MIRA INFORM REPORT

Report Date :

02.12.2014

IDENTIFICATION DETAILS

Name :	MDF VRG - QUANG TRI WOOD JSC

Registered Office :	Nam Dong Ha Industrial Zone Dong Luong Ward, Dong Ha, Quang Tri

Country :	Vietnam

Financials (as on) :	2013

Date of Incorporation :	12.11.2009

Legal Form :	Manufacturer of Plywood, Timber & Wood Products

Line of Business :	Joint Stock Company

No of Employees :	229

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Slow but correct
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 1, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Vietnam

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 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

Organization Name		:	MDF VRG - QUANG TRI WOOD JSC
Address		:	Nam Dong Ha Industrial Zone Dong Luong Ward, Dong Ha, Quang Tri
Country		:	Vietnam
Phone (S)		:	[+84] 53-3568387
Facsimile		:	[+84] 53-3560482
Email		:	mdfquangtri@mdfquangtri.vn
Website		:	http://www.mdfquangtri.vn
Primary Business Activity		:	Manufacturer
Key Industry		:	Plywood, Timber & Wood Products
Registered Legal Address	:		Nam Dong Ha Industrial Zone Dong Luong Ward, Dong Ha, Quang Tri
Operational Address	:		Nam Dong Ha Industrial Zone Dong Luong Ward, Dong Ha, Quang Tri
Issuing Authority	:		Dept. of Planning & Investment - Dong Ha
License Number	:		3200228141
License Status	:		License exists - Normal.
Legal Form - Category	:		Public Listed Company
Legal Form	:		Joint Stock Company
Legal Form - Abbreviation	:		JSC
Operational Status of Business	:		Normal
Date of Registration	:		12 Nov, 2009
Employees	:		229
Capital	:		US$ 21,508,305

DIRECTORS/MANAGEMENT

Key Person

Legal Title	:	Chairman
Name	:	Mr. Le Minh Chau
Nationality	:	Vietnamese

COMPANY MANAGEMENT

Management Listings

	Name	Nationality	Job Description	Dept. / Division
1	Mr. Nguyen Van Cong	Vietnamese	Assist. Managing Director	-
2	Mr. Nguyen Manh Cuong	Vietnamese	Chief Accountant	-
3	Mr. Nguyen The Mai	Vietnamese	Assist. Managing Director	-
4	Mr. Cao Thanh Nam	Vietnamese	Managing Director	-

Management Details - 1

Personal Unique Identifier	:	MI03769033
Name	:	Mr. Nguyen Van Cong
Date of Birth	:	1964

Management Details - 2

Personal Unique Identifier	:	MI03769039
Name	:	Mr. Nguyen Manh Cuong
Date of Birth	:	1974

Management Details - 3

Personal Unique Identifier	:	MI03769036
Name	:	Mr. Nguyen The Mai
Date of Birth	:	1975

Management Details - 4

Personal Unique Identifier	:	MI03768938
Name	:	Mr. Cao Thanh Nam
Date of Birth	:	1965

COMPANY DIRECTORS

1
Personal Unique Identifier	:	MI03768938
Name	:	Mr. Cao Thanh Nam
Date of Birth	:	1965

2
Personal Unique Identifier	:	MI03769029
Name	:	Mr. Le Minh Chau
Date of Birth	:	1953

NEGATIVE INFORMATION

REPUTATION

Reference checking for the purpose of establishing MDF VRG - QUANG TRI WOOD JSC'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

STOCK EXCHANGE LISTING DETAILS

Country

Vietnam

Name of Stock Exchange

Name	Acronym
HANOI STOCK EXCHANGE	HNX

Stock Symbol / No.

