MIRA INFORM REPORT

Report Date :

14.04.2012

IDENTIFICATION DETAILS

Name :	SYNMOSA BIOPHARMA CORPORATION

Registered Office :	No.4, Lane 21, Kwang-Fu N. Rd., Hwu Kuo Hsiang, Hsin Chu Hsien

Country :	Taiwan

Financials (as on) :	31.12.2011

Date of Incorporation :	25.08.1970

Com. Reg. No.:	43199950

Legal Form :	Joint Stock Company

Line of Business :	Develop, manufacture, markets, and distributes prescription, OTC, and healthcare products.

No. of Employees :	About 320 Employees

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 600,000
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, 2012

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Taiwan

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

Contact Points

Company Name:	Synmosa Biopharma Corporation
Supplied Name:	Synmosa Biopharma Corporation
Trading Address:	11F, 396, Sec.1, Neihu Rd., 114 Taipei, Taiwan, R.O.C.
Supplied Address:	11F-Taipei 114
Telephone Number:	+886-2-8797-7100
Fax Number:	+886-2-8797-2746
E-mail:	william0461a@mail.synmosa.com.tw

Notes:

The supplied address is incomplete, and the exact address is as above.

Credit Summary

Credit Rating:	Maximum credit USD 600,000
Credit Opinion:	Business connections are permissible.

Company Identification Details

Registered Name:	Synmosa Biopharma Corporation
Registered Address:	No.4, Lane 21, Kwang-Fu N. Rd., Hwu Kuo Hsiang, Hsin Chu Hsien, Taiwan, R.O.C.
Date of Foundation:	1970-8-25
Registration Number:	43199950
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 1,500,000,000 (USD 50,715,800) (As of 2012.4, 1 NTD =0.03381 USD)
Paid-up Capital:	NTD 862,152,250 (USD 29,149,800)
Legal Representatives:	Zhihui Lin
Legal Form:	Joint Stock Company
Principal Activities:	Develop, manufacture, markets, and distributes prescription, OTC, and healthcare products.
Staff:	About 320 Employees
Listed at Stock Exchange:	Yes (Public, TPE: 4114)
Date of Last Annual Return:	2011-10-20

History

Subject was incorporated on 1970-8-25 with registered number 43199950 as Joint Stock Company in Taiwan.

Subject was listed on Taiwan Stock Exchange on 2003-05-12.

Change of Name

Former Chinese Name	信元化學制藥股份有限公司
Current Chinese Name	健喬信元醫藥生技股份有限公司

Former English Name	Shinyuanchem & Pharm. Co., Ltd.
Current English Name	Synmosa Biopharma Corporation

Shareholders

Name	Subscription Share
Zhihui Lin	5,204,888
Wanru Liao
1,327,074
Youqiao Co., Ltd(translated)	8,054,184
Yingxiu Liao	1,964,675
Yishan Lin	105,394

The information above is that of subject’s major shareholders.

Subsidiaries & Branches

Affiliated Companies:

1
Name	Foreview GuangZhou Advisory
Address	China
2
Name	Synmosa Biopharma
Address	HK

Factories:

1
Name	High-Potency manufacturing plant
3
Name	Shin-Yuan Plant
4
Name	Kuang-Fu Plant

Subject introduced that it has 3 factories of subject located in Taiwan, but subject declined to disclose more details about subject.

Personnel Information

Core Management

Directors

1
Name	Zhihui Lin
Position	Board of Chairman
2
Name	Wanru Liao
Position	Director
3
Name	Shengren Yang
Position	Director
4
Name	Liwen Huang
Position	Director
5
Name	Youpeng Zhang
Position	Director
6
Name	Dequan Fan
Position	Individual Director
7
Name	Henglang Liu
Position	Individual Director
8
Name	Yingxiu Liao
Position	Supervisor
9
Name	Yishan Lin
Position	Supervisor
10
Name	Xiu’e Wang
Position	Supervisor

Personnel Structure

Total Employees

About 320 Employees

Operation Information

Offices & Factories

	Headquarters
Add	11F, 396, Sec.1, Neihu Rd., 114 Taipei, Taiwan, R.O.C.

Production Information

l Subject is a manufacturer of healthcare products and the related products with the production activities

Purchase Information

l The registered activities of subject:

Business Code	Details
F107080	Wholesale of environmental agents
F207080	Retails of environmental agents
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

l The raw materials for production are purchased from both local and abroad.

Sales Information

l The subject is mainly engaged in manufacturing and trading of healthcare products and the related products.

l Subject introduced that its major products include Cardiovascular, Respiratory (Nasal Spray & MDI), and Sex Hormone.

l Subject introduced that it also imports the products for many multinational companies into Taiwanese market

l Subject introduced that its trademark is Synmosa

l Subject introduced that subject distributes its pharmaceutical products into many regions, such as HK, China, Southeast Asia and South America.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Subject declined to disclose the settlements information, and from other sources, we couldn’t obtain the information, either.

