MIRA INFORM REPORT

Report Date :

29.07.2011

IDENTIFICATION DETAILS

Name :	HO CHI MINH MEDICAL IMPORT EXPORT JOINT STOCK COMPANY
Registered Office :	No. 181 Nguyen Dinh Chieu, Ward 6 - Dist 3- Ho Chi Minh City
Country :	Vietnam
Financials (as on) :	31.12.2010
Year of Establishment :	1984
Com. Reg. No.:	0302366480
Legal Form :	Joint Stock Company
Line of Business :	importing and exporting pharmaceuticals, pharmaceutical raw materials, medical equipment, vaccine, biologic products, chemicals for laboratory and science, cosmetics, milks, nutrition products, eye – glasses

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2011

Country Name	Previous Rating (31.12.2010)	Current Rating (31.03.2011)
Vietnam	b1	b1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Bottom of Form

SUBJECT IDENTIFICATION & LEGAL FORM

Current legal status
Registered English Name	HO CHI MINH MEDICAL IMPORT EXPORT JOINT STOCK COMPANY
Registered Vietnamese Name	CONG TY CO PHAN XUAT NHAP KHAU Y TE THANH PHO HO CHI MINH
Registered Short name	YTECO
Type of Business	Joint stock company
Year Established	1984
Establishment Decision	106/QD
Date of Issuance	22 Mar 1993
Place of Issuance	Ministry of Health
Business Registration No.	0302366480
Date of Registration	August 28^th 2010
Place of Registration	Business Registration Office- Planning and Investment Department of Ho chi minh City
Current registered capital	28,000,000,000 VND
Status	Unlisted
Tax code	0302366480
Total Employees	140
Size	Medium

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Business Registration No: 102509 issued on March 30th, 1993 Changed to: 4103000534 issued on August 01^st, 2001	August 01^st, 2001
2	Subject has got former registered capital: 14,903,800,000 VND Changed to: 28,000,000,000 VND	August 28 2010
3	Subject has got former Business Registration No: 4103000534 issued on August 01st, 2001 Changed to: 0302366480 issued on August 28 2010	August 28 2010

company ADDRESSES

Head Office
Address	No. 181 Nguyen Dinh Chieu, Ward 6 - Dist 3- Ho Chi Minh City - Vietnam
Telephone	84-8-39304372 / 39330536 / 39330190
Fax	84-8-39306909 / 39330188
Email	yteco-hcm@yteco.com.vn
Website	www.yteco.vn

DIRECTORS

Board of directors:
1. NAME	Mr. LE VAN QUE
Position	Chairman
Date of Birth	28/02/1961
ID Number/Passport	020743375
Issued on	30/10/1997
Issued by	Police Station of Ho Chi Minh City
Resident	No. 6/11 Phan Boi Chau Street, Ward 2- Binh Thanh District - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Qualification	Bachelor
2. NAME	Mr. CAP HUU ANH
Position	Member of BOD
Resident	Ho Chi Minh City - Vietnam
Nationality	Vietnamese
3. NAME	Mr. TRINH DAO CUNG
Position	Member of BOD
Date of birth	06/09/1970
I.D /no	023091906
Resident	No. 107/787B Nguyen Kiem Street- Go Vap District- Ho Chi Minh City
Nationality	Vietnamese
4. NAME	Mr. HUYNH CONG THIEU
Position	Member of BOD
Resident	Ho Chi Minh City - Vietnam
Nationality	Vietnamese
6. NAME	Ms. PHAM TO HA
Position	Member of BOD
Resident	Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Board of Controllers:
1. NAME	Mr. NGUYEN QUANG VINH
Position	Chief
Resident	Ho Chi Minh City - Vietnam
Nationality	Vietnamese
2. NAME	Mr. LE VAN THIEN
Position	Member
Resident	Ho Chi Minh City - Vietnam
Nationality	Vietnamese
3. NAME	Mr. DU QUOC DONG
Position	Member
Resident	Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Managing:
1. NAME	Mr. TRINH DAO CUNG
Position	General Director
Resident	107/787B Nguyen Kiem, Ward 3, Go Vap District , Ho Chi Minh City
Nationality	Vietnamese
Qualification	Pharmacist
2. NAME	Mr. NGUYEN HAI HA
Position	Chief Accountant
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 inStreetuments, 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 miniStreety of health of Vietnam.
All kinds of vaccines, diagnostic and preventive products.
All kinds of medical supplies such as syringes, needles, 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:
· Types of products	medical equipment, pharmaceutical products, raw materials and ingredients, machinery and equipment
· Market	Japanese, American, France, Thailand, Singapore, Korea…It also imports ABBOT powder milk from USA
EXPORT:
· Market	Laos and Cambodia

