MIRA INFORM REPORT

Report Date :

17.01.2007

IDENTIFICATION DETAILS

Name :	UNITED PHARMA VIETNAM
Registered Office :	Binh Chanh Commune, Binh Chanh Dist, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2005
Date of Incorporation :	1995
Legal Form :	Foreign Owned Enterprise
Line of Business :	Producing and trading in special pharmaceutical products.

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 :	Good
Payment Behaviour :	Regular
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English Name	UNITED PHARMA VIETNAM
Vietnamese Name	CONG TY UNITED PHARMA VIETNAM
Founded	1995
Type of Business	100% Foreign Owned Enterprise
Investment License	No. 1214/GPDT
Date of Issuance	April 24^th, 1995
Place of Issuance	Ministry of Planning and Investment
Current Investment Capital	12,500,000 USD
Original Investment capital	7,500,000 USD
Legal Capital	3,750,000 USD
Investment Period	30 Years
Tax code	0300733689
Total Employees	300
Qualification	Fairly good
ADDRESSES
Head office & Factory Location
Address	Binh Chanh Commune, Binh Chanh Dist, Hochiminh City
Country	Vietnam
Tel	(84-8) 760 5312, 760 5321
Fax	(84-8) 760 5315
Email	ng.hieu.thuan@unitedpharma.com.vn
Hochiminh City Rep. Office
Address	No. 61A, Cao Thang Str, Ward 3, Dist 3, Hochiminh City
Country	Vietnam
Tel	(84-8) 833 1072
Fax	(84-8) 833 0912
DIRECTORS
1. NAME	Mr. CHARLES ROBERT B.DAVIS
Position	General Director/ Country Manager
Qualification	Management
Nationality	Philippines
Note: The former Director of the subject is Mr. LAMBERTO S. LARA. In September 2005, after finishing his term in Vietnam, he returned to Philippines.
2. NAME	Mr. NGUYEN HIEU THUAN
Position	Sales Manager
Qualification	Pharmacist
Resident	Hochiminh City, Vietnam
Nationality	Vietnamese
Contact number	++84 903 840 847
BUSINESS NATURE AND ACTIVITIES
The subject is specializing in producing and trading in special pharmaceutical products.
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports raw materials from USA, EU, India, China, and Singapore.
EXPORT: The subject’s products are only consumed in local market.
BANKERS
1. VIETNAM BANK FOR FOREIGN TRADE (VIETCOMBANK)
Address	No.29 Ben Chuong Duong Str, Hochiminh City
Country	Vietnam
Tel	(84-8) 8251317
Fax	(84-8) 8297228
Telex	811234/5 VVB-VT
Swift	BFTVVBVX 007
2. INDUSTRIAL AND COMMERCIAL BANK OF VIETNAM (INCOMBANK) BRANH NO. 2
Address	No. 79A Ham Nghi Str, Nguyen Thai Binh Ward, Dist 1, Hochiminh City
Country	Vietnam
Tel	(84-8) 8290491
Fax	(84-8) 9141936
Telex	8211266NHCMVT
Swift	ICBVVNVX900
SHAREHOLDERS
The Subject is a 100% Foreign Owned Company. Its shareholder is as follows:
NAME	UNITED LABORATORIES, INC
Address	No. 66 United Str, Mandaluyong, Manila
Country	Philippines
Shares	100 percent
PAYMENT HISTORY AND EXPERIENCES
Trade Morality	Good
Liquidity	Fairly good
Previous Payments	Prompt
Current Payment status	Prompt
Past Financial Situation	Quite good
Current Financial Situation	Good
Legal Action	No recorded
Bankruptcy	No recorded
Reputation	Fairly good
Modes of Payment	Direct payment or through its corresponding bank. Foreign remittance by letter of credit (L/C).
Sales methods	Directly to clients & through its network agents.
FINANCIAL DATA
The full financial statement of the Subject is not available. Following is its financial highlight:
BALANCE SHEET
Unit: 1,000,000 VND
Balance Sheet Date		31/12/2005	31/12/2004	31/12/2003
Number of Weeks		52	52	52
Consolidation code		Consolidated	Consolidated	Consolidated
A. Current assets & Short term Investment		162,085	162,085	112,262
I. Receivables		30,904	30,627	28,817
II. Inventory		41,729	41,719	26,805
B. Fixed assets & Long term investment		50,708	55,766	74,848
I. Fixed assets		46,597	47,234	66,316
1. Tangible fixed assets		46,597	47,234	66,316
+ Original cost		151,379	179,675	177,112
+ Accumulated depreciation value		-104,782	-132,441	-110,796
TOTAL ASSETS		212,793	217,851	187,110
A. Payables		98,072	130,626	130,846
B. Owner’s Equity		114,721	87,225	56,264
TOTAL LIABILITY AND EQUITY		212,793	217,851	187,110
PROFIT & LOSE ACCOUNTS
Description		2005	2004	2003
Total revenue		171,488	202,817	169,738
Deductions Items		11,297	81	0
Net revenue		160,191	202,736	169,738
Net income from business activity		6,992	26,330	20,720
Net income from financial operation		6,956	0	1,822
Irregular Profit		3,873	40,349	32
Total pre-tax profit		N/A	66,679	22,574
Income tax		-	6,006	2,094
After tax profit		-	60,673	20,480
INTERPRETATION ON THE SCORES
United Pharma Vietnam is a subsidiary of United Laboratories, one of the leading pharmaceutical and health care companies in Southeast Asia. United Pharma Vietnam opened its office in Hochiminh city in 1995 and was the first pharmaceutical company with 100 percent of foreign invested capital. Its factory is located in Binh Chanh district since 1997. The premises and facilities of the subject are standard. United Pharma Vietnam was granted many awards. It has received 02 good manufacturing practice: good laboratory practice (GLP) and good storage practice (GSP) certificates in 1999 and in 2002 of the Ministry of Health, through the Drug Administration of Vietnam. In 2003, the Bureau Veritas Quality International (BVQI) gave United Phama Vietnam the ISO 9001:2000 certification. The subject was also prized a golden dragon award in 2004 for its contribution to the development of Vietnam’s pharmaceutical sector and health care system. In 2005, United Pharma Vietnam has been chosen the "Vietnam high quality products". Currently, the subject manufactures products only for domestic demand. It imports materials from foreign countries such as Italy, Germany and France. It also uses local materials. It has created a wide contributed system with 27 leading pharmaceutical and health care products throughout Vietnam such as alaxan, decolgen forte, decolgen no-drowse, decolgen ace, decolgen liquid, enervon-c, nutroplex, kremil-s, new-diatabs, clazic sr, ferlin, ceelin. The position of the subject in pharmaceutical and health care market is considerable. Annual turnover and profit of the subject are grown up stably. The subject has potential of development. The financial status of the subject is good for creditors. It has capacity to meet financial commitments.

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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