MDF

Date of listing

25 Feb, 2011

CAPITAL (Currency: VND - Vietnam Dong)

Authorized Capital	:	₫ 450,398,970,000
Paid-up Capital	:	₫ 344,460,000,000

Date	Authorized Capital - History
28 Oct, 2005	80,000,000,000
5 Oct, 2007	346,000,000,000
29 Jun, 2010	344,460,000,000
9 Oct, 2014	450,398,970,000

SHAREHOLDERS

Total number of shareholders	:	Public shareholding traded via Stock Exchange
Total number of shares	:	n/a

Currency

VND - Vietnam Dong

No.	Shareholders	Country	Shares
No.	Shareholders	Country	Number	Amount (VND)	%
1	VIETNAM RUBBER GROUP LTD	Vietnam	n/a	n/a	81.46
2	QUANG TRI RUBBER CO LTD	Vietnam	n/a	n/a	7.89
3	TAN BIEN RUBBER CO LTD	Vietnam	n/a	n/a	7.48
4	Public shareholding traded via Stock Exchange	n/a	n/a	n/a	3.17
Total			n/a	n/a	100.00

PAYMENT INFORMATION

DOMESTIC SALES & PURCHASES

Annual Sales Analysis	Percentage
Domestic Sales	90%
International Sales (Export)	10%

Annual Purchases Analysis	Percentage
Local Purchases	90%
Imports	10%

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

DIRECT / INDIRECT CORPORATE PARENT DETAILS

Direct Parent	:	VIETNAM RUBBER GROUP LTD
Global Identifier	:	P1280012
Legal Form Category	:	Private Company with Limited Liability
Country	:	Vietnam
Operational Address	:	236 Nam Ky Khoi Nghia St District 3 Ho Chi Minh
Primary Business Activity	:	Manufacturer

FINANCIAL INFORMATION

Financials - Summary (Currency: USD - US Dollar)

Year	Sales	Assets	Net Income
2011 Annual	16,555,209	22,806,433	2,578,589
2012 Annual	20,066,402	21,846,551	2,256,700
2013 Annual	17,231,622	21,867,462	1,388,130

Sales Trend – Analysis

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

Missing Financials	Reasons
2014, 3rd Qtr	Financials not yet released.

FINANCIAL STATEMENT - DETAILED

Balance Sheet

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2011 Annual	2012 Annual	2013 Annual
Current Assets(*)	179,799,000,000	200,154,000,000	247,438,000,000
Non Current Assets(*)	295,259,000,000	254,793,000,000	213,705,000,000
Non Current Liabilities(*)	203,000,000	-	-
Other long term assets
Total Assets(*)	475,058,000,000	454,947,000,000	461,143,000,000
Total Liabilities(*)	66,775,000,000	29,231,000,000	35,655,000,000
Current Liabilities(*)	66,572,000,000	29,231,000,000	35,655,000,000
Long term liabilities
Shareholders Funds(*)	408,283,000,000	425,716,000,000	425,488,000,000

