MIRA INFORM REPORT

Report Date :

23.08.2014

IDENTIFICATION DETAILS

Name :	FORMOSA INDUSTRIES CORP^(1)
Registered Office :	Nhon Trach 3 Industrial Park Hiep Phuoc Commune, Nhon Trach Dist, Bien Hoa, Dong Nai
Country :	Vietnam
Financials (as on) :	2013
Date of Incorporation :	25.05.2008
Legal Form :	Private Company with Limited Liability
Line of Business :	Manufacturer of Textiles and Raw Materials
No of Employees :	2,500

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 :	Good
Payment Behaviour :	Regular
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 01, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Vietnam	B1	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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 20% in 2013, while industry's share increased from 36% to more than 42% in the same period. State-owned enterprises account for about 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 2013 growing at 5%, the slowest rate of growth since 1999. In 2013, however, exports increased by more than 12%, 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 relatively stable in 2013. Hanoi has oscillated between promoting growth and emphasizing macroeconomic stability in recent years. In February 2011, the government shifted 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 has been made. Vietnam's economy continues to face challenges from an undercapitalized banking sector. Non-performing loans weigh heavily on banks and businesses.

Source : CIA

REGISTERED NAME & COMPANY SUMMARY

Company Details

Organization Name	:	FORMOSA INDUSTRIES CORP^(1)
Address	:	Nhon Trach 3 Industrial Park Hiep Phuoc Commune, Nhon Trach Dist, Bien Hoa, Dong Nai
Country	:	Vietnam
Phone (S)	:	[+84] 61-3560309
Facsimile	:	[+84] 61-3560311
Email	:	ficadm@fic.com.vn
Primary Business Activity	:	Manufacturer
Key Industry	:	Textiles & Raw Material

Key Facts
Registered Legal Address	:	Nhon Trach 3 Industrial Park Hiep Phuoc Commune, Nhon Trach Dist, Bien Hoa, Dong Nai
Operational Address	:	Nhon Trach 3 Industrial Park Hiep Phuoc Commune, Nhon Trach Dist, Bien Hoa, Dong Nai
Issuing Authority	:	Industrial Zone Management Board - Dong Nai
License Number	:	472023000477
License Status	:	License exists - Normal.
Legal Form - Category	:	Private Company with Limited Liability
Legal Form	:	Corporation
Legal Form - Abbreviation	:	CORP
Operational Status of Business	:	Normal
Date of Registration	:	25 May, 2008
Employees	:	2,500
Capital	:	US$ 600,000,000
Note	:	^(1) Legal status of the English corporate name The English name of the Subject Business Entity (SBE) is a randomly selected translation / transliteration made by the owners of the SBE. It is not a registered English corporate name, but simply a translation / transliteration of the local language name.

Report Details

Country	:	Vietnam
Business Entity Name	:	FORMOSA INDUSTRIES CORP
Primary Business Activity	:	Manufacturer
Primary Industry	:	Textiles & Raw Material
Office Contact Details
Operating Address	:	Nhon Trach 3 Industrial Park Hiep Phuoc Commune, Nhon Trach Dist, Bien Hoa, Dong Nai
Tel	:	[+84] 61-3560309
Fax	:	[+84] 61-3560311
Email	:	ficadm@fic.com.vn
Tax / VAT Details
Tax Issuing Authority	:	Ministry of Finance
Local Name Used	:	Gia Trj Gia Tang (Value Added Tax)
Acronym	:	GTGT / VAT
GTGT / VAT Number	:	3600517557

DIRECTORS/MANAGEMENT

KEY PERSON

Legal Title	:	Managing Director
Name	:	Mr. Fu-Yuan Hong
Nationality	:	Taiwanese

COMPANY MANAGEMENT

Management Listings

	Name	Nationality	Job Description	Dept. / Division
1	Mr. Rong-Chang Uang	Taiwanese	Assist. Managing Director	-
2	Mr. Yi-Ping Wang	Taiwanese	Chief Accountant	-

Management Details - 1

Personal Unique Identifier	:	MI03756581
Name	:	Mr. Rong-Chang Uang

Management Details - 2

Personal Unique Identifier	:	MI03756590
Name	:	Mr. Yi-Ping Wang

COMPANY DIRECTORS

1
Personal Unique Identifier	:	MI03756572
Name	:	Mr. Fu-Yuan Hong
Date of Birth	:	1947

NEGATIVE INFORMATION

REPUTATION

Reference checking for the purpose of establishing FORMOSA INDUSTRIES CORP's reputation within the respective industry failed to reveal any adverse information.

