MIRA INFORM REPORT

Report Date :

27.07.2007

IDENTIFICATION DETAILS

Name :	VIETNAM MEDICAL PRODUCTS IMPORT-EXPORT JOINT STOCK COMPANY- BRANCH
Registered Office :	533-535 Su Van Hanh Str, Ward 13, Dist 10, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2004
Date of Incorporation :	2000
Legal Form :	Branch of Joint Stock Company
Line of Business :	Trading in pharmaceutical products Manufacturing and processing: medicinal herbs, traditional medecine, plantation herbs  Direct import – export pharmaceutical products and raw materials. Organizing annual Medical – Pharmaceutical exhibition

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 :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
Current English Name	VIETNAM MEDICAL PRODUCTS IMPORT-EXPORT JOINT STOCK COMPANY- BRANCH
Former English Name	VIETNAM NATION MEDICAL PRODUCTS IMPORT-EXPORT COMPANY I BRANCH
Current Vietnamese name	CHI NHANH CONG TY CO PHAN XUAT NHAP KHAU Y TE VIETNAM
Former Vietnamese name	CHI NHANH CONG TY CO PHAN XUAT NHAP KHAU Y TE I
Trade Name	VIMEDIMEX VN
Type of Business	Branch of Joint Stock Company
Founded	2000
Current registered Business No	4113025615
Date of Issuance	January 8^th,2007
Place of Issuance	Planning and Investment Department of Hochiminh City
Former Registered Business No	4116000390
Date of Issuance	December 29^th,2004
Place of Issuance	Planning and Investment Department of Hochiminh City
Total Employees	10 employees
Qualification	Average
ADDRESS
Head Office
Address	533-535 Su Van Hanh Str, Ward 13, Dist 10, Hochiminh City
Country	Vietnam
Tel	(84-8) 8633297,
Fax	(84-8) 8633296
DIRECTORS
1. NAME	Mr. NGUYEN KHAC HOAI AN
Position	Director of Branch
Qualification	Bachelor
Resident	14/27 Banh Van Tran Str, Ward 6, Tan Binh Dist, Hochiminh City
Nationality	Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject registered in the following lines of business:
Trading in pharmaceutical products Manufacturing and processing: medicinal herbs, traditional medecine, plantation herbs  Direct import – export pharmaceutical products and raw materials. Organizing annual Medical – Pharmaceutical exhibition Medical – Pharmaceutical seminar Medical – Pharmaceutical advertisment Do investment, joint venture to produce medicines, medical instruments
IMPORT & EXPORT ACTIVITIES
IMPORT: - Import pharmaceutical raw material for producing drugs; kinds of antibiotics, vitamines, infusion solution, analgesics and antipyretics; specialities drugs… Kind of vacines, biological products, kits, antimostiquitic chemicals, labo chemicals from EU, USA and China. - Imports medical equipment, machinery and medical disposables from China, Japan, USA, Germany, France and Korea
EXPORT: The Subject exports many kinds of medicinal plants, essential oils, drugs, traditional medicines produced from natural herbs/plants to West Europe, Japan, Taiwan, USA, Korea, Hong Kong…
BANKERS
1. EXIMBANK – HOCHIMINH CITY
Address	No.7 Le Thi Hong Gam Str, Dist No.1, Hochiminh City
Country	Vietnam
Tel	(84-8) 821 0055
Fax	(84-8) 829 6063
Telex	812690 EIB VT
Swift	EBVIVNVX
2. VIETNAM BANK FOR FOREIGN TRADING
Address	13-13 Bis, Ky Dong Str, Ward 3, Dist 3, Hochiminh City
Country	Vietnam
Tel	(84-8) 5260297
Fax	(84-8) 9318953
Swift	BFTVVBVX
3. ASIA COMMERCIAL JOINT STOCK BANK (ACB BANK)
Address	439 Su Van Hanh Str, Ward 12, Dist 10, Hochiminh City
Tel	(84-8) 8623470
Fax	(84-8) 8623471
Swift	ASCBVNVX
4. ASIA COMMERCIAL JOINT STOCK BANK (ACB BANK)
Address	334 Huynh Tan Phat Str, Dist 7, Hochiminh City
Tel	(84-8) 8720505
Fax	(84-8) 8720506
Swift	ASCBVNVX
SHAREHOLDERS
The subject is branch of following unit:
Name	VIETNAM MEDICAL PRODUCTS IMPORT-EXPORT JOINT STOCK COMPANY
Vietnamese name	CONG TY CO PHAN XUAT NHAP KHAU Y TE VIETNAM
Trade Name	VIMEDIMEX VN
Address	No.138 Giang Vo Str, Ba Dinh Dist, Hanoi City
Tel	(84-4) 844 3462, 844 4885
Fax	(84-4) 845 9247
Email	vimedimexhn@hn.vnn.vn
PAYMENT HISTORY AND EXPERIENCES
Trade Morality	Normal
Liquidity	Prompt
Previous Payments	Average
Payment status	Above average
Past Financial Situation	Above average
Current Financial Situation	Relative
Litigation Data	No recorded
Bankruptcy	No recorded
Public opinion	Normal
Payment Methods	Direct payment or through its corresponding bank. Foreign remittance by letter of credit (L/C), by telegraphic transfer (T/T).
FINANCIAL DATA
The subject is a branch of joint stock company so its financial data is not available and belonging to parent company. Following is financial data of parent company:
BALANCE SHEET
Unit: 01 VND
Balance Sheet Date		31/12/2004	31/12/2003
Number of Weeks		52	52
Consolidation code		Consolidated	Consolidated
ASSETS
A. Current assets & Short term Investment		119,854,131,605		90,835,872,736
I. Cash and cash equivalents		10,744,760,404		12,164,274,862
II. Short term investment		189,000,000		189,000,000
- Other short-term investment		189,000,000		189,000,000
III. Receivables		59,626,549,767		43,387,231,898
1. Receivables from customers		47,946,829,726		33,446,835,858
2. Prepaid for providers		3,920,641,083		2,506,540,026
