MIRA INFORM REPORT

 

 

Report Date :

17.02.2012

 

IDENTIFICATION DETAILS

 

Name :

STADA-VN JOINT VENTURE CO., LTD

 

 

Registered Office :

No. K63/1 Nguyen Thi Soc Str - My Hoa 2 Hamlet - Xuan Thoi Dong Commune - Hoc Mon District - Ho Chi Minh City -

 

 

Country :

Viet Nam

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

2002

 

 

Com. Reg. No.:

46312000307

 

 

Legal Form :

Liability limited company

 

 

Line of Business :

Manufacturing Pharmaceutical Products.

 

 

No. of Employees :

700

 

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Viet Nam

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

SUBJECT IDENTIFICATION & LEGAL FORM

 

Registered English Name

 

STADA-VN JOINT VENTURE CO., LTD

Registered Vietnamese Name

 

CONG TY TNHH LIEN DOANH STADA-VIET NAM

Registered Short name

 

STADA-VN J.V. CO., LTD

Type of Business

 

Liability limited company

Year Established

 

2002

Investment Certificate No

 

411022000404

Date of Registration

 

15 Jan 2009

Date of 1st Adjustment

 

15 Feb 2011

Place of Registration

 

People’s Committee of Ho Chi Minh City

Investment Certificate No

 

2271/GP

Date of investment

 

04 Sep 2002

Registered Investment Capital

 

USD 20,000,000

Chartered capital

 

USD 9,000,000

Investment Duration

 

45 years

Tax code

 

0302737671

Total Employees

 

700

Note

 

The registered names of subject are in report. The given name (Stada Vietnam Joint Venture Company Limited) is not correct.

 

ADDRESSES

 

Head Office

Address

 

No. K63/1 Nguyen Thi Soc Str - My Hoa 2 Hamlet - Xuan Thoi Dong Commune - Hoc Mon District - Ho Chi Minh City - Vietnam

Telephone

 

(84-8) 3718 1154 - 3718 2141 - 3863 2083

Fax

 

(84-8) 3718 2140

Email

 

stada@stada.com.vn

Website

 

 www.stada.com.vn

Area

 

Total: 9240 m2, Including:

Office: 1.950 m2

Workshop No.1 (Oral Solids, Oral Liquids, Technical Floor): 1.651 m2;

Workshop No.2 (Topical Drugs, Packaging, Technical Floor): 1.281 m2;

Engineering and Maintenance: 150m2;

Warehouse: 2.050m2;

Canteen: 810 m2;

Others: 1.356 m2

 

Branch

Address

 

No.40 Tu Do Boulevard, Vietnam - Singapore Industrial Park - Thuan An Town - Binh Duong Province - Vietnam

Business Registration No.

 

46312000307

Date of Registration

 

23 Sep 2009

Telephone

 

(84-650) 3767470

Fax

 

(84-650) 3767469

Area

 

Total: 34,300 m2, Including:

Office: 1.374m2 
Oral solids workshop: 2.454 m2
Oral liquids workshop: 1.909 m2

Engineering and Maintenance: 712 m2
Warehouse: 6.740 m2
QC: 688 m2
QA: 140 m2
R&D Dept.: 1.414 m2
Canteen: 781 m2

 

 

DIRECTORS

 

 

1. NAME

 

Mr. CHOO YAN HO

Position

 

Chairman

ID Number/Passport

 

A9515745

ID Issue Date

 

14 Feb 2006

Resident

 

No. 22G, Block 11 – Laguna City – Kwun Tong – Kowloon - HongKong

Nationality

 

Malaysian

 

2. NAME

 

Mr. ONG VAN DUNG

Position

 

General Director

Date of Birth

 

18 Apr 1959 

ID Number/Passport

 

022059079

ID Issue Date

 

24 Mar 1998

Resident

 

No. 193 Luong Nhu Hoc Str – Ward 11 – District 5 – Ho Chi Minh City - Vietnam

Nationality

 

Vietnamese

 

3. NAME

 

Mr. DO DUC TAN

Position

 

Technical Director

Current Resident

 

HoChiMinh City-Vietnam

Nationality

 

Vietnamese

 

4. NAME

 

Mr. PHAN HUY

Position

 

Deputy Director

Date of Birth

 

07 Nov 1962 

ID Number/Passport

 

025029182

ID Issue Date

 

29 Nov 2008

Resident

 

No. 860/60X/35 Xo Viet Nghe Tinh Str – Ward 25 – Binh Thanh District – Ho Chi Minh City - Vietnam

Current Resident

 

HoChiMinh City-Vietnam

Nationality

 

Vietnamese

 

5. NAME

 

Ms. NGUYEN THI KIM HUONG

Position

 

Chief Accountant

Current Resident

 

HoChiMinh City-Vietnam

Nationality

 

Vietnamese

 

 

BUSINESS NATURE AND ACTIVITIES

 

 

The subject is specialized in manufacturing pharmaceutical products.

