MIRA INFORM REPORT

Report Date :

13.03.2008

IDENTIFICATION DETAILS

Name :	S.P.M JOINT STOCK COMPANY
Formerly Known As :	S.P.M COMPANY LIMITED
Registered Office :	Lot 51, Street 02^nd, Tan Tao Industrial Park, Tan Tao Ward, Binh Tan Dist, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2005
Date of Incorporation :	12.02.2007
Com. Reg. No.:	4103006089
Legal Form :	Liability Limited Company
Line of Business :	Producing Pharmaceutical of 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

Maximum Credit Limit :	USD 500,000
Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM

Current English Name	S.P.M JOINT STOCK COMPANY
Current Vietnamese Name	CONG TY CO PHAN S.P.M
Current Trade Name	S.P.M CORPORATION
Former English Name	S.P.M COMPANY LIMITED
Former Vietnamese Name	CONG TY TNHH S.P.M
Former Trade Name	S.P.M CO., LTD
Founded	2001
Current Type of Business	Joint Stock Company
Former Type of Business	Liability Limited Company
Current Business registration	4103006089
Issued on	February 12^th 2007
Issued by	Planning and Investment Department of Hochiminh City
Former Business registration	No.4102004241
Issued on	March 26^th, 2001
Issued by	Planning and Investment Department of Hochiminh City
Current Registered Capital	100,000,000,000 VND
Former registered Capital	50,000,000,000 VND
Tax code	0302271207
Total Employees	250 employees of the company
Qualification	Average
Note: The subject has changed into joint stock company on February 12^th 2007. Currently, the subject has increased registered capital up to 100 billion VND.

ADDRESSES

Head Office
Address	Lot 51, Street 02^nd, Tan Tao Industrial Park, Tan Tao Ward, Binh Tan Dist, Hochiminh city
Tel	(84-8) 7507496 / 8771002
Fax	(84-8) 8771010
Email	info@spm.com.vn
Website	www.spm.com.vn this website is now construction
Note: At this location, there is another company named Saigon Pharma Co., Ltd operating at the same above address, same phone/fax numbers. S.P.M CO., LTD is operating as a subsidiary of Saigon Pharma Co., ltd. (S.P.M Co., Ltd specializes in producing pharmaceutical products while Saigon Pharma Co., Ltd specializes in trading in pharmaceutical products). Following is general understanding of Saigon Pharma:
English Name		SAIGON PHARMA COMPANY LIMITED
Vietnamese name		CONG TY TNHH DUOC PHAM DO THANH
Trade Name		SAIGON PHARMA CO., LTD
Type of Business		Limited Liability Company
Founded		1988
Established Decision		No. 1443/GP-UB
Date of Issuance		July 04th 1995
Place of Issuance		People’s Committee of HoChiMinh City
Business Registration		No. 052407
Date of Issuance		July 25th 1995
Place of Issuance		Planning and Investment Department of HoChiMinh City
Registered Capital		50,000,000,000 VND
Tax Code		0301160832
Total Employees		616 employees of the company.
Qualification		Fairly good
Transaction Office:
Address	781/A11 Le Hong Phong Str, Dist 10, Hochiminh city
Country	Vietnam
Tel	(84-8) 8623747
Fax	(84-8) 8623748

DIRECTORS

1. NAME	Mr. NGUYEN THE KY
Position	General Director
Born	June 15^th, 1944
Qualification	Pharmacist
ID No	021702806
Issued on	January 14^th, 1997
Issued by	Police Station of Hochiminh City
Resident	No. 96A/3 Truong Vinh Ky Str, Ward 17, Tan Binh Dist, Hochiminh city.
Nationality	Vietnamese
2. NAME	Mr. DAO HUU HOANG
Position	President
Qualification	Doctor of Medicine
ID No	021552391
Resident	No. 601 National Road No.1, An Lac Commune, Binh Chanh Dist, Hochiminh City
Nationality	Vietnamese
Note : Mr. Dao Huu Hoang is also director of Sai Gon Pharma Co., Ltd.
3. NAME	Ms. LE THI THACH THAO
Position	Foreign – Sales
Resident	Hochiminh City
Nationality	Vietnamese
Email	Thao.ltt@spm.com.vn
Hand phone	++84 986073458

BUSINESS NATURE AND ACTIVITIES

The subject is specializing in producing pharmaceutical of products.

Registered trading items:

• Producing and trading in pharmaceutical products, cosmetics and food.
• Services of offices, houses and warehouses.

• Real estate agent.

IMPORT & EXPORT ACTIVITIES

IMPORT: The principal materials source of the subject comes from France, Japan, Germany, Switzerland, Spain, Italy, USA, Canada, India, Korea, Taiwan, China, Malaysia and Thailand.

