MIRA INFORM REPORT

Report No. :	355528
Report Date :	22.12.2015

IDENTIFICATION DETAILS

Name :	LAO CAI YELLOW PHOSPHORUS JSC

Registered Office :	Tang Loong Industrial zone Tang Loong Town, Bao Thang Dist, Lao Cai

Country :	Vietnam

Financials (as on) :	31.12.2014

Date of Incorporation :	April, 2012

Legal Form :	Joint Stock Company

Line of Business :	Manufacturer of Chemicals.

No. of Employees :	122

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 :	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 31, 2015

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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. Agriculture's share of economic output has shrunk from about 25% in 2000 to 18% in 2014, while industry's share increased from 36% to 38% in the same period. State-owned enterprises now account for only about 40% of GDP.

Vietnamese authorities have reaffirmed their commitment to economic modernization and a more open economy. Vietnam joined the World Trade Organization in January 2007, which has promoted more competitive, export-driven industries. Vietnam joined the 12-nation Trans-Pacific Partnership free trade agreement negotiations in 2010.

Hanoi has oscillated between promoting growth and emphasizing macroeconomic stability in recent years. Between 2008 and 2011, Vietnam's managed currency, the dong, was devalued in excess of 20%, but its value has remained relatively stable since then. 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.

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 to restructure public investment, state-owned enterprises, and the banking sector, Hanoi’s progress in meeting its goals is lagging behind its proposed schedule. Vietnam's economy continues to face challenges from an undercapitalized banking sector and non-performing loans weigh heavily on banks and businesses.

Source : CIA

REGISTERED NAME & COMPANY SUMMARY

Company Details
Organization Name	:	LAO CAI YELLOW PHOSPHORUS JSC ⁽¹⁾
Name in Local Language	:	CÔNG TY CỔ PHẦN PHỐT PHO VÀNG LÀO CAI
Address	:	Tang Loong Industrial Zone Tang Loong Town, Bao Thang Dist, Lao Cai
Country	:	Vietnam
Phone (S)	:	[+84] 20-3867251
Facsimile	:	[+84] 20-3863282
Email	:	sales@phosphoruslpc.vn
Website	:	http://phosphoruslpc.vn
Primary Business Activity	:	Manufacturer
Key Industry	:	Chemicals

Key Facts

Registered Legal Address

Tang Loong Industrial Zone Tang Loong Town, Bao Thang Dist, Lao Cai

Operational Address

Tang Loong Industrial Zone Tang Loong Town, Bao Thang Dist, Lao Cai

License Status

License exists - Normal.

Issuing Authority

Dept. of Planning & Investment - Lao Cai

License Number

5300250560

Legal Form - Category

Joint Stock Company

Legal Form

Joint Stock Company

Legal Form - Abbreviation

JSC

Operational Status of Business

Normal

Date of Registration

Apr, 2012

Employees

122

Capital

US$ 5,099,950

PREVIOUS BUSINESS LICENSE/S

License Date	License No.
22 Dec, 2008	1203000191

Note

¹⁾
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.

DIRECTORS/MANAGEMENT

Key Person

Legal Title	:	Managing Director
Name	:	Mr. Hung Nam Ta
Nationality	:	Vietnamese

COMPANY MANAGEMENT

Management Listings

	Name	Nationality	Job Description	Dept. / Division
1	Mr. Hung Ba Duong	Vietnamese	Chief Accountant	-
2	Mr. Hung Nam Ta	Vietnamese	Managing Director	-

Management Details - 1

Personal Unique Identifier	:	MI03628821
Name	:	Mr. Hung Ba Duong
Date of Birth	:	1965

Management Details - 2

Personal Unique Identifier	:	MI03628786
Name	:	Mr. Hung Nam Ta
Date of Birth	:	1971

COMPANY DIRECTORS

1
Personal Unique Identifier	:	MI03628786
Name	:	Mr. Hung Nam Ta
Date of Birth	:	1971

NEGATIVE INFORMATION

REPUTATION

Reference checking for the purpose of establishing LAO CAI YELLOW PHOSPHORUS 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