NEGA-SCAN - ADVERSE DATA MONITORING

DISHONORED CHECKS

No Record Found

DEBT	No Record Found

CIVIL LITIGATION

No Record Found

PERFORMANCE DEFAULTS

No Record Found

ADVERSE LOCAL MEDIA COVERAGE / ADVERSE FILING HISTORY

No Record Found

SHARE & SHARE CAPITAL INFORMATION

CAPITAL (Currency: USD - US Dollar)

Authorized Capital

:

$ 600,000,000

SHAREHOLDERS

Total number of shareholders	:	n/a
Total number of shares	:	n/a

Currency

:

USD - US Dollar

No.	Shareholders	Country	Shares
			Number	Amount (USD)	%
1	FORMOSA CHEMICALS & FIBRE CORP	Taiwan	n/a	n/a	42.50
2	NAN YA PLASTICS CORP	Taiwan	n/a	n/a	42.50
3	FORMOSA TAFFETA CO LTD	Taiwan	n/a	n/a	10.00
4	KINGCAR GROUP	n/a	n/a	n/a	5.00
Total			n/a	n/a	100.00

Based on corporate statutory laws / regulations in Vietnam, there is no requirement for public disclosure of Shareholders. In this case, the Shareholders information was supplied by the Subject Business Entity.
However in the absence of data normally obtained from local Statutory Authorities, it is not possible to verify the accuracy of data supplied and hence is provided as reference ONLY.

PAYMENT INFORMATION

PAYMENT TERMS

Selling

Type	Terms
Local	Cash on delivery (COD) Credit - Unsecured 30~60 days
Export	Letter of Credit (At-sight) Telegraphic Transfer (T/T) - Received at time of transaction

Purchasing

Type	Terms
Local	Cash on delivery (COD) Credit - Unsecured 30~60 days
Import	Letter of Credit (At-sight) Telegraphic Transfer (T/T) - Executed at time of transaction

GROUP STRUCTURE & AFFILIATED COMPANIES

Na

FINANCIAL INFORMATION

Financials - Summary  (Currency: USD - US Dollar)

Year	Sales	Assets	Net Income
2012 Annual	808,649,745	776,588,333	5,193,602
2013 Annual	830,695,573	807,504,805	48,062,295

