MIRA INFORM REPORT

Report Date :

31.03.2008

IDENTIFICATION DETAILS

Name :	OPV PHARMACEUTICAL JOINT STOCK COMPANY
Registered Office :	No 27, Road 3A, Bien Hoa II Industrial Zone, Bien Hoa City, Dong Nai Province
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	1950
Com. Reg. No.:	472033000196
Legal Form :	100% Foreign-Owned Company
Line of Business :	Distributing and Manufacturing Pharmaceutical products Receiving concession marketing for foreign pharmaceutical countries Receiving concession manufacturing for multinationals companies

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 :	No Complaints
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
Current Legal Form:
English Name		OPV PHARMACEUTICAL JOINT STOCK COMPANY
Vietnamese Name		CONG TY CO PHAN DUOC PHAM OPV
Trade Name		OPV PHARMACEUTICAL., JSC
Original Established		1950
Re-organization		1995
Type of Business		Joint Stock Company
Business Registration		No. 472033000196
Issued on		July 19^th 2007
Issued by		Management Board of Dong Nai Industrial Park Authority
Investment Capital		23,875,000 USD
Investment duration		35 years
Tax Code		3600447130
Total Employees		350 Employees (Including staffs and workers)
Qualification		Fair
Former Legal Form:
English Name		OPV PHARMACEUTICAL COMPANY LIMITED
Vietnamese Name		CONG TY DUOC PHAM OPV
Trade Name		OPV PHARMACEUTICAL CO., LTD
Other Trade Name		OPV VIETNAM CO., LTD
Abbreviated Name		OPV VIETNAM
Original Established		1950
Re-organization		1995
Type of Business		100% Foreign-Owned Company
Investment License		No.1438/GP
Date of Issuance		Management Board of Dong Nai Industrial Park Authority
Place of Issuance		December 9^th 1995
Investment Capital		21,000,000 USD
Current Legal Capital		8,400,000 USD
Original Legal Capital		6,200,000 USD
ADDRESSES
Head office/ Factory Location
Address		No 27, Road 3A, Bien Hoa II Industrial Zone, Bien Hoa City, Dong Nai Province
Country		Vietnam
Tel		(84-61) 3992999
Fax		(84-61) 3992088
Email		opv.vietnam@opv.com.vn
Website		www.opv.com.vn
Transaction Office
Current Address		Suite 803, Floor 8^th, Sai Gon Tower, No. 29 Le Duan Str, Ben Nghe Ward, Dist 1, Hochiminh city.
Former address		172 C, Nguyen Dinh Chieu Str, Dist 3, Hochiminh City
Country		Vietnam
Tel		(84-8) 8238999
Fax		(84-8) 8275689
Notes: Formerly, the subject has a Distributer center at No. 73 – 75 – 77 Nguyen Van Dung Str, Ward 6, Dist 5, Hochiminh City. But now, all business transaction moved to Bien Hoa II Industrial Zone, Dong Nai Province.
Joint Venture Company:
NAME		OTSUKA OPV COMPANY LIMITED
Address		No. 27, 3A Road, Bien Hoa II Industrial Zone, Bien Hoa Dist., Dong Nai Province
Country		Vietnam
Tel		(84-61) 3992077
Fax		(84-61) 3992088
License No.		1438A/GPDC
Issued on		January 02^nd 2003
Issued by		Management Board of Dong Nai Industrial Park Authority
Investment Capital		19,000,000 USD
Manager		Mr. YASUO BANDO
Tax Code		No. 3600627535
Share		1. OTSUKA PHARMACEUTICAL COMPANY 2. OPV PHARMACEUTICAL COMPANY
DIRECTORS
1. NAME		Mrs. NGUYEN CAO THANG
Position		Chairwoman
Current Residence		Hochiminh City
Nationality		American (Overseas Vietnamese)
2. NAME		Mrs. HA TRUONG BICH TUY
Position		General Director
ID No.		Z8022757
Year of Birth		December 31^st 1950
Qualification		Pharmacist
Nationality		American (Overseas Vietnamese)
3. NAME		Mr. NGUYEN CAO PHONG
Position		Vice General Director
Qualification		Pharmacist
Nationality		Vietnamese
4. NAME		Mr. NGUYEN CAO HUNG
Position		Vice General Director
Qualification		Pharmacist
Nationality		Vietnamese
5. NAME		Mr. TRAN DUONG CHIEN THANG
Position		Business Account Manager
Qualification		M.A.
