MIRA INFORM REPORT

Report Date :

05.08.2008

IDENTIFICATION DETAILS

Name :	HANOI PHARMACEUTICAL & MEDICAL EQUIPMENT IMPORT - EXPORT JOINT STOCK COMPANY
Registered Office :	No.2 Hang Bai Str, Hoan Kiem Dist, Hanoi city
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	06.05.1955
Com. Reg. No.:	0103002235
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and Trading in the following products: Pharmaceutical finished products, Traditional herb, Nutritious products, Sewing thread for surgery, Medical instrument and equipment, Chemicals, Raw materials

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM

English Name		HANOI PHARMACEUTICAL & MEDICAL EQUIPMENT IMPORT - EXPORT JOINT STOCK COMPANY
Vietnamese name		CONG TY CO PHAN DUOC PHAM THIET BI Y TE HANOI
Trade Name		HAPHARCO J.S.C
Current Type of Business		Joint Stock Company
Former Type of Business		State Owned Enterprise
Founded		May 6^th, 1955
Equitization on		April 16^th, 2003
Decision No		No. 2050/QD-UB
Issuance on		April 16^th 2003
Current Business Registration		No. 0103002235
Issuance on		May 12^th, 2003
Issuance by		Hanoi Department of Planning and Investment
Former Business Registration		No.102276
Issuance by		Hanoi Department of Planning and Investment
Registered Capital		12,600,000,000 VND
Tax code		0100109699
Total Employees		350
ADDRESSES
Head Office
Address		No.2 Hang Bai Str, Hoan Kiem Dist, Hanoi city
Country		Vietnam
Tel		(84-4) 8 258 775
Fax		(84-4) 8 266 029
Email		hapharco@fpt.vn or contact@hapharco.com.vn
Website		www.hapharco.com.vn
Branch in Hochiminh City
Address		No.90A/C15 Ly Thuong Kiet Str, Ward 14, Dist 10, Hochiminh City
Country		Vietnam
Business Registration		4113012464
Tel		(84-8) 8 650 826
Fax		(84-8) 8 646203
Chief		Ms. TRAN THANH THUY
Branch system in Hanoi City
Currently, the subject has a large system of branches and distributing agents in Hanoi city. Following are its branches in Hanoi.
1. Branch No.1
Address		No.59 Lan Ong Str., Hang Bo Ward, Hoan Kiem Dist., Hanoi city
Country		Vietnam
Business Registration		No. 0113002928
Issued on		September 24^th, 2003
Chief of Branch		Mrs. NGUYEN CHI LUONG
Tel		(84-4) 8254212
2. Branch No.2
Address	No.44 Le Dai Hanh Str., Hai Ba Trung Dist., Hanoi city
Country	Vietnam
Business Registration	No.0113002757
Issued on	August 19^th, 2003
Chief of Branch	Mrs. HO THI MAI LOAN
Tel	(84-4) 976 0757
Note: former chief of Branch is DO THI LE HANG
3. Branch No.3
Address	No.21 Quan Thanh Str, Quan Thanh Ward, Ba Dinh Dist, Hanoi
Country	Vietnam
Business Registration	No.0113002744
Issued on	August 15^th, 2003
Chief of Branch	Mrs. NGUYEN THI XUAN TUNG
Tel	(84-4) 845 4959
4. Branch No.4
Address	No.378 Kham Thien Str, Tho Quan Ward, Dong Da Dist., Hanoi city
Country	Vietnam
Business Registration	No.0113002918
Issued on	October 2^nd, 2003
Chief of Branch	Mrs. DAO KIM PHUONG
Tel	(84-4) 851 2221
5. Branch No.5
Address	No.2 Phan Boi Chau Str, Cua Nam Ward, Hoan Kiem Dist, Hanoi city
Country	Vietnam
Business Registration	No. 0113002746
Issued on	August 15^th, 2003
Chief of Branch	Mrs. NGUYEN THU TAN
Tel	(84-4) 825 5575
Note: former chief of branh is NGUYEN THI KIM DUNG
6. Branch No.6
Address	No.54 Trang Tien Str, Hoan Kiem Dist, Hanoi city
Country	Vietnam
Business Registration	No.0113002745
Issued on	August 15^th, 2003
Chief of Branch	LE BA HUU
Tel	(84-4) 8256440
7. Branch No.7
Address	To market, Uy No Commune, Dong Anh Dist, Hanoi city
Country	Vietnam
Business Registration	No. 0113002758
Issued on	August 19^th, 2003
Chief of Branch	Mrs. NGUYEN VAN MEN
Tel	(84-4) 883 2216
8. Branch No.8
Address	Zone C, Soc Son Town, Soc Son Dist., Hanoi city
Country	Vietnam
Business Registration	No. 0113002927
Issued on	September 24^th, 2003
Chief of Branch	Mrs. TRAN THI YEN
Tel	(84-4) 884 3578
9. Branch No.9
Address	Cuong Ngo village, Tu Hiep Commune, Thanh Tri Dist, Hanoi city
Country	Vietnam
Business Registration	No.0113002743
Issued on	August 15^th, 2003
Chief of Branch	Mrs. TRAN THANH TUAN
Tel	(84-4) 861 5336
10. Branch No. 10
Address	No.156 Ngoc Lam, Long Bien Dist, Hanoi city
Country	Vietnam
Business Registration	No. 0113002753
Issued on	August 18^th, 2003
Chief of branch	Mrs. PHAM THI NHAN
Tel	(84-4) 873 2782
11. Branch No.11
Address	No.119 Hang Buom Str, Hang Buom Ward, Hoan Kiem Dist, Hanoi city
Country	Vietnam
Business Registration	No. 0113002933
Issued on	September 24^th, 2003
Chief of Branch	Mrs. DINH LE VAN SON
Tel	(84-4) 825 6585
Fax	(84-4) 928 3012
12. Branch No.12
Address	No.157 Cau Giay Str, Quan Hoa Ward, Cau Giay Dist, Hanoi city
Country	Vietnam
Business Registration	No.0113002749
Issued on	August 19^th, 2003
Chief of Branch	Mrs. DO THI THU PHUONG
Tel	(84-4) 833 0284

13. General Surgery at No.98 Hang Buom
Address		No.98 Hang Buom Str, Hang Buom Ward, Hoan Kiem Dist, Hanoi city
Country		Vietnam
Business Registration		No.0113002932
Issued on		September 24^th, 2003
Chief of Branch		Mrs. TRAN THI ANH NGUYET
Tel		(84-4) 928 0095
Note: Besides these branches, the subject also has a large system of distributing agent in many places.
DIRECTORS
Current Director Board:
1. NAME		Mr. NGUYEN DANG KHOA
Position		Chairman of Director Board and Deputy general director
Nationality		Vietnamese
Contact address		No.2 Hang Bai Str, Hoan Kiem Dist, Hanoi city
2. NAME		Mrs. TRAN THI ANH TUYET
Position		General Director and chief of branch general surgery at No.98 Hang Buom
Nationality		Vietnamese
Contact address		No.2 Hang Bai Str, Hoan Kiem dist, Hanoi city
Note: The former general director of the subject is Mr Bui Thanh Son.
3. NAME		Mrs. LE THI UYEN CHI
Position		Deputy General Director
Nationality		Vietnamese
Contact address		No.2 Hang Bai Str, Hoan Kiem Dist, Hanoi city
4.NAME		Mrs. PHAM THI HONG HANH
Position		Duputy General Director
Nationality		Vietnamese
Contact address		No.2 Hang Bai Str, Hoan Kiem Dist, Hanoi city
BUSINESS NATURE AND ACTIVITIES
The subject now focuses on manufacturing and trading in the following products: Pharmaceutical finished products Traditional herb Nutritious products Sewing thread for surgery Medical instrument and equipment Chemicals Raw materials
Besides, the subject develops some services & activities, such as: leasing office, trading restaurant & hotel, technical training, …
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports medical equipments, pharmaceutical products from many countries in the world such as France, Singapore, China, Switzerland, Germany, Japan, Korea, Hong Kong, Hungary, India, Australia, Canada, Italy, Poland, Thailand, Israel, USA and Netherlands.
EXPORT: The subject supplies its products for domestic demand.
BANKERS
1. VIETINBANK
Address	No.108 Tran Hung Dao Str, Hanoi city, Vietnam
Tel	(84-4) 9 421 029 / 9 421 158
Fax	(84-4) 9 421 032
Telex	412259 ICBV-VT
Swift	ICBVVNVX
2. VIETNAM BANK FOR FOREIGN TRADE (VIETCOMBANK)
Address	No.198 Tran Quang Khai Str, Hanoi city, Vietnam
Tel	(84-4) 8 251 322 / 8 265 503 / 9 343 137
Fax	(84-4) 8 241 395 / 8 269 067
Telex	411209 VCB-VT
Swift	BFTVVNVX
SHAREHOLDER(S)
The subject is a joint stock company. Following is its shareholders:
1. Name	Mrs. VUONG THI LUYEN
Position	Former chairman
Date of Birth	December 25^th, 1947
ID No.	011033403
Permanent Resident	Room 27-28, Nguyen Cong Tru Community, Pho Hue Ward, Hai Ba Trung Dist., Hanoi city
Current Address	No. 276 Le Trong Tan Str., Khuong Mai Ward, Thanh Xuan Dist., Hanoi city
Nationality	Vietnamese
Share	251 shares
2. Name	Mrs. NGUYEN THI MINH TU
Position	Shareholder
ID No.	010031288
Date of Birth	May 29^th, 1950
Resident	Room 406 A5, Thanh Cong Community, Thanh Cong Ward, Ba Dinh Dist, Hanoi city
Nationality	Vietnamese
Share	247 shares
3. Name	Mrs. NGUYEN THI TRA
Position	Shareholder
Date of Birth	November 17^th, 1948
ID No.	011033439
Resident	No. 46, Lan Ong Str., Hang Bo Ward, Hoan Kiem Dist., Hanoi city
Nationality	Vietnamese
Share	305 shares
4. Name	LE TUAN VINH
Resident	16A Ly Nam De, Hang Ma Ward, Hoan Kiem Dist, Hanoi city
Nationality	Vietnamese
Share	148 shares
5. Name	THE STATE OWNED CAPITAL
Representative person	MR. HA QUY SANG
Position	Vice chairman of management board
Resident	Group 35, Financial university collective zone, Dich Vong str, Cau Giay Dist, Hanoi city
Nationality	Vietnamese
Share	64,260 shares
6. Name	380 other shareholders (including staffs and workers)
Nationality	Vietnamese
Share	60,789 shares
FINANCIAL DATA
BALANCE SHEET
Unit:million VND
Balance sheet date					31/12/2006	31/12/2005
Number of weeks					52	52
ASSETS
A – CURRENT ASSETS				263,898		252,074
I. Cash and cash equivalents				46,419		41,872
1. Cash				46,419		41,872
2. Cash equivalents				0		0
II. Short-term investments				0		0
1. Short-term investments				0		0
2. Provisions for devaluation of short-term investments				0		0
III. Accounts receivable				112,443		116,004
1. Receivable from customers				84,703		94,430
2. Prepayments to suppliers				0		1,194
3. Inter-company receivable				22,301		18,859
4. Receivable according to the progress of construction				0		0
5. Other receivable				5,439		1,521
6. Provisions for bad debts				0		0
IV. Inventories				101,640		91,475
1. Inventories				101,640		91,475
2. Provisions for devaluation of inventories				0		0
V. Other Current Assets				3,396		2,723
1. Short-term prepaid expenses				901		46
2. VAT to be deducted				457		431
3. Taxes and other accounts receivable from the State				0		0
4. Other current assets				2,038		2,246
B. LONG-TERM ASSETS				12,123		8,239
I. Long term account receivable				0		0
1. Long term account receivable from customers				0		0
2. Working capital in affiliates				0		0
3. Long-term inter-company receivable				0		0
4. Other long-term receivable				0		0
5. Provisions for bad debts from customers				0		0
II. Fixed assets				11,761		7,877
1. Tangible assets				8,945		5,887
- Historical costs				13,219		8,255
- Accumulated depreciation				-4,274		-2,368
2. Financial leasehold assets				0		0
- Historical costs				0		0
- Accumulated depreciation				0		0
3. Intangible assets				0		0
- Initial costs				0		0
- Accumulated amortization				0		0
4. Construction-in-progress				2,816		1,990
III. Investment property				0		0
Historical costs				0		0
Accumulated depreciation				0		0
IV. Long-term investments				362		362
1. Investments in affiliates				0		155
2. Investments in business concerns and joint ventures				362		207
3. Other long-term investments				0		0
4. Provisions for devaluation of long-term investments				0		0
VI. Other long-term assets				0		0
1. Long-term prepaid expenses				0		0
2. Deferred income tax assets				0		0
3. Other long-term assets				0		0
TOTAL ASSETS				276,021		260,313
LIABILITIES
A- LIABILITIES			255,061			240,213
I. Current liabilities			255,061			239,972
1. Short-term debts and loans			25,678			20,494
2. Payable to suppliers			196,155			183,036
3. Advances from customers			7,328			3,333
4. Taxes and other obligations to the State Budget			1,284			1,020
5. Payable to employees			2,314			1,276
6. Accrued expenses			0			143
7. Inter-company payable			22,302			17,341
8. Payable according to the progress of construction contracts			0			13,329
9. Other payable			0			0
10. Provisions for short-term accounts payable			0			0
II. Long-Term Liabilities			0			241
1. Long-term accounts payable to suppliers			0			0
2. Long-term inter-company payable			0			0
3. Other long-term payable			0			241
4. Long-term debts and loans			0			0
5. Deferred income tax payable			0			0
6. Provisions for unemployment allowances			0			0
7. Provisions for long-term accounts payable			0			0
B- OWNER'S EQUITY			20,959			20,100
I. Owner's equity			20,729			19,919
1. Capital			16,621			15,518
2. Share premiums			0			0
3. Other sources of capital			0			0
4. Treasury stocks			0			0
5. Differences on asset revaluation			0			0
6. Foreign exchange differences			0			0
7. Business promotion fund			326			843
8. Financial reserved fund			125			128
9. Other funds			0			0
10. Retained earnings			3,657			3,430
11. Construction investment fund			0			0
II. Other sources and funds			230			181
1. Bonus and welfare funds			251			202
2. Sources of expenditure			-21			-21
3. Fund to form fixed assets			0			0
TOTAL LIABILITIES AND OWNER'S EQUITY			276,020			260,313
PROFIT & LOSE STATEMENT
Description					FY 2006	FY 2006
Revenue					672,659	550,505
Deductions Items					0	0
- Discount					0	0
- Devaluation					0	0
- Return of sold goods					0	0
- Turnover tax, Luxury tax & Export tax					0	0
Net Revenue					672,659	550,505
Costs of goods sold					643,025	517,798
Gross profit					29,634	32,707
Financial income					2,377	2,359
Financial expenses					2,361	2,165
In which: Loan interest expenses					0	0
Selling expenses					22,977	25,961
Administrative overheads					3,016	3,312
Net operating profit					3,657	3,628
Other income					0	7
Other expenses					0	0
Other profit /(loss)					0	7
Total accounting profit before tax					3,657	3,635
Current corporate income tax					0	0
Deferred corporate income tax					0	0
Profit after tax					3,657	3,635