Balance Sheet

Unit: NTD/000

	2011-12-31	2010-12-31
Cash and cash equivalents	64,675	140,687
Net Notes receivable	42,500	38,750
Notes receivable- related parties	558	317
Net accounts receivables	217,736	195,384
Accounts receivable - related parties	14,300	6,356
Other receivables	208	1,417
Other receivables - related parties		741
Other current assets-other
Current assets	655,179	666,536
Inventories	193,596	150,183
Advance payment	6,084	7,832
Other Current assets	38,490	44,641
The deferred income tax assets-current	11,395	12,000
Restricted assets	27,095	32,641
Fair value of financial assets - current	77,032	80,228
Investment	254,579	202,634
Long-term investments at equity	254,579	182,634
Advanced long-term of investment	.	20,000
Fair value of financial assets– non current	2,124	3,960
financial assets at cost – non current	111,914	79,867
Fund and investment	368,617	286,461
Land	418,085	418,085
Buildings and constructures	217,086	202,574
machine equipment	116,929	109,696
Transporting equipment	1,419	1,419
Storage equipment	3,539	3,545
Fixed assets total cost	863,737	827,846
Value through revaluation	.	.
Accumulated Depreciation	-161,731	-139,896
Net Fixed Assets	711,543	694,429
Total Cost and value through revaluation	863,737	827,846
Leasehold improvements	123	123
Construction in progress and prepayments for equipment	9,537	6,479
Prepayments for equipment	9,537	6,479
Other devices	106,556	92,404
Trademarks	18,268	8,160
Patents	42,340	47,904
Computer software cost	302	183
Goodwill	69,011	46,159
Total Intangible Assets	129,921	102,406
Refundable deposit	10,230	3,846
Deferred Charges	8,295	3,238
Other deferred charges	8,295	3,238
Deferred income tax assets-Non current	49,097	58,845
Total other assets	67,622	65,929
Total assets	1,932,882	1,815,761
Short term borrowings	142,819	161,000
Notes payable	625	1,013
Accounts payable	69,282	61,288
Accounts payable- related parties	326	852
Income Tax Payable	6,250	603
Accrued Expenses	76,122	72,214
Fair value of financial liabilities-current	10,429	.
Other accrued expenses–Related parties	1,168	1,294
Current liabilities	311,984	338,518
Other accrued expenses	3,190	2,921
Payables on equipment	342	2,397
Long Term Liabilities-current portion	.	32,724
Long Term payments-current portion	.	32,724
Other Current Liabilities	1,431	2,212
Other Current Liabilities–Others	1,431	2,212
Corporate bonds payable	491,703	173,163
long-term loans payable	60,000	114,534
Long term liabilities	551,703	287,697
Reserve for retirement allowance／accrued pension liabilities	16,839	16,245
Total Other Liabilities	16,839	16,245
Total Liabilities	880,526	642,460
Ordinary Share Capital	862,152	815,966
Share Capital	862,152	815,966
Capital reserve–share premium account	256,363	270,049
Capital reserve - paid-in capital in excess of par-common stock	98,226	87,297
Capital reserve – premium conversion of convertible bonds	158,137	182,752
Capital reserve- additional paid-in capital – treasury stock trans-actions	1,140	1,140
Capital reserve–permanent investment	52,226	44,463
Capital reserve- Stock	39,973	13,210
Total capital reserve	349,702	328,862
Legal Surplus	3,202	.
Special reserve	3,551	.
For not retained earnings	-21,923	32,024
Total Retained earnings	-15,170	32,024
Cumulative Translation Adjustments	-762	-3,551
Treasury Stock	-143,566	.
Total shareholders’ equity and other adjustment	-144,328	-3,551
New Issued (under stockholders' equity section) shares Equivalents (Unit: Shares)	.	.
Treasury Stock of held by parent company also as held by subsidiaries (Unit: Shares)	4,259,000	.
Total shareholders’ equity	1,052,356	1,173,301

Profit and Loss Accounts

Unit: NTD/000

	2011-10-1 To 2011-12-31	2010-10-1 To 2010-12-31
Total Operation Revenue	845,284	792,537
Net Sales Revenue	832,579	781,817
Total Sales Revenue	856,517	804,640
Sales return	7,488	4,621
Sales allowances	16,450	18,202
Total service revenue	12,705	10,720
Service revenue	2,072	1,999
Commission income	2,072	1,999
Processing income	10,633	8,721
Total operating costs	458,142	450,750
Gross Profit (Loss)	387,142	341,787
Total operating expenses	318,077	289,501
Distribution Cost	186,567	162,366
General and administrative expenses	76,899	71,962
Research and development expenses	54,611	55,173
Net operating Profit (loss)	69,065	52,286
Non-operating revenue and profit	8,082	31,672
Interest Income	230	184
Income From Investment	1,400	.
Dividends Income	1,400	.
Gain on disposal of fixed assets	6	.
Disposal of investment interests	580	8,971
Exchange Gain	246	.
Rental income	182	238
Financial evaluation of interests	.	11,437
Miscellaneous income	5,438	10,842
Non-operating expenses and losses	79,842	25,588
Interest expenses	16,836	11,592
Investment losses	35,970	12,010
Accounted for using equity method investment loss	35,970	12,010
Loss on disposal of fixed assets	29	29
Exchange loss	.	1,259
Evaluation financial assets of loss	21,860	545
Evaluation financial liabilities of loss	3,747	.
Miscellaneous expenses	1,400	153
Continuing Operations' Income (Loss) Before unit tax	-2,695	58,370
Income tax expense (income)	19,883	26,346
Continuing Operations' Unit net income (loss)	-22,578	32,024
Net income (loss)	-22,578	32,024
Basic earnings per share(Unit: NTD)	-0.27	0.38
Dilute earning per share (Unit: NTD)	-0.27	0.38

Bankers

The bankers’ information is not available from the subject or other sources.

Public Record

Mortgage

No chattel mortgage record of subject has been found within the recent 3 months.

Lawsuit

Up to date of reporting, no existing or latent litigation of the subject has been found.

Interview Details

Name

Mr. Kuo

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.42
UK Pound	1	Rs.81.93
Euro	1	Rs.67.67

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.