MIRA INFORM REPORT

 

 

Report Date :

30.07.2013

 

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) :

31.12.2012

 

 

Year of Incorporation :

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 :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 has been transitioning from the rigidities of a centrally-planned economy since 1986. Vietnamese authorities have reaffirmed their commitment to economic modernization in recent years. Vietnam joined the World Trade Organization in January 2007, which has promoted more competitive, export-driven industries. Vietnam became an official negotiating partner in the Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to less than 22% in 2012, while industry's share increased from 36% to nearly 41% in the same period. State-owned enterprises account for roughly 40% of GDP. 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 hurt Vietnam's export-oriented economy, with GDP in 2012 growing at 5%, the slowest rate of growth since 1999. In 2012, however, exports increased by more than 18%, year-on-year; several administrative actions brought the trade deficit back into balance. Between 2008 and 2011, Vietnam's managed currency, the dong, was devalued in excess of 20%, but its value remained stable in 2012. Foreign direct investment inflows fell 4.5% to $10.5 billion in 2012. Foreign donors have pledged $6.5 billion in new development assistance for 2013. Hanoi has oscillated between promoting growth and emphasizing macroeconomic stability in recent years. In February 2011, the Government shifted policy away from policies aimed at achieving a high rate of economic growth, which had stoked inflation, to those aimed at stabilizing the economy, through tighter monetary and fiscal control. Although Vietnam unveiled a broad, "three pillar" economic reform program in early 2012, proposing the restructuring of public investment, state-owned enterprises, and the banking sector, little perceptible progress had been made by early 2013. Vietnam's economy continues to face challenges from an undercapitalized banking sector. Non-performing loans weigh heavily on banks and businesses. In September 2012, the official bad debt ratio climbed to 8.8%, though some independent analysts believe it could be higher than 15%.

Source : CIA


 

SUBJECT IDENTIFICATION & LEGAL FORM

 

Current legal status

Registered English Name

 

QUANG NINH SEAPRODUCTS IMPORT – EXPORT JOINT STOCK COMPANY

Registered Vietnamese Name

 

CONG TY CO PHAN XUAT NHAP KHAU THUY SAN QUANG NINH

Registered 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 Chartered capital

 

VND 10,000,000,000

Status

 

Unlisted

Tax code

 

5700100714

Total Employees

 

250

Size

 

Medium

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Business Registration No: 2203000764 (issued on Aug 30th 2000)

Changed to: 5700100714

20 Oct 2011

2

Subject has got former Type of Business: State owned company Changed to: Joint stock company

2000

3

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

 

 

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

Note: The exact address is as above (No. 35 not No. 385)

 

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

Note:  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 cum Director

Date of Birth

 

29 Dec 1950

ID Number/Passport

 

100297577

ID Issue Date

 

21 Oct 2011

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/Mobile phone

 

+84 913262115

Email

 

dosangts@gmail.com

 

2. NAME

 

Mr. LE XUAN CAU

Position

 

Vice Director

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 (in charge of business)

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 (in charge 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

 

The subject is specialized in:

- 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

 

ASEAN countries such as Malaysia, Indonesia…

·         Mode of payment

 

T/T, L/C, DA

 

EXPORT:

·         Types of products

 

Seafood products

·         Market

 

Japan, Korea, England, the USA and China

·         Mode of payment

 

T/T, L/C, DA

Note: Besides, in the season litchi, the subject exports frozen litchi to foreign country. Moreover, the subject has also business activity under form of temporary importing and re-exporting. It imports many types of products from many countries, then exports to China

 

 

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

Following is the list of founding shareholders of the subject.
 

1. NAME

 

Mr. NGUYEN THUONG UYEN

Position

 

Deputy Director

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%

 

2. 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%

 

3. NAME

 

Mr. LE XUAN CAU

Position

 

Vice Director

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%

 

4. NAME

 

Mr. DO QUANG SANG

Position

 

Chairman cum Director

Date of Birth

 

29 Dec 1950

ID Number/Passport

 

100297577

Issued on

 

21 Oct 2011

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%

 

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

Note: The financial data of FY 2011 is not available.

