MIRA INFORM REPORT

Report Date :

26.03.2008

IDENTIFICATION DETAILS

Name :	CAN GIO PHARMACEUTICAL JOINT STOCK COMPANY
Registered Office :	No. 203 Dong Khoi Str, Ben Nghe Ward, Dist 1, Hochiminh City
Country :	Vietnam
Financials (as on) :	31/12/2006
Date of Incorporation :	1982
Com. Reg. No.:	4103001125
Legal Form :	Joint Stock Company
Line of Business :	Producing and trading in pharmaceutical and health instruments Producing and trading in health equipment.

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 :	No Complaints
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English Name		CAN GIO PHARMACEUTICAL JOINT STOCK COMPANY
Vietnamese Name		CONG TY CO PHAN DUOC PHAM CAN GIO
Trade name		CAN GIO PHARMACEUTICAL JOINT STOCK COMPANY
Abbreviate Name		CAGIPHARM
Former Vietnamese Name		CONG TY DUOC PHAM HUYEN CAN GIO
Former Trade Name		CAGIPHARM
Abbreviate Name		C.G.P
Founded		1982
Former Type Of Business		State Owned Enterprises
Re-organization		1993
Established Decision No		122/QD-UB
Issued on		March 24^th1993
Issued by		People's Committee of Hochiminh City
Former Business Registration		102534
Issued on		April 3^rd 1993
Current Type of Business		Joint Stock Company
Business Registration No		4103001125
Issuance on		July 31^st 2002
Issuance by		Planning and Investment Department of Hochiminh City
Registered Capital		110,000,000,000 VND
Tax code		0302664945
Total Employees		300
Qualification		Fairly Good
Note: The Subject was a Former State Owned Company. It was equitized to be joint-stock company on July 31^st, 2002. The subject has increased registration capital up to 110 billion VND in December 2007.
ADDRESSES
Head Office
Address		No. 203 Dong Khoi Str, Ben Nghe Ward, Dist 1, Hochiminh City
Country		Vietnam
Tel		(84-8) 827 5082/827 2636
Fax		(84-8) 823 3538
Email		cagipharm@hcm.vnn.vn
Website		demo.cagipharm.com.vn
Factory
Address		Lot B1-10, Tay Bac Cu Chi Industrial Park, Hochiminh City
Country		Vietnam
Tel		(84-8) 7908860
Fax		(84-8) 7908856
Business Registration No.		352/CN-KCN-HCM
Hanoi Branch:
Operation Address		No. 115/9 Nui Truc Lane, Giang Van Minh Str, Ba Dinh Dist, Ha Noi City
Registration Address		No. 9 Project- Nui Truc Lane 1, Giang Van Minh Str, Kim Ma Ward, Ba Dinh Dist, Ha Noi City
Business Registration No.		0113013168
Issuance on		July 18^th 2006
Issuance by		Planning and Investment Department of Ha Noi City
Tax code No.		0302664945-001
Tel		(84-4) 736 7573
Fax		(84-4) 736 5310
Branch Director		Ms. Nguyen Thi Dung
Can Tho Branch
Address		No. 72 B1, Tran Quang Khai Str, Cai Khe Ward, Ninh Kieu Dist, Can Tho province
Tel		(84-710) 766 979
Fax		(84-710) 768 659
Business Registration No.		5713000335
Issuance on		September 16^th 2007
Issuance by		Planning and Investment Department of Can Tho province
Tax code No.		0302664945-002
Branch Director		Mr. Nguyen Van Sau
DIRECTORS
1. NAME		Mr. LE MINH TRI
Position		Chairman
Qualification		Management
DOB		August 24^th 1961
Indent No		210152947
Resident		42/290 Hang Hoa Tham Str, Ward 7, Binh Thanh Dist
Province/City		Hochiminh City
Nationality		Vietnam
Note: Currently, Mr. Le Minh Tri is also General Director of Sai Gon Pharmaceutical Company.
2. NAME		Mr. HOANG MANG
Position		General Director
Qualification		Management
Nationality		Vietnam
3. NAME		Mr. LE XUAN KIEN
Position		Financial Director
Indent No		022061060
Resident		No. 322/245 Huynh Khuong An Str, Ward 5, Go Vap Dist
Province/City		Hochiminh City
Nationality		Vietnam
4. NAME		Ms. NGUYEN THI THU HA
Position		Accountant
Qualification		Bachelor
Resident		Ha Noi City
Currently Resident		Hochiminh City
Nationality		Vietnam
BUSINESS NATURE AND ACTIVITIES
The subject registers and operates in the following business activities:
- Producing and trading in pharmaceutical and health instruments - Producing and trading in health equipment.
