MIRA INFORM REPORT

 

 

Report Date :

04.02.2013

 

IDENTIFICATION DETAILS

 

Name :

GOOD FIVE PHARMACEUTICAL JOINT STOCK COMPANY

 

 

Registered Office :

No. 118 Vu Xuan Thieu Street, Phuc Loi Ward, Long Bien District, Ha Noi City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

25.03.2011

 

 

Com. Reg. No.:

0105213566

 

 

Legal Form :

Joint stock company

 

 

Line of Business :

The Subject specializes in trading pharmaceutical and medical equipments

 

 

No. of Employees :

60

 

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 :

Slow but Correct

 

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Vietnam

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 


 

vietnam - ECONOMIC OVERVIEW

 

Vietnam is a densely-populated developing country that in the last 30 years has had to recover from the ravages of war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy. While Vietnam's economy remains dominated by state-owned enterprises, which still produce about 40% of GDP, Vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive export-driven industries. Vietnam joined the World Trade Organization in January 2007 following more than a decade-long negotiation process. Vietnam became an official negotiating partner in the developing Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to about 22% in 2011, while industry's share increased from 36% to 40% in the same period. Deep poverty has declined significantly, and Vietnam is working to create jobs to meet the challenge of a labor force that is growing by more than one million people every year. The global recession has hurt Vietnam's export-oriented economy, with GDP in 2009-11 growing less than the 7% per annum average achieved during the last decade. In 2011, exports increased by more than 33%, year-on-year, and the trade deficit, while reduced from 2010, remained high, prompting the government to maintain administrative trade measures to limit the trade deficit. Vietnam's managed currency, the dong, continues to face downward pressure due to a persistent trade imbalance. Since 2008, the government devalued it in excess of 20% through a series of small devaluations. Foreign donors pledged nearly $8 billion in new development assistance for 2011. However, the government's strong growth-oriented economic policies have caused it to struggle to control one of the region's highest inflation rates, which reached as high as 23% in August 2011 and averaged 18% for the year. In February 2011, Vietnam shifted its focus away from economic growth to stabilizing its economy and tightened fiscal and monetary policies. In early 2012 Vietnam unveiled a broad "three pillar" economic reform program, proposing the restructuring of public investment, state-owned enterprises and the banking sector. Vietnam's economy continues to face challenges from low foreign exchange reserves, an undercapitalized banking sector, and high borrowing costs. The near-bankruptcy and subsequent default of the state-owned-enterprise Vinashin, a leading shipbuilder, led to a ratings downgrade of Vietnam's sovereign debt, exacerbating Vietnam's borrowing difficulties.

 

Source : CIA

 

 


SUBJECT IDENTIFICATION & LEGAL FORM

 

Current legal status

English Name

 

GOOD FIVE PHARMACEUTICAL JOINT STOCK COMPANY

Vietnamese Name

 

CONG TY CO PHAN DUOC PHAM NAM TOT

Type of Business

 

Joint stock company

Year Established

 

2011

Business Registration No.

 

0105213566

Date of Registration

 

25 Mar 2011

Place of Registration

 

Ha Noi Department of Planning and Investment

Chartered capital

 

VND 26,000,000,000

Status

 

Unlisted

Tax code

 

0105213566

Total Employees

 

60

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Chartered capital: VND 17,680,000,000 Changed to: VND 26,000,000,000

29 Aug 2012

 

 

 

ADDRESSES

 

Head Office

Address

 

No. 118 Vu Xuan Thieu Street, Phuc Loi Ward, Long Bien District, Ha Noi City, Vietnam

 

Transaction office in Ha Noi

Address

 

Room 1507, 29T1 Building Hoang Dao Thuy Street, Trung Hoa Ward, Cau Giay District, Ha Noi City, Vietnam

Telephone

 

(84-4) 62695812

Fax

 

(84-4) 62695826

Email

 

g5@g5pharma.com.vn

Website

 

http://g5pharma.com.vn

 

Branch in Ho Chi Minh

Address

 

No. 134/1 To Hien Thanh street Ward 15, 10 District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3868 4668

Fax

 

(84-8) 3868 4669

 

 

DIRECTORS

 

1. NAME

 

Mr. NGUYEN VAN DUNG

Position

 

Chairman

Date of Birth

 

07 Oct 1963

ID Number/Passport

 

87052951

ID Issue Date

 

15 Jan 2010

Resident

 

No 5, Lane 16, Nhan Hoa Street Nhan Chinh Ward, Thanh Xuan District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

 

2. NAME

 

Mr. LE MINH TRUONG

Position

 