 

 

 

IMPORT & EXPORT ACTIVITIES

 

 

IMPORT:

·         Product

 

Materials

·         Market

 

France, India and Germany

 

EXPORT:

·         Product

 

Products

·         Market

 

Cambodia, Thailand, Malaysia, Hong Kong, Philippines…

 

 

BANKERS

 

 

1. HSBC VIETNAM LTD

Address

 

6th Floor, No. 235 Dong Khoi Str - Ben Nghe Ward -  District 1 - Ho Chi Minh City - Vietnam

Telephone

 

(84-8) 3829 2288

 

2. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE

Address

 

No.79A 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

 

STADA PHARMACEUTICALS (ASIA) LTD

Business registration No

 

356807

Date of Registration

 

07 May 1992

Address

 

Unit 1601, 16th Floor, Tower A, Manulife Financial Centrel No. 223-231  – Wai Yip Street – Kwun Tong – Kowloon – Hong Kong

Representer

 

Mr. CHOO YAN HO

ID Number/Passport

 

A9515745

ID Issue Date

 

14 Feb 2006

Resident

 

No. 22G, Block 11 – Laguna City – Kwun Tong – Kowloon – Hong Kong

Nationality

 

Malayan

Value of shares

 

USD 4,500,000

Percentage

 

50%

 

2. NAME

 

M.S.T PHARMACEUTICALS TRADING CO., LTD (M.S.T PHARM CO LTD)

Business registration No

 

4102000021

Date of Registration

 

25 Jan 2000

Place of Registration

 

Business Registration Office - Planning and Investment Department of Hochiminh City

Address

 

No. K63/1 Nguyen Thi Soc Str - My Hoa 2 Hamlet - Xuan Thoi Dong Commune - Hoc Mon District - Ho Chi Minh City - Vietnam

Representer              

 

Mr. PHAN HUY

Born

 

07 Nov 1962

ID Number

 

025029182

ID Issue Date

 

29 Nov 2008

ID Issue Place

 

Police Station of Ho Chi Minh City

Resident

 

No. 860/60X/35 Xo Viet Nghe Tinh Str – Ward 25 – Binh Thanh District – Ho Chi Minh City - Vietnam

Nationality

 

Vietnamese

Value of shares

 

USD 4,500,000

Percentage

 

