MIRA INFORM REPORT

Report Date :

14.02.2008

IDENTIFICATION DETAILS

Name :	PYMEPHARCO JOINT STOCK COMPANY
Registered Office :	No. 166-170, Nguyen Hue Str, Tuy Hoa City, Phu Yen Province
Country :	Viet Nam
Financials (as on) :	31.12.2006
Date of Incorporation :	1989
Legal Form :	Joint stock company
Line of Business :	Manufacturing and trading, importing, exporting pharmaceutical, medical equipments and materials and related chemical

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 IDENTIFICATION & LEGAL FORM
Current English name	PYMEPHARCO JOINT STOCK COMPANY
Vietnamese name	CONG TY CO PHAN PYMEPHARCO
Abbreviated name	PMP LABS
Former English name	PHU YEN MEDICAL EQUIPMENT PHARMACEUTICAL COMPANY
Former Vietnamese name	CONG TY DUOC VA VAT TU Y TE PHU YEN
Current type of business	Joint stock company
Former type of business	State Owned company
Founded	1989
Equitization decision	No.242/QD-UBND
Date of Issuance	February 10^th, 2006
Place of Issuance	People’s Committee of Phu Yen Province
Business Registration	No.3603000168
Date of Issuance	May 3^rd, 2006
Place of Issuance	Planning and Investment Department of Phu Yen Province
Former Business Registration	No. 101619
Issued on	November 4^th, 1992
Registered Capital	85,000,000,000 VND
Tax Code	4400116704
Total Employees	700 employees
Qualification	Above average
ADDRESS
Head Office
Address	No. 166-170, Nguyen Hue Str, Tuy Hoa City, Phu Yen Province
Country	Vietnam
Tel	(84-57) 823228/ 820663
Fax	(84-57) 824717
Email	Pymepharco-py@dng.vnn.vn
Website	www.pymepharco.com
Note: The subject is now building a factory here with total investment of 110 billion VND.
Hochiminh City Branch
Address	No. 44A, Dong Nai Str, Ward 15, Dist 10, Hochiminh City
Country	Vietnam
Tel	(84-8) 9703099
Fax	(84-8) 9703102
Contact person	Mr. Huynh Tan Nam
Note: This address is also the Distribution center of the Subject.
Hanoi City Branch
Address	No. N11A, Dich Vong Housing Compound, Dich Vong Ward, Cau Giay Dist, Hanoi City
Country	Vietnam
Tel	(84-4) 2670971
Contact person	Mr. Nguyen Huu Nien
Nha Trang Branch
Address	No. 45D Quang Trung, Nha Trang City, Khanh Hoa Province
Country	Vietnam
Tel	(84-58) 525579
DIRECTORS
1. NAME	Mr. HUYNH TAN NAM
Position	Chairman/ General Director
Date of birth	October 26^th, 1957
ID No	220007480
Issued on	May 6^th, 1992
Issued by	Police Station of Phu Yen Province
Resident	No. 22, Ly Tu Trong Str, Nha Trang City, Khanh Hoa Province
Nationality	Vietnamese
2. NAME	Mr. NGUYEN HUU NIEN
Position	Deputy General Director
Resident	Phu Yen Province
Nationality	Vietnamese
3. NAME	Mr. DO QUANG HOANH
Position	Deputy General Director
Resident	No. 18E Huong Son, Nha Trang City, Khanh Hoa Province
Nationality	Vietnamese
4. NAME	Mrs. NGUYEN THI MY KHANG
Position	Deputy General Director
Resident	Phu Yen Province
Nationality	Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject registered in the following lines of business:
Manufacturing and trading, importing, exporting pharmaceutical, medical equipments and materials and related chemical
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports materials for production from USA, Australia, India, Spain and France
EXPORT: It exports products to Laos, Thailand and Cambodia
BANKERS
1. INCOMBANK - PHU YEN PROVINCE
Address	No. 236, Ward 7, Hung Vuong Str, Tuy Hoa City, Phu Yen Province
Tel	(84-57) 824994

