar 1957

ID Number/Passport

 

022202021

ID Issue Date

 

04 Jun 1996

ID Issue Place

 

Police station of Hochiminh City

Resident

 

X9 To Hien Thanh Street, Ward 14, District 10, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Qualification

 

Managing

 

2. NAME

 

Mrs. TRUONG DO THU HIEN

Position

 

Deputy Director

Current resident

 

Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Tel/Mobile phone

 

+ 84 903 638 074

Qualification

 

Managing

 

3. NAME

 

Mr. LY VAN NO

Position

 

Chief Accountant

Current resident

 

Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Qualification

 

Bachelor

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject is specializing in distributing and trading equipment and medical instrument.

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Market

 

Malaysia, Indonesia and China

 

EXPORT: N/A

·         Market

 

N/A

 

 

BANKERS

 

1. ASIA COMMERCIAL BANK PHU THO BRANCH

Address

 

No.455 To Hien Thanh Street, District 10, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3863 8467

Fax

 

(84-8) 3863 8466

 

2. SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK

Address

 

No. 335 – 337 Nguyen Tri Phuong Street, Ward 5, District 10, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3834 7458

Fax

 

(84-8) 3834 5043

 

 

SHAREHOLDERS

 

1. NAME

 

Mrs. DO THI KIM CO

Position

 

Director

Date of Birth

 

01 Mar 1957

ID Number/Passport

 

022202021

Issued on

 

04 Jun 1996

Issued Place

 

Police station of Hochiminh City

Resident

 

X9 To Hien Thanh Street, Ward 14, District 10, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 3,962,000,000

Percentage

 

99.5%

 

2. NAME

 

Mr. HOANG QUOC LAP

ID Number/Passport

 

023667275

Resident

 

No. 59 Luong Nhu Hoc Street, Ward 10, District 5, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 38,000,000

Percentage

 

0.95%

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2011

31/12/2010

Number of weeks

52

52

ASSETS

A – CURRENT ASSETS

33,443,964,152

33,719,259,712

I. Cash and cash equivalents

3,385,526,788

2,283,976,074

1. Cash

3,385,526,788

2,283,976,074

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

6,048,712,470

7,944,401,737

1. Receivable from customers

2,942,478,694

7,936,893,969

2. Prepayments to suppliers

3,098,726,008

0

3. Inter-company receivable

0

0

4. Receivable according to the progress of construction

0

0

5. Other receivable

7,507,768

7,507,768

6. Provisions for bad debts

0

0

IV. Inventories

23,661,475,553

22,728,079,154

1. Inventories

23,661,475,553

22,728,079,154

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

348,249,341

762,802,747

1. Short-term prepaid expenses

53,742,824

53,742,824

2. VAT to be deducted

69,627,463

484,180,869

3. Taxes and other accounts receivable from the State

0

0

4. Other current assets

224,879,054

224,879,054

B. LONG-TERM ASSETS

486,894,743

164,482,290

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

457,863,015

135,450,562

1. Tangible assets

457,863,015

135,450,562

- Historical costs

597,780,043

217,780,043

- Accumulated depreciation

-139,917,028

-82,329,481

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

29,031,728

29,031,728

1. Long-term prepaid expenses

29,031,728

29,031,728

2. Deferred income tax assets

0

0

3. Other long-term assets

0

0

VI. Goodwill

0

0

1. Goodwill

0

0

TOTAL ASSETS

33,930,858,895

33,883,742,002

 

LIABILITIES

A- LIABILITIES

26,833,084,220

27,744,833,726

I. Current liabilities

26,833,084,220

27,744,833,726

1. Short-term debts and loans

2,000,000,000

2,000,000,000

2. Payable to suppliers

0

3,790,140,695

3. Advances from customers

0

0

4. Taxes and other obligations to the State Budget

251,577,334

264,627,310

5. Payable to employees

-4

18,166,621

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

24,581,506,890

21,671,899,100

10. Provisions for short-term accounts payable

0

0

11. Bonus and welfare funds

0

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

7,097,774,675

6,138,908,276

I. OWNER’S EQUITY

7,097,774,675

6,138,908,276

1. Capital

4,000,000,000

4,000,000,000

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

0

0

8. Financial reserved fund

0

0

9. Other funds

0

0

10. Retained earnings

3,097,774,675

2,138,908,276

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

33,930,858,895

33,883,742,002

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

1. Total Sales

56,939,818,675

39,763,981,313

2. Deduction item

99,163,472

63,821,300

3. Net revenue

56,840,655,203

39,700,160,013

4. Costs of goods sold

53,105,663,734

37,146,118,384

5. Gross profit

3,734,991,469

2,554,041,629

6. Financial income

32,961,579

36,042,658

7. Financial expenses

1,355,823,404

706,780,719

- In which: Loan interest expenses

1,050,631,749

 

8. Selling expenses

424,498,126

171,678,265

9. Administrative overheads

937,254,317

662,445,110

10. Net operating profit

1,050,377,201

1,049,180,193

11. Other income

133,217,228

179,859,734

12. Other expenses

12,405,832

28,430,300

13. Other profit /(loss)

120,811,396

151,429,434

14. Total accounting profit before tax

1,171,188,597

1,200,609,627

15. Current corporate income tax

203,395,902

307,259,982

16. Deferred corporate income tax

0

0

17. Interest from subsidiaries/related companies

0

0

18. Profit after tax

967,792,695

893,349,645

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

Average Industry

Current liquidity ratio

1.25

1.22

1.74

Quick liquidity ratio

0.36

0.40

0.95

Inventory circle

2.29

1.63

5.39

Average receive period

38.84

73.04

100.84

Utilizing asset performance

1.68

1.17

1.64

Liability by total assets

79.08

81.88

60.51

Liability by owner's equity

378.05

451.95

309.92

Ebit / Total assets (ROA)

