MIRA INFORM REPORT

Report Date :

27.09.2007

IDENTIFICATION DETAILS

Name :	MEDIPLANTEX NATIONAL PHARMACEUTICAL JOINT-STOCK COMPANY
Registered Office :	No. 358 Giai Phong Rd., Trung Liet ward, Thanh Xuan Dist, Hanoi
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	1971
Legal Form :	Join Stock Company
Line of Business :	Trading in pharmaceutical, cosmetic, nutritional foods Trading in materials for pharmaceutical production

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 :	Cler

SUBJECT IDENTIFICATION & LEGAL FORM
English Name	MEDIPLANTEX NATIONAL PHARMACEUTICAL JOINT-STOCK COMPANY
Vietnamese name	CONG TY CO PHAN DUOC TRUNG UONG MEDIPLANTEX
Trade Name	MEDIPLANTEX., JSC
Type of Business	Join Stock Company
Founded	1971
Established Decision	No. 406/QD-TCCB
Issued on	April 22^nd 1993
Issued by	Ministry of Health
Former Business Registration	No.108216
Issued on	May 22^nd 1993
Issued by	Hanoi Department of Planning and Investment
Equitization Decision	No.4410/QD-BYT
Issued on	December 7^th, 2004
Issued by	Ministry of Health
Current Business Registration	No. 0103007436
Issued on	April 12^th, 2005
Issued by	Hanoi Department of Planning and Investment
Current Registered Capital	37,991,000,000 VND
Former Registered Capital	17,000,000,000 VND
Tax Code	0100108430
Total Employees	600 persons
Qualification	Qualified
ADDRESS
Head Office
Address	No. 358 Giai Phong Rd., Trung Liet ward, Thanh Xuan Dist, Hanoi
Country	Vietnam
Tel	(84-4) 8643368 / 8643367 / 8643363
Fax	(84-4) 8641584
Email	Meplan@fpt.vn
Website	www.mediplantex.com
Ho Chi Minh City Branch
Address	90A/B57 Ly Thuong Kiet Str, Ward.14, Dist 10, Ho Chi Minh city
Country	Vietnam
Tel	(84-8) 8649948
Fax	(84-8) 8649949
Dak Lak City Branch
Address	No. 249 Nguyen Du Str., Buon Ma Thuot City, Dak Lak province
Country	Vietnam
Tel	(84-50) 856015
Fax	(84-50) 856015
Thai Binh Branch
Address	No. 311 Tran Hung Dao Str, De Tham Ward, Thai Binh City
Country	Vietnam
Tel	(84-36) 845565
Fax	(84-36) 845565
Vinh Phuc Branch
Address	Trung Hau Village, Tien Phong Commune, Me Linh Dist, Vinh Phuc Province
Country	Vietnam
Tel	(84-211) 878345
Fax	(84-211) 878345
Chief of factory	Mr.HA XUAN SON
Note: This factory has just inaugurate in July 20^th 2007
DIRECTORS
1. NAME	Mr. TRAN BINH DUYEN
Position	General Director
Date of birth	March 02^nd 1947
ID No.	011800636
Issued on	July 23^rd 1993
Issued by	Police of Hanoi city
Resident	No.10, 183 Alley Dang Tien Dong, Trung Liet Ward, Dong Da Dist., Hanoi city
Nationality	Vietnamese
Contact phone	(84-4) 8643363
2. NAME	Mrs. DOAN HONG THUY
Position	Deputy General Director
Contact Address	No. 358 Giai Phong Rd., Trung Liet ward, Thanh Xuan Dist, Hanoi
Nationality	Vietnamese
Contact phone	(84-4) 8647416
BUSINESS NATURE AND ACTIVITIES
The subject registered in the following lines of business:
- Trading in pharmaceutical, cosmetic, nutritional foods - Trading in materials for pharmaceutical production - Import and export service - Trading medical equipments - …
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports from Canada (Tenamid Corp), Denmark, France, India, Korea …
EXPORT: The subject exports to Japan, China, Laos, Cambodia, Russia …
BANKERS
1. BANK FOR FOREIGN TRADE OF VIETNAM (VIETCOMBANK)
Address	No. 198 Tran Quang Khai Str., Hanoi City, Vietnam
Tel	(84-4) 824 0976
Fax No	(84-4) 826 9067
Account No (USD)	001.1.37.00.77080
Account No (VND)	001.1.00.00.13526
Note: The given address (4749 Ly Thai To, Hanoi) and A/C (362111370068) is not correct.
2. INDUSTRIAL AND COMMERCIAL BANK OF VIETNAM – DONG DA BRANCH
Address	No. 187 Tay Son Str, Dong Da Dist, Hanoi City, Vietnam
Tel	(84-4) 851620
Account No (USD)	10202.00000.6931
SHAREHOLDERS
1. Name	VIETNAM PHARMACEUTICAL CORPORATION
Address	No. 138B Giang Vo Str, Hanoi City, Vietnam
Tel	(84-4) 8443153
Fax	(84-4) 8443665
Representative person	Mr. TRAN BINH DUYEN
Resident	No. 10, 183 Alley Dang Tien Dong, Trung Liet Ward, Dong Da Dist., Hanoi city
Share	47,600 shares
3. Name	663 OTHER SHAREHOLDERS
Position	Shareholder
Share	232,486 shares
PAYMENT HISTORY AND EXPERIENCES
Trade Morality	Fairly Good
Liquidity	Average