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports from India, Hong Kong, France and Thailand market.
EXPORT: N/A
BANKERS
1. VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT-HCM BRANCH
Address		No. 2A Pho Duc Chinh Street, Nguyen Thai Binh Ward, District 1, Hochiminh city, Vietnam
Tel		(84-8) 8222752 - 8295434
Fax		(84-8) 8294063
Swift		VBAAVNVX
2. ASIA COMMERCIAL JOINT STOCK BANK (ACB BANK)
Address		No. 30 Mac Dinh Chi Str, Da Kao Ward, Dist 1, Hochiminh city, Vietnam
Tel		(84-8) 8243770
Fax		(84-8) 8243946
Telex		813158ACBVT
Swift		ASCBVNVX
SHAREHOLDER(S)
Following is its shareholders which was collected on March 19^th2008
I. STATE OWNED SHARES: 1.318 percent (Capital Ratio) with values: 1,450,000,000 VND)
Representative for State Shares:
1. NAME		Mr. LE MINH TRI
Position		Chairman
Qualification		Management
DOB		August 24^th 1961
Indent No		210152947
Resident		42/290 Hang Hoa Tham Str, Ward 7, Binh Thanh Dist, Hochiminh City
Nationality		Vietnamese
2. NAME		Ms. NGO THI PHI HAU
Position		Shareholder
Indent No		024042303
Resident		No. 18A/38/14 Nguyen Thi Minh KhaiStr, Da Kao Ward, Dist 1, Hochiminh city
Nationality		Vietnamese
II. PRIVATE SHARES: 6.127 percent
1. NAME		Mr. LE MINH TRI
Position		Chairman
Qualification		Management
Resident		42/290 Hang Hoa Tham Str, Ward 7, Binh Thanh Dist, Hochiminh city
DOB		August 24^th 1961
Indent No		201152947
Nationality		Vietnamese
Share		1.364%
Value		1,500,000,000 VND
2. NAME		Mr. LE XUAN KIEN
Position		Financial Director
Indent No		022061060
Resident		No. 322/245 Huynh Khuong An Str, Ward 5, Go Vap Dist, Hochiminh city
Nationality		Vietnamese
Share		1.053%
Value		1,158,000,000 VND
3. NAME		Ms. NGO THI PHI HAU
Position		Shareholder
Indent No		024042303
Resident		No. 18A/38/14 Nguyen Thi Minh KhaiStr, Da Kao Ward, Dist 1, Hochiminh city
Nationality		Vietnamese
Share		1.315%
Value		1,447,000,000 VND
4. NAME		Ms. NGUYEN THI TRANG
Position		Shareholder
Indent No		023994064
Resident		No. 126 Nguyen Van Thu Str, Da Kao Ward, Dist 1, Hochiminh city
Nationality		Vietnamese
Share		1.364%
Value		1,500,000,000 VND
5. NAME		Ms. TRAN NGOC LAN TRANG
Position		Shareholder
Indent No		240358857
Resident		No. 39/4/3 Huynh Van Banh Str, Phu Nhuan Dist, Hochiminh city
Nationality		Vietnamese
Share		1.031%
Value		1,134,600,000 VND
III. And other 80 shareholders hold 92.555 percent with the value of 101,810,400,000 VND
FINANCIAL DATA
BALANCE SHEET
Unit: 1VND
Balance sheet date				31/12/2006			31/12/2005		31/12/2004
Number of weeks				52			52		52
ASSETS
A -	CURRENT ASSETS			79,369,404,275			75,346,793,930		57,941,984,942
I.	Cash and cash equivalents			1,695,744,902			2,441,651,010		994,660,565
1.	Cash			1,695,744,902			2,441,651,010		517,008,068
2.	Cash equivalents			0					477,652,497
II.	Short-term investments			0			0		0
1.	Short-term investments			0			0		0
2.	Provisions for short-term investment of short- term investments in securities			0			0		0
III.	Accounts receivable			52,853,505,390			46,013,615,961		34,151,909,015
1.	Receivable from customers			51,617,525,300			44,644,800,447		33,561,466,518
2.	Repayments to suppliers			21,050			1
3.	Inter- company receivable			886,651,947			636,597,936		474,926,737
4.	Receivable according to the process of construction contracts			0			0		0
5.	Other receivable			349,307,093			732,217,577		115,515,760
6.	Provisions for credit risk			0			0		0
IV.	Inventories			19,690,025,970			23,728,706,322		22,729,615,762
1.	Inventories			19,690,025,970			23,728,706,322		22,729,615,762
2.	Provisions for devaluation of inventories			0			0		0
V.	Other current assets			5,130,128,013			3,162,820,637		65,799,600
1.	Short-term repaid expenses			160,000,000			-26,439,660		65,799,600
2.	Taxes receivable								0
3.	Taxes and other accounts receivable from the State			2,974,894,005			2,400,942,766		0
4.	Other current assets			1,995,234,008			788,317,531		0
B -	LONG TERM ASSETS			75,359,466,154			49,454,059,404		17,637,043,098
I.	Long term accounts receivable			0			0		0
1.	Long term accounts receivable from customers			0			0		0