BANKERS

1. VIETNAM EXPORT IMPORT COMMERCIAL JOINT STOCK BANK
Address	No. 7 Le Thi Hong Gam Street Nguyen Thai Binh Ward - District 1 - Ho Chi Minh City - Vietnam
Telephone	(84-8) 3821 0055
Fax	(84-8) 3829 6063
VND Account	10001485108951
2. BANK FOR INVESTMENT & DEVELOPMENT OF VIETNAM- HCM CITY BRANCH
Address	134 Nguyen Cong Tru - District 1- Ho Chi Minh City - Vietnam
Telephone	(84-8) 38230125, 38297384
Fax	(84-8) 38298862
SWIFT Code	BIDVVNVX310
3. MARITIME COMMERICAL STOCK BANK HO CHI MINH BRANCH
Address	No. 26-28 Hai Ba Trung - District 1- Ho Chi Minh City - Vietnam
Telephone	(083) 38222 177
Fax	(08) 38222 141
SWIFT Code	MCOBVNVX003
4. VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Address	No. 50 Ben Chuong Duong Street - District 1- Ho Chi Minh City - Vietnam
Telephone	(84-8) 822 2752/ 829 5434
Fax	(84-8) 829 4063
SWIFT Code	VBAAVNVX
5. JOINT STOCK BANK FOR FOREIGN TRADE OF VIETNAM
Address	No. 29 Ben Chuong Duong Str-Nguyen Thai Binh Ward - District 1- Ho Chi Minh City - Vietnam
Telephone	(84-8) 3825 1317
Fax	(84-8) 3829 7228
Foreign Currency Account	0071370082167
VND Account	0071000005663
6. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE
Address	No.79 Ham Nghi Str, Nguyen Thai Binh Ward - District 1- Ho Chi Minh City - Vietnam
Telephone	(84-8) 3829 0715
Fax	(84-8) 3829 5342

