MIRA INFORM REPORT

Report Date :

09.04.2008

IDENTIFICATION DETAILS

Name :	CENTRAL PHARMACEUTICAL JOINT STOCK COMPANY No. 25
Formerly Known As :	CENTRAL PHARMACEUTICAL FACTORY No. 25
Registered Office :	No. 120 Hai Ba Trung Str, Da Kao ward, Dist 1, Hochiminh city
Country :	Vietnam
Financials (as on) :	31.12.2005
Date of Incorporation :	1993
Com. Reg. No.:	4103007041
Legal Form :	Joint Stock Company
Line of Business :	Manufacturer and Trader of 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 :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM

Current English Name	CENTRAL PHARMACEUTICAL JOINT STOCK COMPANY No. 25
Current Vietnamese name	CONG TY CO PHAN DUOC PHAM TRUNG UONG 25
Former English Name	CENTRAL PHARMACEUTICAL FACTORY No. 25
Former Vietnamese name	XI NGHIEP DUOC PHAM TRUNG UONG 25
Trade Name	UPHACE
Founded	1993
Current Type of Business	Joint Stock Company
Former Type of Business	State Owned Company
Established Decision No.	398/BYT-QD
Date of Issuance	April 22^nd, 1993
Place of Issuance	People’s Committee of Hochiminh City
Current Business Registration	No. 4103007041
Date of Issuance	June 19^th 2007
Place of Issuance	Planning and Investment Department of Hochiminh city
Former Business Registration	No. 102693
Date of Issuance	May 20^th, 1993
Place of Issuance	Planning and Investment Department of Hochiminh City
Current Registered Capital	45,000,000,000 VND
Former Registered Capital	9,449,000,000 VND
Tax Code	0300468511
Total Employees	300 employees
Note: The subject changed name and officially run as a joint stock company in June 2007.

ADDRESS

Head Office
Address	No. 120 Hai Ba Trung Str, Da Kao ward, Dist 1, Hochiminh city
Country	Vietnam
Tel	(84-8) 8294754 / 8297941 / 8295046
Fax	(84-8) 8296591
Email	duocphamtw25@hcm.vnn.vn
Website	www.uphace.com.vn
Factory
Address	No. 484B Nguyen Tat Thanh Str, Ward 18, Dist 4, Hochiminh city
Country	Vietnam
Tel	(84-8) 9404969 / 9414967

DIRECTORS

1. NAME	Mr. PHAM XUAN KINH
Position	Current General Director - Legal Representative
Date of birth	September 3^rd 1953
ID No	020083958
Qualification	Management
Resident	No. 63 Phan Xich Long Str, Ward 2, Phu Nhuan Dist, Hochiminh city
Nationality	Vietnamese
2. NAME	Mrs. NGUYEN KIM DUNG
Position	Former General Director
Qualification	Management
Resident	Hochiminh city
Nationality	Vietnamese
Note: Mrs. NGUYEN KIM DUNG has retired since the subject changed to joint stock company in June 2007.
3. NAME	Mrs. NGUYEN THI MAI
Position	Vice General Director (In charge of finance)
Qualification	Management
Resident	Hochiminh city
Nationality	Vietnamese
4. NAME	Mrs. PHAM THI NGUYEN
Position	Vice General Director (In charge of production)
Qualification	Management
Resident	Hochiminh city
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject is specialized in the following activities:

- Manufacturing pharmaceutical products such as injection, tablets, coated-tablets (film, sugar), capsules (hard, soft), granules, powders, liquid preparations, tea-bag, emulsion, …

- Trading in many kinds of pharmaceutical products

IMPORT & EXPORT ACTIVITIES

IMPORT: The subject imports equipments and materials, pharmaceutical products from EU and China, especially from MEDI COMPANY (Cuba) and MEHICO COMPANY (China)

EXPORT: The subject exports its products to MEDI COMPANY (Cuba), VIMEX COMPANY (Moldova), GREENWOOD COMPANY (Russia), P.M.A COMPANY (Cambodia), MINH KANG MEDICARE SERVICE (Singapore), FITO (Ukraine), DAMY (Ukraine, AVIKOM (Hungary) FELIKOR (Russia) FARMA (Cuba).