Current assets & short term investments	179,799,000,000	200,154,000,000	247,438,000,000
Cash & cash equivalents	111,460,000,000	123,707,000,000	132,033,000,000
Cash	32,218,000,000	21,499,000,000	32,964,000,000
Cash equivalents	79,242,000,000	102,208,000,000	99,069,000,000
Accounts receivable	18,484,000,000	41,946,000,000	53,895,000,000
Accounts receivable trade	1,868,000,000	24,738,000,000	23,976,000,000
Trade prepayment	15,094,000,000	14,051,000,000	24,858,000,000
Others receivables	3,661,000,000	4,665,000,000	6,569,000,000
Provision for bad debts	(2,139,000,000)	(1,508,000,000)	(1,508,000,000)
i. Inventories	48,295,000,000	33,597,000,000	60,149,000,000
ii. Inventories	48,295,000,000	33,597,000,000	60,149,000,000
Other short term asset	317,000,000	429,000,000	598,000,000
Prepaid expenses	0	347,000,000	742,000,000
VAT deductible	1,243,000,000	0	0
Other tax receivables	0	128,000,000	21,000,000
Long term assets	295,259,000,000	254,793,000,000	213,705,000,000
Fixed assets	286,725,000,000	245,885,000,000	207,636,000,000
Tangible fixed assets	275,590,000,000	238,378,000,000	188,492,000,000
i. Cost	461,322,000,000	478,645,000,000	487,870,000,000
i. Accumulated depreciation	185,732,000,000	240,267,000,000	299,378,000,000
Intangible fixed assets	176,000,000	33,000,000	261,000,000
ii. Cost	224,000,000	79,000,000	326,000,000
ii. Accumulated depreciation	48,000,000	46,000,000	65,000,000
Construction in progress	10,959,000,000	7,474,000,000	18,883,000,000
Other long term assets	8,534,000,000	8,908,000,000	6,069,000,000
Long term prepayments	8,534,000,000	8,908,000,000	6,069,000,000
Total assets	475,058,000,000	454,947,000,000	461,143,000,000
Liabilities	66,775,000,000	29,231,000,000	35,655,000,000
Current liabilities	66,572,000,000	29,231,000,000	35,655,000,000
Short term borrowings	36,537,000,000	0	0
Accounts payables-trade	14,152,000,000	16,522,000,000	13,057,000,000
Advances from customers	9,115,000,000	1,296,000,000	3,365,000,000
Taxes and payable to state budget	2,541,000,000	4,924,000,000	5,382,000,000
Payable to employees	3,132,000,000	2,305,000,000	6,201,000,000
Other payables	1,095,000,000	4,055,000,000	6,381,000,000
Bonus and welfare funds	(2,454,000,000)	0	0
Long term liabilities	203,000,000	0	0
Provision funds for unemployment	203,000,000	0	0
i. Owner's equity	408,283,000,000	425,716,000,000	425,488,000,000
ii. Owner's equity	410,737,000,000	425,716,000,000	425,488,000,000
Business capital	344,460,000,000	344,460,000,000	344,460,000,000
Share capital's surplus	12,000,000,000	12,000,000,000	12,000,000,000
Foreign exchange differences	(143,000,000)	0	0
Business development funds	351,000,000	16,533,000,000	29,327,000,000
Financial reserved funds	357,000,000	5,728,000,000	10,427,000,000
Retained earnings	53,712,000,000	46,995,000,000	29,274,000,000
Budget sources	(2,454,000,000)	0	0
Total resources	475,058,000,000	454,947,000,000	461,143,000,000

Note: (*)

Financial Highlights

Income Statement

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2011 Annual	2012 Annual	2013 Annual
Turnover(*)	344,845,000,000	417,876,000,000	363,382,000,000
Profit (Loss) Before Tax(*)	58,117,000,000	50,946,000,000	33,244,000,000
Profit After Tax attributable to Shareholders(*)	53,712,000,000	46,995,000,000	29,273,000,000

Gross sales	344,845,000,000	417,876,000,000	363,382,000,000
Less deductions	1,390,000,000	2,289,000,000	918,000,000
Net income	343,455,000,000	415,587,000,000	362,464,000,000
Cost of goods sold	242,436,000,000	298,788,000,000	283,383,000,000
Gross margin	101,019,000,000	116,799,000,000	79,081,000,000
Income from financial activities	11,093,000,000	10,970,000,000	8,720,000,000
Expenses from financial activities	3,152,000,000	1,313,000,000	251,000,000
In which : Interest expenses	2,720,000,000	825,000,000	0
Selling expenses	42,553,000,000	66,492,000,000	47,237,000,000
General & administration expenses	7,733,000,000	7,707,000,000	7,900,000,000
Net income from operating activities	58,674,000,000	52,257,000,000	32,413,000,000
Extraordinary income	640,000,000	497,000,000	1,373,000,000
Extraordinary expenses	1,197,000,000	1,808,000,000	542,000,000
Extraordinary gains	(557,000,000)	(1,311,000,000)	831,000,000
Net profit before tax	58,117,000,000	50,946,000,000	33,244,000,000
Income tax	4,405,000,000	3,951,000,000	3,971,000,000
Net profit after tax	53,712,000,000	46,995,000,000	29,273,000,000

Note: (*)