SHAREHOLDERS
1. NAME	Mr. HUYNH TAN NAM (Representative for State)
Position	Chairman / General Director
Date of birth	October 26^th, 1957
ID No	220007480
Issued on	May 6^th, 1992
Issued by	Police station of Phu Yen Province
Resident	No. 22, Ly Tu Trong Str, Nha Trang City, Khanh Hoa Province
Nationality	Vietnamese
Share	1,254,588 shares
2. Name	Mr. DO QUANG HOANH
Position	Deputy General Director
Resident	No. 18E, Huong Son Str, Nha Trang City, Khanh Hoa province
Nationality	Vietnamese
Share	35,200 shares
3. Name	Mr. NGUYEN NGOC TUNG
Position	Shareholder
Resident	Group 1, Nguyen Thai Hoc Quarter, Tuy Hoa City, Phu Yen Province
Nationality	Vietnamese
Share	30,800 shares
4. Name	Other 167 private shareholders take the left shares
Position	Shareholders
Share	1,139,388 shares
PAYMENT HISTORY AND EXPERIENCES
Trade Morality	Fairly good
Liquidity	Normal
Previous Payments	Normal
Payment status	Above Average
Past Financial Situation	Above average
Current Financial Situation	Fairly good
Litigation Data	Recorded
Bankruptcy	No record
Public opinion	Fairly good
Payment Methods	Through its banks, L.C, TTR
Note (litigation data): In September of 2004, the subject was revoked 1 million Tamiginung tablets imported from Korea of Alph Colid Korea which did not reach the quality products.

FINANCIAL DATA
BALANCE SHEET
Unit: VND in million
Balance sheet date			31/12/2006
Number of weeks			52
ASSETS
A -	CURRENT ASSETS		192,348
I.	Cash and cash equivalents		1,020
1.	Cash		1,020
2.	Cash equivalents
II.	Short-term financial investments
1.	Short-term investments
2.	Provisions for devaluation of short-term investment stocks
III.	Accounts receivables		99,380
1.	Receivable from customers		84,425
2.	Prepayment to suppliers		9,789
3.	Inter- company receivables		1
4.	Progress receipts due from construction contract
5.	Other receivables		5,165
6.	Provisions for bad debts		0
IV.	Inventories		89,867
1.	Inventories		89,867
2.	Provisions for devaluation of inventories		0
V.	Other current assets		2,081
1.	Short-term prepaid expenses		409
2.	VAT deductible		1,672
3.	Tax and accounts receivable to State budget
4.	Other current assets
B -	LONG TERM ASSETS		70,237
I.	Long term accounts receivable
1.	Long term accounts receivable from customers
2.	Capital in subsidiary units
3.	Long term inter- company receivable
4.	Other long term accounts receivables
5.	Provisions for bad debts
II.	Fixed assets		70,046
1.	Tangible fixed assets		42,965
	Historical costs		59,647
	Accumulated depreciation		-16,682
2.	Finance lease assets		0
	Historical costs		0
	Accumulated depreciation		0
3.	Intangible assets		20,626
	Historical costs		21,141
	Accumulated depreciation		-515
4.	Construction in progress		6,455
III.	Investment property
	Historical costs
	Accumulated depreciation
IV.	Long term financial investments		80
1.	Investments subsidiary company		0
2.	Investments in associates and joint ventures		0
3.	Other long term investments		80
4.	Provisions for devaluation of long-term investments		0
V.	Other long term assets		111
1.	Long term prepaid expenses		111
2.	Deferred income tax assets
3.	Other long term assets
	TOTAL ASSETS		262,585
LIABILITIES
A -	LIABILITIES		213,942
I.	Short term liabilities		163,351
1.	Short term debts and borrowings		99,356
2.	Payable to suppliers		38,259
3.	Advances from customers		6,121
4.	Taxes and other account payables to the State Budget		779
5.	Payable to employees		1,906
6.	Accrued expenses		166
7.	Payable to inter- company		-162
8.	Progress payments due to construction contracts
9.	Other payables		16,926
10.	Provision for short-term payables
II.	Long term liabilities		50,591
1.	Long term account payable to suppliers
2.	Long term inter-company payables
3.	Other long term payables
4.	Long term debts and borrowings		50,591
5.	Deferred income tax liabilities
6.	Reserved funds for unemployment
7.	Provision for long-term payables
B -	OWNER’S EQUITY		48,643
I.	Owner’s equity		47,947
1.	Owners' investment capital		44,675
2.	Share premiums
3.	Owners’ other capital
4.	Treasury shares
5.	Differences upon asset revaluation
6.	Foreign exchange differences		147
7.	Business promotion fund		1,093
8.	Financial reserved fund		222
9.	Other funds		0
10.	Undistributed earnings		1,810
II.	Other sources and funds		696
1.	Bonus and welfare funds		696
2.	Sources of expenditure
3.	Funds used to acquire fixed assets
	TOTAL LIABLITIES AND OWNER’S EQUITY		262,585
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
	Description		FY 2006
1.	Revenue from sales of goods and rendering of services		303,273
2.	Deductible items		7,137
3.	Net revenue from sales of goods and rendering of services		296,136
4.	Costs of goods sold		256,996
5.	Gross profit		39,140
6.	Income from financial activities		42
7.	Expenses from financial activities		10,144
	- In which: Loan Interest expenses
8.	Selling expenses		12,866
9.	General & administration expenses		11,775
10.	Net operating profit		4,397
11.	Other incomes		44
12.	Other expenses		0
13.	Other profits		44
14.	Profit (loss) before tax		4,441
15.	Income tax		0
16.	Profit (loss) after tax		4,441
FINANCIAL FACTORS
Description			FY 2006
Current Liquidity Ratio			1.18
Quick Liquidity Ratio			0.63
Inventory Circle			2.86
Average Receive Period			122.49
Utilizing Asset Performance			1.13
Liability / Total Asset (%)			81.48
Liability / Owner’s Equity (%)			439.82
Income Before Tax / Total Asset (%) ROA			1.69
Income Before Tax / Owner’s Equity (%) ROE			9.13
Income Before Tax / Total Revenue (%) NPM			1.46
Gross Profit / Total Revenue (%) GPM			12.91
Following is statement in past years:
Balance sheet date		31/12/2005			31/12/2004
Number of weeks		52			52
ASSETS
A. Working assets & short-term Investment		179,299			151,558
I. Cash and cash equivalents		565			440
II. Short-term investment		0			0
1. Short-term securities investment		0			0
2. Other short-term investment		0			0
3. Provision for short-term investment		0			0
III. Receivables		86,797			75,864
1. Receivables from customers		81,655			67,984
2. Prepayment for providers		1,550			3,444
3. Value-added tax deducted		2,691			1,816
4. Internal receivables		0			0
5. Other receivables		901			2,620
6. Provision for bad receivables		0			0
IV. Inventory		89,018			71,571
1. Purchased goods in transit		0			0
2. Raw materials		40,227			19,524
3. Instrument, tools		9			10
4. Cost for production and business in process		3,642			3,031
5. End products		26,037			21,560
6. Goods		19,103			31,572
7. Goods on consignment		0			75
8. Provision for devaluation of stocks		0			-4,201
V. Other current assets		2,919			3,683
1. Advances		1,386			622
2. Prepaid expenses		563			1,684
3. Pending expenses for transfer		0			0
4. Pending assets		0			0
5. Mortgage, collateral and short run collateral		970			1,377
VI. Administrative		0			0
1. Administrative expenses for previous year		0			0
2. Administrative expenses for current year		0			0
B. Fixed assets & Long term investment		50,936			43,317
I. Fixed assets		47,774			40,256
1. Tangible fixed assets		44,981			39,169
+ Original cost		58,147			47,091
+ Accumulated depreciation value		-13,166			-7,922
2. Financial leasing fixed assets		0			0
+ Original cost		0			0
+ Accumulated depreciation value		0			0
3. Intangible fixed assets		2,793			1,087
+ Original cost		3,150			1,087
+ Accumulated depreciation value		-357			0
II. Long term investment		80			50
1. Long-term securities investment		80			50
2. Joint-venture capital contribution		0			0
3. Other long-term investment		0			0
4. Provision for long-term investment devaluation		0			0
III. Capital construction in process		3,082			3,011
IV. Other		0			0
TOTAL ASSETS		230,235			194,875
LIABILITIES
A. Payable loans		209,329			177,429
I. Short term payables		182,599			149,938
1. Short-term borrowings		121,836			83,159
2. Due long-term liabilities		0			0
3. Payables to supplier		34,989			48,690
4. Prepayment of buyer		1,751			2,722
5. Taxes and accounts dutiable		1,402			1,049
6. Employee payments		2,734			3,635
7. Internal payables		0			0
8. Other payables		19,887			10,683
II. Long term loans		26,296			27,063
1. Long-term borrowings		26,296			27,063
2. Long-term payables		0			0
III. Other payables		434			428
1. Payable expenses		166			166
2. Pending assets		0			0
3. Receipts long-term collateral and deposit		268			262
B. Owner’s Equity:		20,906			17,446
I. Capital and Funds		20,825			16,449
1. Working capital		11,672			11,322
2. Differences from asset revaluation		0			0
3. Exchange rate differences		0			0
4. Development investment funds		3,164			2,408
5. Reserved funds		705			445
6. Retained profit		0			0
7. Construction capital sources		5,284			2,274
II. Other administrative and fund sources		81			997
1. Provident funds for unemployment		0			0
2. Reward and welfare funds		81			997
3. Management funds of higher level		0			0
4. Functional operation funds		0			0
5. Fund sources formed by fixed assets		0			0
TOTAL LIABILITY AND EQUITY:		230,235			194,875
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
Description				FY 2005
Total revenue				228,651
Deductions Items				5,880
- Discount				3,138
- Devaluation				26
- Return of sold goods				2,716
- Turnover tax, Luxury tax & Export tax				0
1. Net revenue				222,771
2. Cost of goods sold				193,526
3. Gross Profit				29,245
4. Sales expenses				9,593
5. Enterprise administrative expenses				11,993
6. Net income from business activities				7,659
Income from financial activities				2,054
Expenditure from financial activities				8,865
7. Net income from financial operation				-6,811
Irregular income				2,784
Irregular expenditure				15
8. Irregular Profit				2,769
9. Total pre-tax profit				3,617
10. Income tax				1,013
11. After tax profit				2,604
FINANCIAL FACTORS
Description				FY 2005
Current liquidity ratio				1.20
Quick Liquidity ratio				0.60
Inventory circle				2.41
Average receive period				142.21
Utilizing Asset Performance				1.14
Liability/ Total Asset (%)				91.05
Liability/ Owner's equity (%)				848.70
Income before tax/ Total asset (%) ROA				1.86
Income before tax/ Owner's equity (%) ROE				17.30
Gross Profit / Total revenue (%) GPM				12.79
Income before tax/ Total revenue (%) NPM				1.58
INTERPRETATION ON THE SCORES
Pymepharco, which has abbreviated name of PMP LABS has just been equitized under the decision number of 242/QD-UBND February 10^th, 2006 by People’s Committee of Phu Yen Province with the business registration number 3603000168 issued on May 3^rd, 2006. Formerly, its transaction name was Phu Yen Medical Equipment Pharmaceutical Company. The subject’s main business functions are manufacturing and trading in pharmaceutical and medical equipments. At the beginning of October of 2003, the subject’s plant was gained GMP standard and formally started operation with 3 workshops Beta-lactan, Non-beta lactam and soft capsule. It has effective operation, which attained WHO-GMP with nearly 140 kinds of products. The change of administrative structure has brought the subject advantages for mobilizing capital, expanding capacity and business scale, which lead the subject to improve the company as EU-GMP standard. The subject is now expanding its distribution agents in domestic market as well exterior market, building the effective strategy and market share and increasing the business operation professionally. Currently, the subject’s market share is stretching all over Vietnam, especially in Mekong Delta, Central of Vietnam and Northern provinces. It is building an injectable drug plant and R&D of Stada Company of Germany in Vietnam. Pymepharco is now processing to complete procedure for building International Hospital in Phu Yen province. It has 300 billion VND investment capital with about 250 sick-bed. This hospital will be operated in 2009. During history, the subject has attained many progresses such as golden cup for quality in 2005 and 2006 and golden cup for prestige trademark in 2006 and 2007. The subject is now on the way of development. It is needed to improve management capability to have stable standing and compete with others strong producers in the industry.
The company has ADEQUATE capacity to meet financial commitments.

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