MIRA INFORM REPORT

Report No. :	340469
Report Date :	11.09.2015

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) :	2013
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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
Vietnam	A2	A2

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	:	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

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	Deputy 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 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
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

:

US$ 131,237,962

CAPITAL (Currency: USD - US Dollar)

Authorized Capital	:	$ 131,237,962
Paid-up Capital	:	$ 131,037,962

Date	Authorized Capital - History
30 Dec, 1993	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

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

DOMESTIC SALES & PURCHASES
Annual Sales Analysis	Percentage
Domestic Sales	40%
International Sales (Export)	60%
Annual Purchases Analysis	Percentage
Local Purchases	20%
Imports	80%

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

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

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	Turnover	Assets	Net Income
2011 Annual	308,653,769	195,644,839	-36,588,334
2012 Annual	252,810,610	183,381,001	-7,377,263
2013 Annual (*)	244,993,643	164,320,761	-2,058,508

Sales Trend - Analysis

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

Note: (*)

Financials listed are the most recent available for this company.

FINANCIALS - SUMMARY (Currency: USD - US Dollar)

Year	Turnover	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
2010 Annual	225,247,614	208,222,678	6,011,237

FINANCIAL STATEMENT - DETAILED

Balance Sheet

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2011 Annual	2012 Annual	2013 Annual
Current Assets(*)	2,233,306,000,000	2,202,533,000,000	2,098,622,000,000
Non Current Assets(*)	1,841,976,000,000	1,616,314,000,000	1,366,589,000,000
Non Current Liabilities(*)	384,378,000,000	383,338,000,000	387,166,000,000
Other long term assets
Total Assets(*)	4,075,282,000,000	3,818,847,000,000	3,465,211,000,000
Total Liabilities(*)	2,854,512,000,000	2,751,706,000,000	2,430,824,000,000
Current Liabilities(*)	2,470,134,000,000	2,368,368,000,000	2,043,658,000,000
Long term liabilities
Shareholders Funds(*)	1,220,770,000,000	1,067,141,000,000	1,034,387,000,000
Current assets & short term investments	-	2,202,533,000,000	2,098,622,000,000
Cash & cash equivalents	-	71,152,000,000	77,276,000,000
Cash	-	61,152,000,000	61,310,000,000
Cash equivalents	-	10,000,000,000	15,966,000,000
Accounts receivable	-	484,432,000,000	441,093,000,000
Accounts receivable trade	-	610,587,000,000	543,487,000,000
Others receivables	-	62,166,000,000	88,401,000,000
Provision for bad debts	-	(188,321,000,000)	(190,795,000,000)
i. Inventories	-	1,610,688,000,000	1,556,267,000,000
ii. Inventories	-	1,782,248,000,000	1,693,728,000,000
Provision for decline in inventory	-	(171,560,000,000)	(137,461,000,000)
i. Other short term asset	-	36,261,000,000	23,986,000,000
Prepaid expenses	-	32,313,000,000	16,379,000,000
VAT deductible	-	1,096,000,000	2,986,000,000
ii. Other short term asset	-	2,852,000,000	4,621,000,000
Long term assets	-	1,616,314,000,000	1,366,589,000,000
Fixed assets	-	1,611,091,000,000	1,364,195,000,000
Tangible fixed assets	-	1,539,566,000,000	1,358,263,000,000
Cost	-	4,967,416,000,000	4,967,799,000,000
Accumulated depreciation	-	3,427,850,000,000	3,609,536,000,000
Construction in progress	-	71,525,000,000	5,932,000,000
i. Other long term assets	-	5,223,000,000	2,394,000,000
Long term prepayments	-	4,922,000,000	2,136,000,000
ii. Other long term assets	-	301,000,000	258,000,000
Total assets	-	3,818,847,000,000	3,465,211,000,000
Liabilities	-	2,751,706,000,000	2,430,824,000,000
Current liabilities	-	2,368,368,000,000	2,043,658,000,000
Short term borrowings	-	145,530,000,000	165,808,000,000
Accounts payables-trade	-	2,104,080,000,000	1,760,785,000,000
Advances from customers	-	46,139,000,000	85,722,000,000
Taxes and payable to state budget	-	45,815,000,000	31,000,000
Payable to employees	-	20,302,000,000	21,825,000,000
Accrued expenses payable	-	5,747,000,000	8,154,000,000
Other payables	-	755,000,000	1,333,000,000
Long term liabilities	-	383,338,000,000	387,166,000,000
Long term borrowings	-	383,338,000,000	387,166,000,000
i. Owner's equity	-	1,067,141,000,000	1,034,387,000,000
ii. Owner's equity	-	1,067,141,000,000	1,034,387,000,000
Business capital	-	2,729,259,000,000	2,756,515,000,000
Retained earnings	-	(1,662,118,000,000)	(1,722,128,000,000)
Total resources	-	3,818,847,000,000	3,465,211,000,000