3. Value-added tax deducted		1,799,304,309		1,456,303,670
4. Other receivables		5,959,774,649		6,576,000,899
5. Provision for downfall receivable		0		-598,448,555
IV. Inventory		48,502,950,532		33,984,589,164
1. Inventory appliance		87,639,193		91,532,437
2.nventory goods		48,415,311,339		33,950,267,977
8.Provision for inventory devaluation		0		-57,211,250
V. Other current assets		790,870,902		1,110,776,812
1. Advance		184,648,985		359,379,985
2. Prepaid expenses		35,573,513		228,357,431
3. Insufficient assets to be settled		346,020,300		342,785,300
4. Short-term security financial account		224,628,104		180,254,096
VI. Administrative		0		0
B. Fixed assets & Long term investment		1,668,323,901		1,867,160,127
I. Fixed assets		1,163,488,905		1,369,579,676
1. Tangible fix assets		763,488,905		969,579,676
+ Original cost		2,204,255,958		2,366,327,575
+ Accumulated depreciation value		-1,440,767,053		-1,396,747,899
2. Financial leasing fixed assets		0		0
3. Intangible fix assets		400,000,000		400,000,000
+ Original cost		400,000,000		400,000,000
+ Accumulated depreciation value		0		0
II. Long term investment		252,887,579		281,087,579
- Long-term securities investment		221,600,000		249,800,000
- Joint-venture contribution		31,287,579		31,287,579
III. Construction in progress		251,947,417		216,492,872
IV. Other		0		0
TOTAL ASSETS		121,522,455,506		92,703,032,863
LIABILITIES
A. Payables		97,039,947,593		68,691,141,323
I. Short term payables		96,968,563,857		68,633,401,574
1.Short-term borrowings		34,343,824,555		22,122,593,804
2. Payables to supplier		45,350,154,055		33,825,426,523
3. Prepaid buyer		11,908,621,318		7,836,786,881
4. Other taxes and obligation		1,186,037,873		1,550,509,720
5. Staff expenses		1,165,233		1,165,233
6. Other payables		4,178,760,823		3,296,919,413
II. Long term payables		0		0
III. Other liabilities		71,383,736		57,739,749
- Payable expenses		33,165,863		19,521,876
- Remaining assets to be settled		38,217,873		38,217,873
B. Owner’s Equity		24,482,507,913		24,011,891,540
I. Capital and Funds		24,482,507,913		24,011,891,540
1. Working capital		18,954,326,604		18,624,100,619
2. Asset reevaluation difference		16,590,000		16,590,000
3. Business development fund		4,471,294,664		4,397,999,783
4. Financial reserve fund		40,091,189		25,432,213
5. Retained profit		893,325,575		879,456,949
6. Construction capital		106,879,881		68,311,976
II. Other administrative and fund sources		0		0
TOTAL LIABILITY AND EQUITY		121,522,455,506		92,703,032,863
PROFIT & LOSE ACCOUNTS (INCOME STATEMENT)
Description		FY 2004
Total revenue		319,517,959,108
Deductions Items		498,358,009
- Sales reduction		1,274,919
- Sales returns		497,083,090
1. Net revenue		319,019,601,099
2. Cost of goods sold		310,778,194,290
3. Combined Profit		8,241,406,809
4. Selling expenses		3,431,287,213
5. General administration expenses		2,533,934,940
6. Net income from business operation		2,276,184,656
Income from financial operation		952,087,580
Expenditure from financial operation		2,562,350,216
7. Net income from financial operation		-1,610,262,636
Irregular income		2,205,839,909
Irregular expenditure		1,978,436,354
8. Irregular Profit		227,403,555
9. Total pre-tax profit		893,325,575
10. Income tax		250,131,161
11. After tax profit		643,194,414
FINANCIAL FACTORS
Description		FY 2004
Current liquidity ratio		1.24
Quick Liquidity ratio		0.74
Inventory circle		7.54
Average receive period		68.22
Utilizing Asset Performance		2.63
Liability/ Total Asset (%)		79.85
Liability/ Owner's equity (%)		396.36
Income before tax/ Total asset (%) ROA		0.74
Income before tax/ Owner's equity (%) ROE		3.65
Income before tax/ Total revenue (%) NPM		0.28
Gross Profit / Total revenue (%) GPM		2.58
INTERPRETATION
Vimedimex VN in hochiminh city is a branch of Joint stock company, was established in 2000. Previously, Vimedimex VN is a state owned company, was operating under former name Vimedimex I or Vimedimex Hanoi and the subject is a branch of Viemedimex I. But in the end 2006, Vimedimex I equitized to joint stock company so change its name to Vimedimex VN or Vimedimex Vietnam. The subject is a branch of the Vimedimex VN. It has the same operation with parent company. However, it is mainly trading and export-import medical in the South area of the country. Formerly, it was a branch of state owned company, it was strong supported by the Ministry of Health and Government. But after equitizing, the Sate still hold 51% shares in parent company so both of parent company and the subject are still gaining support from government and the Ministry of Health. The management capacity of the Subject as well as the parent company was improved much after equitizing. The subject seems to meet transactions with guarantees of parent company.
The company is expected to be VULNERABLE TO ADVERSE changes in circumstances and economic conditions.

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

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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