CAPITAL (Currency: VND - Vietnam Dong)

Authorized Capital	:	₫ 112,000,000,000
Paid-up Capital	:	₫ 112,000,000,000

Date	Paid-up Capital - History
2011	66,137,000,000
2012	99,180,000,000
2013	112,000,000,000

SHAREHOLDERS

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

Currency

VND - Vietnam Dong

No.	Shareholders	Country	Shares
No.	Shareholders	Country	Number	Amount (VND)	%
1	VIETNAM APATITE CO LTD	Vietnam	n/a	70,560,000,000	63.00
2	Mr. Hung Nam Ta	Vietnam	n/a	35,840,000,000	32.00
3	Undisclosed Shareholders	n/a	n/a	5,600,000,000	5.00
Total			n/a	112,000,000,000	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

Sales Trend - Analysis

2005	2006	2007	2008	2009	2010	2011	2012	2013	2014
-	-	-	-	-	-

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

Year	Imports	Exports	Total
2012	n/a	10,515,908	10,515,908
2013	n/a	11,626,413	11,626,413
2014	n/a	11,331,202	11,331,202

DOMESTIC SALES & PURCHASES
Annual Sales Analysis	Percentage
Domestic Sales	5%
International Sales (Export)	95%

Annual Purchases Analysis	Percentage
Local Purchases	100%

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

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

Year	Imports	Exports	Total
2010	n/a	6,613,199	6,613,199
2011	n/a	8,360,228	8,360,228

INTERNATIONAL TRADE - Activity & Markets

Country / Region	Estimated level of importance	Trading Activity
Asia / Pacific	Medium	Exporting
Europe	Medium	Exporting
India	Medium	Exporting
Italy	Medium	Exporting
Japan	Medium	Exporting
Malaysia	Medium	Exporting

GROUP STRUCTURE & AFFILIATED COMPANIES

DIRECT / INDIRECT CORPORATE PARENT DETAILS

Direct Corporate Parent	:	VIETNAM APATITE CO LTD
Global Identifier	:	32408791
Legal Form Category	:	Government-owned Enterprise
Country	:	Vietnam
Operational Address	:	Pom Han Precinct Lao Cai Lao Cai
Primary Business Activity	:	Manufacturer

FINANCIAL INFORMATION

Financials - Summary (Currency: USD - US Dollar)

Year	Turnover	Assets	Net Income
2012 Annual	11,069,376	10,045,494	1,003,090
2013 Annual	12,238,330	15,356,535	1,384,668
2014 Annual	11,927,581	21,677,576	809,985

FINANCIALS - SUMMARY (Currency: USD - US Dollar)

Year	Turnover	Assets	Net Income
2010 Annual	6,961,262	3,247,306	951,668
2011 Annual	8,800,240	6,338,646	786,894

FINANCIAL STATEMENT - DETAILED

Balance Sheet

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2012 Annual	2013 Annual	2014 Annual
Current Assets(*)	172,514,000,000	178,843,000,000	318,636,000,000
Non Current Assets(*)	36,680,000,000	144,997,000,000	139,706,000,000
Non Current Liabilities(*)	20,850,000,000	41,221,000,000	35,004,000,000
Share Capital(*)	99,180,000,000	112,000,000,000	112,000,000,000
Other long term assets
Total Assets(*)	209,194,000,000	323,840,000,000	458,342,000,000
Total Liabilities(*)	79,680,000,000	171,394,000,000	317,214,000,000
Current Liabilities(*)	58,830,000,000	130,173,000,000	282,210,000,000
Long term liabilities
Shareholders Funds(*)	129,514,000,000	152,446,000,000	141,128,000,000

