MIRA INFORM REPORT

 

 

Report Date :

19.05.2014

 

IDENTIFICATION DETAILS

 

Name :

HUALON CORP VIETNAM

 

 

Registered Office :

Nhon Trach II Industrial Park Phuoc Thien Commune, Nhon Trach, Dong Nai

 

 

Country :

Vietnam

 

 

Financials (as on) :

December 2012

 

 

Date of Incorporation :

04.02.2008

 

 

Legal Form :

Private Company with Limited Liability

 

 

Line of Business :

Manufacturer of Textiles & Raw Material

 

 

No of Employees :

3,100

 

 

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 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 – September 30, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

Vietnam

B1

B1

 

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

:

HUALON CORP VIETNAM

Address

:

40 Ba Huyen Thanh Quan St, District 3, Ho Chi Minh

Country

:

Vietnam

Phone (S)

:

[+84] 8-39301901

Facsimile

:

[+84] 8-39301899

Email

:

hualon@hcm.fpt.vn

Website

:

http://www.hualonvn.com.vn

Primary Business Activity

:

Manufacturer

Key Industry

:

Textiles & Raw Material

 

Key Facts

 

Registered Legal Address

:

Nhon Trach II Industrial Park Phuoc Thien Commune, Nhon Trach, Dong Nai

Operational Address

:

40 Ba Huyen Thanh Quan St, District 3, Ho Chi Minh

Issuing Authority

:

Dept. of Planning & Investment - Dong Nai

License Number

:

472023000394

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

:

4 Feb, 2008

Employees

:

3,100

Capital

:

US$ 131,237,962

 

 

 

Report Details

 

 

Country

:

Vietnam

Business Entity Name

:

HUALON CORP VIETNAM

Primary Business Activity

:

Manufacturer

Primary Industry

:

Textiles & Raw Material

Office Contact Details

Operating Address

:

40 Ba Huyen Thanh Quan St, District 3, Ho Chi Minh

Tel

:

[+84] 8-39301901

 

:

[+84] 8-39301902

 

:

[+84] 8-39301903

 

:

[+84] 8-39301904

 

:

[+84] 8-39301905

 

:

[+84] 8-39301906

Fax

:

[+84] 8-39301899

 

:

[+84] 8-39302015

Email

:

hualon@hcm.fpt.vn
yenhuynh@sg.netnam.vn
hualonvnmar@hcm.vnn.vn

Factory Contact Details

Address

:

Nhon Trach II Industrial Park Phuoc Thien Commune, Nhon Trach, Dong Nai

Tel

:

[+84] 61-3560337

 

:

[+84] 61-3560338

Fax

:

[+84] 61-3560335

 

:

[+84] 61-3560336

Website Details

Website

:

http://www.hualonvn.com.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

:

3600249019

 

 

DIRECTORS/MANAGEMENT

 

Key Person

 

Legal Title

:

Managing Director

Name

:

Mr. Yi-chang Chan

Nationality

:

Taiwanese

 

 

 

COMPANY MANAGEMENT

 

 

 

Management Listings

 

 

Name

Nationality

Job Description

Dept. / Division

1

Mr. Chun-Li Lin

Taiwanese

Assist. Managing Director

-

2

Mr. Hee-bak Tan

Malaysian

Chief Accountant

-

 

 

Management Details - 1

Personal Unique Identifier

:

MI03692893

Name

:

Mr. Chun-Li Lin

 

Date of Birth

:

1954

 

 

Management Details - 2

Personal Unique Identifier

:

MI02481545

Name

:

Mr. Hee-bak Tan

 

Date of Birth

:

1964

 

 

COMPANY DIRECTORS

 

1

 

 

Personal Unique Identifier

:

MI01954903

Name

:

Mr. Yi-chang Chan

Date of Birth

:

1961

NEGATIVE INFORMATION

 

 

REPUTATION

 

Reference checking for the purpose of establishing the HUALON CORP VIETNAM'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

 

 

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

:

$ 131,237,962

Paid-up Capital

:

$ 131,037,962

 

Date

Authorized Capital - History

4 Feb, 2008

131,037,962

Apr, 2014

131,237,962

 

 

 

SHAREHOLDERS

 

Total number of shareholders

:

3

Total number of shares

:

n/a

 

Currency

:

USD - US Dollar

 

No.