2.	Long term inter- company receivable			0			0		0
3.	Other long term receivable			0			0		0
4.	Provisions for bad debts			0			0		0
II.	Fixed assets			75,283,166,154			49,377,759,404		16,083,568,628
1.	Tangible assets			1,590,082,711			1,330,335,764		1,563,963,770
	Historical costs			2,786,564,825			2,217,032,906		2,176,009,270
	Accumulated depreciation			1,196,482,114			886,697,142		612,045,500
2.	Financial leasehold assets			0			0		0
	Historical costs			0			0		0
	Accumulated depreciation			0			0		0
3.	In-tangible assets			0			0		0
	Historical costs			0			0
	Accumulated depreciation			0			0		0
4.	Construction in progress			73,693,083,443			48,047,423,640		14,519,604,858
III.	Investment property			0			0		0
	History costs			0			0		0
	Accumulated depreciation			0			0		0
IV.	Long term investments			76,300,000			76,300,000		60,000,000
1.	Investments in affiliates			0			0		0
2.	Investments in business concerns and joint ventures			0			0		0
3.	Other long term investments			76,300,000			76,300,000		60,000,000
4.	Provisions for devaluation of investments in securities			0			0		0
V.	Other long term assets			0			0		1,493,474,470
1.	Long term repaid expenses			0			0		0
2.	Deferred income tax			0			0		0
3.	Other long term assets			0			0		1,493,474,470
	TOTAL ASSETS			154,728,870,429			124,800,853,334		75,579,028,040
LIABILITIES
A -	LIABILITIES			147,634,267,335			117,163,704,064		68,126,889,026
I.	Short term liabilities			84,978,969,826			73,230,590,259		53,956,284,139
1.	Short term debts and loans			66,320,411,706			56,107,855,088		42,765,074,333
2.	Payable to suppliers			16,268,546,654			13,662,542,448		9,467,557,573
3.	Advances from customers			357,130,660			717,897,799		593,420,781
4.	Taxes and other obligations to the State Budget			963,918,773			1,226,358,371		160,131,814
5.	Payable to employees			194,352,027			-43,036		15,737,000
6.	Accrued expenses			367,034,568			1,025,953,849		629,464,133
7.	Inter- company payable			0			0		0
8.	Payable according to the progress of construction contracts			0			0		0
9.	Other payables			507,575,438			490,025,740		324,898,505
II.	Long term liabilities			62,655,297,509			43,933,113,805		14,170,604,887
1.	Long term account payable to suppliers			0			0		0
2.	Long term inter- company payable			0			0		0
3.	Other long term payable			0			0		0
4.	Long term debts and loans			62,655,297,509			43,933,113,805		14,170,604,887
5.	Deferred income tax			0			0		0
B -	OWNER’S EQUITY			7,094,603,094			7,637,149,270		7,452,139,014
I.	Owner’s equity			7,238,281,312			7,473,784,488		7,243,018,926
1.	Capital			5,514,389,706			5,514,389,706		5,484,826,070
2.	Share premiums			0			0		0
3.	Treasury stocks			0			0		0
4.	Differences on asset re-valuation			0			0		0
5.	Foreign exchange differences			0			0		0
6.	Business promotion fund			839,156,151			839,156,151		582,811,964
7.	Financial reserved fund			270,709,172			270,709,172		213,527,607
8.	Other funds			0			0		0
9.	Retained earnings			614,026,283			849,529,459		961,853,285
II.	Other sources and funds			-143,678,218			163,364,782		209,120,088
1.	Bonus and welfare funds			-143,678,218			163,364,782		209,120,088
2.	Sources of expenditure			0			0		0
3.	Funds to form fixed assets			0			0		0
	TOTAL LIABLITIES AND OWNER’S EQUITY			154,728,870,429			124,800,853,334		75,579,028,040
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
	Description		F/Y 2006			F/Y 2005			F/Y 2004
1.	Sales		108,139,873,360			103,661,385,186			89,806,952,065
2.	Deductions		1,297,121,161			593,491,437			1,333,413,926
3.	Net sales		106,842,752,199			103,067,893,749			88,473,538,139
4.	Costs of goods sold		92,414,984,235			89,355,499,038			75,637,271,277
5.	Gross profit		14,427,767,964			13,712,394,711			12,836,266,862
6.	Financial income		13,632,601			13,662,467			14,370,377
7.	Financial expenses		7,427,613,060			6,345,119,396			4,615,433,348
	- In which: Loan interest expenses		7,427,613,060			6,345,119,396			4,615,433,348
8.	Selling expenses		3,776,035,754			3,555,515,218			3,697,107,002
9.	Administrative overheads		3,148,172,829			2,237,045,772			1,709,946,408
