MIRA INFORM REPORT

 

 

Report Date :

01.06.2013

 

IDENTIFICATION DETAILS

 

Name :

THYSSENKRUPP MATERIALS VIETNAM LIMITED LIABILITY COMPANY

 

 

Registered Office :

Lot 42C Quang Minh Industrial Zone, Me Linh District, Ha Noi City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

2007

 

 

Com. Reg. No.:

012023000203

 

 

Legal Form :

Foreign invested company

 

 

Line of Business :

The subject is specialized in manufacturing, processing and trading materials including steel, plastics, non-ferrous metals.

 

 

No. of Employees :

110

 

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 – 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

English Name

 

THYSSENKRUPP MATERIALS VIETNAM LIMITED LIABILITY COMPANY

Vietnamese Name

 

CONG TY TNHH KIM KHI THYSSENKRUPP VIETNAM

Short name

 

TKM VIETNAM

Type of Business

 

Foreign invested company

Year Established

 

2007

Investment Certificate No

 

012023000203

Date Of Issuance

 

31 Mar 2009

Place of Issuance

 

Management Board of Hanoi Industrial  and Processing Zones

Registered Investment Capital

 

VND 198,400,000,000

Chartered capital

 

VND 121,000,000,000

Investment Duration

 

30 years

Status

 

Unlisted

Tax code

 

2500271058

Total Employees

 

110

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Type of Business: JOINT VENTURE COMPANY Changed to: FOREIGN INVESTED COMPANY

14 Jun 2012

2

Subject has got former Board Of Director: HENDRIK DE JONG Changed to: DOAN TUAN VIET

01 Jan 2012

3

Subject has got former Address: Room No.708B, Floor 7 Hoang Anh Gia Lai Building, No.1 Nguyen Van Linh Street - Hai Chau District - Da Nang City

Changed to: No. 40 Hoang Van Thai Str - Hoa Minh - Lien Chieu - Da Nang

05 Mar 2010

4

Subject has got former Investment Certificate No: 192023000027 Changed to: No.012023000203

31 Mar 2009

5

Subject has got former Chartered capital: VND 16,000,000,000 Changed to: VND 121,000,000,000

31 Mar 2009

 

 

ADDRESSES

 

Head Office

Address

 

Lot 42C Quang Minh Industrial Zone, Me Linh District, Ha Noi City, Vietnam

Telephone

 

(84-4) 3525 0555

Fax

 

(84-4) 3525 0550

Email

 

Info@tkmvietnam.com.vn

Website

 

www.tkmvietnam.com.vn

epresentative office in Da Nang

Address

 

No. 40 Hoang Van Thai Str Hoa Minh, Lien Chieu District, Da Nang City, Vietnam

Telephone

 

(84-511) 3 765 768

Fax

 

(84-511) 3 765 766

 

Branch in Ho Chi Minh

Address

 

Lot II-1 Street No.1, Tan Binh Industry Zone, Tan Thanh Ward, Tan Phu District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3816 3333

Fax

 

(84-8) 5435 5722

 

 

 

PARENT COMPANY

 

THYSSENKRUPP MATERIALS INTERNATIONAL GMBH (THYSSENKRUPP SERVICES AG)

Business Registration

 

HRB 62027

Place of Registration

 

Amtsgericht, Dusseldorf, Germany

Address

 

Hans - Gunther- Sohl - Strabe 1, 40235, Dussenldorf , Germany

Tel

 

+49 (0)201 / 844-535091

Fax

 

+49 (0)201 / 845-6535091

Website

 

http://www.thyssenkrupp-materials-international.com

 

 

DIRECTORS

 

1. NAME

 

Mr. DOAN TUAN VIET

Position

 

General Director

Date of Birth

 

13 Aug 1969

ID Number/Passport

 

022101190

Resident

 

No. 148 Vo Van Tan Street - Ward 6, 3 District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

 

2. NAME

 

Mr. HENDRIK DE JONG

Position

 

Former General Director

Date of Birth

 

24 Nov 1958

ID Number/Passport

 

NL 4380281

Nationality

 

German

Tel/Mobile phone

 

+84 938425898

 

3. NAME

 

Mr. DANG HAI SON

Position

 

Deputy General Director

Date of Birth

 

14 Mar 1975

ID Number/Passport

 