Sales Trend – Analysis

2004	2005	2006	2007	2008	2009	2010	2011	2012	2013
-	-	-	-	-	-	-	-	-

FINANCIAL STATEMENT - DETAILED

BALANCE SHEET

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2012 Annual	2013 Annual
Current Assets(*)	5,298,885,000,000	7,400,451,000,000
Non Current Assets(*)	10,873,303,000,000	9,628,283,000,000
Non Current Liabilities(*)	2,695,357,000,000	1,919,594,000,000
Share Capital(*)	10,387,463,000,000	10,387,462,000,000
Other long term assets
Total Assets(*)	16,172,188,000,000	17,028,734,000,000
Total Liabilities(*)	4,670,029,000,000	4,513,035,000,000
Current Liabilities(*)	1,974,672,000,000	2,593,441,000,000
Long term liabilities
Shareholders Funds(*)	11,502,159,000,000	12,515,699,000,000
Current assets & short term investments	5,298,885,000,000	7,400,451,000,000
Cash & cash equivalents	1,088,622,000,000	2,699,399,000,000
Cash	248,322,000,000	586,646,000,000
Cash equivalents	840,300,000,000	2,112,753,000,000
Accounts receivable	1,616,876,000,000	1,455,634,000,000
Accounts receivable trade	1,494,501,000,000	1,263,495,000,000
Trade prepayment	119,650,000,000	156,954,000,000
Inter company receivables	-	35,185,000,000
Others receivables	2,725,000,000	-
i. Inventories	2,525,848,000,000	3,110,405,000,000
ii. Inventories	2,578,105,000,000	3,131,039,000,000
Provision for decline in inventory	(52,257,000,000)	(20,634,000,000)
i. Other short term asset	67,539,000,000	135,013,000,000
Prepaid expenses	12,951,000,000	5,462,000,000
VAT deductible	34,581,000,000	53,645,000,000
Other tax receivables	19,891,000,000	-
ii. Other short term asset	116,000,000	75,906,000,000
Long term assets	10,873,303,000,000	9,628,283,000,000
Fixed assets	10,788,204,000,000	9,553,751,000,000
Tangible fixed assets	10,398,809,000,000	9,214,139,000,000
i. Cost	16,894,541,000,000	17,159,939,000,000
i. Accumulated depreciation	6,495,732,000,000	7,945,800,000,000
Intangible fixed assets	142,019,000,000	138,381,000,000
ii. Cost	180,525,000,000	180,525,000,000
ii. Accumulated depreciation	38,506,000,000	42,144,000,000
Construction in progress	247,376,000,000	201,231,000,000
Investment immovable property	72,241,000,000	70,356,000,000
iii. Cost	84,919,000,000	84,919,000,000
iii. Accumulated depreciation	12,678,000,000	14,563,000,000
Other long term assets	12,858,000,000	4,176,000,000
Long term prepayments	12,858,000,000	4,176,000,000
Total assets	16,172,188,000,000	17,028,734,000,000
Liabilities	4,670,029,000,000	4,513,035,000,000
Current liabilities	1,974,672,000,000	2,593,441,000,000
Short term borrowings	796,140,000,000	806,465,000,000
Accounts payables-trade	979,167,000,000	1,530,446,000,000
Advances from customers	31,085,000,000	49,643,000,000
Taxes and payable to state budget	15,765,000,000	6,010,000,000
Payable to employees	12,953,000,000	16,212,000,000
Accrued expenses payable	136,516,000,000	181,674,000,000
Inter company payable	-	2,991,000,000
Other payables	3,046,000,000	-
Long term liabilities	2,695,357,000,000	1,919,594,000,000
Long term other payables	14,540,000,000	10,477,000,000
Long term borrowings	2,680,817,000,000	1,909,117,000,000
i. Owner's equity	11,502,159,000,000	12,515,699,000,000
ii. Owner's equity	11,502,159,000,000	12,515,699,000,000
Business capital	10,387,463,000,000	10,387,462,000,000
Retained earnings	1,114,696,000,000	2,128,237,000,000
Total resources	16,172,188,000,000	17,028,734,000,000

Note: (*)

Financial Highlights

INCOME STATEMENT

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2012 Annual	2013 Annual
Turnover(*)	16,839,856,000,000	17,517,783,000,000
Profit (Loss) Before Tax(*)	113,995,000,000	1,065,922,000,000
Profit After Tax attributable to Shareholders(*)	108,155,000,000	1,013,542,000,000
Gross sales	16,839,856,000,000	17,517,783,000,000
Less deductions	46,850,000,000	13,251,000,000
Net income	16,793,006,000,000	17,504,532,000,000
Cost of goods sold	16,051,967,000,000	15,750,395,000,000
Gross margin	741,039,000,000	1,754,137,000,000
Income from financial activities	149,089,000,000	137,665,000,000
Expenses from financial activities	235,320,000,000	204,122,000,000
In which: Interest expenses	90,921,000,000	57,853,000,000
Selling expenses	245,123,000,000	253,100,000,000
General & administration expenses	345,725,000,000	394,277,000,000
Net income from operating activities	63,960,000,000	1,040,303,000,000
Extraordinary income	59,382,000,000	41,012,000,000
Extraordinary expenses	9,347,000,000	15,393,000,000
Extraordinary gains	50,035,000,000	25,619,000,000
Net profit before tax	113,995,000,000	1,065,922,000,000
Income tax	5,840,000,000	52,380,000,000
Net profit after tax	108,155,000,000	1,013,542,000,000

Note: (*)

Financial Highlights

FINANCIAL RATIOS

Financial Highlights	2012 Annual	2013 Annual
Growth %
Year-on-Year Growth	-	4.03
Profitability
Profit Margin (%)	0.64	5.79
Return on Equity (%)	0.94	8.10
Return on Assets (%)	0.67	5.95
Leverage
Total Debt Equity (Times)	0.41	0.36
Current Debt Equity (Times)	0.17	0.21
Long Term Debt to Equity	0.23	0.15
Total Asset To Total Equity	1.41	1.36
Asset Management
Total Assets Turnover (Times)	1.04	1.03
Fixed Assets Turnover (Times)	1.55	1.82
Liquidity
Current Ratio	2.68	2.85

Based on the corporate laws of Vietnam, legal entities which are Private Company with Limited Liability are not required to make public disclosure of their annual financials. Although basic financials were obtained for reference.