Current assets & short term investments	172,514,000,000	178,843,000,000	318,636,000,000
Cash & cash equivalents	37,122,000,000	39,699,000,000	28,915,000,000
Cash	4,147,000,000	11,685,000,000	18,760,000,000
Cash equivalents	32,975,000,000	28,014,000,000	10,155,000,000
Short term investments	-	-	119,546,000,000
Short term securities investments	-	-	119,546,000,000
Accounts receivable	72,209,000,000	31,231,000,000	49,907,000,000
Accounts receivable trade	30,454,000,000	25,719,000,000	47,686,000,000
Trade prepayment	40,996,000,000	3,422,000,000	276,000,000
Others receivables	759,000,000	2,090,000,000	1,945,000,000
Inventories	54,752,000,000	93,409,000,000	113,338,000,000
Other short term asset	78,000,000	198,000,000	34,000,000
Prepaid expenses	145,000,000	45,000,000	-
VAT deductible	8,208,000,000	14,261,000,000	6,592,000,000
Other tax receivables	-	-	304,000,000
Long term assets	36,680,000,000	144,997,000,000	139,706,000,000
Fixed assets	36,680,000,000	144,591,000,000	130,838,000,000
Tangible fixed assets	3,564,000,000	3,531,000,000	129,535,000,000
i.Cost	2,075,000,000	2,062,000,000	2,062,000,000
Accumulated depreciation	1,796,000,000	2,061,000,000	2,062,000,000
Intangible fixed assets	279,000,000	1,000,000	-
Construction in progress	32,837,000,000	141,059,000,000	1,303,000,000
Other long term assets	-	406,000,000	8,868,000,000
Long term prepayments	-	406,000,000	8,868,000,000
Total assets	209,194,000,000	323,840,000,000	458,342,000,000
Liabilities	79,680,000,000	171,394,000,000	317,214,000,000
Current liabilities	58,830,000,000	130,173,000,000	282,210,000,000
Short term borrowings	29,906,000,000	64,580,000,000	181,547,000,000
Accounts payables-trade	19,336,000,000	54,541,000,000	67,323,000,000
Advances from customers	18,000,000	-	-
Taxes and payable to state budget	3,460,000,000	3,512,000,000	4,665,000,000
Payable to employees	2,979,000,000	3,364,000,000	8,296,000,000
Accrued expenses payable	1,586,000,000	1,649,000,000	4,567,000,000
Other payables	118,000,000	265,000,000	14,427,000,000
Bonus and welfare funds	1,427,000,000	2,262,000,000	1,385,000,000
Long term liabilities	20,850,000,000	41,221,000,000	35,004,000,000
Long term borrowings	20,850,000,000	41,221,000,000	35,004,000,000
Owner's equity	129,514,000,000	152,446,000,000	141,128,000,000
Business capital	99,180,000,000	112,000,000,000	112,000,000,000
Share capital's surplus	8,768,000,000	8,768,000,000	8,768,000,000
Business development funds	3,319,000,000	4,779,000,000	5,651,000,000
Retained earnings	18,247,000,000	26,899,000,000	14,709,000,000
Total resources	209,194,000,000	323,840,000,000	458,342,000,000

Note: (*)

Financial Highlights

Income Statement

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2012 Annual	2013 Annual	2014 Annual
Turnover(*)	230,516,000,000	258,083,000,000	252,192,000,000
Profit (Loss) Before Tax(*)	25,655,000,000	39,113,000,000	17,357,000,000
Profit After Tax attributable to Shareholders(*)	20,889,000,000	29,200,000,000	17,126,000,000

Gross sales	230,516,000,000	258,083,000,000	252,192,000,000
Less deductions	7,804,000,000	9,433,000,000	5,480,000,000
Net income	222,712,000,000	248,650,000,000	246,712,000,000
Cost of goods sold	189,591,000,000	197,730,000,000	219,382,000,000
Gross margin	33,121,000,000	50,920,000,000	27,330,000,000
Income from financial activities	2,094,000,000	3,740,000,000	2,670,000,000
Expenses from financial activities	456,000,000	2,046,000,000	6,170,000,000
In which: Interest expenses	420,000,000	1,559,000,000	4,005,000,000
Selling expenses	6,995,000,000	8,780,000,000	4,628,000,000
General & administration expenses	4,441,000,000	4,921,000,000	2,104,000,000
Net income from operating activities	23,323,000,000	38,913,000,000	17,098,000,000
Extraordinary income	2,410,000,000	223,000,000	260,000,000
Extraordinary expenses	78,000,000	23,000,000	1,000,000
Extraordinary gains	2,332,000,000	200,000,000	259,000,000
Net profit before tax	25,655,000,000	39,113,000,000	17,357,000,000
Income tax	4,766,000,000	9,913,000,000	231,000,000
Income tax delay	0	0	0
Net profit after tax	20,889,000,000	29,200,000,000	17,126,000,000
Earning per share	0	0	252,192,000,000