Shareholders

Country

Shares

Number

Amount (USD)

%

1

MARTY LTD

Virgin Islands (British)

n/a

130,644,848

99.70

2

HUALON CORP (M) SDN BHD

Malaysia

n/a

248,972

0.19

3

CUBIC HOLDINGS LTD

Virgin Islands (British)

n/a

144,142

0.11

Total

n/a

131,037,962

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

 

 

DIRECT / INDIRECT CORPORATE PARENT DETAILS

 

Direct Parent

:

MARTY LTD

Global Identifier

:

P1151191

Legal Form Category

:

Offshore Company - International Business Company ("IBC")

Country

:

Virgin Islands (British)

Operational Address

:

Palm Grove House Road Town Tortola VG1110

Primary Business Activity

:

Service

 

 

FINANCIAL INFORMATION

 

Financials - Summary  (Currency: USD - US Dollar)

 

Year

Sales

Assets

Net Income

2010 Annual  

225,247,614

208,222,678

6,011,237

2011 Annual  

308,653,769

195,644,839

-36,588,334

2012 Annual (*)

252,810,610

183,381,001

-7,377,263

 

Sales Trend – Analysis

 

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

-

-

-

-

-

-

Note: (*)

 

Financials listed are the most recent available for this company.

 

 

FINANCIALS - SUMMARY (Currency: USD - US Dollar)

 

Year

Sales

Assets

Net Income

2008 Annual

176,052,292

188,013,631

-14,062,183

2009 Annual

194,636,438

187,296,644

-6,841,140

 

 

 

FINANCIAL STATEMENT - DETAILED

 

 

 

Balance Sheet

 

Currency

:

VND

Denomination

:

1

Financial Year Ending

:

December

 

Financial Highlights

2010 Annual

2011 Annual

2012 Annual

Current Assets

1,923,581,000,000

2,233,306,000,000

2,202,533,000,000

Non Current Assets

2,134,679,000,000

1,841,976,000,000

1,616,314,000,000

Non Current Liabilities

732,790,000,000

384,378,000,000

383,338,000,000

Share Capital

-

-

-

Other long term assets 

Total Assets

4,058,260,000,000

4,075,282,000,000

3,818,847,000,000

Total Liabilities

2,639,263,000,000

2,854,512,000,000

2,751,706,000,000

Current Liabilities

1,906,473,000,000

2,470,134,000,000

2,368,368,000,000

Long term liabilities 

Shareholders Funds

1,418,997,000,000

1,220,770,000,000

1,067,141,000,000

 

Current assets & short term investments

-

-

2,202,533,000,000

Cash & cash equivalents

-

-

71,152,000,000

Cash

-

-

61,152,000,000

Cash equivalents

-

-

10,000,000,000

Accounts receivable

-

-

484,432,000,000

Accounts receivable trade

-

-

610,587,000,000

Others receivables

-

-

62,166,000,000

Provision for bad debts

-

-

(188,321,000,000)

i. Inventories

-

-

1,610,688,000,000

ii. Inventories

-

-

1,782,248,000,000

Provision for decline in inventory

-

-

(171,560,000,000)

i. Other short term asset

-

-

36,261,000,000

Prepaid expenses

-

-

32,313,000,000

VAT deductible

-

-

1,096,000,000

ii. Other short term asset

-

-

2,852,000,000

Long term assets

-

-

1,616,314,000,000

Fixed assets

-

-

1,611,091,000,000

Tangible fixed assets

-

-

1,539,566,000,000

Cost

-

-

4,967,416,000,000

Accumulated depreciation

-

-

3,427,850,000,000

Construction in progress

-

-

71,525,000,000

i. Other long term assets

-

-

5,223,000,000

Long term prepayments

-

-

4,922,000,000

ii. Other long term assets

-

-

301,000,000

Total assets

-

-

3,818,847,000,000

Liabilities

-

-

2,751,706,000,000

Current liabilities

-

-

2,368,368,000,000

Short term borrowings

-

-

145,530,000,000

Accounts payables-trade

-

-

2,104,080,000,000

Advances from customers

-

-

46,139,000,000

Taxes and payable to state budget

-

-

45,815,000,000

Payable to employees

-

-

20,302,000,000

Accrued expenses payable

-

-

5,747,000,000

Other payables

-

-

755,000,000

Long term liabilities

-

-

383,338,000,000

Long term borrowings

-

-

383,338,000,000

i. Owner's equity

-

-

1,067,141,000,000

ii. Owner's equity

-

-

1,067,141,000,000

Business capital

-

-

2,729,259,000,000

Retained earnings

-

-

(1,662,118,000,000)