50%

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2010

31/12/2009

Number of weeks

52

52

ASSETS

A – CURRENT ASSETS

357,654,000,000

335,427,000,000

I. Cash and cash equivalents

14,342,000,000

7,859,000,000

1. Cash

14,342,000,000

7,859,000,000

2. Cash equivalents

0

0

II. Short-term investments

0

0

1. Short-term investments

0

0

2. Provisions for devaluation of short-term investments

0

0

III. Accounts receivable

64,330,000,000

101,958,000,000

1. Receivable from customers

59,517,000,000

99,825,000,000

2. Prepayments to suppliers

4,562,000,000

2,133,000,000

3. Inter-company receivable

0

0

4. Receivable according to the progress of construction

0

0

5. Other receivable

696,000,000

0

6. Provisions for bad debts

-445,000,000

0

IV. Inventories

273,517,000,000

223,297,000,000

1. Inventories

276,539,000,000

226,248,000,000

2. Provisions for devaluation of inventories

-3,022,000,000

-2,951,000,000

V. Other Current Assets

5,465,000,000

2,313,000,000

1. Short-term prepaid expenses

766,000,000

0

2. VAT to be deducted

4,699,000,000

2,313,000,000

3. Taxes and other accounts receivable from the State

0

0

4. Other current assets

0

0

B. LONG-TERM ASSETS

323,129,000,000

356,737,000,000

I. Long term account receivable

0

0

1. Long term account receivable from customers

0

0

2. Working capital in affiliates

0

0

3. Long-term inter-company receivable

0

0

4. Other long-term receivable

0

0

5. Provisions for bad debts from customers

0

0

II. Fixed assets

299,222,000,000

330,452,000,000

1. Tangible assets

288,688,000,000

319,474,000,000

- Historical costs

422,632,000,000

409,551,000,000

- Accumulated depreciation

-133,944,000,000

-90,077,000,000

2. Financial leasehold assets

0

0

- Historical costs

0

0

- Accumulated depreciation

0

0

3. Intangible assets

10,534,000,000

10,978,000,000

- Initial costs

12,442,000,000

12,416,000,000

- Accumulated amortization

-1,908,000,000

-1,438,000,000

4. Construction-in-progress

0

0

III. Investment property

0

0

Historical costs

0

0

Accumulated depreciation

0

0

IV. Long-term investments

0

0

1. Investments in affiliates

0

0

2. Investments in business concerns and joint ventures

0

0

3. Other long-term investments

0

0

4. Provisions for devaluation of long-term investments

0

0

V. Other long-term assets

23,907,000,000

26,285,000,000

1. Long-term prepaid expenses

23,616,000,000

25,679,000,000

2. Deferred income tax assets

177,000,000

492,000,000

3. Other long-term assets

114,000,000

114,000,000

TOTAL ASSETS

680,783,000,000

692,164,000,000

 

LIABILITIES

A- LIABILITIES

412,065,000,000

458,939,000,000

I. Current liabilities

392,974,000,000

426,075,000,000

1. Short-term debts and loans

232,657,000,000

253,782,000,000

2. Payable to suppliers

142,048,000,000

157,482,000,000

3. Advances from customers

2,537,000,000

19,000,000

4. Taxes and other obligations to the State Budget

5,168,000,000

3,805,000,000

5. Payable to employees

0

0

6. Accrued expenses

9,067,000,000

8,470,000,000

7. Inter-company payable

1,479,000,000

1,764,000,000

8. Payable according to the progress of construction contracts

0

0

9. Other payable

18,000,000

753,000,000

10. Provisions for short-term accounts payable

0

0

II. Long-Term Liabilities

19,091,000,000

32,864,000,000

1. Long-term accounts payable to suppliers

0

0

2. Long-term inter-company payable

0

0

3. Other long-term payable

0

0

4. Long-term debts and loans

2,917,000,000

18,565,000,000

5. Deferred income tax payable

0

0

6. Provisions for unemployment allowances

5,413,000,000

5,589,000,000

7. Provisions for long-term accounts payable

10,761,000,000

8,710,000,000

B- OWNER’S EQUITY

268,718,000,000

233,225,000,000

I. OWNER’S EQUITY

268,718,000,000

233,225,000,000

1. Capital

145,542,000,000

145,542,000,000

2. Share premiums

0

0

3. Other sources of capital

0

0

4. Treasury stocks

0

0

5. Differences on asset revaluation

0

0

6. Foreign exchange differences

0

0

7. Business promotion fund

0

0

8. Financial reserved fund

0

0

9. Other funds

0

0

10. Retained earnings

123,176,000,000

87,683,000,000

11. Construction investment fund

0

0

II. Other sources and funds

0

0

1. Bonus and welfare funds

0

0

2. Sources of expenditure

0

0

3. Fund to form fixed assets

0

0

MINORITY’S INTEREST

0

 

TOTAL LIABILITIES AND OWNER’S EQUITY

680,783,000,000

692,164,000,000

 

 

PROFIT & LOSS STATEMENT

 

 

Description

FY2010

FY2009

1. Total Sale

590,581,000,000

513,079,000,000

2. Deduction item

34,000,000

0

3. Net revenue

590,547,000,000

513,079,000,000

4. Costs of goods sold

438,469,000,000

377,771,000,000

5. Gross profit

152,078,000,000

135,308,000,000

6. Financial income

2,365,000,000

2,823,000,000

7. Financial expenses

48,196,000,000

55,715,000,000

- In which: Loan interest expenses

 

 

8. Selling expenses

24,590,000,000

14,436,000,000

9. Administrative overheads

35,291,000,000

33,591,000,000

10. Net operating profit

46,366,000,000

34,389,000,000

11. Other income

1,255,000,000

3,235,000,000

12. Other expenses

0

0

13. Other profit /(loss)

1,255,000,000

3,235,000,000

14. Total accounting profit before tax

47,621,000,000

37,624,000,000

15. Current corporate income tax

11,813,000,000

7,651,000,000

16. Deferred corporate income tax

-315,000,000

-754,000,000

18. Profit after tax

35,493,000,000

29,219,000,000

 

