MIRA INFORM REPORT

 

 

Report Date :

20.02.2013

 

IDENTIFICATION DETAILS

 

Name :

JIA NON BIOTECH (VN) SHAREHOLDING COMPANY

 

 

Registered Office :

B05 – 2, Road III, Duc Hoa 1 Industrial Zone, Hamlet 5, Duc Hoa Dong Village, Duc Hoa District, Long An Province

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Year of Incorporation :

2004

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

The subject focuses on manufacturing and processing pesticides, environmental sanitary products and emulsifiers.

 

 

No. of Employees :

60

 

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 :

Slow

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)

Viet Nam

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

 

Current legal status

English Name

 

JIA NON BIOTECH (VN) SHAREHOLDING COMPANY

Vietnamese Name

 

CONG TY CO PHAN JIA NON BIOTECH (VN)

Trade name

 

JIA NON BIOTECH (VN)

Type of Business

 

Joint Stock Company

Year Established

 

2004

Investment Certificate No

 

502033000023

Date Of Issuance

 

23 Jul 2007

Place of Issuance

 

Long An Industrial Zone Authority

Registered Investment Capital

 

USD 6,000,000

Chartered capital

 

USD 3,500,000

Duration

 

50 years

Tax code

 

1100653004

Total Employees

 

60

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Investment Certificate No: No. 22/GP-KCN-LA Changed to Investment Certificate: 502033000023

23 Jul 2007

2

Subject has got former Type of Business: Limited Liability Company Changed to: Joint Stock Company

N/A

3

Subject has got former Registered English Name: JIA NON BIOTECH (VN) COMPANY LIMITED

Changed to: JIA NON BIOTECH (VN) SHAREHOLDING COMPANY

N/A

4

Subject has got former Registered Vietnamese Name: CONG TY TNHH JIA NON BIOTECH (VN)

Changed to: CONG TY CO PHAN JIA NON BIOTECH (VN)

N/A

 

ADDRESSES

 

Head Office

Address

 

B05 – 2, Road III, Duc Hoa 1 Industrial Zone, Hamlet 5, Duc Hoa Dong Village, Duc Hoa District, Long An Province, Vietnam

Telephone

 

(84-72) 3779262 / 69 / 266

Fax

 

(84-72) 3779261

 

 

DIRECTORS

 

1. NAME

 

Mr. HSU JUNG CHUN

Position

 

General Director

Date of Birth

 

20 Sep 1952

ID Number/Passport

 

131372913

ID Issue Date

 

08 Mar 2001

Current resident

 

Lot B05-2 - Road 3 Duc Hoa 1 Industrial Zone - Hamlet 5 - Duc Hoa Dong Commune, Duc Hoa District, Long An Province, Vietnam

Nationality

 

Taiwanese

 

2. NAME

 

Mr. LIANG CHIN CHI

Position

 

Former CEO

Nationality

 

Taiwanese

 

3. NAME

 

Mr. HO VAN HIEP

Position

 

Chief Accountant

Nationality

 

Vietnamese

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject focuses on manufacturing and processing pesticides, environmental sanitary products and emulsifiers.

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Materials and products

·         Market

 

China, Taiwan

 

EXPORT:

Note: Currently, the subject does not export

 

 

BANKERS

 

1. MEGA INTERNATIONAL COMMERCIAL BANK CO., LTD - HO CHI MINH BRANCH

Address

 

No.5B Ton Duc Thang Str, District 1, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 38225697

Fax

 

(84-8) 38225698

 

2. FIRST JOINT STOCK COMMERCIAL BANK LONG AN BRANCH

Address

 

Duc Hoa 1 Industry Zone , Duc Hoa District, Long An Province, Vietnam

Telephone

 

(84-072) 3779791 / 3779792

Fax

 

(84-072) 3779790

 

 

SHAREHOLDERS

 

1. NAME

 

Mr. LIANG CHIN CHI

Position

 

Former CEO

Nationality

 

Taiwanese

Number of Shares

 

120,000

Value of shares

 

USD 75,000

 

2. NAME

 

Mr. YANG YU LUNG

Nationality

 

