REPORT OF NGOC QUANG FOR VANTEC WORLD TRANSPORT GROUP. *) ACCOUNTING BALANCE SHEET Unit: VND

Transcription

1 Ngoc Quang service - trade - production co., ltd No 2 Ha Trung Street - Hoan Kiem District - Hanoi - Vietnam Tel : & Fax: ngocquang1@vnn.vn REPORT OF NGOC QUANG FOR VANTEC WORLD TRANSPORT GROUP 1. Financial Statements (BS. PL) for last three years Actual *) ACCOUNTING BALANCE SHEET Unit: VND ASSETS CODE 31 DEC DEC MAR 2008 A. SHORT-TERM ASSETS (100= ) ,115,629,532 3,516,276,947 5,110,986,679 I. Cash and cash equivalents 110 1,180,978,737 1,766,118,414 1,027,863, Cash ,226, ,664, ,191, Cash equivalents ,752,631 1,371,453, ,672,074 II. Short-term investments Short-term investments Provision for devaluation of short-term investments 129 III. Accounts receivable ,650,795 1,750,158,533 4,083,122, Receivable from clients ,650,795 1,750,158,533 4,083,122,681 1

2 2. Prepayments to suppliers Inter-company receivable Other receivable Provision for bad debts 139 IV. Inventories Inventories Provision for devaluation of inventories 149 V. Other short-term assets Advances VAT to be deducted Tax and other incomes Other short-term assets 158 B - LONG-TERM ASSETS (200 = ) 200 I- Accounts receivable Receivable from clients Inter-company receivable Other receivable Provision for bad debts 219 II. Fixed assets Tangible assets Historical costs 222 2

3 - Accumulated depreciation Financial leasehold assets Historical costs Accumulated depreciation Intangible assets Historical costs Accumulated depreciation Construction-in-progress 230 TOTAL ASSETS (270 = ) 270 2,115,629,532 3,516,276,947 5,110,986,679 LIABILITIES OWNER S EQUITY A - LIABILITIES (300 = ) 300 1,750,868,283 2,422,988,387 3,722,983,249 I. Current liabilities 310 1,450,868,283 2,122,988,387 3,422,983, Short-term loans Payable to suppliers 312 1,450,868,283 2,122,988,387 3,422,983, Advances from clients Taxes and other obligations to the State Budget Payable to employees Accrued expenses Inter-company payable Other payable 319 3

4 9. Provision II. Long-term liabilities ,000, ,000, ,000, Payable to suppliers Inter-company payable Other payable Long-term loans ,000, ,000, ,000, Provision 337 B - OWNER'S EQUITY (400 = ) ,761,249 1,093,288,560 1,388,003,430 I. Initial capital ,761,249 1,093,288,560 1,388,003, Capital invested by owner ,000, ,000, ,000, Capital invested by shareholders Difference on re-valuation of fixed assets Ending foreign exchange differences Business development fund Financial reserved fund Non distribution-profit after tax ,761, ,288, ,003,430 II. Supplement capital and other funds Bonus and welfare funds 431 TOTAL LIABILITIES AND OWNER'S EQUITY (440 = ) 440 2,115,629,532 3,516,276,947 5,110,986,679 4

5 *) INCOME STATEMENT Unit: VND ITEMS Code I/ Gross Revenue 11 14,626,484,012 12,337,010,337 6,444,391, Payable to suppliers 12 14,274,922,792 11,664,416,402 6,047,984, Management cost ,381, ,250,695 92,691, Financial cost 14 51,418,038 36,000,000 9,000, Gross profit (20= ) ,761, ,343, ,714, Other profit 21 15,674, Other loss 22 15,490, Profit before tax (30= ) ,761, ,527, ,714, Corporate income tax payable Net Profit after tax (70=30-60) ,761, ,527, ,714,870 Report for Vantec World Transport Group 5

6 2. History (Back Ground), including the year established 1992: Tu An Services Trade - Production Co., Ltd was established. Head office is located in Ho Chi Minh City. The founder of Tu An is Ms Huynh Thi Ngoc Tho. 2002: Branch office in Ha Noi was opened. Tu An became official sales agent of Japan Airlines Cargo. 2003: The legal company name was changed to Ngoc Quang Services Trade Production Co., Ltd. 2007: Ngoc Quang was ranked number one in Air Cargo volume via American Airlines Cargo in Hanoi. 2008: Ngoc Quang became official sales agent of Hong Kong Airlines Cargo. The company can be the cargo sales agent for almost Airlines (China Airlines, China Southern, MASkargo, Singapore Airlines Cargo ). 3. Network, including overseas agents, if any N/A 6