Payments	Above Average
Financial Situation	Above Average
Development trend	Fairly Good
Litigation Data	No reported
Bankruptcy	No reported
Payment Method	TT, L/C
Sale Method	Supplying for agents, customers
FINANCIAL DATA
BALANCE SHEET
Unit: VND Million
Balance sheet date		31/12/06	31/12/05	31/12/04	31/12/03
Number of weeks		52	52	52	52
ASSETS
A. Working assets & short-term Investment		239,952	252,659	211,314	174,907
I. Cash and cash equivalents		9,184	7,749	6,282	3,108
II. Short-term investment		0	0	0	0
1. Short-term securities investment		0	0	0	0
2. Other short-term investment		0	0	0	0
3. Provision for short-term investment		0	0	0	0
III. Receivables		127,614	116,963	94,939	81,029
1. Receivables from customers		109,255	96,908	83,356	73,746
2. Prepayment for providers		8,981	6,592	9,760	6,931
3. Value-added tax deducted		973	2,133	1,789	786
4. Internal receivables		0	10,851	115	0
5. Other receivables		8,405	479	328	0
6. Provision for bad receivables		0	0	-409	-434
IV. Inventory		100,081	124,160	108,196	89,260
1. Purchased goods in transit		0	0	0	0
2. Raw materials		0	4,347	3,840	5,991
3. Instrument, tools		0	1,840	1,702	1,671
4. Cost for production and business in process		0	620	2,290	803
5. End products		0	0	0	0
6. Goods		100,081	117,353	100,364	80,795
7. Goods on consignment		0	0	0	0
8. Provision for devaluation of stocks		0	0	0	0
V. Other current assets		3,073	789	624	485
1. Advances		0	519	588	433
2. Prepaid expenses		50	0	0	52
3. Pending expenses for transfer		0	0	0	0
4. Tax and accounts receivable to State budget		0	0	0	0
5. Other current assets		3,023	270	36	0
VI. Administrative		0	2,998	1,273	1,025
1. Administrative expenses for previous year		0	2,998	0	0
2. Administrative expenses for current year		0	0	1,273	1,025
B. Fixed assets & Long term investment		59,430	16,756	11,879	11,998
I. Fixed assets		57,317	16,756	11,879	11,998
1. Tangible fixed assets		51,712	16,756	11,879	11,998
+ Original cost		68,306	31,686	24,902	22,504
+ Accumulated depreciation value		-16,594	-14,930	-13,023	-10,506
2. Financial leasing fixed assets		0	0	0	0
+ Original cost		0	0	0	0
+ Accumulated depreciation value		0	0	0	0
3. Intangible fixed assets		5,605	0	0	0
+ Original cost		5,605	0	0	0
+ Accumulated depreciation value		0	0	0	0
II. Long term investment		1,153	0	0	0
1. Long-term securities investment		0	0	0	0
2. Joint-venture capital contribution		1153	0	0	0
3. Other long-term investment		0	0	0	0
4. Provision for long-term investment devaluation		0	0	0	0
III. Capital construction in process		0	0	0	0
IV. Other		960	0	0	0
TOTAL ASSETS		299,382	269,415	223,193	186,905
LIABILITIES
A. Payable loans		242,198	242,999	200,775	168,271
I. Short term payables		233,632	240,826	197,802	163,822
1. Short-term borrowings		149,141	173,529	160,448	130,580
2. Due long-term liabilities		0	0	0	0
3. Payables to supplier		60,698	56,981	33,846	38,646
4. Prepayment of buyer		10,553	8,495	5,976	5,958
5. Taxes and accounts dutiable		1,502	-7,024	-5,358	-11,359
6. Employee payments		0	0	12	10
7. Internal payables		0	0	0	0
8. Other payables		11,738	8,845	2,878	-13
II. Long term loans		8,566	2,173	2,973	4,449
1. Long-term borrowings		8,566	2,173	2,973	4,449
2. Long-term payables		0	0	0	0
III. Other payables		0	0	0	0
1. Payable expenses		0	0	0	0
2. Pending assets		0	0	0	0
3. Receipts long-term collateral and deposit		0	0	0	0
B. Owner’s Equity		57,184	26,416	22,418	18,634
I. Capital and Funds		55,670	22,409	20,287	16,923
1. Working capital		37,683	16,692	16,693	15,886
2. Differences from asset revaluation		0	0	0	0
3. Exchange rate differences		0	0	0	0
4. Development investment funds		310	310	310	0
5. Reserved funds		8,396	0	0	0
6. Retained profit		6,521	2,593	470	1,037
7. Construction capital sources		2,760	2,814	2,814	0
II. Other administrative and fund sources		1,514	4,007	2,131	1,711
1. Provident funds for unemployment		0	0	0	0
2. Reward and welfare funds		288	288	311	125
3. Management funds of higher level		0	0	0	0
4. Functional operation funds		978	3,399	1,820	1,586
Current year		978	3,399	1,366	256
Last year		0	0	454	1,330
5. Fund sources formed by fixed assets		248	320	0	0