FINANCIAL FACTORS
Description		FY 2006	FY 2005
Current liquidity ratio		1.03	1.05
Quick Liquidity ratio		0.64	0.67
Inventory circle		6.66	5.66
Average receive period		63.83	81.77
Utilizing Asset Performance		2.33	1.99
Liability/ Total Asset (%)		92.41	92.28
Liability/ Owner's equity (%)		1,216.95	1,195.09
Ebit / Total asset (%) ROA		1.32	1.40
Ebit / Owner's equity (%) ROE		17.45	18.08
Ebit / Total revenue (%) NPM		0.54	0.66
Gross Profit / Total revenue (%) GPM		4.41	5.94
PAYMENT HISTORY AND EXPERIENCES
Trade Morality	Fairly good
Liquidity	Average
Current Payment Status	Fair
Current Financial Situation	Fairly good
Illegal action	No record
Bankruptcy	No record
Reputation	Fairly Famous
Modes of payment	L/C, T/T, D/P
Sales methods	Directly supply or distributing through agents

INTERPRETATION ON THE SCORES

The subject is now one of big pharmaceutical companies in Vietnam, which was equitized from state owned company. The subject has a long history and experiences. In 1958, the subject was a small drug store. It was expanded its operation. In 1983, the company co-operated with Hanoi Pharmaceutical Factory and became Hanoi United Pharmaceutical Corporation. In 1993, the Government divided Hanoi United Phamaceutical Corporation into three state owned enterprises. So the subject was changed into Hanoi Pharmaceutical and Medical Equipment Import Export Company. In second quarter of 2003, the subject became a joint stock company with official name of Pharmaceutical and Medical Equipment Joints Stock Company (its abbreviation is HAPHARCO). Now the subject has 13 branches and distributing agency in many place.

At the moment, the subject specializes in the field of medical and health-care. It manufactures and trades in many kinds of products using in medical industry such as pharmaceutical products and equipment for this field. In term of production, beside the domestic materials, the subject also imports equipments from many countries in the world including Singapore, EU countries and so on. Almost products of company are consumed in local market through a system of agents and pharmacy in many cities and provinces of Vietnam. Its market share now is fairly large.

The premises and facilities of the subject are good. The management capability is fair. The subject appointed a new management board in 2007. It has operated effectively after equitization. Beside trading pharmaceutical & medical equipments, the subject has income from leasing office, trading restaurant & hotel, …Its turnover and profits are good and being incresed consederably. The financial criteria of the subject have grown better year after year. In 2005 total revenue of the subject is apporcximate 34,406,000 USD. In 2006 total revenue of the subject is approximate 42,043,000 USD . Its financial indexes are fairly good. In short, its finance situation is fairly reliable for creditors.

Many years of development, the company has attained many achievements. In 2003, the subject achieved three rank labour order.

In term of international relations, the subject is the distributor of many world famous medicinal firms such as Johnson & Johnson Medical Singapore, Bayer Pte. Ltd., etc.

In general, the financial and operational bases of the subject are healthy. General unfavorable factors will not cause fatal effect. The payment is above average. The subject is capable to meet commitments and no caution needed for small and normal transaction

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.42.28
UK Pound	1	Rs.82.79
Euro	1	Rs.65.69

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