SHAREHOLDERS

1. NAME	THE STATE SHARE Representative people: Mr. HUYNH KIM HOANG and Mrs. NGUYEN THI QUOC LINH
Value of shares	8,120,000,000 VND
Percentage	29%
2. NAME	Ms. DU MY HANH
Nationality	Vietnamese
Value of shares	350,000,000 VND
Percentage	1.25%
3. NAME	Ms. DUONG THI XUAN HA
Nationality	Vietnamese
Value of shares	350,000,000 VND
Percentage	1.25%
4. NAME	Mr. LE THIEN PHUOC
Date of Birth	05 Sep 1946
ID Number/Passport	0215899226
Issued on	22 May 1994
Issued Place	Police Station of Ho chi minh City
Resident	187/11 Co Giang Street, Co Giang Ward - 1 District - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Value of shares	70,000,000 VND
Percentage	0.25%
5. NAME	Mr. PHAN DUC BINH
Nationality	Vietnamese
Value of shares	70,000,000 VND
Percentage	0.25%
6. NAME	Mr. VU KHANH
Resident	139 Ham Nghi Street, Nguyen Thai Binh Ward - 1 District - Ho Chi Minh City - Vietnam
Nationality	Vietnamese
Value of shares	50,000,000 VND
Percentage	0.18%
7. NAME	469 Other Shareholders
Value of shares	18,990,000,000 VND
Percentage	67.82%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2010	31/12/2009	31/12/2008
Number of weeks	52	52	52
ASSETS
A – CURRENT ASSETS	449,035,012,764	378,338,494,652	219,386,280,882
I. Cash and cash equivalents	39,414,518,270	25,289,406,924	29,880,238,482
1. Cash	39,414,518,270	25,289,406,924	28,880,238,482
2. Cash equivalents			1,000,000,000
II. Short-term investments	7,000,000,000	12,220,000,000	9,000,000,000
1. Short-term investments	7,000,000,000	12,220,000,000	9,000,000,000
2. Provisions for devaluation of short-term investments	0	0	0
III. Accounts receivable	317,693,816,576	247,459,209,945	120,622,511,794
1. Receivable from customers	279,616,828,562	227,911,176,771	111,787,507,174
2. Prepayments to suppliers	25,909,431,198	16,757,393,725	8,455,468,544
3. Inter-company receivable	0	0	0
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	13,184,349,188	3,807,431,821	1,516,841,472
6. Provisions for bad debts	-1,016,792,372	-1,016,792,372	-1,137,305,396
IV. Inventories	79,054,267,271	90,308,725,847	53,684,718,599
1. Inventories	79,370,355,108	91,089,990,560	56,257,387,053
2. Provisions for devaluation of inventories	-316,087,837	-781,264,713	-2,572,668,454
V. Other Current Assets	5,872,410,647	3,061,151,936	6,198,812,007
1. Short-term prepaid expenses	86,133,525	67,888,085	26,488,750
2. VAT to be deducted	367,296,407	775,333,520	711,504,988
3. Taxes and other accounts receivable from the State	234,749,930	49,332,816	303,766,922
4. Other current assets	5,184,230,785	2,168,597,515	5,157,051,347
B. LONG-TERM ASSETS	13,786,157,228	11,994,254,631	10,383,314,593
I. Long term account receivable	0	0	0
1. Long term account receivable from customers	0	0	0
2. Working capital in affiliates	0	0	0
3. Long-term inter-company receivable	0	0	0
4. Other long-term receivable	0	0	0
5. Provisions for bad debts from customers	0	0	0
II. Fixed assets	11,103,014,033	11,538,804,016	9,660,816,796
1. Tangible assets	8,624,145,025	7,566,225,225	5,873,029,574
- Historical costs	17,065,786,329	14,441,864,617	11,182,561,561
- Accumulated depreciation	-8,441,641,304	-6,875,639,392	-5,309,531,987
2. Financial leasehold assets	0	458,227,368	545,685,870
- Historical costs	0	735,810,985	735,533,545
- Accumulated depreciation	0	-277,583,617	-189,847,675
3. Intangible assets	1,586,895,086	578,597,770	650,671,246
- Initial costs	2,941,828,300	1,709,023,600	1,709,023,600
- Accumulated amortization	-1,354,933,214	-1,130,425,830	-1,058,352,354
4. Construction-in-progress	891,973,922	2,935,753,653	2,591,430,106
III. Investment property	0	0	326,009,749
Historical costs	0	0	870,771,720
Accumulated depreciation	0	0	-544,761,971
IV. Long-term investments	0	5,000,000	35,000,000
1. Investments in affiliates	0	0	0
2. Investments in business concerns and joint ventures	0	0	0
3. Other long-term investments	0	5,000,000	35,000,000
4. Provisions for devaluation of long-term investments	0	0	0
V. Other long-term assets	2,683,143,195	450,450,615	361,488,048
1. Long-term prepaid expenses	422,476,528	341,645,265	242,482,698
2. Deferred income tax assets	2,166,666,667
3. Other long-term assets	94,000,000	108,805,350	119,005,350
TOTAL ASSETS	462,821,169,992	390,332,749,283	229,769,595,475
Liabilities
A- LIABILITIES	417,073,999,088	351,705,846,398	191,921,444,207
I. Current liabilities	416,773,552,596	350,243,899,458	189,648,251,514
1. Short-term debts and loans	83,651,289,395	62,198,090,087	34,154,582,192
2. Payable to suppliers	230,099,131,189	215,181,804,041	132,814,907,320
3. Advances from customers	92,014,661,517	61,567,239,284	16,873,916,224
4. Taxes and other obligations to the State Budget	4,766,361,815	2,649,805,991	2,024,254,359
5. Payable to employees		47,624,900
6. Accrued expenses	4,420,146,300		154,675,727
7. Inter-company payable
8. Payable according to the progress of construction contracts
9. Other payable	1,821,962,380	8,599,335,155	3,625,915,692
10. Provisions for short-term accounts payable
II. Long-Term Liabilities	300,446,492	1,461,946,940	2,273,192,693
1. Long-term accounts payable to suppliers	0	0	0
2. Long-term inter-company payable	0	0	0
3. Other long-term payable	241,000,000	1,216,012,140	1,883,120,333
4. Long-term debts and loans	150,000,000	245,934,800	390,072,360
5. Deferred income tax payable	0	0	0
6. Provisions for unemployment allowances	-90,553,508	0	0
7. Provisions for long-term accounts payable	0	0	0
B- OWNER’S EQUITY	45,747,170,904	38,626,902,885	37,848,151,268
I. OWNER’S EQUITY	45,809,066,341	36,870,905,974	36,616,929,698
1. Capital	28,000,000,000	28,000,000,000	28,000,000,000
2. Share premiums	0	0	0
3. Other sources of capital	0	0	0
4. Treasury stocks	0	0	0
5. Differences on asset revaluation	0	0	0
6. Foreign exchange differences	-299,691,886	303,471,383
7. Business promotion fund	5,637,293,256	5,637,293,256	5,217,385,082
8. Financial reserved fund	1,962,945,050	1,962,945,050	1,663,010,639
9. Other funds	0	0	0
10. Retained earnings	10,508,519,921	967,196,285	1,736,533,977
11. Construction investment fund	0	0	0
II. Other sources and funds	-61,895,437	1,755,996,911	1,231,221,570
1. Bonus and welfare funds	-61,895,437	1,755,996,911	1,231,221,570
2. Sources of expenditure	0	0	0
3. Fund to form fixed assets	0	0	0
MINORITY’S INTEREST	0	0	0
TOTAL LIABILITIES AND OWNER’S EQUITY	462,821,169,992	390,332,749,283	229,769,595,475

