MIRA INFORM REPORT

 

 

Report Date :

23.05.2014

 

IDENTIFICATION DETAILS

 

Name :

KUANG TAI METAL (VIETNAM) CO LTD

 

 

Registered Office :

Nhon Trach 3 Industrial Zone Hiep Phuoc Commune, Nhon Trach Dist, Dong Nai

 

 

Country :

Vietnam

 

 

Financials (as on) :

2012

 

 

Date of Incorporation :

24.12.2009

 

 

Legal Form :

Private Company with Limited Liability

 

 

Line of Business :

Manufacturing, Exporting of Electric welding equipment

 

 

No. of Employees

200

 

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 :

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Vietnam

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately  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

:

KUANG TAI METAL (VIETNAM) CO LTD(1)

Address

:

Nhon Trach 3 Industrial Zone Hiep Phuoc Commune, Nhon Trach Dist, Dong Nai

Country

:

Vietnam

Phone (S)

:

[+84] 61-3560098

Facsimile

:

[+84] 61-3560243

Primary Business Activity

:

Manufacturer

Key Industry

:

Machinery

 

Key Facts

 

Registered Legal Address

:

Nhon Trach 3 Industrial Zone Hiep Phuoc Commune, Nhon Trach Dist, Dong Nai

Operational Address

:

Nhon Trach 3 Industrial Zone Hiep Phuoc Commune, Nhon Trach Dist, Dong Nai

Trading Name

:

KUANG TAI METAL

Name History

:

Business Entity Name

Effective Date

NOMURA WELDTECO (VIETNAM) CO LTD

18 Jul, 2003

KUANG TAI METAL (VIETNAM) CO LTD

26 May, 2008

Issuing Authority

:

Dept. of Planning & Investment - Dong Nai

License Number

:

472023000482

License Status

:

License exists - Normal.

Legal Form - Category

:

Private Company with Limited Liability

Legal Form

:

Company Limited

Legal Form - Abbreviation

:

CO LTD

Operational Status of Business

:

Normal

Date of Registration

:

24 Dec, 2009

Employees

:

200

Capital

:

US$ 13,550,000

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

:

KUANG TAI METAL (VIETNAM) CO LTD

Primary Business Activity

:

Manufacturer

Primary Industry

:

Machinery

Office Contact Details

Operating Address

:

Nhon Trach 3 Industrial Zone Hiep Phuoc Commune, Nhon Trach Dist, Dong Nai

Tel

:

[+84] 61-3560098

 

:

[+84] 61-3560097

Fax

:

[+84] 61-3560243

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

:

3600645037

 

 

DIRECTORS/MANAGEMENT

 

Key Person

Legal Title

:

Managing Director

Name

:

Mr. Cheng-Kun Huang

Nationality

:

Taiwanese

 

 

COMPANY MANAGEMENT

 

 

 

Management Listings

 

 

Name

Nationality

Job Description

Dept. / Division

1

Ms. Nguyen Thi Nhung

Vietnamese

Chief Accountant

-

 

 

Management Details - 1

Personal Unique Identifier

:

MI03700982

Name

:

Ms. Nguyen Thi Nhung

 

Date of Birth

:

1973

 

 

COMPANY DIRECTORS

 

1

 

 

Personal Unique Identifier

:

MI03700976

Name

:

Mr. Cheng-Kun Huang

Date of Birth

:

1968

 

 

NEGATIVE INFORMATION

 

 

REPUTATION

 

Reference checking for the purpose of establishing the KUANG TAI METAL (VIETNAM) CO LTD'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

:

$ 13,550,000

 

 

SHAREHOLDERS

 

Total number of shareholders

:

1

Total number of shares

:

n/a

 

Currency

:

USD - US Dollar

 

No.

Shareholders

Country

Shares

Number

Amount (USD)

%

1

NEW STAR GLOBAL TRADING LTD

Virgin Islands (British)

n/a

n/a

100.00

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 - Secured with Post-dated checks 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 - Secured with Post-dated checks 30~60 days

Import

Letter of Credit (At-sight)

Telegraphic Transfer (T/T) - Executed at time of transaction

 

 

GROUP STRUCTURE & AFFILIATED COMPANIES

 

 

RELATED PARTIES (Subsidiaries , Joint-ventures & Affiliates)

 

 

 

The following provides a summary of the number of businesses that are related to KUANG TAI METAL (VIETNAM) CO LTD:

 

 

TYPE

INTERNATIONAL

Africa

Asia / Pacific

Europe

Middle-East

North America

South America

TOTAL

Subsidiaries

-

-

-

-

-

-

-

Joint-Ventures

-

-

-

-

-

-

-

Minority shareholdings

-

-

-

-

-

-

-

Affiliates

-

1

-

-

-

-

1

 

 

International

 

 

 

Business Entity Name

:

KUANG TAI METAL INDUSTRIAL CO LTD

Global Identifier

:

31519784

Country

:

Taiwan

Relationship

:

Affiliate

Operational Address

:

20 Kung Yen Rd Erh Chen Tsun, Kuantien Hsiang, Tainan Hsien 720

Primary Business Activity

:

Manufacturer

Industry

:

Metals & Metal Products

 

 

DIRECT / INDIRECT CORPORATE PARENT DETAILS

 

Direct Parent

:

NEW STAR GLOBAL TRADING LTD

Global Identifier

:

P0351971

Legal Form Category

:

Private Company with Limited Liability

Country

:

Virgin Islands (British)

Primary Business Activity

:

Trader

 

FINANCIAL INFORMATION

 

Financials - Summary  (Currency: USD - US Dollar)

Year

Sales

Assets

Net Income

2011 Annual  

16,611,186

18,185,358

2,736

2012 Annual (*)

22,040,504

33,931,070

814,035

 

Sales Trend – Analysis

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

-

-

-

-

-

-

-

-

-

Note: (*)

Financials listed are the most recent available for this company.

 

 

FINANCIAL STATEMENT - DETAILED

 

 

 

Balance Sheet

 

Currency

:

VND

Denomination

:

1

Financial Year Ending

:

December

 

Financial Highlights

2011 Annual

2012 Annual

Current Assets

277,870,000,000

582,345,000,000

Non Current Assets

100,931,000,000

124,258,000,000

Non Current Liabilities

71,000,000

-

Other long term assets 

Total Assets

378,801,000,000

706,603,000,000

Total Liabilities

285,619,000,000

492,329,000,000

Current Liabilities

285,548,000,000

492,329,000,000

Long term liabilities 

Shareholders Funds

93,182,000,000

214,274,000,000

 

Current assets & short term investments

277,870,000,000

582,345,000,000

Cash & cash equivalents

32,842,000,000

44,891,000,000

Cash

32,842,000,000

44,891,000,000

Accounts receivable

110,123,000,000

353,495,000,000

Accounts receivable trade

97,677,000,000

127,538,000,000

Trade prepayment

2,481,000,000

204,062,000,000

Others receivables

10,273,000,000

22,203,000,000

Provision for bad debts

(308,000,000)

(308,000,000)

Inventories

131,373,000,000

176,477,000,000

Inventories I

131,373,000,000

176,477,000,000

Other short term asset

3,532,000,000

7,482,000,000

Prepaid expenses

1,005,000,000

1,472,000,000

VAT deductible

1,646,000,000

4,906,000,000

Other tax receivables

-

121,000,000

Other short term asset I

881,000,000

983,000,000

Long term assets

100,931,000,000

124,258,000,000

Fixed assets

94,216,000,000

112,943,000,000

Tangible fixed assets

77,145,000,000

111,894,000,000

Cost

142,982,000,000

197,112,000,000

Accumulated depreciation

65,837,000,000

85,218,000,000

Intangible fixed assets

2,000,000

-

Cost I

51,000,000

51,000,000

Accumulated depreciation I

49,000,000

51,000,000

Construction in progress

17,069,000,000

1,049,000,000

Other long term assets

6,715,000,000

11,315,000,000

Long term prepayments

6,097,000,000

10,697,000,000

Other long term assets I

618,000,000

618,000,000

Total assets

378,801,000,000

706,603,000,000

Liabilities

285,619,000,000

492,329,000,000

Current liabilities

285,548,000,000

492,329,000,000

Short term borrowings

18,685,000,000

69,432,000,000

Accounts payables-trade

263,903,000,000

416,242,000,000

Advances from customers

565,000,000

2,518,000,000

Taxes and payable to state budget

221,000,000

1,515,000,000

Payable to employees

1,787,000,000

1,341,000,000

Accrued expenses payable

64,000,000

698,000,000

Other payables

323,000,000

583,000,000

Long term liabilities

71,000,000

-

Provision funds for unemployment

71,000,000

-

Owner's equity

93,182,000,000

214,274,000,000

Owner's equity I

93,182,000,000

214,274,000,000

Business capital

144,961,000,000

249,101,000,000

Retained earnings

(51,779,000,000)

(34,827,000,000)

Total resources

378,801,000,000

706,603,000,000

 

 

Income Statement

 

Currency

:

VND

Denomination

:

1

Financial Year Ending

:

December

 

Financial Highlights

2011 Annual

2012 Annual

Turnover

346,011,000,000

458,986,000,000

Profit (Loss) Before Tax

57,000,000

16,952,000,000

Profit After Tax attributable to Shareholders

57,000,000

16,952,000,000

 

Gross sales

346,011,000,000

458,986,000,000

Less deductions

465,000,000

2,719,000,000

Net income

345,546,000,000

456,267,000,000

Cost of goods sold

302,468,000,000

403,036,000,000

Gross margin

43,078,000,000

53,230,000,000

Income from financial activities

8,652,000,000

1,648,000,000

Expenses from financial activities

19,615,000,000

1,643,000,000

In which: Interest expenses

260,000,000

1,529,000,000

Selling expenses

16,501,000,000

22,977,000,000

General & administration expenses

14,358,000,000

16,492,000,000

Net income from operating activities

1,256,000,000

13,766,000,000

Extraordinary income

13,000,000

4,245,000,000

Extraordinary expenses

1,212,000,000

1,059,000,000

Extraordinary gains

(1,199,000,000)