Taiwanese

Number of Shares

 

120,000

Value of shares

 

USD 75,000

 

3. NAME

 

Mr. SU HUANG KAI

Nationality

 

Taiwanese

Number of Shares

 

120,000

Value of shares

 

USD 75,000

 

4. NAME

 

Mr. KUO YAO KUN

Nationality

 

Taiwanese

Number of Shares

 

48,000

Value of shares

 

USD 30,000

 

5. NAME

 

Mr. TSAI JUNG CHOU

Nationality

 

Taiwanese

Number of Shares

 

240,000

Value of shares

 

USD 150,000

 

6. NAME

 

Mr. SYU JHENG HUEI

Nationality

 

Taiwanese

Number of Shares

 

120,000

Value of shares

 

USD 75,000

 

7. NAME

 

Mr. HSIEH JIN HSIUNG

Nationality

 

Taiwanese

Number of Shares

 

840,000

Value of shares

 

USD 525,000

 

8. NAME

 

Mr. CHEN FU TSAI

Nationality

 

Taiwanese

Number of Shares

 

192,000

Value of shares

 

USD 120,000

 

9. NAME

 

Mr. YANG CHING HSIANG

Nationality

 

Vietnamese

Number of Shares

 

120,000

Value of shares

 

USD 75,000

 

10. NAME

 

Mr. CHEN JEN HUANG

Nationality

 

Taiwanese

Number of Shares

 

480,000

Value of shares

 

USD 300,000

 

11. NAME

 

OTHER SHAREHOLDERS

Number of shares

 

3,200,000

Value of shares

 

USD 2,000,000

 

 

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

165,234,453,691

139,773,000,000

I. Cash and cash equivalents

2,602,653,427

4,404,000,000

1. Cash

2,602,653,427

4,404,000,000

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

60,991,911,846

49,712,000,000

1. Receivable from customers

60,859,767,938

49,628,000,000

2. Prepayments to suppliers

0

0

3. Inter-company receivable

0

0

4. Receivable according to the progress of construction

0

0

5. Other receivable

132,143,908

84,000,000

6. Provisions for bad debts

0

0

IV. Inventories

77,391,985,841

68,534,000,000

1. Inventories

77,391,985,841

68,534,000,000

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

24,247,902,577

17,123,000,000

1. Short-term prepaid expenses

1,530,915,551

1,034,000,000

2. VAT to be deducted

1,486,258,802

501,000,000

3. Taxes and other accounts receivable from the State

0

0

4. Other current assets

21,230,728,224

15,588,000,000

B. LONG-TERM ASSETS

17,420,531,999

18,085,000,000

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

11,066,191,972

11,662,000,000

1. Tangible assets

11,040,570,116

11,630,000,000

- Historical costs

20,564,100,601

19,794,000,000

- Accumulated depreciation

-9,523,530,485

-8,164,000,000

2. Financial leasehold assets

0

32,000,000

- Historical costs

0

56,000,000

- Accumulated depreciation

0

-24,000,000

3. Intangible assets

25,621,856

0

- Initial costs

55,844,324

0

- Accumulated amortization

-30,222,468

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

6,354,340,027

6,423,000,000

1. Long-term prepaid expenses

6,354,340,027

6,423,000,000

2. Deferred income tax assets

0

0

3. Other long-term assets

0

0

VI. Goodwill

0

0

1. Goodwill

 

0

TOTAL ASSETS

182,654,985,690

157,858,000,000

 

LIABILITIES

A- LIABILITIES

120,247,572,066

93,290,000,000

I. Current liabilities

120,247,572,066

93,290,000,000

1. Short-term debts and loans

73,433,627,589

52,157,000,000

2. Payable to suppliers

44,471,349,050

39,442,000,000

3. Advances from customers

0

0

4. Taxes and other obligations to the State Budget

1,433,265,737

915,000,000

5. Payable to employees

417,004,100

436,000,000

6. Accrued expenses

158,519,900

0

7. Inter-company payable

0

0

8. Payable according to the progress of construction contracts

0

0

9. Other payable

333,805,690

340,000,000

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

8. Unearned Revenue

 