General Director

Date of Birth

 

13 Oct 1968

ID Number/Passport

 

012825143

ID Issue Date

 

01 Sep 2005

ID Issue Place

 

Ha Noi Police Dept

Resident

 

No. 8 Tang Bat Ho Street Pham Dinh Ho Ward, Hai Ba Trung District, Ha Noi City, Vietnam

Current resident

 

No. 8, Tang Bat Ho Street Pham Dinh Ho Ward, Hai Ba Trung District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

 

3. NAME

 

Mr. LUU VAN HOANG

Position

 

Deputy General Director

Nationality

 

Vietnamese

 

4. NAME

 

Mr. NGUYEN DINH HOAN

Position

 

Director Business

Nationality

 

Vietnamese

 

 

BUSINESS NATURE AND ACTIVITIES

 

The company specializes in trading pharmaceutical and medical equipments; trading materials for pharmaceutical production.

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

Types of products

 

Pharmaceutical, medical equipments, materials for pharmaceutical production

Market

 

Asia and European Countries

Note: With the material trading field, the subject mainly imports these materials from China.

EXPORT:

Note: Currently, the subject does not export

 

 

 

BANKERS

 

1. MILITARY COMMERCIAL JOINT STOCK BANK LONG BIEN BRANCH

Address

 

No.2 Ngo Gia Tu Street, Long Bien District, Ha Noi City, Vietnam

Telephone

 

(84-4) 652 3848

Fax

 

(84-4) 652 3818

 

2. VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK HANG BAI BRANCH

Address

 

No.74 Ba Trieu, Hang Bai Ward, Hoan Kiem District, Ha Noi City, Vietnam

Telephone

 

(84-4) 3944 6368

Fax

 

(84-4) 3944 6362

 

 

SHAREHOLDERS

 

Following is the list of founding shareholders.

1. NAME

 

MILITARY COMMERCIAL JOINT STOCK BANK

Business Registration

 

0100283873

Date of Registration

 

30 Sep 1994

Place of Registration

 

Planning and Investment Department of Ha Noi City

Registered Capital

 

VND 10,625,000,000,000

Tax code

 

0100283873

Address

 

No.21, Cat Linh street, Dong Da District, Ha Noi City, Vietnam

Tel

 

(84-4) 62777222

Fax

 

(84-4) 37621509

Email

 

Info@militarybank.com.vn

Website

 

www.militarybank.com.vn

Number of shares

 

260,000

Value of shares

 

VND 2,600,000,000

Percentage

 

10%

 

2. NAME

 

VIET CAPITAL ASSET MANAGEMENT JOINT STOCK COMPANY

Business Registration

 

0304524894

Tax code

 

0304524894

Address

 

Room 2 Fl 19th, Centec Tower Building No. 72/74 Nguyen Thi Minh Khai, Ward 6, 3 District, Ho Chi Minh City, Vietnam

Tel

 

(84-8) 38239909

Fax

 

(84-8) 38246329

Number of shares

 

52,000

Value of shares

 

VND 520,000,000

Percentage

 

2%

 

3. NAME

 

VIETTEL POST JOINT STOCK CORPORATION

Business Registration

 

0104093672

Date of Registration

 

01 Jul 2009

Place of Registration

 

Hanoi Department of Planning and Investment

Registered Capital

 

VND 60,000,000,000

Tax code

 

0104093672

Address

 

Lot A, Dong Me Resettlement area, Me Tri Commune, Tu Liem District, Ha Noi City, Vietnam

Tel

 

+84 988 844 852

Number of shares

 

260,000

Value of shares

 

VND 2,600,000,000

Percentage

 

10%

 

4. NAME

 

VIETNAM MEDICAL PRODUCTS IMPORT - EXPORT JOINT STOCK COMPANY

Business Registration

 

0100108367

Date of Registration

 

08 Mar 2011

Place of Registration

 

Hanoi city Planning and Investment Department

Registered Capital

 

VND 15,000,000,000

Tax code

 

0100108367

Address

 

No. 138 Giang Vo Str, Ba Dinh District, Ha Noi City, Vietnam

Tel

 

(84-4) 38443462/ 38444897

Fax

 

(84-4) 38459247

Email

 

vimehanoi@vnn.vn

Website

 

www.vimedimex.vn

Number of shares

 

182,000

Value of shares

 

VND 1,820,000,000

Percentage

 

7%

 

5. NAME

 

ARMEPHACO JOINT STOCK COMPANY

Business Registration

 

0100109191

Date of Registration

 

23 Jun 2010

Place of Registration

 