Total resources

-

-

3,818,847,000,000

 

 

Income Statement

 

Currency

:

VND

Denomination

:

1

Financial Year Ending

:

December

 

Financial Highlights

2010 Annual

2011 Annual

2012 Annual

Turnover

4,390,076,000,000

6,429,258,000,000

5,264,695,000,000

Profit (Loss) Before Tax

117,159,000,000

(762,135,000,000)

(153,629,000,000)

Profit After Tax attributable to Shareholders

117,159,000,000

(762,135,000,000)

(153,629,000,000)

 

Gross sales

-

-

5,264,695,000,000

Less deductions

-

-

2,937,000,000

Net income

-

-

5,261,758,000,000

Cost of goods sold

-

-

5,421,601,000,000

Gross margin

-

-

(159,843,000,000)

Income from financial activities

-

-

3,505,000,000

Expenses from financial activities

-

-

7,646,000,000

In which: Interest expenses

-

-

7,005,000,000

Selling expenses

-

-

119,379,000,000

General & administration expenses

-

-

(9,191,000,000)

Net income from operating activities

-

-

(274,172,000,000)

Extraordinary income

-

-

373,586,000,000

Extraordinary expenses

-

-

253,043,000,000

Extraordinary gains

-

-

120,543,000,000

Net profit before tax

-

-

(153,629,000,000)

Net profit after tax

-

-

(153,629,000,000)

 

 

Financial Ratios

 

Financial Highlights

2010 Annual

2011 Annual

2012 Annual

Growth % 

Year-on-Year Growth

26.43

46.45

(18.11)

Profitability 

Profit Margin (%)

2.67

(11.85)

(2.92)

Return on Equity (%)

8.26

(62.43)

(14.40)

Return on Assets (%)

2.89

(18.70)

(4.02)

Leverage 

Total Debt Equity (Times)

1.86

2.34

2.58

Current Debt Equity (Times)

1.34

2.02

2.22

Long Term Debt to Equity

0.52

0.31

0.36

Total Asset To Total Equity

2.86

3.34

3.58

Asset Management 

Total Assets Turnover (Times)

1.08

1.58

1.38

Fixed Assets Turnover (Times)

2.06

3.49

3.26

Liquidity 

Current Ratio

1.01

0.90

0.93

 

 

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 financials were obtained for reference.

 

FOREIGN EXCHANGE RATES

 

Na

 

ADDITIONAL INFORMATION

 

Primary Products

 

Products / Materials / Services Description

Activity

Dye cloth

Manufacturing, Exporting

Dyeing stretch cloths

Manufacturing, Exporting

Fabric

Manufacturing, Exporting

Garments

Manufacturing, Exporting

Textile products

Manufacturing, Exporting

 

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

 

Year

Imports

Exports

Total

2010

n/a

135,148,568

135,148,568

2011

n/a

185,192,261

185,192,261

2012

n/a

151,686,366

151,686,366

 

 

SIC PRODUCT CLASSIFICATION & ACTIVITY

 

 

 

Product/Service Description

Code

Activity

Apparel/Other Textile Products

2300

Manufacturing, Exporting

Fabricated textile products, nspf

2399

Manufacturing, Exporting

Finish Man Fiber/Silk Fabric

2262

Manufacturing, Exporting

Men's and boys' clothing, nspf

2329

Manufacturing, Exporting

Textile Mill Products

2200

Manufacturing, Exporting

Textile goods, nspf

2299

Manufacturing, Exporting

 

 

 

 

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

 

 

 

Product/Service Description

Code

Activity

Garments, of felt etc, or fabric impregnated etc

6210

Manufacturing, Exporting

Other made-up articles of textile material nesoi

6307909500

Manufacturing, Exporting

Textile fabric, coated, etc, theatrical scenery, back-cloths

5907

Manufacturing, Exporting

Textile products etc. for specific tech uses

5911

Manufacturing, Exporting

 

 

 

 

CORE BUSINESS DESCRIPTION

 

 

 

Core Business

 

The primary business focus of HUALON CORP VIETNAM is Manufacturing - Finished products.