 

9. Science and technology development fund

 

 

B- OWNER’S EQUITY

62,407,413,624

64,568,000,000

I. OWNER’S EQUITY

62,407,413,624

64,568,000,000

1. Capital

56,344,450,837

56,344,000,000

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

72,867,403

-495,000,000

7. Business promotion fund

0

0

8. Financial reserved fund

0

0

9. Other funds

0

0

10. Retained earnings

5,990,095,384

8,719,000,000

11. Construction investment fund

0

0

12. Business arrangement supporting fund

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

182,654,985,690

157,858,000,000

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

1. Total Sales

175,001,311,819

149,145,000,000

2. Deduction item

3,321,473,349

3,794,000,000

3. Net revenue

171,679,838,470

145,351,000,000

4. Costs of goods sold

136,704,353,769

113,971,000,000

5. Gross profit

34,975,484,701

31,380,000,000

6. Financial income

1,224,019,363

1,109,000,000

7. Financial expenses

12,547,516,695

10,223,000,000

- In which: Loan interest expenses

5,542,109,237

3,023,000,000

8. Selling expenses

8,511,520,103

6,226,000,000

9. Administrative overheads

10,162,506,131

7,382,000,000

10. Net operating profit

4,977,961,135

8,658,000,000

11. Other income

61,332,457

0

12. Other expenses

77,899,209

13,000,000

13. Other profit /(loss)

-16,566,752

-13,000,000

14. Total accounting profit before tax

4,961,394,383

8,645,000,000

15. Current corporate income tax

271,603,239

651,000,000

16. Deferred corporate income tax

0

0

17. Interest from subsidiaries/related companies

0

0

18. Profit after tax

4,689,791,144

7,994,000,000

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

Average Industry

Current liquidity ratio

1.37

1.50

1.72

Quick liquidity ratio

0.73

0.76

1.06

Inventory circle

1.77

1.66

13.62

Average receive period

129.67

124.83

78.59

Utilizing asset performance

0.94

0.92

1.55

Liability by total assets

65.83

59.10

52.62

Liability by owner's equity

192.68

144.48

163.63

Ebit / Total assets (ROA)

5.75

7.39

13.16

Ebit / Owner's equity (ROE)

16.83

18.07

29.85

Ebit / Total revenue (NPM)

6.00

7.82

7.13

Gross profit / Total revenue (GPM)

19.99

21.04

19.87

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

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Fair

Liquidity

 

Medium

Payment status

 

Normal

Financial Situation

 

Above Average

Development trend

 

Positive

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

T/T

Sale Methods

 

Retailer and Wholesaler

 

 

 

INTERPRETATION ON THE SCORES

 

The company was established in 2004 with name Jia Non Bio Tech (VN) Company Limited with the investment license No. 22/GP-KCN-LA. In Jul 2007, the investment Certificate Number was changed to No. 502033000023. Now, the investment capital of it is US$6 million and the charted capital is US$3.5 million. The head office and factory of the subject are located at Duc Hoa 1 Industrial Zone, Hamlet 5, Duc Hoa Dong Village, Duc Hoa Dist., Long An Province.

The subject focuses on manufacturing and processing pesticides, environmental sanitary products and emulsifiers. The material is imported from China and Taiwan. The payment method is T/T.

In 2011, the subject gained over 175 billion VND revenue. However, expenses and administrative overhead were high, especially financial expenses; therefore, the amount of profit after tax recorded was humble. 

In debt structure, the firm used mainly current liabilities and did not used long-term debts. Besides using short-term borrowing, the subject also took advantages capital from its suppliers. Profitability indicators were not as good as average level in the industry because the firm did not controlled the expenses and costs well.

In comparison with other companies in this field, the subject is small company. Although the subject must face to a lot of difficulties, scale of the subject is widened. It has about 60 employees now. In general, the subject has capacity to meet small financial commitments

 

------------ 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)

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

Source: General Statistics Office

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.29

UK Pound

1

Rs.84.09

Euro

1

Rs.72.44

 

 

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.