MIRA INFORM REPORT

Report Date :

30.05.2011

IDENTIFICATION DETAILS

Name :	PYMEPHARCO JOINT STOCK COMPANY
Registered Office :	No. 166-170 Nguyen Hue Str. - Tuy Hoa City - Phu Yen Province
Country :	Vietnam
Financials (as on) :	31.12.2010
Year of Establishment :	1989
Com. Reg. No.:	4400116704
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 :	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	PYMEPHARCO JOINT STOCK COMPANY
Registered Vietnamese Name	CONG TY CO PHAN PYMEPHARCO
Registered trade name	PYMEPHARCO
Registered short name	PMP LABS
Type of Business	Joint stock company
Year Established	1989
Business Registration No.	4400116704
Date of Registration	N/a
Place of Registration	Phu Yen Department of Planning and Investment
Current registered capital	85,000,000,000 VND
Status	Listed
Stock symbol	PYMEPHARCO
Stock Market	OTC
Tax code	4400116704
Total Employees	1,050

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Registered English Name: PHU YEN MEDICAL EQUIPMENT PHARMACEUTICAL COMPANY Changed to: PYMEPHARCO JOINT STOCK COMPANY	06 Oct 2006
2	Subject has got former Registered Vietnamese Name: CONG TY DUOC VA VAT TU Y TE PHU YEN Changed to: CONG TY CO PHAN PYMEPHARCO	06 Oct 2006
3	Subject has got former Business line: State Owned company Changed to: Joint stock company	06 Oct 2006
4	Subject has got former Business Registration No: 101619 Changed to: 3603000168	06 Oct 2006
5	Subject has got former Business Registration No: 3603000168 issued 03 May 2006 Changed to: 4400116704	N/A

company ADDRESSES

Head Office
Address	No. 166-170 Nguyen Hue Str. - Tuy Hoa City - Phu Yen Province - Vietnam
Telephone	(84-57) 3823228/ 3820663/ 3828413/ 3829165
Fax	(84-57) 3824717
Email	pymepharco-py@dng.vnn.vn
Website	http://www.pymepharco.com
Note	The given phone number 84-57-3523228 is not correct. And the given address is the short one. The full address is above.
Branch in Ho Chi Minh
Address	No. 44A Dong Nai Str. - Ward 15 - 10 District - Ho Chi Minh City - Vietnam
Telephone	(84-8) 39703099
Fax	(84-8) 39703102
Website	http://www.pymepharco.com
Manager	Mr. HUYNH TAN NAM
Notes: Note: This address is also the distribution center of the subject.
Branch in Ha Noi
Address	No. N11A Dich Vong Housing Compound - Dich Vong Ward - Cau Giay District - Ha Noi City - Vietnam
Telephone	(84-4) 62670971
Website	http://www.pymepharco.com
Manager	Mr. NGUYEN HUU NIEN
Branch in Khanh Hoa
Address	No. 45D Quang Trung Str. - Nha Trang City - Khanh Hoa Province - Vietnam
Telephone	(84-58) 3525579
Website	http://www.pymepharco.com
Manager	Mr. TRUONG TAN LUC
Branch in Dong Nai
Address	No. 9, KP4 Naitonal Road 1 - Tan Phong Ward - Bien Hoa City - Dong Nai Province - Vietnam
Telephone	(84-061) 3996087
Website	http://www.pymepharco.com
Manager	Mr. NGUYEN VAN LIEP

DIRECTORS

1. NAME	Mr. HUYNH TAN NAM
Position	Chairman and General Director
Date of Birth	26 Oct 1957
ID Number/Passport	220007480
ID Issue Date	06 May 1992
ID Issue Place	Phu Yen Police Station
Resident	No. 22 Ly Tu Trong Str - Nha Trang City - Khanh Hoa Province - Vietnam
Nationality	Vietnamese
2. NAME	Mr. NGUYEN HUU NIEN
Position	Deputy General Director
Date of Birth	05 Nov 1965
ID Number/Passport	221163301
ID Issue Date	03 Sep 2003
ID Issue Place	Phu Yen Police Station
Resident	No. 57D Nguyen Thai Hoc Street - Ward No. 3 - Tuy Hoa City - Phu Yen Province - Vietnam
Nationality	Vietnamese
3. NAME	Mr. DO QUANG HOANH
Position	Deputy General Director
Date of Birth	14 Jan 1956
ID Number/Passport	220936287
ID Issue Date	06 May 1999
ID Issue Place	Phu Yen Police Station
Resident	No. 18E Huong Son Str. - Nha Trang City - Khanh Hoa Province - Vietnam
Nationality	Vietnamese
4. NAME	Mrs. NGUYEN THI MY KHANG
Position	Deputy General Director
Date of Birth	17 Sep 1962
ID Number/Passport	220992004
ID Issue Date	09 Apr 1995
ID Issue Place	Phu Yen Police Station
Resident	Ninh Tinh - Ward No. 9 - Tuy Hoa City - Phu Yen Province - Vietnam
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