3,186,000,000

Net profit before tax

57,000,000

16,952,000,000

Net profit after tax

57,000,000

16,952,000,000

 

 

Financial Ratios

 

Financial Highlights

2011 Annual

2012 Annual

Growth % 

Year-on-Year Growth

-

32.65

Profitability 

Profit Margin (%)

0.02

3.69

Return on Equity (%)

0.06

7.91

Return on Assets (%)

0.02

2.40

Leverage 

Total Debt Equity (Times)

3.07

2.30

Current Debt Equity (Times)

3.06

2.30

Long Term Debt to Equity

0.00

-

Total Asset To Total Equity

4.07

3.30

Asset Management 

Total Assets Turnover (Times)

0.91

0.65

Fixed Assets Turnover (Times)

3.43

3.69

Liquidity 

Current Ratio

0.97

1.18

 

 

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

Electric welding equipment

Manufacturing, Exporting

Steel

Manufacturing, Exporting

 

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

Year

Imports

Exports

Total

2011

n/a

5,813,915

5,813,915

2012

n/a

7,714,176

7,714,176

 

 

SIC PRODUCT CLASSIFICATION & ACTIVITY

 

 

 

Product/Service Description

Code

Activity

Steel Foundries, NEC

3325

Manufacturing, Exporting

Welding apparatus, and parts, nspf

3548

Manufacturing, Exporting

 

 

 

 

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

 

 

 

Product/Service Description

Code

Activity

Articles of iron or steel

7300

Manufacturing, Exporting

Electric arc welding machines, rotating type

8515390060

Manufacturing, Exporting

 

 

 

 

CORE BUSINESS DESCRIPTION

 

 

 

Core Business

 

The primary business focus of KUANG TAI METAL (VIETNAM) CO LTD is Manufacturing - Finished products.

Key products include :

·                     Electric welding equipment

·                     Steel


An integral part of the core business includes:

·                     Distribution

 

 

 

Supplementary Business

 

In addition to the core business, KUANG TAI METAL (VIETNAM) CO LTD 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

65%

International Sales (Export)

35%

 

 

 

 

Annual Purchases Analysis

Percentage

Local Purchases

25%

Imports

75%

 

 

 

 

BANK DETAILS

 

 

 

Bank Name

:

CHINA TRUST COMMERCIAL BANK

Global Identifier

:

P0839418

Branch

:

District 1,Ho Chi Minh

Branch Address

:

CHINA TRUST COMMERCIAL BANK, HO CHI MINH

SWIFT Code

:

CTCBVNVX

 

Bank Name

:

MEGA INT'L COMMERCIAL BANK CO LTD

Global Identifier

:

P0927105

Branch

:

Ho Chi Minh

Branch Address

:

MEGA INT'L COMMERCIAL BANK CO LTD - HO CHI MINH

SWIFT Code

:

ICBCVNVX

 

Bank Name

:

TAIPEI FUBON COMMERCIAL BANK CO LTD BINH THANH BRANCH

Global Identifier

:

P1392674

Branch

:

Binh Thanh,Ho Chi Minh

Branch Address

:

TAIPEI FUBON COMMERCIAL BANK CO LTD BINH THANH BRANCH - HO CHI MINH

SWIFT Code

:

TPBKVNVX

 

 

 

LOCAL BRANCHES & MANAGEMENT

 

 

 

Branch

:

KUANG TAI METAL (VIETNAM) CO LTD - LONG BIEN DIST, HANOI

Branch Address

:

452 Ngo Gia Tu Duc Giang Ward, Long Bien Dist, Hanoi

 

Branch

:

KUANG TAI METAL (VIETNAM) CO LTD - CAM LE DIST, DA NANG

Branch Address

:

Lot A54 Nguyen Huu Tho Khue Trung Ward, Cam Le Dist, Da Nang

 

 

 

INTERNATIONAL TRADE - Activity & Markets

 

 

 

 

Country / Region

Estimated level of importance

Trading Activity

Asia / Pacific

Medium

Importing, Exporting

Indonesia

Medium

Exporting

Taiwan

Medium

Importing, Exporting

Thailand

Medium

Exporting

 

 

 

 

OFFICE & FACILITIES

 

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

 

Name

:

KUANG TAI METAL (VIETNAM) CO LTD - NHON TRACH DIST, DONG NAI

Primary Use

:

Office & Administration facilities

Address

:

Nhon Trach 3 Industrial Zone Hiep Phuoc Commune, Nhon Trach Dist, Dong Nai

Country

:

Vietnam

Status

:

Operational

 

 

 

 

PREVIOUS BUSINESS LICENSE/S

 

 

 

License Date

License No.

18 Jul, 2003

227/GP-KCN-DN

 

 

NOTES & COMMENTS

 

Na

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.58.57

UK Pound

1

Rs.98.87

Euro

1

Rs.80.05

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

PDT

 

               

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.