Hanoi Planning and Investment Department

Registered Capital

 

VND 130,000,000,000

Tax code

 

0100109191

Address

 

No. 118 Vu Xuan Thieu Str, Phuc Loi Ward, Long Bien District, Ha Noi City, Vietnam

Tel

 

(84-4) 3875 9473 / 9466 / 9477

Fax

 

(84-4) 3875 9476

Email

 

armephaco@armephaco.com.vn

Website

 

www.armephaco.com.vn

Number of shares

 

910,000

Value of shares

 

VND 9,100,000,000

Percentage

 

35%

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2011

Number of weeks

-

ASSETS

A – CURRENT ASSETS

18,026,151,332

I. Cash and cash equivalents

3,876,256,859

1. Cash

3,876,256,859

2. Cash equivalents

0

II. Short-term investments

0

1. Short-term investments

0

2. Provisions for devaluation of short-term investments

0

III. Accounts receivable

5,375,315,250

1. Receivable from customers

687,106,770

2. Prepayments to suppliers

4,481,634,874

3. Inter-company receivable

0

4. Receivable according to the progress of construction

0

5. Other receivable

206,573,606

6. Provisions for bad debts

0

IV. Inventories

7,784,050,586

1. Inventories

7,784,050,586

2. Provisions for devaluation of inventories

0

V. Other Current Assets

990,528,637

1. Short-term prepaid expenses

148,432,810

2. VAT to be deducted

488,534,228

3. Taxes and other accounts receivable from the State

0

4. Other current assets

353,561,599

B. LONG-TERM ASSETS

735,935,044

I. Long term accounts receivable

13,000,000

1. Long term account receivable from customers

0

2. Working capital in affiliates

0

3. Long-term inter-company receivable

0

4. Other long-term receivable

13,000,000

5. Provisions for bad debts from customers

0

II. Fixed assets

574,837,276

1. Tangible assets

22,636,366

- Historical costs

27,163,636

- Accumulated depreciation

-4,527,270

2. Financial leasehold assets

0

- Historical costs

0

- Accumulated depreciation

0

3. Intangible assets

0

- Initial costs

0

- Accumulated amortization

0

4. Construction-in-progress

552,200,910

III. Investment property

0

Historical costs

0

Accumulated depreciation

0

IV. Long-term investments

0

1. Investments in affiliates

0

2. Investments in business concerns and joint ventures

0

3. Other long-term investments

0

4. Provisions for devaluation of long-term investments

0

V. Other long-term assets

148,097,768

1. Long-term prepaid expenses

148,097,768

2. Deferred income tax assets

0

3. Other long-term assets

0

VI. Goodwill

0

1. Goodwill

0

TOTAL ASSETS

18,762,086,376

 

LIABILITIES

A- LIABILITIES

1,816,755,511

I. Current liabilities

1,816,755,511

1. Short-term debts and loans

0

2. Payable to suppliers

1,725,484,110

3. Advances from customers

0

4. Taxes and other obligations to the State Budget

0

5. Payable to employees

84,524,255

6. Accrued expenses

0

7. Inter-company payable

0

8. Payable according to the progress of construction contracts

0

9. Other payable

6,747,146

10. Provisions for short-term accounts payable

0

11. Bonus and welfare funds

0

II. Long-Term Liabilities

0

1. Long-term accounts payable to suppliers

0

2. Long-term inter-company payable

0

3. Other long-term payable

0

4. Long-term debts and loans

0

5. Deferred income tax payable

0

6. Provisions for unemployment allowances

0

7. Provisions for long-term accounts payable

0

8. Unearned Revenue

0

9. Science and technology development fund

0

B- OWNER’S EQUITY

16,945,330,865

I. OWNER’S EQUITY

16,945,330,865

1. Capital

17,680,000,000

2. Share premiums

0

3. Other sources of capital

0

4. Treasury stocks

0

5. Differences on asset revaluation

0

6. Foreign exchange differences

0

7. Business promotion fund

0

8. Financial reserved fund

0

9. Other funds

0

10. Retained earnings

-734,669,135

11. Construction investment fund

0

12. Business arrangement supporting fund

0

II. Other sources and funds

0

1. Bonus and welfare funds (Elder form)

0

2. Sources of expenditure

0

3. Fund to form fixed assets

0

MINORITY’S INTEREST

0

TOTAL LIABILITIES AND OWNER’S EQUITY

18,762,086,376

 