EXPORT: Subject’s products are exported Myanmar and Laos, Philippines, Thailand, Taiwan, and USA

BANKERS

1. INDUSTRIAL AND COMMERCIAL BANK OF VIETNAM (INCOMBANK) TAN TAO BRANCH
Address	Tan Tao Industrial Park, Tan Tao Village, Binh Chanh Dist, Hochiminh City
Country	Vietnam
Tel	(84-8) 7505376
Fax	(84-8) 7505363
2. VIETNAM BANK FOR FOREIGN TRADE (VIETCOMBANK)
Address	No.29 Ben Chuong Duong Str, Hochiminh City
Country	Vietnam
Tel	(84-8) 8251317
Fax	(84-8) 8297228
Telex	811234/5 VVB-VT
Swift	BFTVVBVX 007
3. SGN COMMERCIAL JOINT STOCK BANK (SACOMBANK)
Address	No.275 Nam Ky Khoi Nghia Str, Ward 8, Dist 3, Hochiminh city
Country	Vietnam
Tel	(84-4) 9320420 - 9320643
Fax	(84-4) 9322488
Telex	813603SGTT/VT
Swift	SGTTVNVX

SHAREHOLDER (S)

1. NAME	Mr. DAO HUU HOANG
Position	President
Qualification	Doctor of Medicine
ID No	021552391
Resident	No. 601 National Road No.1, An Lac Commune, Binh Chanh Dist, Hochiminh City
Nationality	Vietnamese
Shares	51% (20.4% common share and 30.6% preference share)
Values	51,000,000,000 VND
2. NAME		Ms. DO THI MAI
Position		Shareholder
ID No		151307836
Resident		No.57, 15^th Group, Khuong Trung Ward, Thanh Xuan Dist, Hanoi City
Nationality		Vietnamese
Shares		20% (8% common share and 12% preference share)
Values		20,000,000,000 VND
3. NAME		Ms. NGUYEN THI QUYNH HUONG
ID No		022250789
Resident		D17/27A2 Khu Pho 13, Binh Tri Dong Ward, Binh Thanh Dist, Hochiminh City
Nationality		Vietnamese
Shares		18% (7.2% common share and 10.8% preference share)
Values		18,000,000,000 VND
4. NAME		Ms. DAO THI NGOC ANH
ID No		021552412
Resident		271 Nguyen son, Phu Thanh Str, Tan Phu Dist, Hochiminh City
Nationality		Vietnamese
Shares		4% (1.6% common share and 2.4% preference share)
Values		4,000,000,000 VND
5. NAME		Mr. DAO KIEM KHUE
ID No		02152383
Resident		87/17B Phu Thanh Ward, Tan Phu Dist, Hochiminh City
Nationality		Vietnamese
Shares		3% (1.2% common share and 1.8% preference share)
Values		3,000,000,000 VND
6. NAME		Mr. DAO THI LE DIEM
ID No		022613938
Resident		87/17B Phu Thanh Ward, Tan Phu Dist, Hochiminh City
Nationality		Vietnamese
Shares		2% (0.8% common share and 1.2% preference share)
Values		2,000,000,000 VND
7. NAME		Mr. DAO HUU KHOI
ID No		022733385
Resident		87/17B Phu Thanh Ward, Tan Phu Dist, Hochiminh City
Nationality		Vietnamese
Shares		2% (0.8% common share and 1.2% preference share)
Values		2,000,000,000 VND

PAYMENT HISTORY AND EXPERIENCES

Trade Morality	Normal
Liquidity	Fairly good
Current Payment Status	Average
Current Financial Situation	Fairly good
Legal Action	No recorded
Bankruptcy	No recorded
Reputation	Normal
Mode of Payment	Direct payment or through its corresponding bank. Foreign remittance by letter of credit (L/C), DA term, by telegraphic transfer (T/T) or barter.
Sales methods	Most of the subject products are distributed by SAIGON PHARMA CO., LTD

