VIETNAM DAIRY COW ONE-MEMBER COMPANY LIMITED

VIETNAM DAIRY COW ONE-MEMBER COMPANY LIMITED (VINACOW), established on 11 July 2007, is a wholly owned subsidiary of Vietnam Dairy Products Joint Stock Company (Vinamilk). With its registered office at No. 10, Tan Trao Street, Tan Phu Ward, District 7, Ho Chi Minh City, the company engages primarily in raising dairy cows to supply raw milk to Vinamilk, in addition to livestock feed production and organic fertilizer manufacturing. VINACOW is registered under Business ID 5000268824 and employs 1,300 personnel across its head office and branches in Tuyen Quang, Binh Dinh, and Nghe An provinces.

Financial Analysis:
As of FY2024, VINACOW demonstrates strong financial fundamentals and low credit risk exposure.

• Total assets stood at USD 166.65 million, nearly unchanged from the previous year, signaling asset stability.

• Equity reached USD 151.66 million, up 1.19% YoY, maintaining a high equity-to-assets ratio (91%), indicating very low leverage.

• Profitability is healthy, with net profit of USD 13.39 million, a 12.89% increase from 2023, despite a 7.14% dip in sales (USD 128.57 million in 2024). This suggests the company is improving operational efficiency and cost control.

• Working capital is strong, recorded at USD 52.73 million, reflecting excellent short-term liquidity to cover obligations and day-to-day operations.

Ownership and Control:
VINACOW is a one-member limited liability company, 100% owned by Vinamilk, one of the most prominent and financially secure enterprises in Vietnam. This parent-company backing significantly reduces long-term credit risk.

Risk Considerations:

• Sales decline in 2024 is notable but offset by rising profitability and equity.

• The company operates in an essential and resilient industry (dairy and agriculture), further lowering default probability.

• There is no indication of overdue debts, negative net worth, or working capital deficiency.

Credit Recommendation:
Based on the current financials, stable ownership structure, and strong liquidity position, VIETNAM DAIRY COW ONE-MEMBER COMPANY LIMITED poses minimal risk for a USD 1,000 credit line. The company's long-standing operations, profitability, and backing by Vinamilk more than justify the approval.

✅ Credit Decision: APPROVED
Credit Limit: USD 1,000
Credit Term: Standard 30 days

For ongoing monitoring, VANGUARD BUSINESS INFORMATION LLC (VBI) recommends annual credit reassessment and continued tracking of profitability and sales trends to ensure consistent risk alignment.