MIRA INFORM REPORT

Report Date :

09.05.2007

IDENTIFICATION DETAILS

Name :	MEDICAL BIOMATERIAL AND PHARMACEUTICAL COMPANY LIMITED
Registered Office :	No.25-31 Ngo Thoi Nhiem Str, Dist 3, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2005
Date of Incorporation :	1993
Legal Form :	One Member Liability Limited Company (State Owned)
Line of Business :	Production and trading in health threads, pharmaceutical products and other special biopharmaceutical products. Import materials, equipment specialized for pharmaceutical production; trading on medical biological products; packaging and medical cleaning services;

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 INDENTIFICATION & LEGAL FORM
New English Name			MEDICAL BIOMATERIAL AND PHARMACEUTICAL COMPANY LIMITED
New Vietnamese Name			CONG TY TNHH MOT THANH VIEN DUOC PHAM VA SINH HOC Y TE
Trade Name			MEBIPHAR
Former English Name			MEDICAL BIOMATERIAL & PHARMACEUTICAL FACTORY
Former Vietnamese name			XI NGHIEP DUOC PHAM SINH HOC Y TE
Current Type of Business			One Member Liability Limited Company (State Owned)
Former Type of Business			State Owned enterprise
Founded			1993
Establishment Decision			No.105/QD-UB
Date of decision			March 22^nd 1993
Place of decision			People’s Committee of Hochiminh City
Re-organized			March 07^th, 2007
New Business Registration			No.4104000565
Date of Issuance			March 07^th, 2007
Place of Issuance			Business Registration Office of Hochiminh City
Former Business Registration			No.4106000271
Date of Issuance			August 22^nd, 2006
Original Business registration			No.102484
Date of Issuance			March 27^th 1993
Place of Issuance			Hochiminh City department of planning & investment
New Registered Capital			36,000,000,000 VND
Former Registered Capital			2,052,000,000 VND
Total Employees			400 employees (Including Staffs, Workers & Sales)
Qualification			Fairly good
ADDRESSES
Head Office and Factory
Address	No.25-31 Ngo Thoi Nhiem Str, Dist 3, Hochiminh City
Country	Vietnam
Tel	(84-8) 9303894 / 8299 894
Fax	(84-8) 9303109
Email	Mebiphar@saigonnet.vn
Factory’s Location
Address	Lot 3-18, Road No.13, Tan Binh Industrial Zone, Tay Thanh Ward, Tan Phu Dist, Hochiminh City
Country	Vietnam
Tel	(84-8) 8156103
Fax	(84-8) 8155683
Hanoi Branch
Address	66, C9, 148 Giang Vo Str, Hanoi City
Former Address	No.7–Ngoc Khanh Str, Hanoi City
Tel	(84-4) 7 721 044
Contact person	Mr. DAO XUAN SON
Position	Chief of Hanoi office
DIRECTORS
1. NAME	Mr. NGUYEN VAN SON
Position	Director
Qualification	Pharmacist, Management
Current resident	Hochiminh City-Vietnam
Nationality	Vietnamese
2. NAME	Mr. TRUONG TRONG TUAN
Position	Deputy director
Qualification	Pharmacist
Resident	Hochiminh City
Contact phone No.	(84-8) 9301143
Cell phone	+84 913927345
3. NAME	Mrs. TRAN THI HOI
Position	Former Director
Original resident	Hai Duong province (North of Vietnam)
Current resident	Hochiminh City
Nationality	Vietnamese
Note	She has retired in few years ago.
BUSINESS NATURE AND ACTIVITIES
The subject is specializing in following activities: · Production and trading in health threads, pharmaceutical products and other special biopharmaceutical products. · Import materials, equipment specialized for pharmaceutical production; trading on medical biological products; packaging and medical cleaning services; · Production and trading pharmaceutical products under the licence of foreign pharma companies such as: Tenamid of Canada.
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports materials, especially biomaterial for pharmaceutical production; It imports equipments, instruments for its factory (The subject is building a very big Production factory under GMP standard). It imports materials and equipment from EU, Singapore, Canada.
EXPORT: The subject’s products are mainly supplied for domestic.
BANKERS
1. BANK FOR INVESTMENT & DEVELOPMENT OF VIETNAM- HCM CITY BRANCH No 2
Address		No. 117, Nguyen Hue Str, Ben Nghe Ward, Dist 1, Hochiminh City
Country		Vietnam
Tel		(84-8) 9141729 - 8214924
Fax		(84-8) 9141979
Swift		BIDVVNVX310
2. VIETINDEBANK (HOCHIMINH CITY BRANCH)
Address		No.134 Nguyen Cong Tru, Dist 1, Hochiminh City
Tel		(84-8) 8216 827
Fax		(84-8) 829 8862
Contact Person		Mr. Tran Van Vinh
Position		Position
3. VIETNAM AGRICULTURAL & RURAL DEV. BANK (VBARD)
Address		No.2 Vo Van Ngan Str, Linh Chieu Ward, Thu Duc Dist, Hochiminh City
Tel		(84-8) 8963096
Contact person		Mr. Nguyen Quan
Position		Director
SHAREHOLDERS (S)
The subject is One Member Liability Limited Company (state owned enterprise. 100% shares owned by the State), which has been just re-organized, operating under the new law on enterprises. In the past, subject was established as State Owned Enterprise, under the law on State Owned Enterprises.
PAYMENT HISTORY AND EXPERIENCES
Trade Morality			Normal
Liquidity			Fairly good
Previous Payments			Good
Past Trend			Developed
Past Financial Situation			Good
Current Financial Situation			Developed
Legal Action			No recorded
Bankruptcy			No recorded
Public opinion			Good
FINANCIAL DATA
BALANCE SHEET
Unit: Million VND
Balance sheet date					31/12/2005
Number of weeks					52
ASSETS
A. Working assets & short-term Investment					83,950
I. Cash and cash equivalents					2,942
II. Short-term investment					0
1. Short-term securities investment					0
2. Other short-term investment					0
3. Provision for short-term investment					0