7 4. Organization Chart Board of Management Sales & Marketing Department Operations Services Customer Services Department Accounting Finance Department 5. Details of Number of Employees, by section, by full/parttimer +) Board of management Director: Deputy Director: Senior Consultant: +) Sales & Marketing Department +) Operations Services +) Customer Services Department +) Accounting Finance Department Ms Vu Tuyet Lan (full timer) Mr Phung Anh Vu (full timer) Mr Nguyen Van Can (part timer) Ms Tran Thi Hai (full timer) Ms Doan Thi Van (full timer) Mr Nguyen Cong Manh (Consultant/part timer) Mr Dang Van Dung (full timer) Mr Nguyen Ngoc Qua (full timer) Ms Pham Thi Hien (full timer) Ms Nguyen Phuong Lien (full timer) Total staff: 10 members (in which: 7 members of graduate) 7

8 6. Briefing of Key Management Members +) Ms Vu Tuyet Lan : Director Ms. Lan is a graduate of the Master's Degree Program in International Logistics Management of the University of Mediterranean in France and a cum laude graduate of the Bachelor's Degree Program in Management Enterprises at Vietnam Commercial University. After graduation from the University of Mediterranean, in 2003, Ms. Lan joined Marseille Store Co., Ltd (located at Marseille city France) where she was responsible for import department (especially in import procedures, customs clearances, logistics and distribution services... ), Ms. Lan worked with South and Southeast Asian partners (ex: India, Bangladesh, Sri Lanka, Indonesia and Vietnam). At the end of 2006, Ms. Lan left Marseille Store and came back to Vietnam. Ms. Lan joined Ngoc Quang in January In March 2007, Ms. Lan graduated the Certificate in Basic Cargo (organized by Viet Nam Airlines). +) Mr Phung Anh Vu : Deputy Director Mr. Vu is a graduate of National Economics University where he studied Economics and Marketing. After graduating, Mr. Vu joined the Mekong Transportation & Trading Co., Ltd in 1997 as employee in Air Export department. Subsequently, Mr. Vu joined the Scanwell logistics Inc in He was in charge of Air, Sea, and land logistics department. With more than ten years experiences in logistics sector, 8

9 in 2007, Mr. Vu joined Ngoc Quang and became right after a key person of the company. +) Mr Nguyen Van Can : Senior Consultant Mr. Can graduated from the Foreign Trade University. After receiving his Degree in 1975, Mr Can was employed by Artexport (Vietnam Handicraft and Art Articles Export-Import Company which was owned by State Ministry of Trade) as staff of Embroidery Department. Since 2001, Mr. Can has become the member of Board of Management of Artexport Joint Stock Company (Artexport was transformed into a Joint Stock Company at the same year). In 2002, Mr Can was invited to work for Ngoc Quang as Senior Consultant. +) Mr Nguyen Cong Manh : Consultant Mr. Manh is a graduate of the Master's Degree Program in Analysis Economic of the University of Mediterranean in France. After graduation, in 2006, Mr. Manh came back to Vietnam and worked for Ministry of Planning and Investment as the researcher for Department of Trade Policies and International Integration Studies. In 2007, Mr. Manh graduated the Postgraduate Diploma in Development Studies. The program was organized by Institute of Developing Economics Advanced School - Japan External Trade Organization (IDEAS- JETRO). In 2008, Mr Manh joined Ngoc Quang as part timer employee. 9

10 7. Business License Lists Business license: No issued by Ha Noi Business Registration Offices dated 25/03/2003. Main business fields: International freight forwarding (air, sea and land logistics); Customs clearance formalities and broker; Worldwide door to door services; Packaging & packing; International trading business. 8. List of Facilities, including warehouse, vehicles etc, if any. N/A 9. Business Action Plan for coming three years - Become the member of VIFFAS, IATA/FIATA. - Develop human resources. - Setup worldwide network in logistics services. - Focus on direct shippers. - Extend key transport activities: Sea freight, inland services 10. Freight Volume by Each Transportation Mode (Air/Ocean/Others), For FY 2007 AIRLINES 2007 GRS WT CHRG WT JAL 173, , AA 26, , TOTAL 199, , Source: Ngoc Quang Co., Ltd (2008) 10