Nationality		Vietnamese
Email		tran.duong.chien.thang@opv.com.vn
BUSINESS NATURE AND ACTIVITIES
The subject is specialized in the following business activities: - Distributing and manufacturing pharmaceutical products, such as: IV solutions, nutritional products and consumer healthcare brands. - Receiving concession marketing for foreign pharmaceutical countries: Watamoto (Japan), Astellas (Japan), Bristol Myers Squibb (USA). - Receiving concession manufacturing for multinationals companies, such as: Pierre Fabre, UCB Pharma, GlaxoSmith Kline (GSK.)...
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports equipment, machines and a little material from US, France, Germany, Japan, Netherlands, Italy and India, China, The East Middle, and Africa.
EXPORT: Up to now, the subject’s products haven't been exported.
BANKERS
1. BANK FOR INVESTMENT & DEVELOPMENT OF VIETNAM- HCM CITY BRANCH
Address				No. 134 Nguyen Cong Tru Str, Dist 1, Hochiminh city
Tel				(84-8) 8230125, 8297384
Fax				(84-8) 8298862
Swift				BIDVVNVX310
2. SACOMBANK - Hochiminh City Branch
Address				No. 6-8, Pho Duc Chinh Str, Dist 1, Hochiminh city
Tel				(84-8) 9144514
Fax				(84-8) 9144516
3. HONGKONG SHANGHAI BANK CORPORATION (HSBC)
Address			No.235 Dong Khoi Str, Dist No.1, Hochiminh City
Telephone			(84-8) 829 2288
Fax			(84-8) 823 0530
Swift			HSBCVNVX
SHAREHOLDERS
The subject currently is a joint stock company, however, its shareholder structure is not updated.
Following are shareholders when it was a 100% foreign capital company.
1. NAME				OPV INTERNATIONAL INC
Address				40 Central Park South, Suite 12H, New York, NY 10019
Country				USA
2. NAME				OPV OVERSEAS LIMITED
Address				# 02-01, 341 Bukit Timah Road
Country				Singapore
FINANCIAL DATA
BALANCE SHEET
Unit: 1,000,000 VND
Balance sheet date					31/12/2006	31/12/2005
Number of weeks					52	52
ASSETS
A -	CURRENT ASSETS				38,730	23,251
I.	Cash and cash equivalents				2,185	2,082
1.	Cash				2,185	2,082
2.	Cash equivalents				0	0
II.	Short-term financial investments				0	0
1.	Short-term investments				0	0
2.	Provisions for devaluation of short-term investment stocks				0	0
III.	Accounts receivables				12,618	6,144
1.	Receivable from customers				6,874	3,984
2.	Prepayment to suppliers				2,174	241
3.	Inter- company receivables				2,913	65
4.	Progress receipts due from construction contract				0	1,825
5.	Other receivables				767	29
6.	Provisions for bad debts				-110	0
IV.	Inventories				21,864	14,485
1.	Raw materials, spare parts,				22,365	14,971
2.	Provisions for devaluation of inventories				-501	-486
V.	Other current assets				2,063	540
1.	Short-term prepaid expenses				0	477
2.	Taxes receivables				562	0
3.	Other current assets				1,501	63
B -	LONG TERM ASSETS				154,244	183,332
I.	Long term accounts receivable				0	0
1.	Long term accounts receivable from customers				0
2.	Long term inter- company receivable				0	0
3.	Other long term accounts receivables				0	0
4.	Provisions for bad debts				0	0
II.	Fixed assets				120,691	128,057
1.	Tangible fixed assets				120,490	127,701
	Historical costs				145,473	144,678
	Accumulated depreciation				-24,983	-16,977
2.	Finance lease assets				50	187
	Historical costs				450	450
	Accumulated depreciation				-400	-263
3.	Intangible assets				77	169
	Historical costs				397	397
	Accumulated depreciation				-320	-228
4.	Construction in progress				74	0
III.	Investment property				0	0
	Historical costs				0	0
	Accumulated depreciation				0	0