FINANCIAL DATA

The Subject’s completed financial statement is not available. Following are financial highlights of 2006:
Unit: 1,000,000 VND
Description			2006
Current assets & Short term Investment			92,326
Fixed assets and long-term investment			43,698
Total Assets			136,024
Payable			41,216
Owner’s Equity			94,808
Total Liability and Equity			136,024
Total Revenue			145,660
Deduction items			3,795
Net Revenue			141,865
Net Income From business Activities			44,116
Net Income From Financial Operation			-4,125
Irregular Profit			213
Total pre-tax Profit			40,204
This is full financial statements of 2005,2004,2003
BALANCE SHEET
Unit: 01VND
Balance Sheet Date	31/12/2005	31/12/2004		31/12/2003
Number of Weeks	52	52		52
ASSETS
A. Current assets & Short term Investment	75,206,111,581	43,570,459,331		25,990,257,051
I. Cash and cash equivalents	564,274,952	2,637,293,394		1,305,592,931
II. Short term investment		0		0
III. Receivables	45,138,704,730	20,157,782,298		3,385,808,230
1. Receivables from customers	45,016,992,746	17,465,179,124		849,549,796
2. Prepaid for providers		0		0
3. Value-added tax deducted		2,587,430,447		2,536,258,434
4. Internal receivables		0		0
5. Other receivables	121,711,984	0		0
6. Provision for bad receivables		105,172,727		0
IV. Inventory	27,347,972,448	20,775,383,639		21,298,855,890
1. Purchased goods in transit	27,347,972,448	0		0
2. Inventory raw materials		0		0
3. Inventory appliance		0		0
4. Cost for production and business in process		0		0
5. Inventory finished products		0		0
6. Inventory cargoes		20,775,383,639		21,298,855,890
7. Entrusted goods for sale		0		0
8. Provision for devaluation of stocks		0		0
V. Other current assets	2,155,159,451	0		0
1. Advances	751,803,407	0		0
2. Prepaid expenses	1,279,998,820	0		0
3. Pending expenses for transfer	123,357,224	0		0
4. Pending assets	0	0		0
5. Hypothecation, collateral and short run collateral	0	0		0
VI. Administrative	0	0		0
B. Fixed assets & Long term investment	42,689,808,788	43,326,472,095		36,647,620,668
I. Fixed assets	41,806,580,686	42,630,293,801		36,632,995,492
1. Tangible fixed assets	35,468,747,573	42,630,293,801		36,632,995,492
+ Original cost	45,066,605,644	49,372,747,054		39,738,608,196
+ Accumulated depreciation value	9,597,858,071	-6,742,453,253		-3,105,612,704
2. Fixed assets of financing credit		0		0
+ Original cost		0		0
+ Accumulated depreciation value		0		0
3. Intangible fixed assets	6,337,833,113	0		0
+ Original cost	6,964,616,493	0		0
+ Accumulated depreciation value	626,783,380	0		0
II. Long term investment	0	0		0
1. Long-term securities investment	0	0		0
2. Joint-venture capital contribution	0	0		0
3. Other long-term investment	0	0		0
4. Provision for long-term investment devaluation	0	0		0
III. Capital construction in process	883,228,102	0		0
IV. Other	0	696,178,294		14,625,176
TOTAL ASSETS	117,895,920,369	86,896,931,426		62,637,877,719
LIABILITIES
A. Payables	53,538,487,567	47,811,936,009		44,564,931,076
I. Short term payables	34,035,499,509	19,688,947,951		20,314,931,076
1. Short-term borrowings		17,307,021,516		9,206,870,862
2. Due long-term liabilities		0		0
3. Payable to seller		2,123,667,602		10,500,163,160
4. Prepaid buyer		0		0
5. Taxes and accounts dutiable		258,258,833		542,348,163
6. Employee payments		0		0
7. Internal payments		0		0
8. Other payables		0		65,548,891
II. Long term payables	19,502,988,058	28,122,988,058		24,250,000,000
1. Long-term borrowing		5,380,000,000		7,900,000,000
2. Long-term loans		22,742,988,058		16,350,000,000
III. Other liabilities	0	0		0
1. Disbursement payable	0	0		0
2. Pending assets	0	0		0
3. Receipts long-term collateral and deposit	0	0		0
B. Owner’s Equity	64,357,432,802	39,084,995,417		18,072,946,643
I. Capital and Funds	64,357,432,802	39,084,995,417		18,072,946,643
1. Working capital	20,000,000,000	20,000,000,000		20,000,000,000
2. Differences from assets revaluation	0	0		0
3. Exchange rate differences	0	0		11,625,980
4. Business development fund	0	0		0
5. Reserved fund	0	0		0
6. Retained profit	44,357,432,802	19,084,995,417		-1,938,679,337
7. Construction capital sources	0	0		0
II. Other administrative and fund sources	0	0		0
1. Provident funds for unemployment	0	0		0
2. Welfare and reward funds	0	0		0
3. Management funds of higher level	0	0		0
4. Functional operation funds	0	0		0
5. Fund sources formed by fixed assets	0	0		0
TOTAL LIABILITY AND EQUITY	117,895,920,369	86,896,931,426		62,637,877,719
PROFIT & LOSE ACCOUNTS
Description	FY 2005	FY 2004		FY 2003
Total revenue	119,218,394,713	104,407,518,005		34,748,795,291
Deductions Items	2,796,108,717	0		0
1. Net revenue	116,422,285,996	104,407,518,005		34,748,795,291
2. Original rate of goods for sale	59,804,747,812	60,443,036,419		26,694,651,953
3. Combined Profit	56,617,538,184	43,964,481,586		8,054,143,338
4. Sales costs	22,726,942,131	0		0
5. Enterprise administrative costs	3,475,563,358	18,570,584,999		4,778,816,470