Financial Highlights

Financial Ratios

Financial Highlights	2011 Annual	2012 Annual	2013 Annual
Growth %
Year-on-Year Growth	-	21.18	(13.04)
Profitability
Profit Margin (%)	15.58	11.25	8.06
Return on Equity (%)	13.16	11.04	6.88
Return on Assets (%)	11.31	10.33	6.35
Leverage
Total Debt Equity (Times)	0.16	0.07	0.08
Current Debt Equity (Times)	0.16	0.07	0.08
Long Term Debt to Equity	0.00	-	-
Total Asset To Total Equity	1.16	1.07	1.08
Asset Management
Total Assets Turnover (Times)	0.73	0.92	0.79
Fixed Assets Turnover (Times)	1.17	1.64	1.70
Liquidity
Current Ratio	2.70	6.85	6.94

FOREIGN EXCHANGE RATES

Today's Exchange rate

1.00 VND
Vietnam Dong

0.000047 USD
United States Dollars

ADDITIONAL INFORMATION

Country	:	Vietnam
Business Entity Name	:	MDF VRG - QUANG TRI WOOD JSC
Primary Business Activity	:	Manufacturer
Primary Industry	:	Plywood, Timber & Wood Products
Office Contact Details
Operating Address	:	Nam Dong Ha Industrial Zone Dong Luong Ward, Dong Ha, Quang Tri
Tel	:	[+84] 53-3568387
	:	[+84] 53-3560639
	:	[+84] 53-3566978
Fax	:	[+84] 53-3560482
Email	:	mdfquangtri@mdfquangtri.vn
Website Details
Website	:	http://www.mdfquangtri.vn
Status	:	Normal - operational
Country of Registration	:	Vietnam
Ownership Type	:	Registered ownership by Subject Business Entity
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	:	3200228141
Date of Issuance	:	21 Nov, 2005

Primary Products

Products / Materials / Services Description	Activity
MDF wood	Manufacturing, Exporting

SIC PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Wood products, nspf	2499	Manufacturing, Exporting

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Articles of wood	4421	Manufacturing, Exporting
Wood & articles of wood; wood charcoal	4400	Manufacturing, Exporting

CORE BUSINESS DESCRIPTION

Core Business

The primary business focus of MDF VRG - QUANG TRI WOOD JSC is Manufacturing - Finished products.

Key product include :

MDF wood

An integral part of the core business includes:

Distribution

Supplementary Business

In addition to the core business, MDF VRG - QUANG TRI WOOD JSC also is engaged in the following areas of business:

Exporting

Exporting - Finished products

Importing

Importing - Raw materials

BANK DETAILS

Bank Name	:	JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM
Global Identifier	:	32400479
Branch	:	Hoan Kiem,Hanoi
Branch Address	:	JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM - QUANG TRI, QUANG TRI
SWIFT Code	:	BFTVVNVX

Bank Name	:	MILITARY COMMERCIAL JOINT STOCK BANK
Global Identifier	:	P0387295
Branch	:	Dong Da,Hanoi
Branch Address	:	MILITARY COMMERCIAL JOINT STOCK BANK - QUANG TRI, QUANG TRI
SWIFT Code	:	MSCBVNVX

INTERNATIONAL TRADE - Activity & Markets

Country / Region	Estimated level of importance	Trading Activity
Asia / Pacific	Medium	Importing, Exporting
Europe	Medium	Importing
China	Medium	Importing, Exporting
Germany	Medium	Importing
India	Medium	Exporting

QUALITY ACCREDITATION

Quality Accreditation Listings

#	Name	Accreditation Category
1	INTERNATIONAL STANDARDS ORGANIZATION (ISO)	9001:2008

PREVIOUS BUSINESS LICENSE/S

License Date	License No.
28 Oct, 2005	3003000054

REAL ESTATE OWNERSHIP

The following property / ies are owned by MDF VRG - QUANG TRI WOOD JSC :

Property Name	:	MDF VRG - QUANG TRI WOOD JSC - DONG HA, QUANG TRI
Type of Property	:	Office & Administration
Address	:	Nam Dong Ha Industrial Zone Dong Luong Ward, Dong Ha, Quang Tri
Office Size	:	7,000 Square meters

NOTES & COMMENTS

N/a

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.14
UK Pound	1	Rs.97.05
Euro	1	Rs.77.37

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	SMN

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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