6.55

3.54

9.59

Ebit / Owner's equity (ROE)

31.30

19.56

28.73

Ebit / Total revenue (NPM)

3.90

3.02

7.66

Gross profit / Total revenue (GPM)

6.56

6.42

22.62

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

 

 

CASH FLOW STATEMENT

(Direct method)

Items

FY2011

FY2010

I. Cash flows from operating activities

1.Cash received from customers

77,070,266,081

43,876,580,709

2. Cash paid to suppliers

-75,848,149,759

-57,779,463,003

3. Cash paid to employees

-595,601,308

-199,832,879

4. Interest paid

-1,050,631,749

 

5. Income taxes paid

-219,226,558

-218,344,342

6. Other operating cash receipts

 

 

7. Other operating payments

-1,723,051,244

-2,082,486,451

Net cash flows from operating activities

-2,366,394,537

-16,403,545,966

II. Cash flows from investing activities

1. Purchases and construction of fixed assets and other long-term assets

-380,000,000

-14,545,455

2. Gains from disposals and liquidation of fixed assets and other long-term assets

 

 

3. Loans given and purchases of debt instruments of other entities

 

 

4. Recovery of loans given and disposals of debt instruments of other entities

 

 

5. Investments into other entities

 

 

6. Withdrawals of investments in other entities

 

 

7. Receipts of loan interests, dividends and profit shared

20,031,251

20,332,544

Net cash flows from investing activities

-359,968,749

5,787,089

III. Cash flows from financing activities

1. Gains from stock issuance and capital contributions from shareholders

 

 

2. Repayment for capital contributions and re-purchases of stocks already issues

 

 

3. Short-term and long-term loans received

13,800,000,000

13,650,000,000

4. Loan principal amounts repaid

-10,900,000,000

-3,896,200

5. Payments for financial leasehold assets

 

 

6. Dividends and profit already paid to the owners

 

 

Net cash flows from financing activities

2,900,000,000

13,646,103,800

Net cash flows during the year

173,636,714

-2,751,655,077

Beginning cash and cash equivalents

2,283,976,074

4,252,421,151

Effects of fluctuations in foreign exchange rates

 

 

Ending cash and cash equivalents

2,457,612,788

1,500,766,074

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Fair

Liquidity

 

Low

Payment status

 

Average

Financial Situation

 

Average

Development trend

 

Stable

Litigation data

 

No Recorded

Bankruptcy

 

No Recorded

Payment Methods

 

through by bank

Sale Methods

 

Retailer and Wholesaler

Public opinion

 

Normal

 

 

 

INTERPRETATION ON THE SCORES

 

The subject – HOANG KIM CO., LTD was established since 2001. At present, the subject is operating under business registration no. 0302488753 (the same with tax code) with chartered capital VND 4 billion.

The subject is specializing in distributing and trading equipment and medical instruments. The subject imports goods from Malaysia, Indonesia and Thailand. Its main market is in Hochiminh city and neighbouring province. Its competitiveness is fair.

Premises and facilities of the subject are fair. Head office of the subject is locating at no. 383 To Hien Thanh Street, Ward 14, District 10, Hochiminh City. This location is equipment and medical center in Hochiminh City so it is advantage for its business activities. Besides, the subject has two branches in District 10, Hochiminh City.

Management capacity of the subject is acceptable. Operation about 12 years, the subject has traditional customers in industry. The subject’s director – Mrs. Do Thi Kim Co has experiences over 20 years in this field. Formerly, she had worked at Cong Ty TNHH Trang Thiet Bi Y Te Thanh Pho Ho Chi Minh.

By visited to head office of the subject, its business activities are now busy. Its market share is stable. As reported financial data, its business situation is effectively. However, its financial capacity is normal. In our opinion, the subject has capacity to meet small transactions.

 

------------ APPENDIX  ----------

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)

2012

2011

Agriculture, Forestry and Fishing

2.72

4.00

8,887

24,362.9

95,227

Industry and Construction

4.52

5.53

95,217

10,718.9

3,641,376

Trade and Services

6.42

6.69

187,195

15,270.2

6,957,082

 

ECONOMIC INDICATORS

 

 

2012 

2011 

2010 

Population (Million person)

88.78

87.84

86.93

Gross Domestic Products (USD billion)

136

119

102.2

GDP Growth (%)

5.03

5.89

6.78

GDP Per Capita (USD/person/year)

1,540

1,300

1,160

Inflation (% Change in Composite CPI)

9.21

18.58

11.75

State Budget Deficit compared with GDP (%)

4.8

4.9

5.8

 

SERVICE TRADE PERFORMANCE

 

Billion USD 

2012 

2011 

2010 

Exports

114.6

96.3

72.2

Imports

114.3

105.8

84.8

Trade Balance

0.3

-9.5

-12.6

Source: General Statistics Office

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.62

UK Pound

1

Rs.83.69

Euro

1

Rs.71.41

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.