Manufacturing and trading, importing, exporting pharmaceutical, medical equipments and materials and related chemical

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products	Materials, pharmaceuticals, medical equipments
· Market	USA, Australia, India, Spain and France
· Mode of payment	L/C
EXPORT:
· Types of products	Products
· Market	Hong Kong, Cambodia, Laos
· Mode of payment	L/C

BANKERS

VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE PHU YEN BRANCH
Address	No.236 Hung Vuong,No.7 ward - Tuy Hoa City - Phu Yen Province - Vietnam
Telephone	(84-57) 3828007
VND Account	102010000422732 (VND)

SHAREHOLDERS

1. NAME	Mr. HUYNH TAN NAM
Position	Chairman and General Director
Date of Birth	26 Oct 1957
ID Number/Passport	220007480
Issued on	06 May 1992
Issued Place	Phu Yen Police Station
Resident	No. 22 Ly Tu Trong Str - Nha Trang City - Khanh Hoa Province - Vietnam
Nationality	Vietnamese
Number of Shares	1,254,588
Value of shares	43,350,000,000 VND
Percentage	51%
2. NAME	Mr. DO QUANG HOANH
Position	Deputy General Director
Date of Birth	14 Jan 1956
ID Number/Passport	220936287
ID Issue Date	06 May 1999
ID Issue Place	Phu Yen Police Station
Resident	No. 18E Huong Son Str. - Nha Trang City - Khanh Hoa Province - Vietnam
Nationality	Vietnamese
Number of Shares	35,200
Value of shares	1,190,000,000 VND
Percentage	1.4%
3. NAME	Mr. NGUYEN NGOC TUNG
Date of Birth	20 Oct 1968
ID Number/Passport	220919659
ID Issue Date	17 Apr 1995
ID Issue Place	Phu Yen Police Station
Resident	Group 1 Nguyen Thai Hoc Quarter - Tuy Hoa City - Phu Yen Province - Vietnam
Nationality	Vietnamese
Number of Shares	30,800
Value of shares	1,105,000,000 VND
Percentage	1.3%
4. NAME	OTHER 167 PRIVATE SHAREHOLDERS TAKE THE LEFT SHARE
Nationality	Vietnam
Number of Shares	1,139,388
Value of shares	39,355,000,000 VND
Percentage	46.3%