IV.	Long term financial investments				23,900	30,873
1.	Investments subsidiary company				0	0
2.	Investments in business concerns and joint ventures				12,664	19,763
3.	Other long term investments				11,236	11,110
4.	Provisions for devaluation of long-term investments stock				0	0
V.	Other long term assets				9,653	24,402
1.	Long term prepaid expenses				847	0
2.	Deferred income tax assets				0	0
3.	Other long term assets				8,806	24,402
	TOTAL ASSETS				192,974	206,583
LIABILITIES
A -	LIABILITIES				230,864	252,344
I.	Short term liabilities				103,045	121,171
1.	Short term debts and borrowings				34,824	23,497
2.	Payable to suppliers				21,622	24,464
3.	Advances from customers				2,500	18,621
4.	Taxes and other accounts payable to the State Budget				418	796
5.	Payable to employees				1,740	535
6.	Accrued expenses				7,225	2,659
7.	Payable to inter- company				32,174	48,863
8.	Progress payments due to construction contract				0	1,736
9.	Other payables				2,542
II.	Long term liabilities				127,819	131,173
1.	Long term account payable to suppliers				0	62,630
2.	Long term inter-company payables				0	27
3.	Other long term payables				60,205	68,516
4.	Long term debts and borrowings				67,614	0
5.	Deferred income tax liabilities				0	0
B -	OWNER’S EQUITY				-37,890	-45,761
I.	Owner’s equity				-37,890	-45,761
1.	Owners' Investment capital				178,388	116,024
2.	Share premiums				0	0
3.	Treasury shares				0	0
4.	Differences upon asset revaluation				0	0
5.	Foreign exchange differences				0	0
6.	Business promotion fund				0	0
7.	Financial reserved fund				0	0
8.	Other funds				0	0
9.	Undistributed earnings				-216,278	-161,785
II.	Other sources and funds				0	0
1.	Bonus and welfare funds				0	0
2.	Sources of expenditure				0	0
3.	Funds used to acquire fixed assets				0	0
	TOTAL LIABLITIES AND OWNER’S EQUITY				192,974	206,583
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
	Description				F/Y 2006	F/Y 2005
1.	Revenue from sales of goods and rendering of services				49,850	28,201
2.	Deductible items				328	193
3.	Net revenue from sales of goods and rendering of services				49,522	28,008
4.	Costs of goods sold				35,965	27,936
5.	Gross profit				13,557	72
6.	Income from financial activities				122	94
7.	Expenses from financial activities				18,811	9,981
	- In which: Loan Interest expenses
8.	Selling expenses				21,278	23,982
9.	General & administration expenses				27,201	30,582
10.	Net operating profit				-53,611	-64,379
11.	Other incomes				32	399
12.	Other expenses				49	0
13.	Other profits				-17	399
14.	Profit (loss) before tax				-53,628	-63,980
15.	Income tax				0	0
16.	Profit (loss) after tax				-53,628	-63,980
FINANCIAL FACTORS
Description					FY 2006	FY 2005
Current Liquidity Ratio					0.38	0.19
Quick Liquidity Ratio					0.16	0.07
Inventory Circle					1.98	1.93
Average Receive Period					93.00	80.07
Utilizing Asset Performance					0.26	0.14
Liability / Total Asset (%)					119.63	122.15
Liability / Owner's Equity (%)					-609.30	-551.44
Income Before Tax / Total Asset (%) ROA					-27.79	-30.97
Income Before Tax / Owner's Equity (%) ROE					141.54	139.81
Income Before Tax / Total Revenue (%) NPM					-107.58	-226.87
Gross Profit / Total Revenue (%) GPM					27.20	0.26
PAYMENT HISTORY AND EXPERIENCES
Trade Morality				Fair
Liquidity				Not strong
Payment				Average
Current Financial Situation				Not good
Legal Action				No recorded
Bankruptcy				No recorded
Reputation				Fairly good
Sell methods				Direct to clients or through its parents agents.