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2012

31/12/2010

Number of weeks

52

52

ASSETS

A – CURRENT ASSETS

56,935,693,945

52,654,485,430

I. Cash and cash equivalents

2,383,931,037

1,065,466,789

1. Cash

2,383,931,037

1,065,466,789

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

12,097,125,187

6,815,772,587

1. Receivable from customers

11,588,761,125

3,187,521,319

2. Prepayments to suppliers

0

3,119,887,206

3. Inter-company receivable

0

0

4. Receivable according to the progress of construction

0

0

5. Other receivable

508,364,062

508,364,062

6. Provisions for bad debts

0

0

IV. Inventories

40,356,289,947

41,557,910,275

1. Inventories

40,356,289,947

41,557,910,275

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

2,098,347,774

3,215,335,779

1. Short-term prepaid expenses

1,496,612,900

1,477,772,335

2. VAT to be deducted

107,229,374

204,932,923

3. Taxes and other accounts receivable from the State

0

41,559,421

4. Other current assets

494,505,500

1,491,071,100

B. LONG-TERM ASSETS

29,256,334,676

28,473,711,634

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

27,585,441,315

27,210,708,873

1. Tangible assets

27,221,804,951

25,979,408,026

- Historical costs

51,002,172,774

46,573,779,201

- Accumulated depreciation

-23,780,367,823

-20,594,371,175

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

363,636,364

1,231,300,847

III. Investment property

1,191,890,425

1,263,002,761

Historical costs

1,615,620,427

1,615,620,427

Accumulated depreciation

-423,730,002

-352,617,666

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

479,002,936

0

1. Long-term prepaid expenses

479,002,936

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

86,192,028,621

81,128,197,064

 

LIABILITIES

A- LIABILITIES

76,548,403,501

70,840,996,436

I. Current liabilities

66,483,985,272

65,934,508,664

1. Short-term debts and loans

48,999,966,604

40,101,453,393

2. Payable to suppliers

4,466,511,293

12,117,363,600

3. Advances from customers

10,563,454,948

3,948,854,770

4. Taxes and other obligations to the State Budget

401,990,749

318,757,530

5. Payable to employees

1,201,936,700

575,209,600

6. Accrued expenses

0

251,550,300

7. Inter-company payable

0

0

8. Payable according to the progress of construction contracts

0

0

9. Other payable

850,124,978

8,621,319,471

10. Provisions for short-term accounts payable

0

0

11. Bonus and welfare funds

0

 

II. Long-Term Liabilities

10,064,418,229

4,906,487,772

1. Long-term accounts payable to suppliers

0

0

2. Long-term inter-company payable

0

0

3. Other long-term payable

10,000,000

0

4. Long-term debts and loans

0

4,849,670,600

5. Deferred income tax payable

0

0

6. Provisions for unemployment allowances

8,330,501

56,817,172

7. Provisions for long-term accounts payable

10,046,087,728

0

8. Unearned Revenue

0

 

9. Science and technology development fund

0

 

B- OWNER’S EQUITY

9,643,625,120

10,287,200,628

I. OWNER’S EQUITY

9,461,937,271

10,224,746,009

1. Capital

10,018,450,000

10,018,450,000

2. Share premiums

2,608,310,000

2,608,310,000

3. Other sources of capital

0

0

4. Treasury stocks

-4,630,864,000

-4,641,560,000

5. Differences on asset revaluation

0

0

6. Foreign exchange differences

0

0

7. Business promotion fund

56,705,179

56,705,179

8. Financial reserved fund

391,195,002

391,195,002

9. Other funds

0

0

10. Retained earnings

1,018,141,090

1,791,645,828

11. Construction investment fund

0

0

12. Business arrangement supporting fund

0

 