III. Receivables					55,022
1. Receivables from customers					21,157
2. Prepayment for providers					29,361
3. Value-added tax deducted					4,446
4. Internal receivables					56
5. Other receivables					353
6. Provision for bad receivables					-351
IV. Inventory					25,418
1. Purchased goods in transit					0
2. Raw materials					10,643
3. Instrument, tools					24
4. Cost for production and business in process					6,508
5. End products					8,213
6. Goods					30
7. Goods on consignment					0
8. Provision for devaluation of stocks					0
V. Other current assets					568
1. Advances					451
2. Prepaid expenses					117
3. Pending expenses for transfer					0
4. Pending assets					0
5. Mortgage, collateral and short run collateral					0
VI. Administrative					0
1. Administrative expenses for previous year					0
2. Administrative expenses for current year					0
B. Fixed assets & Long term investment					53,258
I. Fixed assets					41,864
1. Tangible fixed assets					32,472
+ Original cost					53,259
+ Accumulated depreciation value					-20,787
2. Financial leasing fixed assets					0
+ Original cost					0
+ Accumulated depreciation value					0
3. Intangible fixed assets					9,392
+ Original cost					9,392
+ Accumulated depreciation value					0
II. Long term investment					5,763
1. Long-term securities investment					0
2. Joint-venture capital contribution					5,763
3. Other long-term investment					0
4. Provision for long-term investment devaluation					0
III. Capital construction in process					5,631
IV. Other					0
TOTAL ASSETS					137,208
LIABILITIES
A. Payable loans					97,497
I. Short term payables					65,399
1. Short-term borrowings					0
2. Due long-term liabilities					0
3. Payables to supplier					56,836
4. Prepayment of buyer					739
5. Taxes and accounts dutiable					3,720
6. Employee payments					4,051
7. Internal payables					0
8. Other payables					53
II. Long term loans					31,000
1. Long-term borrowings					31,000
2. Long-term payables					0
III. Other payables					1,098
1. Payable expenses					1,098
2. Pending assets					0
3. Receipts long-term collateral and deposit					0
B. Owner’s Equity					39,711
I. Capital and Funds					37,346
1. Working capital					29,175
2. Differences from asset revaluation					0
3. Exchange rate differences					0
4. Development investment funds					5,495
5. Reserved funds					2,676
6. Retained profit					0
7. Construction capital sources					0
II. Other administrative and fund sources					2,365
1. Provident funds for unemployment					0
2. Reward and welfare funds					2,365
3. Management funds of higher level					0
4. Functional operation funds					0
5. Fund sources formed by fixed assets					0
TOTAL LIABILITY AND EQUITY					137,208
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
Description					FY 2005
Total revenue					117,440
Deductions Items					0
- Discount					0
- Devaluation					0
- Return of sold goods					0
- Turnover tax, Luxury tax & Export tax					0
1. Net revenue					117,440
2. Cost of goods sold					103,296
3. Gross Profit					14,144
4. Sales expenses					98
5. Enterprise administrative expenses					5,552
6. Net income from business activities					8,494
Income from financial activities					1,004
Expenditure from financial activities					97
7. Net income from financial operation					907
Irregular income					0
Irregular expenditure					0
8. Irregular Profit					0
9. Total pre-tax profit					9,401
10. Income tax					2,398
11. After tax profit					7,003
FINANCIAL FACTORS
Description				FY 2005
Current Liquidity Ratio				1.28
Quick Liquidity Ratio				0.89
Inventory Circle				4.06
Average Receive Period				171.01
Utilizing Asset Performance				0.86
Liability / Total Asset (%)				71.06
Liability / Owner's Equity (%)				245.52
Income Before Tax / Total Asset (%) ROA				6.85
Income Before Tax / Owner's Equity (%) ROE				23.67
Income Before Tax / Total Revenue (%) NPM				8.00
Gross Profit / Total Revenue (%) GPM				12.04
INTERPRETATION
The subject was a big state owned pharmaceutical manufacturer in the South of Vietnam. It has been changed to be one member liability limited company. The subject has had a long history. After many times of re-organization, the subject now is operating as a liability limited company. The subject has developed quite fast before meeting several difficulties in late 1990s. In the past, the government has supported it by giving a grace soft loan value of 18 billion VND for construction of its new GMP-Asian factory in Tan Binh industry zone. The local government also allows the subject to sell land user right and its old workshop to get the money for this big project. The total factory construction cost up to 52 billion USD that situated in a large area of 14,586 m^2. The new factory started operating since 2004. The director has got good support from its clients. The subject situated at large place. It is a rather successful state owned enterprise and the state created many favor conditions for the development of the subject. Management capability is regarded normal and still far behind the requirement. Production and sales are quite large and increasing for years. Profitability is high and staff’s salary is regarded good. Its position in the industry is normal and is improved. Its future seems stable.

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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