Mode of payment				Mostly are directly & through its banking system.
INTERPRETATION ON THE SCORES
OPV PHARMACEUTICAL is a pharmaceutical manufacture and distributor in the South of Vietnam. It was founded in 1950s. After April 30^th 1975, OPV was nationalized with name of The Central Pharmaceutical No. 22. The owners of OPV resettled in the USA as refugees. In 1993, Mrs. Nguyen Cao Thang and her younger sister returned to Vietnam to re-set their company. Since 1993, OPV has been active in Vietnam in the field of pharmaceuticals, distributing both its own brands and licensed products from multinational companies. On December 19^th 1995, OPV Pharmaceutical was licensed as a 100% foreign invested enterprise (its parents are OPV Inc and OPV Overseas ltd) with abbreviated name of OPV Vietnam. Now, it has been a Joint Stock Company with the investment capital of USD 23,875,000. Its transaction office is at Suite 803, Flr 8, Sai Gon Tower, No. 29 Le Duan Str., Ben Nghe Ward, Dist 1, Hochiminh City. It has a factory in Bien Hoa II Industrial Zone, Dong Nai Province, this factory is located on an area of 180,000 m^2, was constructed in 2000 under international GMP standards. In 2003, it started operation, is producing a wide range of pharmaceuticals, IV solutions, nutritional products and consumer healthcare brands with world-class quality in all major dosage forms (tablets, capsules, sachets, oral liquids, creams and ointments). Management board of the subject is good experienced on pharmaceutical field. Recently, the subject has total workforce of about 350 staffs & workers, in which some of them have high degree in pharmaceutical field in Vietnam. The subject’s market share in domestic pharmaceutical product is approximately 32 percent. The subject is capable to meet contract and needs of multinational companies in Vietnam. The OPV’s manufacturing facilities are designed to be in compliance with international standards (GMP), (GLP), (GSP) by FDA, TGA and PIC for the production of high quality pharmaceuticals and consumer healthcare products. Over the years, OPV has developed the expertise and experience to become the partner of choice of world leading pharmaceutical companies in the 1960s and 1970s, including such companies as Bayer, Chiba Geigy, Mead Johnson, Merk Sharp & Dohme, Roche, Sandoz, Smit Kline & French, Upjohn, and Warner Lambert. In 2003, the subject invested much in its factory’s production line and in joint - venture (on January 27^th 2003). OPV pharmaceutical co-operated with Otsuka Pharma (Japan) to set up Otsuka OPV drug solution plant. And in 2004, the subject jointed Nomura Trading Company (Japan). On November 24^th 2005, OPV signed a deal with GlaxoSmithKline (GSK), a world leading research-based pharmaceutical company, to produce GSK’s high-grade products in Vietnam. OPV has set up international economic and business relations with nearly 20 companies in every part of the world. The main import market of the subject is USA, France, Germany, Japan, Netherlands, Italy and India, China, Middle East, and Africa. Currently, the subject doesn’t export. Its business is fairly busy, but not very effective. The reported financial status of the subject is not good. It was suffered from loss constantly in recent years, especially in 2005 total loss was above 60 billion VND and in 2006,the total loss was still high. Liabilities increased while most of the liabilities were short-term. Liquidity ratios of the subject are very low, payment capability of the subject is average. It must re-structure in order to make its financial situation healthier. In short, overall operation of the subject is considered normal. Its products & trademark are fairly famous for customers. Its future prospect is expected better. Now, the subject is capable to meet the small and normal financial commitments but should be caution needed for the normal ones.
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.	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