6. Net income from business activity	25,053,211,088	25,393,896,587		3,275,326,868
Income from financial activities	13,903,945	0		0
Costs for financial activities	5,375,725,552	5,307,870,286		4,580,312,777
7. Net income from financial operation	5,361,821,607	-5,307,870,286		-4,580,312,777
Irregular income	410,078,564	0		0
Irregular expenditure	144,229,913	23,297,784		5,089,168
8. Irregular Profit	265,848,651	-23,297,784		-5,089,168
9. Total pre-tax profit	25,319,059,739	20,062,728,517		-1,310,075,077
10. Income tax	46,622,353	64,555,030		0
11. After tax profit	25,272,437,386	19,998,173,487		-1,310,075,077
FINANCIAL FACTORS
Description	2005	2004		2003
Current Liquidity Ratio	2.21	2.21		1.28
Quick Liquidity Ratio	1.41	1.16		0.23
Inventory Circle	2.49	2.87		1.25
Average Receivable Period (days)	141.52	70.47		35.56
Utilizing Asset performance	0.99	1.20		0.55
Liabilities / Total Assets (%)	45.41	55.02		71.15
Liabilities / Owner’s Equity (%)	83.19	122.33		246.58
Income before tax / Owner’s Equity (%) ROE	21.48	23.09		-2.09
Income before tax/Total revenues (%) NPM	39.34	51.33		-7.25
Income before tax/Total assets (%) ROA	21.24	19.22		-3.77
Gross Profit / Total revenue (%) GPM	47.49	42.11		23.18
INTERPRETATION ON THE SCORES
S.P.M originally was a Liability Limited Company, established in 2001. The subject’s factory was started on June 16^th 2001 and its construction finished on April 15^th 2002 with the total investment of 40,350,000,000 VND. The subject has increased registered capital up to 100 billion in 2007. Currently, My Vita Nutri product of S.P.M is strongest trading in Vietnam market. The subject specializes in producing pharmaceutical products. Since February 2007, the subject has been changed its business type to joint stock company. Owners of S.P.M came from the managing board of Saigon Pharmaceutical Company (Sapharco-Cong Ty Duoc Pham Thanh Pho). In 1995, Mr. Dao Huu Hoang and Mr. Nguyen The Ky established their own company named Saigon Pharma Co., ltd (Cong Ty Tnhh Duoc Pham Do Thanh). In 2001, to produce pharmaceutical products, owners of Saigon Pharma Co., ltd established a factory. This factory has name of S.P.M Co., ltd. On legal document, Saigon Pharma Co., ltd and S.P.M Co., ltd are independent entities but S.P.M Co., ltd is really operating as a subsidiary of Saigon Pharma Co., ltd. Currently, Saigon Pharma Co., ltd and S.P.M co., ltd are locating at the same address and using the same phone/fax numbers. Their transaction office is at 781/A11 Le Hong Phong Str, Dist 10, Hochiminh city. The subject specializes in producing pharmaceutical products while Saigon Pharma Co., ltd specializes in trading in pharmaceutical products. Most of the subject’s products are distributed by Saigon Pharma Co., ltd. Currently, the subject has produced about 45 products, there are some well- known bands of SPM: My Vita, Para, Enpovid C, Betophy, Superton, NutriGinsen and Adofex. The principal materials source of the subject comes from France, Germany, Switzerland, Spain, Italy, USA, Canada, India, Korea, Taiwan, China, Malaysia and Thailand. Established since 2001 with good support from its parent company, which has gained a good market share and established a distribution system in 55 provinces all over the country. Currently, the subject has planned export products to EU market and some development countries in Asia such as: China, Taiwan and Singapore. The S.P.M products gained 3 standards: GMP, GLP and GSP in 2002. The subject achieved the ISO 9001:2000 certificated by UKAS International quality Certificating Organization. On December 18^th 2007, The Hochiminh City Stock Exchange approved in principle the listing of shares issued by S.P.M Joint Stock Company. Following are above financial highlights, the revenue of the subject in 2006 has high increased in comparison with last year. According to financial data from subject, the revenue of the subject in 2007 is around 190 billion VND. And it planning for revenue from 2008-2012 will growth in annual turnover about 30%. The premises and facilities of the subject are fairly good. The subject factory has total area of more than 7,069 m^2. The management capacity of the subject is relatively good. The employees of the subject are qualified and skilled. They work quite effectively. The production operations of the subject are relatively busy. The position of the subject in the industry is medium. The market share of the subject is large. Competitive capability of the subject is relative. In overview, the subject is a medium sized enterprise operating relatively effectively. The GMP veterinary medicine factory of the subject is operating.
To be rated at BBB, the company has ADEQUATE capacity to meet financial commitments.
CREDIT INQUIRY: 500,000 USD
The Subject has capacity to meet this credit inquiry.

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