BANKERS

1. INDUSTRIAL AND COMMERCIAL JOINT STOCK BANK (INCOMBANK)
Address	No. 93 - 95 Ham Nghi Str, Nguyen Thai Binh Ward, Dist 1, Hochiminh city
Country	Vietnam
Tel	(84-8) 8215388 - 8210089
Fax	(84-8) 8290696
Swift	ICBVVNVX902
2. ASIA COMMERCIAL JOINT STOCK BANK (ACB BANK)
Address	442 Nguyen Thi Minh Khai Str, Ward 5, Dist 3, Hochiminh City
Country	Vietnam
Tel	(84-8) 8334085 - 8395179
Fax	(84-8) 8359156
Telex	813158ACBVT
Swift	ASCBVNVX
3. VIETNAM BANK FOR FOREIGN TRADE (VIETCOMBANK)
Address	29 Ben Chuong Duong Str, Dist 1, Hochiminh City
Country	Vietnam
Tel	(84-8) 8251317
Fax	(84-8) 8297228
Telex	811234/5 VVB-VT
Swift	BFTVVBVX 007
4. EXIMBANK – HOCHIMINH CITY
Address	No.7 Le Thi Hong Gam Str, Dist 1, Hochiminh city
Country	Vietnam
Tel	(84-8) 821 0055
Fax	(84-8) 829 6063
Telex	812690 EIB VT
Swift	EBVIVNVX

SHAREHOLDERS

1. NAME	STATE OWNED SHARES
Ratio	63.000 %
Value	28,350,000,000 VND
2. Name	ACB SECURITIES COMPANY LIMITED
Vietnamese Name	CONG TY TNHH CHUNG KHOAN ACB
Address	No.9 Le Ngo Cat Str, Ward 7, Dist 3, Hochiminh city
Country	Vietnam
Business Registration No.	4104000006
Issued on	June 30^th 2000
Issued by	Planning and Investment Department of Hochiminh city
Ratio	2.222 %
Value	1,000,000,000 VND
3. Name	DAI VIET A PHARMACEUTICAL COMPANY LIMITED
Vietnamese Name	CONG TY TNHH DUOC PHAM DAI VIET A
Address	No. 7A/5/32 Thanh Thai Str, Ward 14, Dist 10, Hochiminh city
Country	Vietnam
Business Registration No.	051123
Issued on	June 23^rd 1995
Issued by	Planning and Investment Department of Hochiminh city
Ratio	4.806 %
Value	2,162,500,000 VND
4. Name	302 OTHER SHAREHOLDERS
Ratio	29.972 %
Value	13,487,500,000 VND

FINANCIAL DATA

Following are financial highlights in 2006
Unit: 1,000,000 VND
Description	2006
Current assets & Short-term investment
45,792
Fixed assets & Long-term investment	57,858
Total assets	103,650
Payable	48,561
Owner’s Equity	55,089
Total Liability and Equity	103,650
Total revenue	126,918
Deduction Items	405
Net revenue	126,513
Net income from business activities	4,775
Net income from financial operation	0
Irregular Profit	0
Total pre-tax profit	4,775
Full data in 2005:

BALANCE SHEET

Unit: 1,000,000 VND
Balance sheet date		31/12/2005
Number of weeks		52
ASSETS
A -	CURRENT ASSETS	43,584
I.	Cash and cash equivalents	518
1.	Cash	518
2.	Cash equivalents
II.	Short-term financial investments	0
1.	Short-term investments
2.	Provisions for devaluation of short-term investment stocks
III.	Accounts receivables	11,554
1.	Receivable from customers	11,280
2.	Prepayment to suppliers	418
3.	Inter- company receivables
4.	Progress receipts due from construction contract
5.	Other receivables	255
6.	Provisions for bad debts	-399
IV.	Inventories	29,968
1.	Raw materials, spare parts,	29,968
2.	Provisions for devaluation of inventories	0
V.	Other current assets	1,544
1.	Short-term prepaid expenses	0
2.	Value added tax deducted	1,544
3.	Taxes receivables
4.	Other current assets
B -	LONG TERM ASSETS	41,337
I.	Long term accounts receivable
1.	Long term accounts receivable from customers
2.	Long term inter- company receivable
3.	Other long term accounts receivables
4.	Provisions for bad debts
II.	Fixed assets	41,084
1.	Tangible fixed assets	40,193
	Historical costs	66,692
	Accumulated depreciation	26,499
2.	Finance lease assets	891
	Historical costs	1,222
	Accumulated depreciation	331
3.	Intangible assets	0
	Historical costs	0
	Accumulated depreciation	0
4.	Construction in progress	0
III.	Investment property	0
	Historical costs
	Accumulated depreciation
IV.	Long term financial investments	0
1.	Investments subsidiary company
2.	Investments in business concerns and joint ventures
3.	Other long term investments
4.	Provisions for devaluation of long-term investments stock
V.	Other long term assets	253
1.	Long term prepaid expenses	141
2.	Deferred income tax assets
3.	Other long term assets	112
	TOTAL ASSETS	84,921
LIABILITIES
A -	LIABILITIES	56,701
I.	Short term liabilities	56,424
1.	Short term debts and borrowings	34,892
2.	Payable to suppliers	20,199
3.	Advances from customers	131
4.	Taxes and other accounts payable to the State Budget	3
5.	Payable to employees	0
6.	Accrued expenses	0
7.	Payable to inter- company	0
8.	Progress payments due to construction contract
9.	Other payables	1,199
10.	Provision for short term payable
II.	Long term liabilities	277
1.	Long term account payable to suppliers
2.	Long term inter-company payables
3.	Other long term payables
4.	Long term debts and borrowings	277
5.	Deferred income tax liabilities
6.	Provision for unemployment
7.	Provision for long term payable
B -	OWNER’S EQUITY	28,220
I.	Owner’s equity	28,589
1.	Owners' Investment capital	46,589
2.	Share premiums
3.	Other owners’ capital
4.	Treasury shares
5.	Differences upon asset revaluation
6.	Foreign exchange differences
7.	Business promotion fund
8.	Financial reserved fund	157
9.	Other funds
10.	Undistributed earnings	-18,157
11.	Investment construction capital
II.	Other sources and funds	-369
1.	Bonus and welfare funds	-369
2.	Sources of expenditure	0
3.	Funds used to acquire fixed assets	0
	TOTAL LIABLITIES AND OWNER’S EQUITY	84,921