Note: (*)

Financial Highlights

Income Statement

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2011 Annual	2012 Annual	2013 Annual
Turnover(*)	6,429,258,000,000	5,264,695,000,000	5,166,448,000,000
Profit (Loss) Before Tax(*)	(762,135,000,000)	(153,629,000,000)	(43,410,000,000)
Profit After Tax attributable to Shareholders(*)	(762,135,000,000)	(153,629,000,000)	(43,410,000,000)
Gross sales	-	5,264,695,000,000	5,166,448,000,000
Less deductions	-	2,937,000,000	2,177,000,000
Net income	-	5,261,758,000,000	5,164,271,000,000
Cost of goods sold	-	5,421,601,000,000	5,240,646,000,000
Gross margin	-	(159,843,000,000)	(76,375,000,000)
Income from financial activities	-	3,505,000,000	1,894,000,000
Expenses from financial activities	-	7,646,000,000	12,424,000,000
In which: Interest expenses	-	7,005,000,000	10,423,000,000
Selling expenses	-	119,379,000,000	95,397,000,000
General & administration expenses	-	(9,191,000,000)	26,024,000,000
Net income from operating activities	-	(274,172,000,000)	(208,327,000,000)
Extraordinary income	-	373,586,000,000	171,238,000,000
Extraordinary expenses	-	253,043,000,000	6,322,000,000
Extraordinary gains	-	120,543,000,000	164,916,000,000
Net profit before tax	-	(153,629,000,000)	(43,410,000,000)
Net profit after tax	-	(153,629,000,000)	(43,410,000,000)

Note: (*)

Financial Highlights

Financial Ratios

Financial Highlights	2011 Annual	2012 Annual	2013 Annual
Growth %
Year-on-Year Growth	46.45	(18.11)	(1.87)
Profitability
Profit Margin (%)	(11.85)	(2.92)	(0.84)
Return on Equity (%)	(62.43)	(14.40)	(4.20)
Return on Assets (%)	(18.70)	(4.02)	(1.25)
Leverage
Total Debt Equity (Times)	2.34	2.58	2.35
Current Debt Equity (Times)	2.02	2.22	1.98
Long Term Debt to Equity	0.31	0.36	0.37
Total Asset To Total Equity	3.34	3.58	3.35
Asset Management
Total Assets Turnover (Times)	1.58	1.38	1.49
Fixed Assets Turnover (Times)	3.49	3.26	3.78
Liquidity
Current Ratio	0.90	0.93	1.03

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

N/a

ADDITIONAL INFORMATION

Employees

:

3,100

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

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

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:

Exporting

Exporting - Finished products

Importing

Importing - Raw materials

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	:	HSBC BANK (VIETNAM) LTD - HO CHI MINH
SWIFT Code	:	HSBCVNVX

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

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
Employees	:	3,100
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

N/a

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.58
UK Pound	1	Rs.102.29
Euro	1	Rs.74.71

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.