11 11. Air Export Volume to Top 10 Destinations and Total, for FY2007 No DES GRS WT CHRG WT % TOTAL 1 JFK 32, , KIX 25, , NRT 23, , MXP 19, , FRA 14, , LAX 13, , MEX 12, , CDG 6, , LHR 4, , BOS 4, , TOTAL 155, , Source: Ngoc Quang Co., Ltd (2008) This result shows that the main destinations are North America (mainly in US), EU and Japan. This is totally reasonable because US, EU and Japan are three largest markets of Vietnam export products. In 2007, the volume of these 10 destinations represents 80.5 percent in total volume (calculated by Charge Weight). Japan Airlines (JAL) was almost used for these destinations. Ngoc Quang was the second biggest sales agent in term of air cargo volume of JAL. Although American Airline Cargo (AA) can not compete with JAL in term of price for the frequent destinations (JFK, LAX, MEX), the year 2007 marked the highest record in air cargo volume via AA in Hanoi. In fact, AA Cargo is very competitive and have advantages for destinations in Central and South America (example: GRU, GDL, EZE, CCS ) where others Airlines can not reach. But the cargo 11

12 volume in these areas is still rather small because trade relation between Vietnam and these countries haven t developed yet. Composition of Air Export Volume of top 10 destinations in 2007 Japan 28% US 33% EU 32% Mexico 7% It should be noted that almost export products from Vietnam through Ngoc Quang services are manufacturing products and contain high quantity of labour and low value added (garments, shoes and handicrafts ). More over, the labour force in Vietnam is abundant and the cost is much lower than developed countries. In the context that Vietnam integrates more wide and deeply in World Economy (especially Vietnam has become full member of the World Trade Organization (WTO) in 2006). With high expectations, the exports volume of Viet Nam will thus increase in the next coming years and thus the business activities of Ngoc Quang have more and more opportunities to expand. In reality, the air cargo export volume of 12

13 Ngoc Quang has increased sharply in the first quarter of It reached to 243, (GRS WT) equivalent 307, (CHRG WT), the data was collected up to the date of 20 Mai Meanwhile, the total volume in 2007 was only 258, (CHRG WT). It s clearly a remarkable rise in Air Cargo volume. Moreover, since April 2008, we have expanded successfully our business in sea freight; our first container which was used OOCL services. This positive result may also come from the dynamic and efficiency of new board of management. 12. Top 10 Airlines to be used with volume for Air Export, for FY2007 Japan Airline, American Airline. 13

14 13. List of Top 20 Customers, with Volume and their ratio to Total, for FY2007 No CLIENTS GRS WT CHRG WT % TOTAL 1 MP 40, , VINATRANS 28, , HA THIEN 18, , DRAGON SPAN 12, , TNT 12, , KUEHNE+NAGEL 8, , KINTETSU 8, , HANG DAU 7, , QUANG HUNG 5, , ITL 7, , TMC 5, , DAT BIEN 5, , SAFI 3, , T&M 3, , DAMCO 2, , SINHAN 2, , MTL 2, , NIPPON 2, , EXPEDITOR 1, , UTI 1, , TOTAL 181, , Source: Ngoc Quang Co., Ltd (2008) The volume of top 20 customers represents nearly 92 percent in total air export. In 2007, majority of clients are freight forwarding company. This is a disadvantage point of the company. However, most of them are transnational company with worldwide network (TNT, Kintestu, Vinatrans ). They are regular clients of Ngoc Quang. The part of 14

15 direct shipper is still limited. One of the reason is the size of Ngoc Quang is small; we have not enough employee for sales and marketing activities to attract direct shippers. Other reason is: we don t have any oversea agents; when the direct client wants to use Ngoc Quang services, we must use the networks of other freight forwarding company in Vietnam. We must thus use their HAWB instead of our HAWB, that s why in the table above, we can show only the forwarding company s names. 14. Air Import Volume by Top 10 Origins and their contribution to Total, if any N/A Hanoi, 03 June 2008 Director Vu Tuyet Lan 15