PROFIT & LOSS STATEMENT
Description	FY2010	FY2009	FY2008
1. Total Sale	354,963,580,527	461,091,139,690	253,215,199,275
2. Deduction item	4,150,576,492	2,495,796,193	3,870,591,520
3. Net sale	350,813,004,035	458,595,343,497	249,344,607,755
4. Costs of goods sold	317,400,516,585	429,318,683,435	226,098,408,185
5. Gross profit	33,412,487,450	29,276,660,062	23,246,199,570
6. Financial income	32,654,738,580	3,747,754,790	3,740,882,762
7. Financial expenses	29,777,767,774	4,992,511,784	3,374,675,020
- In which: Loan interest expenses		3,015,266,109	2,209,220,018
8. Selling expenses	18,660,246,663	16,324,698,296	11,054,070,541
9. Administrative overheads	8,725,179,322	5,905,881,453	6,342,155,306
10. Net operating profit	8,904,032,271	5,801,323,319	6,216,181,465
11. Other income	646,616,854	1,604,650,004	1,121,280,576
12. Other expenses	12,326,434	77,499,812	37,571,615
13. Other profit /(loss)	637,290,420	1,527,150,192	1,083,708,961
14. Total accounting profit before tax	9,541,322,691	7,328,473,511	7,299,890,426
15. Current corporate income tax	0	1,288,769,360	1,992,246,501
16. Deferred corporate income tax	0	0	0
18. Profit after tax	9,541,322,691	6,039,704,151	5,307,643,925

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2010	FY2009	FY2008	Average Industry
Current liquidity ratio	1.08	1.08	1.16	1.74
Quick liquidity ratio	0.89	0.82	0.87	1.02
Inventory circle	4.02	5.96	4.52	3.74
Average receive period	330.54	196.95	176.57	76.97
Utilizing asset performance	0.76	1.17	1.09	1.31
Liability by total asset	90.12	90.10	83.53	49.32
Liability by owner equity	911.69	910.52	507.08	129.21
Ebit / Total asset (ROA)	2.06	2.65	4.14	8.55
Ebit / Owner's equity (ROE)	20.86	26.78	25.12	18.02
Ebit / Total sale (NPM)	2.69	2.24	3.76	6.82
Gross profit / Total sale (GPM)	9.41	6.35	9.18	21.89
Note: The Average Industry was calculated by Vietnam Credit based on our owned statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Normal
Liquidity	Medium
Payment status	Above Average
Financial Situation	Above Average
Development trend	Even
Litigation data	No
Bankruptcy	No
Payment Methods	Letter of credit (L/C), D/A, D/P, telegraphic transfer (T/T) or goods exchange
Sale Methods	Retailer and Wholesaler
Public opinion	Good