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	511,844,617,258	492,999,000,000	411,533,812,301
I. Cash and cash equivalents	2,127,349,975	4,309,000,000	2,608,609,279
1. Cash	2,127,349,975	4,309,000,000	2,608,609,279
2. Cash equivalents	0	0
II. Short-term investments	0	30,000,000	0
1. Short-term investments	0	30,000,000	0
2. Provisions for devaluation of short-term investments	0	0	0
III. Accounts receivable	255,492,791,537	245,430,000,000	210,265,788,751
1. Receivable from customers	247,412,110,960	241,512,000,000	202,979,091,384
2. Prepayments to suppliers	8,260,405,560	4,704,000,000	3,292,308,368
3. Inter-company receivable	0	0	0
4. Receivable according to the progress of construction	0	0	0
5. Other receivable	1,178,887,931	2,043,000,000	3,994,388,999
6. Provisions for bad debts	-1,358,612,914	-2,829,000,000	0
IV. Inventories	230,402,292,148	221,927,000,000	185,452,327,068
1. Inventories	231,178,111,281	222,703,000,000	185,452,327,068
2. Provisions for devaluation of inventories	-775,819,133	-776,000,000	0
V. Other Current Assets	23,822,183,598	21,303,000,000	13,207,087,203
1. Short-term prepaid expenses	3,271,035,032	7,075,000,000	892,432,242
2. VAT to be deducted	1,918,706,842	4,231,000,000	3,429,541,956
3. Taxes and other accounts receivable from the State	0	0	0
4. Other current assets	18,632,441,724	9,997,000,000	8,885,113,005
B. LONG-TERM ASSETS	244,021,480,342	231,597,000,000	219,714,307,931
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	235,758,703,264	226,946,000,000	217,970,551,854
1. Tangible assets	191,809,305,119	184,482,000,000	174,368,543,861
- Historical costs	268,817,761,835	237,931,000,000	206,647,269,941
- Accumulated depreciation	-77,008,456,716	-53,449,000,000	32,278,726,080
2. Financial leasehold assets	0	0	0
- Historical costs	0	0
- Accumulated depreciation	0	0
3. Intangible assets	29,762,986,637	33,577,000,000	22,788,413,493
- Initial costs	31,472,723,990	35,114,000,000	23,979,640,225
- Accumulated amortization	-1,709,737,353	-1,537,000,000	1,191,226,732
4. Construction-in-progress	14,186,411,508	8,887,000,000	20,813,594,500
III. Investment property	0	0	0
Historical costs	0	0	0
Accumulated depreciation	0	0	0
IV. Long-term investments	7,191,400,000	2,191,000,000	522,000,000
1. Investments in affiliates	0	0	0
2. Investments in business concerns and joint ventures	5,472,000,000	472,000,000	472,000,000
3. Other long-term investments	1,719,400,000	1,719,000,000	50,000,000
4. Provisions for devaluation of long-term investments	0	0	0
V. Other long-term assets	1,071,377,078	2,460,000,000	1,221,756,077
1. Long-term prepaid expenses	562,568,874	1,124,000,000	1,063,597,267
2. Deferred income tax assets	213,443,204	1,233,000,000	0
3. Other long-term assets	295,365,000	103,000,000	158,158,810
VI. Goodwill	0	0	0
1. Goodwill	0	0	0
TOTAL ASSETS	755,866,097,600	724,596,000,000	631,248,120,232
LIABILITIES
A- LIABILITIES	436,573,417,100	460,284,000,000	369,393,230,983
I. Current liabilities	368,149,812,380	377,995,000,000	256,905,387,021
1. Short-term debts and loans	254,945,585,944	224,404,000,000	118,486,855,390
2. Payable to suppliers	73,190,367,949	110,122,000,000	123,871,663,083
3. Advances from customers	698,303,307	3,236,000,000	4,173,577,985
4. Taxes and other obligations to the State Budget	13,527,092,566	14,049,000,000	3,628,784,105
5. Payable to employees	0	0	1,298,698,287
6. Accrued expenses	991,882,072	10,073,000,000	1,907,694,317
7. Inter-company payable	0	0	0
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	24,796,580,542	16,111,000,000	3,538,113,854
10. Provisions for short-term accounts payable	0	0	0
II. Long-Term Liabilities	68,423,604,720	82,289,000,000	112,487,843,962
1. Long-term accounts payable to suppliers	0	0	0
2. Long-term inter-company payable	0	0	0
3. Other long-term payable	0	321,000,000	300,580,000
4. Long-term debts and loans	65,625,742,436	79,685,000,000	111,528,118,039
5. Deferred income tax payable	0	0	0
6. Provisions for unemployment allowances	2,797,862,284	2,283,000,000	659,145,923
7. Provisions for long-term accounts payable	0	0	0
B- OWNER’S EQUITY	319,292,680,500	264,312,000,000	261,854,889,249
I. OWNER’S EQUITY	313,823,478,523	259,666,000,000	259,701,764,688
1. Capital	85,000,000,000	85,000,000,000	85,000,000,000
2. Share premiums	150,089,184,816	150,089,000,000	150,089,184,816
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	0	0	0
7. Business promotion fund	17,234,932,660	11,437,000,000	8,671,944,471
8. Financial reserved fund	1,171,752,199	486,000,000	486,231,599
9. Other funds	0	0	0
10. Retained earnings	60,327,608,848	12,654,000,000	15,454,403,802
11. Construction investment fund	0	0
II. Other sources and funds	5,469,201,977	4,646,000,000	2,153,124,561
1. Bonus and welfare funds	5,469,201,977	4,646,000,000	2,153,124,561
2. Sources of expenditure	0	0	0
3. Fund to form fixed assets	0	0	0
MINORITY’S INTEREST	0		0
TOTAL LIABILITIES AND OWNER’S EQUITY	755,866,097,600	724,596,000,000	631,248,120,232