II. Other sources and funds

181,687,849

62,454,619

1. Bonus and welfare funds (Elder form)

181,687,849

62,454,619

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

86,192,028,621

81,128,197,064

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2012

FY2010

1. Total Sales

847,654,692,469

196,376,550,134

2. Deduction item

238,846,683

0

3. Net revenue

847,415,845,786

196,376,550,134

4. Costs of goods sold

821,629,520,343

182,602,769,583

5. Gross profit

25,786,325,443

13,773,780,551

6. Financial income

46,810,206

27,864,589

7. Financial expenses

8,010,415,939

4,916,767,760

- In which: Loan interest expenses

0

4,916,767,760

8. Selling expenses

12,878,975,053

3,776,103,202

9. Administrative overheads

3,421,783,085

3,799,138,856

10. Net operating profit

1,521,961,572

1,309,635,322

11. Other income

27,272,727

312,817,981

12. Other expenses

6,422,454

112,227,050

13. Other profit /(loss)

20,850,273

200,590,931

14. Total accounting profit before tax

1,542,811,845

1,510,226,253

15. Current corporate income tax

269,992,073

377,556,563

16. Deferred corporate income tax

0

0

17. Interest from subsidiaries/related companies

0

 

18. Profit after tax

1,272,819,772

1,132,669,690

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2012

FY2010

Average Industry

Current liquidity ratio

0.86

0.80

1.24

Quick liquidity ratio

0.25

0.17

0.64

Inventory circle

20.36

4.39

5.02

Average receive period

5.21

12.67

82.74

Utilizing asset performance

9.83

2.42

1.36

Liability by total assets

88.81

87.32

69.39

Liability by owner's equity

793.77

688.63

260.95

Ebit / Total assets (ROA)

1.79

7.92

15.09

Ebit / Owner's equity (ROE)

16.00

62.48

49.87

Ebit / Total revenue (NPM)

0.18

3.27

14.92

Gross profit / Total revenue (GPM)

3.04

7.01

20.48

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

 

 

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

 

Founded in 1983 as a state owned company, the subject company has been equitized in 2000 under the name of QUANG NINH SEAPRODUCTS IMPORT-EXPORT JOINT STOCK COMPANY. Currently, the subject has been operating following business registration No. 5700100714 dated on 20th Oct 2011 by Quang Ninh Department of Planning and Investment.

Besides the head office located at No. 35 Ben Tau Str., Ha Long City, Quang Ninh Province, Vietnam, the subject has two representative offices (one in Mong Cai City, Quang Ninh which is in charge of export activities and another in Hai Phong Province – in charge of import). The subject has two restaurants named BIEN MO and BIEN MO 2, which are all famous in the region.

The subject is specialized in processing and trading in seafood products such as shrimp, squid, sea fish. Besides, it also operates in field of real estate, restaurants services; temporary import and re-export and sometimes it also processes frozen canvas to export. In field of processing seafood products, the subject's materials are mainly purchases in domestic market, sometimes, it imports some kinds of main materials (squid and fish) from ASEAN countries such as Malaysia, Indonesia. Its products are mainly exported to Japan, Korea, England, the USA and China.

In recent years, the subject's premises and facilities hardly change. Total employees are relative stable with about 250 people. The subject still maintains the current chartered capital and has no planning to increase in the next time.

Financially, the latest financial statement of the company shows a strong growth in total sales, which increased 331.6% from VND 196 billion in 2010 to more than VND 847 billion in 2012. However, the profit before tax rose very little due to high cost of goods sold and expenses. The subject should manage its costs and operation expenses strictly to improve furthermore NMP and other profitability ratios.

In term of the subject’s capital structure, the debt rates remained at high level in relation with the average industry indexes, which indicates that the subject’s self-financing capability was not good. The liabilities, particularly current liabilities covered the whole current assets making the current liquidity ratio not good. Moreover, due to too large amount of inventories in the current assets (about 70.9% in 2012), the quick ratio maintained at low level (0.25 times in 2012 and 0.17 times in 2010). However, the average receive period was prompt and the operations ratios were considered as good compared to the other companies in the same field.

In general, the subject is a medium business scale company in the industry. It has a long time of operation in field of seafood processing. Its operation situation is relatively stable. Currently, the subject has capability to meet normal financial commitments. However, caution is needed for bigger business transactions with it. 

 

 

 

----------- APPENDIX ----------

 

INDUSTRY DATA

 

Industry code

GDP 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.59.29

UK Pound

1

Rs.91.18

Euro

1

Rs.78.71

 

 

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.