280864486

ID Issue Date

 

14 Sep 2007

ID Issue Place

 

Binh Duong Police Station

Resident

 

Phu Loi , Thu Dau Mot City, Binh Duong Province, Vietnam

Nationality

 

Vietnamese

Tel/Mobile phone

 

+84 903657146

 

4. NAME

 

Mr. MARIJAN VAN ASPEREN

Position

 

Production Director

Nationality

 

German

 

5. NAME

 

Ms. DANG THI ANH THO

Position

 

Chief Accountant

Nationality

 

Vietnamese

Tel/Mobile phone

 

+84 936631188

Email

 

tho.dang-anh@thyssenkrupp.com

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject is specialized in manufacturing, processing and trading materials including steel, plastics, non-ferrous metals...

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

Types of products

 

Metal Products

Market

 

Germany (mainly), Taiwan, Singapore, Malaysia, China and Korea

Mode of payment

 

L/C, T/T

 

EXPORT:

Note: Currently, the subject does not export.

 

 

BANKERS

 

1. CITI BANK – HANOI BRANCH

Address

 

17 Ngo Quyen Str, Hoan Kiem District, Ha Noi City, Vietnam

Telephone

 

(84-4) 38257888

Fax

 

(84-4) 38243960

 

2. DEUTSCHE BANK

Address

 

Saigon Center Building, No. 65 Le Loi Street, Hochiminh City, Vietnam

Telephone

 

84 8 829 9000

Fax

 

84 8 822 2760

 

 

SHAREHOLDER

 

NAME

 

THYSSENKRUPP MATERIALS INTERNATIONAL GMBH (THYSSENKRUPP SERVICES AG)

Business Registration

 

HRB 62027

Place of Registration

 

Amtsgericht, Dusseldorf, Germany

Address

 

Hans - Gunther- Sohl - strabe 1, 40235 Dussenldorf, Dussenldorf , Germany

Tel

 

49 211 967-0

Fax

 

49211967-5839

Value of shares

 

VND 121,000,000,000

Percentage

 

100%

 