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

1. Total Sales

2,939,844,828

2. Deduction item

0

3. Net revenue

2,939,844,828

4. Costs of goods sold

2,663,415,676

5. Gross profit

276,429,152

6. Financial income

397,098,539

7. Financial expenses

0

- In which: Loan interest expenses

0

8. Selling expenses

386,184,905

9. Administrative overheads

1,013,630,797

10. Net operating profit

-726,288,011

11. Other income

4,804,167

12. Other expenses

13,185,292

13. Other profit /(loss)

-8,381,125

14. Total accounting profit before tax

-734,669,136

15. Current corporate income tax

0

16. Deferred corporate income tax

0

17. Interest from subsidiaries/related companies

0

18. Profit after tax

-734,669,136

 

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

Average Industry

Current liquidity ratio

9.92

1.32

Quick liquidity ratio

5.64

0.79

Inventory circle

0.34

5.10

Average receive period

667.38

106.45

Utilizing asset performance

0.16

1.57

Liability by total assets

9.68

71.38

Liability by owner's equity

10.72

337.52

Ebit / Total assets (ROA)

-3.92

6.72

Ebit / Owner's equity (ROE)

-4.34

28.18

Ebit / Total revenue (NPM)

-24.99

4.85

Gross profit / Total revenue (GPM)

9.40

12.56

Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

 

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Normal

Liquidity

 

High

Payment status

 

Average

Financial Situation

 

Average

Development trend

 

Developing

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

TT, LC

Sale Methods

 

Retailer and Wholesaler

Public opinion

 

Good

 

 

 

INTERPRETATION ON THE SCORES

 

Founded in 2011 by five shareholders under the business registration NO. 0105213566 issued by Ha Noi Department of Planning and Investment, the subject registered chartered capital of VND 26 billion in which Armephaco Joint Stock Company contributes 35% of the capital, both Military Commercial Joint Stock Bank and Viettel Post Joint Stock Corporation contribute 10%, Vimedimex VN., JSC contributes 7% and Viet Capital Asset Management Joint Stock Company contributes 2%.

The company's registration address is located at No. 118 Vu Xuan Thieu Street, Phuc Loi Ward, Long Bien District, Ha Noi City. This is also the address of its warehouse. All business activities are happened at representative office at Room 1507, 29T1 Building, Hoang Dao Thuy Street, Trung Hoa Ward, Cau Giay District, Ha Noi City. Besides, it also has branch in Ho Chi Minh City with total employees of 60 people. The premises of facilities of the subject are assessed at good. It was granted Certificate of good storage practices (GSP) by Hanoi Department of Health.

Currently, the company specializes in trading pharmaceutical, medical equipments and materials for pharmaceutical production. The subject has purchased and imported pharmaceutical materials to distribute for pharmaceutical manufacturing factory such as: Ha Tay Pharmaceutical, Mediplantex, Hai Duong Pharmaceutical, etc. In the field of trading pharmaceutical products and medical equipments, the company distributes products for both hospital and drugstore and other distributing companies.

The company’s financial situation is considered average. In the first year of operation, the subject’s business result is still limited. In 9 month of 2011 from Apr to Dec, the company attained total sales of VND 2.9 billion. In that year, the subject loss amount of VND 734.6 million. The company’s profitability is low.

In general, the subject is a small company. Being a newly established company, it reputation is still limited. At current, It can meet small financial commitments.

 

INDUSTRY DATA

 

Industry code

Growth speed by price compared with 1994 (%)

Total enterprises 2010

Total employees 2011

(Thous.pers.)

Annual average capital of enterprises 2010

(billion dongs)

2011

2010

Agriculture, Forestry and Fishing

4.00

2.78

8,887

24,362.9

95,227

Industry and Construction

5.53

7.70

95,217

10,718.9

3,641,376

Trade and Services

6.69

7.52

187,195

15,270.2

6,957,082

 

ECONOMIC INDICATORS

 

 

2011 

2010 

2009 

Population (Million person)

87.84

86.93

86.02

Gross Domestic Products (USD billion)

119

102.2

91

GDP Growth (%)

5.89

6.78

5.32

GDP Per Capita (USD/person/year)

1,300

1,160

1,080

Inflation (% Change in Composite CPI)

18.58

11.75

6.88

State Budget Deficit compared with GDP (%)

4.9

5.8

6.9

 

SERVICE TRADE PERFORMANCE

 

Billion USD 

2011 

2010 

2009 

Exports

96.3

72.2

57.1

Imports

105.8

84.8

69.9

Trade Balance

-9.5

-12.6

-12.8

Source: General Statistics Office

 

 

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.32

UK Pound

1

Rs.84.60

Euro

1

Rs.72.63

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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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