FOREIGN EXCHANGE RATES

NA

ADDITIONAL INFORMATION

Primary Products

Products / Materials / Services Description	Activity
Nylon	Manufacturing, Exporting
PVC films	Manufacturing, Exporting
Power transformers	Manufacturing, Exporting
Textiles	Manufacturing, Exporting
Water treatment plant	Manufacturing, Exporting

International Trade - Statistics  (Currency: USD - US Dollar)

Year	Imports	Exports	Total
2012	n/a	485,189,847	485,189,847
2013	n/a	498,417,344	498,417,344

SIC PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Plastics film, strips, and sheets, unsupported	3081	Manufacturing, Exporting
Textile goods, nspf	2299	Manufacturing, Exporting
Thread and handwork yarns	2284	Manufacturing, Exporting
Transformers, and parts, nspf	3612	Manufacturing, Exporting
Yarn, spun, of cotton, man-made fibers, and silk	2281	Manufacturing, Exporting

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Man-made filaments, inc. yarns & woven etc.	5400	Manufacturing, Exporting
Textile products etc. for specific tech uses	5911	Manufacturing, Exporting
Transformers, unrated	8504312000	Manufacturing, Exporting
Yarn (no sew thread), manmade staple fiber, retail	5511	Manufacturing, Exporting

DETAILED PRODUCT CLASSIFICATION & ACTIVITY

Products / Materials / Services Description	Ranking	Activity
Yarns	Primary	Manufacturing, Exporting

CORE BUSINESS DESCRIPTION

Core Business

The primary business focus of FORMOSA INDUSTRIES CORP is Manufacturing - Finished products.

Key products include :

Nylon

PVC films

Power transformers

Textiles

Water treatment plant

Yarns

An integral part of the core business includes:

Distribution

Supplementary Business

In addition to the core business, FORMOSA INDUSTRIES CORP also is engaged in the following areas of business:

Exporting

Exporting - Finished products

Importing

Importing - Raw materials

DOMESTIC SALES & PURCHASES

Annual Sales Analysis	Percentage
Domestic Sales	40%
International Sales (Export)	60%

Annual Purchases Analysis	Percentage
Local Purchases	30%
Imports	70%

BANK DETAILS

Bank Name	:	CITIBANK NA
Global Identifier	:	32401241
Branch	:	Hoan Kiem,Hanoi
Branch Address	:	CITIBANK NA - HO CHI MINH
SWIFT Code	:	CITIVNVX
Bank Name	:	HSBC BANK (VIETNAM) LTD
Global Identifier	:	32403760
Branch	:	District 1,Ho Chi Minh
Branch Address	:	Metropolitan 235 Dong Khoi Ben Nghe Ward District 1 Ho Chi Minh (Head Office)
SWIFT Code	:	HSBCVNVX
Bank Name	:	JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM
Global Identifier	:	P1072025
Branch	:	Hanoi
Branch Address	:	JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM - HO CHI MINH
SWIFT Code	:	BFTVVNVX
Bank Name	:	MEGA INT'L COMMERCIAL BANK CO LTD
Global Identifier	:	P0927105
Branch	:	Ho Chi Minh
Branch Address	:	Ground Fl Landmark Bldg, The 5B Ton Duc Thang St Ho Chi Minh (Head Office)
SWIFT Code	:	ICBCVNVX

INTERNATIONAL TRADE - Activity & Markets

Country / Region	Estimated level of importance	Trading Activity
Asia / Pacific	Medium	Importing, Exporting
Middle-East	Medium	Exporting
Korea, South (Republic of Korea)	Medium	Exporting
Taiwan	Medium	Importing, Exporting
Turkey	Medium	Exporting

OFFICE & FACILITIES

The following information relates to the Business Entity's office as listed above:

Name	:	FORMOSA INDUSTRIES CORP - NHON TRACH DIST, BIEN HOA
Primary Use	:	Office & Administration facilities
Address	:	Nhon Trach 3 Industrial Park Hiep Phuoc Commune, Nhon Trach Dist, Bien Hoa, Dong Nai
Country	:	Vietnam
Status	:	Operational

PREVIOUS BUSINESS LICENSE/S

License Date	License No.
26 Dec, 2001	2244/GP-KCN-DN

NOTES & COMMENTS

NA

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.77
UK Pound	1	Rs.100.72
Euro	1	Rs.80.55

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	TPT

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.