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

 

Description

FY2010

FY2009

Average Industry

Current liquidity ratio

0.91

0.79

1.74

Quick liquidity ratio

0.21

0.26

1.02

Inventory circle

1.60

1.69

3.74

Average receive period

39.76

72.53

76.97

Utilizing asset performance

0.87

0.74

1.31

Liability by total asset

60.53

66.31

49.32

Liability by owner equity

153.34

196.78

129.21

Ebit / Total asset (ROA)

7.00

5.44

8.55

Ebit / Owner's equity (ROE)

17.72

16.13

18.02

Ebit / Total revenue (NPM)

8.06

7.33

6.82

Gross profit / Total revenue (GPM)

25.75

26.37

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/Low

Payment status

 

Above Average

Financial Situation

 

Above Average

Development trend

 

Stable

Litigation data

 

No

Bankruptcy

 

No

Payment Methods

 

Cash, L/C, T/T

Sale Methods

 

Wholesaler

 

 

 

INTERPRETATION ON THE SCORES

 

STADA-VN J.V. CO., LTD is a joint venture company between M.S.T Pharmaceuticals Trading Co., Ltd of Vietnam (50%) and Stada Pharmaceuticals (Asia) Ltd of Hong Kong (50%). Originally, the subject’s chartered capital and investment capital were US$ 1,000,000 and US$ 3,000,000 respectively. Currently, chartered capital of the subject is US$ 9,000,000 and investment capital is US$ 20,000,000. The subject’s foreign partner in legal form is Stada Pharmaceuticals (Asia) Ltd - belonged to Stada Group in Germany.

Head office and factory of the subject are located at “No. K63/1 Nguyen Thi Soc Str - My Hoa 2 Hamlet - Xuan Thoi Dong Commune - Hoc Mon District - Ho Chi Minh City – Vietnam”. Besides, the subject also has other factory in Binh Duong.

The subject’s products are mineral vitamins, antibiotic, antiviral, reducing blood pressure medicine. The subject has produced three kinds of AIDS drugs including Stadvudine Stada, Lamzidivir Stada and Nevirapine Stada. These drugs are manufactured in domestic market so it was much cheaper than imported ones. This is a good achievement of the subject to help the patient in curing disease. This goal brings the subject a higher position in the health industry and brings the subject much more profit. Principal materials sources of the subject are imported from France, India and Germany. In 2003, Stada - VN started to export its products to Cambodia, Thailand, Malaysia, Hong Kong, Philippines…

During development process, the subject has gained some great achievements. Its position in the industry is higher and higher. It is regarded as one of the well running enterprises in Vietnam recently. Operation of the subject is being improved and widened well. Its management is good. The subject has active and creative staffs. Furthermore, it also gets support from foreign investor - Stada Group in technology.

In general, the subject’s business status is fair strong in comparison with others companies in the same fields. The subject is reliable for all the small-medium business transactions.

Overview of Vietnam pharmaceutical industry: Vietnam pharmaceutical industry worths approximately US$1.54 billion, accounted for 1.47% of the national GDP Medicine is one of the necessities with demand always on the rise (averagely 20% per year). The average spend on medicine in 2009 was US$19.77, 20% more than 2008 (US$16.45) and 3 times the figure of 2001 (US$6). The increase of demand is fundamental for boosting up import and production. The value of domestic production in 2010 was about US$1.2 billion and accounted for 50% of domestic consumption market. Competition becomes fiercer within the industry. Until 2010, Vietnam has had around 200 pharmaceutical manufacturing firms (state-owned enterprises, joint stock companies and private pharmaceutical firms) but most are still in small scale (capital, factories and storages). Most manufacturers produce generic medicine and distribute in same markets (such as Ho Chi Minh City and Hanoi occupy more than 50% of the total pharmacies in the country) so the domestic market is becoming increasingly competitive. Four years since Vietnam joined the WTO in 2007, competition with foreign enterprises has gotten much stronger. The number of foreign pharmaceutical firms who registered in Vietnam grew from 300 to nearly 500 firms in 2010.

 

 


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.49.25

UK Pound

1

Rs.77.45

Euro

1

Rs.64.89

 

 

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