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2011

31/12/2010

31/12/2009

Number of weeks

52

52

52

ASSETS

A – CURRENT ASSETS

253,619,000,000

220,702,000,000

159,550,353,988

I. Cash and cash equivalents

4,642,000,000

2,056,000,000

11,847,253,275

1. Cash

4,642,000,000

2,056,000,000

11,847,253,275

2. Cash equivalents

0

0

0

II. Short-term investments

0

0

0

1. Short-term investments

0

0

0

2. Provisions for devaluation of short-term investments

0

0

0

III. Accounts receivable

91,789,000,000

112,416,000,000

65,207,786,420

1. Receivable from customers

94,832,000,000

113,683,000,000

61,870,798,343

2. Prepayments to suppliers

1,276,000,000

722,000,000

4,868,424,594

3. Inter-company receivable

363,000,000

0

173,576,004

4. Receivable according to the progress of construction

0

0

0

5. Other receivable

78,000,000

80,000,000

79,968,954

6. Provisions for bad debts

-4,760,000,000

-2,069,000,000

-1,784,981,475

IV. Inventories

151,960,000,000

103,857,000,000

81,364,176,219

1. Inventories

154,895,000,000

105,575,000,000

87,618,502,808

2. Provisions for devaluation of inventories

-2,935,000,000

-1,718,000,000

-6,254,326,589

V. Other Current Assets

5,228,000,000

2,373,000,000

1,131,138,074

1. Short-term prepaid expenses

116,000,000

38,000,000

203,639,006

2. VAT to be deducted

5,064,000,000

2,072,000,000

574,533,810

3. Taxes and other accounts receivable from the State

0

181,000,000

236,240,983

4. Other current assets

48,000,000

82,000,000

116,724,275

B. LONG-TERM ASSETS

13,644,000,000

13,278,000,000

16,200,708,979

I. Long term accounts receivable

0

0

0

1. Long term account receivable from customers

0

0

0

2. Working capital in affiliates

0

0

0

3. Long-term inter-company receivable

0

0

0

4. Other long-term receivable

0

0

0

5. Provisions for bad debts from customers

0

0

0

II. Fixed assets

11,715,000,000

11,326,000,000

13,842,626,101

1. Tangible assets

11,632,000,000

11,114,000,000

13,349,075,967

- Historical costs

20,739,000,000

17,779,000,000

17,234,450,302

- Accumulated depreciation

-9,107,000,000

-6,665,000,000

-3,885,374,335

2. Financial leasehold assets

0

0

0

- Historical costs

0

0

0

- Accumulated depreciation

0

0

0

3. Intangible assets

83,000,000

212,000,000

493,550,134

- Initial costs

903,000,000

902,000,000

994,982,415

- Accumulated amortization

-820,000,000

-690,000,000

-501,432,281

4. Construction-in-progress

0

0

0

III. Investment property

0

0

0

Historical costs

0

0

0

Accumulated depreciation

0

0

0

IV. Long-term investments

0

0

0

1. Investments in affiliates

0

0

0

2. Investments in business concerns and joint ventures

0

0

0

3. Other long-term investments

0

0

0

4. Provisions for devaluation of long-term investments

0

0

0

V. Other long-term assets

1,929,000,000

1,952,000,000

2,358,082,878

1. Long-term prepaid expenses

264,000,000

253,000,000

658,575,801

2. Deferred income tax assets

0

0

0

3. Other long-term assets

1,665,000,000

1,699,000,000

1,699,507,077

VI. Goodwill

 

0

0

1. Goodwill

 

0

0

TOTAL ASSETS

267,263,000,000

233,980,000,000

175,751,062,967

 

LIABILITIES

A- LIABILITIES

267,646,000,000

201,518,000,000

139,716,919,316

I. Current liabilities

267,239,000,000

201,054,000,000

139,174,485,416

1. Short-term debts and loans

227,771,000,000

158,650,000,000

106,900,000,000

2. Payable to suppliers

22,446,000,000

28,401,000,000

13,965,259,742

3. Advances from customers

2,147,000,000

774,000,000

1,116,011,846

4. Taxes and other obligations to the State Budget

1,918,000,000

3,881,000,000

675,153,007

5. Payable to employees

11,000,000

824,000,000

1,840,123,759

6. Accrued expenses

9,877,000,000

4,882,000,000

5,737,998,358

7. Inter-company payable

2,834,000,000

3,306,000,000

8,798,097,681

8. Payable according to the progress of construction contracts

0

0

0

9. Other payable

235,000,000

336,000,000

141,841,023

10. Provisions for short-term accounts payable

0

0

0

11. Bonus and welfare funds

0

 

 