INTERPRETATION ON THE SCORES

HCM City Medical Import Export Joint - Stock Company YTECO was founded in 1984 (its precursor was Medical Import Export Company of Ho Chi Minh City). It was transformed from state owned company into joint - stock company in August 2001 with legal capital of 28 billion VND, in which the state holds 29 percents.

The subject registers and operates in the following business activities: Doing business, importing and exporting pharmaceuticals, pharmaceutical raw materials, medical equipment, vaccine, biologic products, chemicals for laboratory and science, cosmetics, milks, nutrition products, eye – glasses; Supplying services in import, export and custom clearance; Repairing and maintaining medical machines and equipment; Leasing warehouses and offices; Supplying corporate finance support through transactions with prestigious banks across the whole country; Doing business in multi fields according to the regulation of Vietnam.

After 20 years of operation and continuous development, up to now, YTECO has already established a wide distribution network across the nation, including branches. Position of YTECO in inland pharmaceutical market is remarkable because YTECO is one of the several authorized importers of foreign pharmaceuticals.

Saigon Pharmaceutical Company (Sapharco)- the company represents for 29 percent of the state investment in Yteco, offered priority buying shares for the purpose of holding 51 percent of Yteco’s shares. The suggestion of Sapharco has been opposed strongly from other private shareholders. In 2010, although the subject had target of VND250 billion sales and VND6.5 billion profit after tax. The target sale of the subject has a decrease of 45 percent in comparison with sale of 2009 because the subject faced hard with mobilizing capital (this year, banks is cutting Yteco’s credit limit down). To carry out the target, Yteco has shifted its activities; the subject has promoted retailing, constructed logistics system. As planned, Yteco will co-operate with Cagipharm to manufacture “Yteco Water” spring water. It is surprising that, year 2010 is the successful year for Yteco when the subject has achieved big sale and profit after which is higher than it expected although the total sale decreased against with year 2009. The positive sign means that Yteco gradually gained its ability to develop more in the future.

Key positions in YTECO have been often substituted. Interest contradiction in Yteco seems to be increased. YTECO still needs more times for overcome these difficulties.

In year 2011, the subject has built the plan to choose a feasibility project to perform at the site 76 Suong Nguyet Anh, Ben Thanh Ward, District 1 and develop a business plan for the project Salenoptic production. Addition to, the subject shall promote and apply the Oracle management technology for both Financial and Accounting Department to improve the work efficiencies.

With these applications of improvements, the subject shall have more internal powers to develop and compete with other companies operating in the same field. In overview, the BB credit estimate on the subject reflects that the subject has capacity to meet with all normal business commitments.

APPENDIXES

INDUSTRY DATA
Industry code	Growth speed (%)		Total employees 2009 (Thousand)		Total enterprises	Annual average capital of enterprises
	Predict 2010	2009
Agriculture, Forestry and Fishing	2.8	3.0	24,788.5		2,399	50,530
Trade and Services	7.5	11	10,517.9		79,181	1,754,973
Construction	7	11.3	2,692.8		17,783	248,268
Manufacturing	12	7.6	7,591.2		30,786	967,068
ECONOMIC INDICATORS
			2010	2009		2008
Population (Million person)			86.93	86.02		86.1
Gross Domestic Products (US$ billion)			102.2	91		84.9
GDP Growth (%)			6.78	5.32		6.2
GDP Per Capita (US$)			1,160	1,080		1,040
Inflation (% Change in Composite CPI)			11.75	6.88		24.4
SERVICE TRADE PERFORMANCE
Billion USD			2010	2009		2008
Exports			71.6	56.6		62.9
Imports			84	68.8		76.6
Trade Balance			-12.4	-12.2		-14.6

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.13
UK Pound	1	Rs.72.05
Euro	1	Rs.63.33

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	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
----	NB	New Business	----

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.