TOTAL LIABILITY AND EQUITY		299,382	269,415	223,193	186,905
PROFIT & LOSE STATEMENT
Description		FY 2006	FY 2005	FY 2004	FY 2003
Total revenue		463,867	474,458	440,736	396,293
Deductions Items		38	33	5,023	3
- Discount		-	0	0	0
- Devaluation		-	0	3	0
- Return of sold goods		-	0	4,996	3
- Turnover tax, Luxury tax & Export tax		-	33	24	0
1. Net revenue		463,829	474,425	435,713	396,290
2. Cost of goods sold		424,793	440,755	404,576	368,485
3. Gross Profit		39,036	33,670	31,137	27,805
4. Sales expenses		13,446	11,135	10,955	11,161
5. Enterprise administrative expenses		9,567	8,923	10,453	9,655
6. Net income from business activities		16,023	13,612	9,729	6,989
Income from financial activities		4,780	2,444	1,089	555
Expenditure from financial activities		14,821	13,901	10,148	9,497
7. Net income from financial operation		-10,041	-11,457	-9,059	-8,942
Irregular income		361	0	3	2,559
Irregular expenditure		1,653	26	15	3
8. Irregular Profit		-1292	-26	-12	2,556
9. Total pre-tax profit		4,690	2,129	658	603
10. Income tax		0	596	184	193
11. After tax profit		4,690	1,533	474	410
FINANCIAL FACTORS
Description		FY 06	FY 05	FY 04	FY 03
Current liquidity ratio		1.03	1.05	1.07	1.07
Quick Liquidity ratio		0.60	0.53	0.52	0.52
Inventory circle		4.24	3.79	4.10	8.26
Average receive period		100.42	89.99	79.53	74.63
Utilizing Asset Performance		1.55	1.76	1.95	2.12
Liability/ Total Asset (%)		80.90	90.20	89.96	90.03
Liability/ Owner's equity (%)		423.54	919.89	895.60	903.03
Income before tax/ Total asset (%) ROA		1.57	0.79	0.29	0.32
Income before tax/ Owner's equity (%) ROE		8.20	8.06	2.94	3.24
Gross Profit / Total revenue (%) GPM		8.42	7.10	7.06	7.02
Income before tax/ Total revenue (%) NPM		1.01	0.45	0.15	0.15
INTERPRETATION
Mediplantex is now a Joint Stock Company. The former type of the subject was a state-owned company, which was established in 1971. The subject has been operated in the fields of plantation, production, and export of various species of material pharmacy from medical plants for many years such as Artemisia annual, Saphora japonica, Peppermint, etc. The subject has business relationship with over 20 foreign partners all over the world. The position in the industry of the subject is good. The subject’s premises are large. The management capability of the subject is average. The subject now focuses on planting medicinal plants, processing and export of material for foreign manufacturers. Besides, the subject is also a large trader in pharmaceutical industry. The subject imports and trades a large amount of products in Northern region of Vietnam. The subject has factory with GMP certificate to manufacture some kind of drugs. On July 20^th 2007, the factory No.2 in Vinh Phuc province was inaugurated and put into operation with total investment capital of about 60 billion VND. The market share of the subject is large. Now, the subject exports products to Laos, Myanmar, India, Russia. The turnover of the subject is increasing. Its financial status is normal. The long term loans are still high despite a slightly decrease in 2005 compared with that of 2004. According to the result of audited report, total assets of the subject as of 31/12/2006 was 299,3 billion VND, increased in comparison with the year 2005 of 32,9 billion VND, total revenue was 463,8 billion, gross profit was about 40 billion VND. As for our observation, the business activities of the subject seem to be busier than before. However, like many other state-owned companies, it is not really active and professional in doing business. Its staffs are graded at normal. Nevertheless, the subject will gradually catch up with the changes of globalization with its new form of owner after equitization. Its prospect seems to be bright. In short, the operation and finance are regard good. The business of the subject is stable and development. The subject has capacity to meet the financial commitments. No caution needed for the business transactions.

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.	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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions