MIRA INFORM REPORT

Report Date :

15.02.2008

IDENTIFICATION DETAILS

Name :	HO CHI MINH MEDICAL IMPORT - EXPORT JOINT STOCK COMPANY
Registered Office :	No.181 Nguyen Dinh Chieu Str, Ward 6, Dist 3, Hochiminh city
Country :	Vietnam
Financials (as on) :	31/12/2006
Date of Incorporation :	1984
Legal Form :	Joint Stock Company
Line of Business :	Medical equipment for hospitals and healthcare service such as Mri, Cobalt c60, CT scanners, Ventilators, Anesthesia Appratus, Ndoscope instruments, Hematology machines, X – ray machines, UL Trasound apparatus, Surgical microscopes, Ambulances, etc .

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
English Name		HOCHIMINH MEDICAL IMPORT - EXPORT JOINT STOCK COMPANY
Vietnamese name		CONG TY CO PHAN XUAT NHAP KHAU Y TE THANH PHO HOCHIMINH
Trade Name		MEDICAL IMPORT EXPORT JOINT - STOCK COMPANY OF HO CHI MINH CITY
Abbreviated Name		YTECO
Founded		1984
Current type of business		Joint Stock Company
Former type of business		State Owned Enterprise
Establishment Decision		No.106/QD
Date of issuance		March 22^nd, 1993
Place of issuance		Ministry of Health
Former Business Registration		No.102509
Date of issuance		March 30^th, 1993
Place of issuance		Planning and Investment Department of Hochiminh City
Equitization date		August 01^st, 2001
Current Business Registration		No. 4103000534
Date of issuance		August 01^st, 2001
Place of Issuance		Planning and Investment Department of Hochiminh City
Current Registered Capital		28,000,000,000 VND
Former Registered Capital		14,903,800,000 VND
Tax Code		0302366480
Total Employees		176 employees
Qualification		Fairly Good
ADDRESSES
Head office
Address	No.181 Nguyen Dinh Chieu Str, Ward 6, Dist 3, Hochiminh city
Country	Vietnam
Tel	(84-8) 9304372 / 9304014 / 9330536 / 9330190
Fax	(84-8) 9306909 / 9330188
Email	yteco-hcm@yteco.com.vn
Website	www.yteco.com.vn
Hanoi Branch
Address	No.9, alley 97/24 Van Cao Str, Lieu Giai Ward, Ba Dinh Dist, Hanoi City
Tel	(84-4) 7617127
Fax	(84-4) 5374533
Business Registration	0113800134
Issued on	October 17^th 2001
Issued by	Planning and Investment Department of Hanoi City
Legal Representative	Ms. Dinh Kim Trang
Da Nang Branch
Current Address	No. 146 Quang Trung Str, Da Nang City
Former Address	No. 271A Dong Da Str, Hai Chau Dist, Da Nang City
Tel	(84-511) 3889776
Email	yteco_dn@yteco.vn
Business Registration	3213001119
Issued on	August 11^th 2006
Issued by	Planning and Investment Department of Danang City
Operation Started date	September 15^th 2006
Director	Ms. Le Huong Ly
Can Tho Branch
Address	69 Cach Mang Thang 8 Str, An Hoa Ward, Ninh Kieu Dist, Can Tho City
Tel	(84-71) 766271
Fax	(84-71) 766272
Business Registration	5713000271
Issued on	November 28^th 2006
Issued by	Planning and Investment Department of Can Tho City
Operation Started date	January 2^nd 2007
Director	Mr. Nguyen Hoang Quan
Hau Giang Branch
Address	No. 98, KV 1, Ward 7, Hau Giang Province
Tel	(84-71) 234213
Business Registration	6413000032
Issued on	August 10^th, 2007
Operation Started date	August 1^st, 2007
Legal Representation	Ms. Nguyen Ngoc To Quyen
ID Number	024078605
Quy Nhon Branch
Address	No. 297 A Nguyen Hue Str, Quy Nhon City, Binh Dinh Province
Tel	(84-56) 829 797
Business Registration	3513000176
Issued on	December 2^nd, 2007
Issued by	Planning and Investment Department of Binh Dinh Province
Operation Started date	December 15^th, 2007
Legal Representation	Mr. Pham Truong Xuan
ID Number	215138901
DIRECTORS
1. NAME	Mr. VU KHANH
Position	Chairman
Qualification	Associate Professor, Pharmacist
Resident	139 Ham Nghi Str, Nguyen Thai Binh Ward, Dist 1, Hochiminh City
Nationality	Vietnamese
2. NAME	Mr. LE THIEN PHUOC
Position	Managing Director
Qualification	Pharmacist
Date of birth	September 5^th, 1946
ID No.	0215899226
Issued on	May 22^nd 1994
Issued by	Police Station of Hochiminh City
Resident	187/11 Co Giang Str, Co Giang Ward, Dist 1, Hochiminh city
Nationality	Vietnamese
3. NAME	Mr. NGUYEN HAI HA
Position	Chief Accountant
Qualification	BA
Resident	Hochiminh City
Nationality	Vietnamese
4. NAME	Mrs. NGUYEN THI DIEU TRINH
Position	Deputy Director (International Trade)
Qualification	Pharmacist
Resident	Hochiminh City
Nationality	Vietnamese
5. NAME	Mr. TRINH DAO CUNG
Position	Deputy Director (Revenue Department)
Qualification	Pharmacist
Resident	Hochiminh City
Nationality	Vietnamese
6. NAME	Mr. TRAN CAO SON
Position	Assistant of Revenue Deputy Director
Qualification	Bachelor
Resident	Hochiminh City
Nationality	Vietnamese
BUSINESS NATURE AND ACTIVITIES
YTECO trades in the following medical commodities:
§ Medical equipment for hospitals and healthcare service such as Mri, Cobalt c60, CT scanners, Ventilators, Anesthesia Appratus, Ndoscope instruments, Hematology machines, X – ray machines, UL Trasound apparatus, Surgical microscopes, Ambulances, etc ... § Pharmaceutical finished products (imported and domestic products) permitted to circulate in the country by the ministry of health of Vietnam. § All kinds of vaccines, diagnostic and preventive products. § All kinds of medical supplies such as syringes, needles, surgikl threads, infusion sets, sphygmomanometers etc... § Many kinds of raw - materials and ingredients, machinery and equipment used in pharmaceutical factories. § Biological products and chemical reagents. § Advertising services, trading goods agent.
IMPORT & EXPORT ACTIVITIES
IMPORT: The Subject imports medical equipment, pharmaceutical, raw materials and ingredients, machinery and equipment from Japanese, American, France, Thailand, Singapore, Korea…It also imports ABBOT powder milk from USA.
EXPORT: The Subject exports products to Laos and Cambodia.
BANKERS
1. VIETCOMBANK BRANCH IN HOCHIMINH CITY
Address			No.29 Ben Chuong Duong Str, Dist 1, Hochiminh City
Tel			(84- 8) 8251317
Telex			811231/5 VCB – VT
Facsimile			(84-8) 8297228
Subject’s account No.			0071370082167 (USD) 0071000005663 (VND)
2. EXIMBANK HOCHIMINH
Address			No. 7 Le Thi Hong Gam Str, Dist 1, Hochiminh City
Tel			(84-8) 8210055
Fax No			(84-8) 8296063
3. INCOMBANK BRANCH IN HOCHIMINH CITY
Address			No.79 Ham Nghi Str, Dist 1, Hochiminh City
Tel			(84- 8) 8295343
Fax			(84- 8) 8295342
Telex			813158 ACB – VT
4. 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
5. VIETNAM MARITIME COMMERCIAL STOCK BANK (MARITIME BANK)
Address			No. 26 - 28 Hai Ba Trung Str, Ben Nghe Ward, Dist 1, Hochiminh City
Tel			(84-8) 8222177
Fax			(84-8) 8222144
Telex			813047MSBHCMVT
Swift			MCOBVNVX003
6. VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Address			No. 50 Ben Chuong Duong Str, Dist 1, Hochiminh City
Country			Vietnam
Tel			(84-8) 8222752 - 8295434
Fax			(84-8) 8294063
Swift			VBAAVNVX
SHAREHOLDERS
The Subject changed from a State owned company to a Medical Import – Export Joint Stock Company (YTECO) on August 1^st, 2001. Following is the subject’s current shareholders:
Current shareholders
The State share	51 percent
Shares	142,800 shares
Representatives:
1. NAME	Mr. LE THIEN PHUOC
Position	Managing Director
Resident	No. 187/11 Co Giang Str, Co Giang Ward, Dist 1, Hochiminh City
Nationality	Vietnamese
2. NAME	Mr. NGUYEN XUAN CAM
Position	Deputy of Health Department of Hochiminh City
Resident	Hochiminh City
Nationality	Vietnamese
3. NAME	Mr. TRAN VAN THUNG
Position	Chief Accountant of SAPHARCO
Resident	Hochiminh City
Nationality	Vietnamese
4. NAME	Mrs. DUONG THI XUAN HA
Position	Staff of International Trade Department
Qualification	Pharmacist
Resident	No. 68/14 Bui Thi Xuan Str, Ward 12, Tan Binh Dist, Hochiminh city
Nationality	Vietnamese
Private shares	49 percent
Shares	137,200 shares
Former Shareholders
The State share	29 percent
Shares	81,200 shares
Value	8,120,000,000 VND
Representatives:
1. NAME	Mr. HUYNH KIM HOANG
Position	Former Director
Representative	Mr. Huynh Kim Hoang and Mrs. Nguyen Thi Quoc Linh
Resident	245/19 Cach Mang Thang Tam St, Ward 7, Tan Binh Dist, Hochiminh City
Nationality	Vietnamese
2. NAME	Mrs. NGUYEN THI QUOC LINH
Position	Former Chief Accountant
Resident	93 Bui Dinh Tuy Str, Binh Thanh Dist, Hochiminh city
Nationality	Vietnamese
Private shares	71 percent
Representative:
1. NAME	Mrs. DUONG THI XUAN HA
Position	Staff of International Trade Department
Qualification	Pharmacist
Resident	No. 68/14 Bui Thi Xuan Str, Ward 12, Tan Binh Dist, Hochiminh city
Nationality	Vietnamese
Shares	3,500 shares
Values	350,000,000 VND
2. NAME	Mr. LE THIEN PHUOC
Position	Managing Director
Resident	No. 187/11 Co Giang Str, Co Giang Ward, Dist 1, Hochiminh City
Nationality	Vietnamese
Shares	700 shares
Values	70,000,000 VND
3. NAME	Mr. VU KHANH
Position	Chairman
Qualification	Associate Professor, Pharmacist
Resident	139 Ham Nghi Str, Nguyen Thai Binh Ward, Dist 1, Hochiminh City
Nationality	Vietnamese
Shares	500 shares
Values	50,000,000 VND
4. NAME	Mr. PHAN DUC BINH
Position	Shareholder
Resident	152/7 Ly Chinh Thang Str, Distt 3, Hochiminh City
Nationality	Vietnamese
Shares	700 shares
Values	70,000,000 VND
5. NAME	Mrs. DU MY HANH
Position	Former Deputy Director
Qualification	Pharmacist
Resident	18B/27/23, Ba Thang Hai Str, Ward 12, Dist 10, Hochiminh city
Nationality	Vietnamese
Shares	3,500 shares
Values	350,000,000 VND
And other 469 shareholders:
Shares	189,900 shares
Values	18,990,000,000 VND
PAYMENT HISTORY AND EXPERIENCES
Trade Morality	Average
Liquidity	Normal
Previous Payments	Fairly prompt
Current Payment status	Normal
Past Financial Situation	Normal
Current Financial Situation	Normal
Legal Action	Recorded
Bankruptcy	Near bankruptcy if there is no State’s hand
Mode of Payment	Domestic remittance in cash or banking transfer international payment by letter of credit (l/c), d/a, d/p, telegraphic transfer (t/t) or goods exchange.
FINANCIAL DATA
BALANCE SHEET
Unit: VND
Balance Sheet Date				31/12/2006
Number of Weeks				52
ASSETS
A. Working assets & short-term Investment				156,975,499,703
I. Cash and cash equivalents				9,165,396,458
1. Cash				9,165,396,458
2. Cash equivalents				0
II. Short-term investment				10,000,000,000
1. Short-term securities investment				10,000,000,000
2. Other short-term investment
III. Receivables				71,880,802,333
1. Receivables from customers				68,185,072,030
2. Prepayment for providers				2,143,566,403
3. Value-added tax deducted				0
4. Internal receivables				0
5. Other receivables				2,350,317,816
6. Provision for bad receivables				-798,153,916
IV. Inventory				46,044,121,089
1. Purchased goods in transit				47,266,844,257
2. Raw materials				-1,222,723,168
3. Instrument, tools				0
4. Cost for production and business in process				0
5. End products				0
6. Goods				0
7. Goods on consignment				0
8. Provision for devaluation of stocks				0
V. Other current assets				19,885,179,823
1. Advances				14,500,003
2. Prepaid expenses				608,417,944
3. Pending expenses for transfer				19,262,261,876
4. Pending assets				0
5. Mortgage, collateral and short run collateral				0
VI. Administrative				0
1. Administrative expenses for previous year				0
2. Administrative expenses for current year				0
B. Fixed assets & Long term investment				6,868,166,998
I. Fixed assets				5,746,904,788
1. Tangible fixed assets				4,387,640,278
+ Original cost				8,318,772,916
+ Accumulated depreciation value				3,931,132,638
2. Financial leasing fixed assets				505,782,680
+ Original cost				523,136,640
+ Accumulated depreciation value				17,353,960
3. Intangible fixed assets				769,818,194
+ Original cost				1,689,023,600
+ Accumulated depreciation value				919,205,406
4. Construction in progress				83,663,636
II. Investment property				396,119,365
1. History costs				870,771,720
2. Accumulated depreciation				-474,652,355
III. Long term investment				91,600,000
1. Long-term securities investment				0
2. Joint-venture capital contribution				0
3. Other long-term investment				91,600,000
4. Provision for long-term investment devaluation				0
V. Capital construction in process				0
VI. Other				633,542,845
TOTAL ASSETS				163843666701
LIABILITIES
A. Payable loans				127,437,804,121
I. Short term payables				125,717,269,225
1. Short-term borrowings				9,038,557,660
2. Due long-term liabilities				89,906,441,181
3. Payables to supplier				18,838,355,918
4. Prepayment of buyer				1,029,707,700
5. Taxes and accounts dutiable				0
6. Employee payments				94,442,000
7. Internal payables				0
8. Other payables				6,809,764,766
II. Long term loans				1,720,534,896
1. Long-term borrowings				1,474,886,400
2. Long-term payables				245,648,496
III. Other payables				0
1. Payable expenses				0
2. Pending assets				0
3. Receipts long-term collateral and deposit				0
B. Owner’s Equity				36,405,862,580
I. Capital and Funds				35,429,578,921
1. Working capital				28,000,000,000
2. Differences from asset revaluation				0
3. Exchange rate differences				0
4. Development investment funds				4,524,144,403
5. Reserved funds				1,167,982,923
6. Retained profit				0
7. Construction capital sources				1,737,451,595
II. Other administrative and fund sources				976,283,659
1. Provident funds for unemployment				976,283,659
2. Reward and welfare funds				0
3. Management funds of higher level				0
4. Functional operation funds				0
5. Fund sources formed by fixed assets				0
TOTAL LIABILITY AND EQUITY				163,843,666,701
PROFIT & LOSS ACCOUNT
Description				FY 2006
1. Revenue				174,517,583,831
2. Deductions				3,998,129,917
3. Net revenue				170,519,453,914
4. Costs of goods sold				157,401,700,268
5. Gross profit				13,117,753,646