PROFIT & LOSE ACCOUNT (INCOME STATEMENT)

	Description	FY 2005
1.	Revenue from sales of goods and rendering of services	132,499
2.	Deductible items	1,404
3.	Net revenue from sales of goods and rendering of services	131,095
4.	Costs of goods sold	132,173
5.	Gross profit	- 1,078
6.	Income from financial activities	13
7.	Expenses from financial activities	4,722
	In which: Loan Interest expenses
8.	Selling expenses	761
9.	General & administration expenses	8,905
10.	Net operating profit	- 15,453
11.	Other incomes	2,797
12.	Other expenses	5,501
13.	Other profits	- 2,704
14.	Profit (loss) before tax	- 18,157
15.	Income tax	0
16.	Profit (loss) after tax	- 18,157

FINANCIAL FACTORS

Description	FY 2005
Current Liquidity Ratio	0.77
Quick Liquidity Ratio	0.24
Inventory Circle	4.41
Average Receive Period	32.17
Utilizing Asset Performance	1.54
Liability / Total Asset (%)	66.77
Liability / Owner's Equity (%)	200.92
Income Before Tax / Total Asset (%) ROA	- 21.38
Income Before Tax / Owner's Equity (%) ROE	- 64.34
Income Before Tax / Total Revenue (%) NPM	- 13.70
Gross Profit / Total Revenue (%) GPM	-0.81

PAYMENT HISTORY AND EXPERIENCES

Trade Morality	Fairly Good
Liquidity	Normal
Payment status	Normal
Current Financial Situation	Above Average
Litigation Data	No Recorded
Bankruptcy	No Recorded
Public opinion	Average
Payment Methods	Direct payment or through its corresponding bank.
INTERPRETATION ON THE SCORES
The subject was established in 1993. Originally, it was named “CENTRAL PHARMACEUTICAL FACTORY No. 25”, which was a 100 % state owned enterprise. The subject is a member of VIETNAM PHARMACEUTICAL CORPORATION (VINAPHARM), under management of the Ministry of Health. Up to June 2007, the subject has equizited into a joint stock company and changed name to “CENTRAL PHARMACEUTICAL JOINT STOCK COMPANY No. 25”. However, the state still holds a large share (63%) in total registered capital of 45 billion VND of the subject. The subject specializes in manufacturing and trading in pharmaceutical products including injection, tablets, coated-tablets (film, sugar), capsules (hard, soft), granules, powders, liquid preparations, tea-bag, emulsion, … The subject imports equipments and materials, pharmaceutical products from EU and China, especially from MEDI COMPANY (Cuba) and MEHICO COMPANY (China). Besides consuming products in domestic market through hospitals and agents from North to South of Vietnam, the subject also exports products to foreign countries. Some traditional foreign partners of the subject are MEDI COMPANY (Cuba), VIMEX COMPANY (Moldova), GREENWOOD COMPANY (Russia), P.M.A COMPANY (Cambodia), MINH KANG MEDICARE SERVICE (Singapore), FITO (Ukraine), DAMY (Ukraine, AVIKOM (Hungary) FELIKOR (Russia) FARMA (Cuba). The competitiveness of the subject is fair. The market share is acceptable. Premise of the subject is big. The manufacturing facilities and quality control department comply with GMP and GLP standards. The subject is located in a convenient location for production as well as communication and transportation. The subject has many strong supports from Government. However, it is coping with many new competitors. Currently, position in industry of the subject is fair remarkable. Its financial situation is acceptable. Annually turnover is fairly good. Profitability of the subject in 2006 has much increased than in 2005. After re-organization in June 2007, the subject seems to be more active. Management capability of the subject is also better.
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