II. Long-Term Liabilities

407,000,000

464,000,000

542,433,900

1. Long-term accounts payable to suppliers

0

0

0

2. Long-term inter-company payable

0

0

0

3. Other long-term payable

0

0

0

4. Long-term debts and loans

0

0

0

5. Deferred income tax payable

407,000,000

0

0

6. Provisions for unemployment allowances

0

464,000,000

542,433,900

7. Provisions for long-term accounts payable

0

0

0

8. Unearned Revenue

0

0

0

9. Science and technology development fund

0

0

0

B- OWNER’S EQUITY

-383,000,000

32,462,000,000

36,034,143,651

I. OWNER’S EQUITY

-383,000,000

32,462,000,000

36,034,143,651

1. Capital

121,000,000,000

121,000,000,000

121,000,000,000

2. Share premiums

0

0

0

3. Other sources of capital

0

0

0

4. Treasury stocks

0

0

0

5. Differences on asset revaluation

0

0

0

6. Foreign exchange differences

0

0

0

7. Business promotion fund

-121,383,000,000

0

0

8. Financial reserved fund

0

0

0

9. Other funds

0

0

0

10. Retained earnings

0

-88,538,000,000

-84,965,856,349

11. Construction investment fund

0

0

0

12. Business arrangement supporting fund

0

0

0

II. Other sources and funds

0

0

0

1. Bonus and welfare funds (Elder form)

0

0

0

2. Sources of expenditure

0

0

0

3. Fund to form fixed assets

0

0

0

MINORITY’S INTEREST

0

0

0

TOTAL LIABILITIES AND OWNER’S EQUITY

267,263,000,000

233,980,000,000

175,751,062,967

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

FY2009

1. Total Sales

663,279,000,000

613,351,000,000

387,588,583,302

2. Deduction item

12,829,000,000

7,860,000,000

8,225,379,610

3. Net revenue

650,450,000,000

605,491,000,000

379,363,203,692

4. Costs of goods sold

583,393,000,000

545,618,000,000

378,771,991,926

5. Gross profit

67,057,000,000

59,873,000,000

591,211,766

6. Financial income

978,000,000

845,000,000

380,891,085

7. Financial expenses

41,368,000,000

21,107,000,000

18,432,493,783

- In which: Loan interest expenses

0

0

18,432,493,783

8. Selling expenses

20,698,000,000

14,335,000,000

13,754,899,057

9. Administrative overheads

39,531,000,000

29,283,000,000

29,067,874,988

10. Net operating profit

-33,562,000,000

-4,007,000,000

-60,283,164,977

11. Other income

740,000,000

443,000,000

389,321,419

12. Other expenses

23,000,000

8,000,000

154,990,766

13. Other profit /(loss)

717,000,000

435,000,000

234,330,653

14. Total accounting profit before tax

-32,845,000,000

-3,572,000,000

-60,048,834,324

15. Current corporate income tax

0

0

0

16. Deferred corporate income tax

0

0

0

17. Interest from subsidiaries/related companies

0

0

0

18. Profit after tax

-32,845,000,000

-3,572,000,000

-60,048,834,324

 

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

FY2009

Average Industry

Current liquidity ratio

0.95

1.10

1.15

1.18

Quick liquidity ratio

0.38

0.58

0.56

0.54

Inventory circle

3.84

5.25

3.53

3.48

Average receive period

51.51

67.77

62.74

62.32

Utilizing asset performance

2.43

2.59

2.16

1.02

Liability by total assets

100.14

86.13

79.50

64.29

Liability by owner's equity

-69,881.46

620.78

387.73

198.96

Ebit / Total assets (ROA)

-12.29

-1.53

-23.68

6.25

Ebit / Owner's equity (ROE)

8,575.72

-11.00

-115.49

16.74

Ebit / Total revenue (NPM)

-4.95

-0.58

-10.74

5.52

Gross profit / Total revenue (GPM)

10.11

9.76

0.15

13.15

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

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

 

Trade Morality

 

Fair

Liquidity

 

Low

Payment status

 

Normal

Financial Situation

 

Below average

Development trend

 

Negative

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

L/C, T/T

Sale Methods

 

Retailer and Wholesaler

Public opinion

 

Normal

 

 

 

INTERPRETATION ON THE SCORES

 

The subject was set up in 2007 from cooperation between THYSSENKRUPP MATERIALS INTERNATIONAL GMBH and DONG DO METALS COMPANY LIMITED with name of THYSSENKRUPP MATERIALS VIETNAM LIMITED LIABILITY COMPANY. At that time, the subject operated as joint venture company following the investment certificate No. 192023000027. However, to June 2012, all capital contribution of DONG DO METALS COMPANY LIMITED had been transferred to THYSSENKRUPP MATERIALS INTERNATIONAL GMBH and the subject became wholly invested foreign company. Currently, the subject is operating under investment license No. 012023000203, issued on 31 Mar 2009 with registered investment capital VND 198,400,000,000.

Head office of the subject is located at Lot 42C Quang Minh Industrial Zone - Me Linh District - Hanoi City – Vietnam. The subject also has some branches in Danang and Hochiminh cities. The principle activities of the subject are: manufacturing, processing and trading materials including steel, plastics, and non-ferrous metals...These products are provided to construction and shipbuilding industries in the local market. All materials and some products are imported from foreign markets, mainly from Germany throughout the support of the parent company in there.

According to the financial data of the subject from 2009 to 2011 we showed that the operation of the subject seemed not good. Although total sales were increased year by year, they mainly came from liabilities of the subject. This indicated that self-financing of the subject is low and financial risk is high. Total sales were also increased from year to year but the subject did not have profit in all three years in succession due to high costs from doing business.

In summary, high costs of goods sold are main caution for loss of the subject. However most FID companies in Vietnam has transferred profit to its parent company through importing goods from its parent company with high price. Thus financial data as above may not really reflect situation of the subject. A little caution with medium and big 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

Source: General Statistics Office


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.56.49

UK Pound

1

Rs.86.81

Euro

1

Rs.73.68

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.