Key products include :

·                     Dye cloth

·                     Dyeing stretch cloths

·                     Fabric

·                     Garments

·                     Textile products


An integral part of the core business includes:

·                     Distribution

 

 

 

Supplementary Business

 

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

1.                  Exporting

·                     Exporting - Finished products

2.                  Importing

·                     Importing - Raw materials

 

 

 

DOMESTIC SALES & PURCHASES

 

 

 

Annual Sales Analysis

Percentage

Domestic Sales

40%

International Sales (Export)

60%

 

 

 

 

Annual Purchases Analysis

Percentage

Local Purchases

20%

Imports

80%

 

 

 

 

BANK DETAILS

 

 

 

Bank Name

:

ASIA COMMERCIAL JOINT STOCK BANK

Global Identifier

:

P0075118

Branch

:

District 3,Ho Chi Minh

Branch Address

:

ASIA COMMERCIAL BANK JSC, TRANSACTION OFFICE

SWIFT Code

:

ASCBVNVX

 

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

:

INDOVINA BANK LTD

Global Identifier

:

32404053

Branch

:

District 1,Ho Chi Minh

Branch Address

:

46-48-50 Pham Hong Thai St Ben Thanh Ward District 1 Ho Chi Minh (Head Office)

SWIFT Code

:

IABBVNVX

 

 

 

LOCAL BRANCHES & MANAGEMENT

 

 

 

Branch

:

HUALON CORP VIETNAM - DONG DA, HANOI

Branch Address

:

Bach Dang Hamlet Van Phuc Commune, Dong Da, Hanoi

License Status

:

License exists - Normal.

 

Branch

:

HUALON CORP VIETNAM - NHON TRACH, DONG NAI

Branch Address

:

Nhon Trach 1 Industrial Park Phuoc Thien Ward, Nhon Trach, Dong Nai

Branch Tel

:

84-613-560337

Branch Fax

:

84-613-560335

License Status

:

License exists - Normal.

 

Branch

:

HUALON CORP VIETNAM - HA DONG, HA TAY

Branch Address

:

Bach Dang - Van Phuc, Ha Dong, Ha Tay

Branch Tel

:

84-34-3519948

Branch Fax

:

84-34-3820666

 

 

 

INTERNATIONAL TRADE - Statistics (Currency: USD - US Dollar)

 

 

 

Year

Imports

Exports

Total

2008

n/a

123,236,604

123,236,604

2009

n/a

77,854,575

77,854,575

 

 

 

INTERNATIONAL TRADE - Activity & Markets

 

 

 

 

Country / Region

Estimated level of importance

Trading Activity

Asia / Pacific

Medium

Importing, Exporting

Europe

Medium

Exporting

North America

Medium

Importing, Exporting

Hong Kong

Medium

Importing

Japan

Medium

Importing

Malaysia

Medium

Importing, Exporting

Singapore

Medium

Importing

Taiwan

Medium

Importing

Thailand

Medium

Importing

USA

Medium

Importing, Exporting

 

 

 

 

OFFICE & FACILITIES

 

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

 

Name

:

HUALON CORP VIETNAM - DISTRICT 3, HO CHI MINH

Primary Use

:

Office & Administration facilities

Building Size

:

36,000 Square meters

Address

:

40 Ba Huyen Thanh Quan St, District 3, Ho Chi Minh

Country

:

Vietnam

Status

:

Operational

 

 

 

FACTORIES, SIZE, & LOCATIONS

 

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

 

Address

:

Nhon Trach II Industrial Park Phuoc Thien Commune, Nhon Trach, Dong Nai

 

 

 

 

QUALITY ACCREDITATION

 

 

 

Quality Accreditation Listings

 

#

Name

Accreditation Category

1

INTERNATIONAL STANDARDS ORGANIZATION (ISO)

9001:2000

 

 

 

 

PREVIOUS CONTACT DETAILS

 

 

 

Company Address

:

Tuy Ha Industrial Park, Nhon Trach, Dong Nai

Date of Relocation

:

1 Jan, 2011

 

 

 

 

PREVIOUS BUSINESS LICENSE/S

 

 

 

License Date

License No.

30 Dec, 1993

757/GP

 

NOTES & COMMENTS

 

Na

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 58.86

UK Pound

1

Rs. 98.82

Euro

1

Rs. 80.71

 

 

INFORMATION DETAILS

 

Analysis Done by :

KRN

 

 

Report Prepared by :

DPT

 

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.