PROFIT & LOSS STATEMENT
Description	FY2010	FY2009	FY2008
1. Total Sale	792,186,837,777	687,262,000,000	440,974,797,104
2. Deduction item	11,447,049,334	5,559,000,000	4,897,399,844
3. Net sale	780,739,788,443	681,703,000,000	436,077,397,260
4. Costs of goods sold	473,477,940,816	448,385,000,000	290,199,258,374
5. Gross profit	307,261,847,627	233,318,000,000	145,878,138,886
6. Financial income	3,193,093,952	10,764,000,000	12,926,035,574
7. Financial expenses	46,084,766,631	35,288,000,000	41,235,005,927
- In which: Loan interest expenses		0	32,435,055,453
8. Selling expenses	148,395,978,392	128,786,000,000	85,260,745,396
9. Administrative overheads	22,488,640,000	20,932,000,000	13,118,853,751
10. Net operating profit	93,485,556,556	59,076,000,000	19,189,569,386
11. Other income		426,000,000	307,321,351
12. Other expenses		0	7,355,237
13. Other profit /(loss)	1,491,744,841	426,000,000	299,966,114
14. Total accounting profit before tax	94,977,301,397	59,502,000,000	19,489,535,500
15. Current corporate income tax	12,380,360,753	12,416,000,000	2,153,975,413
16. Deferred corporate income tax	1,019,331,796	290,000,000	0
17. Interest from subsidiaries/related companies	0	0	0
18. Profit after tax	81,577,608,848	47,376,000,000	17,335,560,087

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2010	FY2009	FY2008	Average Industry
Current liquidity ratio	1.39	1.30	1.60	1.74
Quick liquidity ratio	0.76	0.72	0.88	1.02
Inventory circle	2.06	2.02	1.91	3.74
Average receive period	119.44	131.41	175.99	76.97
Utilizing asset performance	1.03	0.94	0.69	1.31
Liability by total asset	57.76	63.52	58.52	49.32
Liability by owner equity	136.73	174.14	141.07	129.21
Ebit / Total asset (ROA)	12.57	8.21	8.23	8.55
Ebit / Owner's equity (ROE)	29.75	22.51	19.83	18.02
Ebit / Total sale (NPM)	11.99	8.66	11.78	6.82
Gross profit / Total sale (GPM)	38.79	33.95	33.08	21.89
Note: The Average Industry was calculated by Vietnam Credit based on our owned statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Good
Liquidity	Medium
Payment status	Above Average
Financial Situation	Above Average
Development trend	Positive
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	Through its banks, L.C, TTR
Sale Methods	Retailer and Wholesaler

CREDIT INQUIRY: 2,000 USD against DA in terms.

The company usually uses the payment method of L/C when it pays money for the exporters. But through its financial situation and contact with the subject, it can meet transaction of 2,000 USD.

INTERPRETATION ON THE SCORES

The company was originally established in 1989 as a state company with the former name: PHU YEN MEDICAL EQUIPMENT PHARMACEUTICAL COMPANY which focused on importing and distributing pharmaceutical products and medical equipments. In May 2006, the company was capitalized under the decision No. 242/QD-UBND by People’s committee of Phu Yen Province and it changed its name to PYMEPHARCO JOINT STOCK COMPANY under the business registration No. 3603000168 issued by Phu Yen Department of Planning and Investment. Currently, the company is using business registration No. 4400116704 which also is the company’s tax code following the new tax law of Viet Nam. The company now has registered capital of 85 billion VND with the labor force of 1,050 employees.

The company has its head office located at No. 166-170 Nguyen Hue Street, Tuy Hoa City, Phu Yen Province, Viet Nam. This also is the place where the factory of the subject is situated. This factory officially started manufacturing in 2003 with the standards GMP – WHO. The company also has some branches in Ha Noi City, Ho Chi Minh City, Khanh Hoa, Dong Nai, etc. Besides, it also has several stores and other centers. The company’s Chairman and General Director is Mr. Huynh Tan Nam.

The company specializes in manufacturing and trading, importing, exporting pharmaceutical, medical equipments and materials and related chemical. The company usually imports materials for its production. The subject also imports pharmaceutical products and medical equipments, too. After its production, the company usually consumes its products in Viet Nam. The company also exports its product to foreign countries such as: Laos, Cambodia, Hong Kong, etc. But its main market is domestic market.

The financial situation of the company is quite good. In 2010, the total asset of the company was 755.9 billion VND, increased 4.3% compared to 2009. It means that the company is expanding its business scale to increase its sale and profit. In reality, the company’s business results in recent years were quite good. The company’s sale and profit increase year after year. In 2009, the total sale of the company was 687.3 billion VND, and profit after tax is 47.4 billion VND. In 2010, its total sale reached to 792.2 billion VND and profit after tax reached to 81.6 billion VND. It made the profitability of the subject was high. From the financial ratio table, we can see the company’s profitable ratios increased year by year and all of those were higher than average industry. That is a good signal for the development of the company. And the subject’s liquidity ratio was acceptable.

In conclusion, this is a medium – size company in this industry. Its financial situation is fair. Its position in the industry is quite good. And the company’s prospect seems bright. The subject can meet small and medium financial commitments. It has capacity to meet 2,000 USD against DA in terms.

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.45.21
UK Pound	1	Rs.74.31
Euro	1	Rs.64.40

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%)

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