6. Financial income				1,723,228,447
7. Financial expenses				627,872,416
- In which : Loan interest expenses				38,601,997
8. Selling expenses				4,434,279,049
9. Administrative overheads				4,384,542,665
10. Net operating profit				5,394,287,963
11. Other income				997,755,150
12. Other expenses				46,286,406
13. Other profits				951,468,744
14. Profit (loss) before tax				6,345,756,707
15. Current Income tax				1,870,321,842
16. Delayed Income Tax				0
17. Profit (loss) after tax				4,475,434,865
FINANCIAL FACTORS
Description				2006
Current Liquidity Ratio				1.25
Quick Liquidity Ratio				0.88
Inventory Circle				3.42
Average Receivable Period (days)				153.86
Utilizing Asset performance				1.04
Liabilities / Total Assets (%)				77.78
Liabilities / Owner’s Equity (%)				350.05
Income before tax/ Total assets (%) ROA				3.87
Income before tax / Owner’s Equity (%) ROE				17.43
Income before tax/ Total revenues (%) NPM				3.64
Gross profit/total revenue (%) GPM				7.52
INTERPRETATION ON THE SCORES
YTECO is now a Joint Stock Company. Originally, it was a State Owned Enterprise that was established in 1984. YTECO was equitized to be joint-stock company since 2001 with legal capital of 28 billion VND, in which the state holds 29 percents. Since June 12^th, 2005, the state has bought back shares from private shareholders to raise its capital from 29 percents to 51 percents. Position of YTECO in inland pharmaceutical market is remarkable because YTECO is one of the several authorized importers of foreign pharmaceuticals. According to the investigations, the subject has involved in the illegal import of 6.5 million USD worth of pharmaceuticals. YTECO altered allotted imported quota volumes, imported unlicensed medicines, and purchased controlled substances, which are excluded from Vietnam's list of drugs permitted for import according to the HCM city customs department's post-customs investigative team. YTECO subverted authorities to import nearly 50,000 kg of medical goods. Thousands of vaccine doses were also imported into the country, including over 17,600 doses of OKAVAX, 10,600 doses over the legal import limit. People related in the case have been dismissed and judged by the authority. The company's illegal activity caused instability on the price of drugs in Hochiminh city and nationwide. Because of mistakes in operation, YTECO has been stopped approving for material and medicine import from November 2004. Since YTECO illegal action’s foundation, loan accounts of the subject at bankers has been blockaded. More than 80 percent of suppliers and customers have stopped businesses with YTECO. And the subject’s operation has fallen to crisis. In the first two months of 2005, YTECO has lost more than 02 billion VND. YTECO is nearly put into bankruptcy. With the effort of saving YTECO, the state bought shares from private shareholders. Now, the state holds 51 percent of YTECO’s stakes. Key position in YTECO has been assigned by the state. Since this re-organization, YTECO’s information seems to be more obvious on mass communications. Its business is gradually improved and stabilized. However, YTECO still needs more times for overcome these difficulties. Up to now, the subject has some good signals in its operation. The subject is trying its own best to restore its prestige. Total revenue and profit of the subject in 2006 is fairly good and it is really busy now. In general, the subject activities return normal now and its operation is on the medium scale. Its current financial situation is fair. The subject has capacity to meet financial commitments. But caution needed for the normal and big business transactions.
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