10.	Net operating profit		89,578,922			1,588,376,792			2,828,150,481
11.	Other income		0			0			15,987,945
12.	Other expenses		0			0			1,000,000
13.	Other profits		0			0			14,987,945
14.	Profit (loss) before tax		89,578,922			1,588,376,792			2,843,138,426
15.	Income tax		25,082,098			444,745,502			796,078,759
16.	Profit (loss) after tax		64,496,824			1,143,631,290			2,047,059,667
FINANCIAL FACTORS
Description					FY 2006			FY 2005	FY 2004
Current Liquidity Ratio					0.93			1.03	1.07
Quick Liquidity Ratio					0.70			0.70	0.65
Inventory Circle					4.26			3.85	3.33
Average Receive Period					180.56			162.95	140.89
Utilizing Asset Performance					0.69			0.83	1.17
Liability /Total Asset (%)					95.41			93.88	90.14
Liability /Owner's Equity (%)					2,080.94			1,534.13	914.19
Income Before Tax /Total Asset (%) ROA					0.06			1.27	3.76
Income Before Tax /Owner's Equity (%) ROE					1.26			20.80	38.15
Income Before Tax /Total Revenue (%) NPM					0.08			1.53	3.17
Gross Profit /Total Revenue (%) GPM					13.34			13.23	14.29
PAYMENT HISTORY AND EXPERIENCES
Trade Morality		Fairly Good
Liquidity		Normal
Payment status		Average
Financial Situation		Fairly Good
Development trend		Fair
Litigation data		No recorded
Bankruptcy		No recorded
Payment Methods		T/T, L/C and D/A
Sale Methods		Direct sale to clients.
INTERPRETATION ON THE SCORES
Formerly, the subject was a state owned enterprise. CAGIPHARM was a chemist’s shop since 1982. Since the time of establishment, company has re-organized & changed its name many times. In 1993, subject was re-established under the law of state owned enterprises. On July 31^st 2002, subject was equitized to be a joint-stock company. After equitization, the subject has re-organized its structure. The management ability is improved. Currently, the subject has a factory in Tay Bac Cu Chi Industrial Park, one branch at Ha Noi city and other branches in Can Tho province and Da Nang City. CAGIPHARM is producing products with brand such as: CADIMEZOL, CADIGESIC, CAPLET 500, CADIGESIC CAPSULE 500, CADIFIXIM 100, CADIRIZIN and some other kinds. The subject is sole distributor for some brands from foreign market such as: PARACETEMOL, BRUSTAN, ALTIVA, CADIVIT, CALPRIM and mainly import from India and Hong Kong, Thailand and France.
The subject’s factory has started operation on January 20^th 2008. The subject’ equipment and machine is modern and high technology with producing standard of GMP-Asean. Currently, the producing products of the subject is only enough to sell in Vietnam market. The subject is preparing to make plan of projects in next time. The subject will export products to foreign market in next time. The subject will establish pharmaceutical corporation include: producing in drugs, equipments, construction of hospital in 2011. Currently, the subject has sep up Cagipharm USA Corporation in California to approach the market of USA and Europe. On March 20^th 2007, the subject has announced the result of shareholders meeting and now some shareholders is offer in holdings. The subject’s premises and facility is fairly good. It is creating a fairly firm position in the industry. Current, the total employees of the subject is 300. Following are above financial statement, subject’s financial situation is fairly good. The annual revenue of the subject is also increased. According to Mr. Le Xuan Kien – Financial Director, the revenue of 2007 is about 110 billion VND. With developing plan for coming this years, the subject’s revenue will achieve about 207 billion VND in 2008. The subject has a large market share in the south of Vietnam. Company has one marketing staffs and one collaborator who works for provincial plant protection department in all provinces. These staffs are the link between company and customers. The future prospect of the subject seems to be bright. The company has ability to satisfy all the financial commitments.
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%)

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