Note: (*)

Financial Highlights

Financial Ratios

Financial Highlights	2012 Annual	2013 Annual	2014 Annual
Growth %
Year-on-Year Growth	25.75	11.96	(2.28)
Profitability
Profit Margin (%)	9.06	11.31	6.79
Return on Equity (%)	16.13	19.15	12.14
Return on Assets (%)	9.99	9.02	3.74
Leverage
Total Debt Equity (Times)	0.62	1.12	2.25
Current Debt Equity (Times)	0.45	0.85	2.00
Long Term Debt to Equity	0.16	0.27	0.25
Total Asset To Total Equity	1.62	2.12	3.25
Asset Management
Total Assets Turnover (Times)	1.10	0.80	0.55
Fixed Assets Turnover (Times)	6.28	1.78	1.81
Liquidity
Current Ratio	2.93	1.37	1.13

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

FOREIGN EXCHANGE RATES

Today's Exchange rate

1.00 VND
Vietnam Dong

0.000046 USD
United States Dollars

ADDITIONAL INFORMATION

Report Details

Country	:	Vietnam
Business Entity Name	:	LAO CAI YELLOW PHOSPHORUS JSC
Primary Business Activity	:	Manufacturer
Primary Industry	:	Chemicals
Office Contact Details
Operating Address	:	Tang Loong Industrial Zone Tang Loong Town, Bao Thang Dist, Lao Cai
Tel	:	[+84] 20-3867251
	:	[+84] 20-3863171
	:	[+84] 20-3867242
Fax	:	[+84] 20-3863282
Email	:	sales@phosphoruslpc.vn
Website Details
Website	:	http://phosphoruslpc.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	:	5300250560

Primary Products

Products / Materials / Services Description	Activity
Phosphorus	Manufacturing, Exporting

SIC PRODUCT CLASSIFICATION & ACTIVITY
Product/Service Description	Code	Activity
Chemical preparations, nspf	2899	Manufacturing, Exporting
Chemicals and Allied Products	2800	Manufacturing, Exporting

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY
Product/Service Description	Code	Activity
Miscellaneous chemical products	3800	Manufacturing, Exporting
Phosphorus	2804700000	Manufacturing, Exporting

CORE BUSINESS DESCRIPTION

Core Business

The primary business focus of LAO CAI YELLOW PHOSPHORUS JSC is Manufacturing - Finished products.

Key product include :

Phosphorus

An integral part of the core business includes:

Distribution

Supplementary Business

In addition to the core business, LAO CAI YELLOW PHOSPHORUS JSC also is engaged in the following areas of business:

Exporting

Exporting - Finished products

BANK DETAILS

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

Bank Name	:	VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY & TRADE
Global Identifier	:	32404058
Branch	:	Hoan Kiem Dist,Hanoi
Branch Address	:	VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE - LAO CAI
SWIFT Code	:	ICBVVNVX

OFFICE & FACILITIES

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

Name	:	LAO CAI YELLOW PHOSPHORUS JSC - BAO THANG DIST, LAO CAI
Primary Use	:	Office & Administration facilities
Address	:	Tang Loong Industrial Zone Tang Loong Town, Bao Thang Dist, Lao Cai
Country	:	Vietnam
Status	:	Operational

PREVIOUS CONTACT DETAILS

Company Address

Group 1 Tang Loong Town, Bao Thang Dist, Lao Cai

NOTES & COMMENTS

N/A

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.32
UK Pound	1	Rs.98.99
Euro	1	Rs.72.13
VND	1	Rs.0.0029

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	TRI

Report Prepared by :	NIT

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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