MIRA INFORM REPORT

Report No. :	303702
Report Date :	28.01.2015

IDENTIFICATION DETAILS

Name :	HATAY PHARMACEUTICALS JSC

Registered Office :	10A Quang Trung St, Ha Dong, Hanoi

Country :	Vietnam

Financials (as on) :	December, 2013

Date of Incorporation :	27.12.2011

Legal Form :	Joint Stock Company

Line of Business :	Manufacturer of Medical Equipment and Pharmaceutical.

No. of Employees :	1,000

RATING & COMMENTS

MIRA’s Rating :

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, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Vietnam

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 has been transitioning from the rigidities of a centrally-planned economy since 1986. Vietnamese authorities have reaffirmed their commitment to economic modernization in recent years. Vietnam joined the World Trade Organization in January 2007, which has promoted more competitive, export-driven industries. Vietnam became an official negotiating partner in the Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to less than 20% in 2013, while industry's share increased from 36% to more than 42% in the same period. State-owned enterprises account for about 40% of GDP. 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 hurt Vietnam's export-oriented economy, with GDP in 2013 growing at 5%, the slowest rate of growth since 1999. In 2013, however, exports increased by more than 12%, year-on-year; several administrative actions brought the trade deficit back into balance. Between 2008 and 2011, Vietnam's managed currency, the dong, was devalued in excess of 20%, but its value remained relatively stable in 2013. Hanoi has oscillated between promoting growth and emphasizing macroeconomic stability in recent years. In February 2011, the government shifted from policies aimed at achieving a high rate of economic growth, which had stoked inflation, to those aimed at stabilizing the economy, through tighter monetary and fiscal control. Although Vietnam unveiled a broad, "three pillar" economic reform program in early 2012, proposing the restructuring of public investment, state-owned enterprises, and the banking sector, little perceptible progress has been made. Vietnam's economy continues to face challenges from an undercapitalized banking sector. Non-performing loans weigh heavily on banks and businesses.

Source : CIA

REGISTERED NAME & COMPANY SUMMARY

Company Details
Organization Name	:	HATAY PHARMACEUTICALS JSC ⁽¹⁾
Address	:	10A Quang Trung St, Ha Dong, Hanoi
Country	:	Vietnam
Phone (S)	:	[+84] 4-33824432
Facsimile	:	[+84] 4-33829054
Email	:	duochatay@gmail.com
Website	:	http://www.hataphar.com.vn
Primary Business Activity	:	Manufacturer
Key Industry	:	Medical Equipment & Pharmaceutical

Key Facts

Registered Legal Address

10A Quang Trung St, Ha Dong, Hanoi

Operational Address

10A Quang Trung St, Ha Dong, Hanoi

Trading Name

HATAPHAR

Name History

Business Entity Name	Effective Date
HATAY PHARMACEUTICAL CO	10 Jan, 2001
HATAY PHARMACEUTICALS JSC	27 Dec, 2011

Issuing Authority

Dept. of Planning & Investment - Hanoi

License Number

0500391400

License Status

License exists - Normal.

Legal Form - Category

Joint Stock Company

Legal Form

Joint Stock Company

Legal Form - Abbreviation

JSC

Operational Status of Business

Normal

Date of Registration

27 Dec, 2011

Employees

1,000

DIRECTORS/MANAGEMENT

Key Person

Legal Title	:	Chairman
Name	:	Mr. Le Van Lo
Nationality	:	Vietnamese

COMPANY MANAGEMENT

Management Listings

	Name	Nationality	Job Description	Dept. / Division
1	Mr. Nguyen Ba Lai	Vietnamese	Deputy Managing Director	-
2	Mr. Hoang Trong Nguyen	Vietnamese	Deputy Managing Director	-
3	Mr. Le Xuan Thang	Vietnamese	Deputy Managing Director	-
4	Mr. Le Van Lo	Vietnamese	Managing Director	-

Management Details - 1

Personal Unique Identifier	:	MI03815132
Name	:	Mr. Nguyen Ba Lai
Date of Birth	:	1969

Management Details - 2

Personal Unique Identifier	:	MI03815133
Name	:	Mr. Hoang Trong Nguyen
Date of Birth	:	1979

Management Details - 3

Personal Unique Identifier	:	MI03815131
Name	:	Mr. Le Xuan Thang
Date of Birth	:	1973

Management Details - 4

Personal Unique Identifier	:	MI03815126
Name	:	Mr. Le Van Lo
Date of Birth	:	1951

COMPANY DIRECTORS

1
Personal Unique Identifier	:	MI03815126
Name	:	Mr. Le Van Lo
Date of Birth	:	1951

NEGATIVE INFORMATION

REPUTATION

Reference checking for the purpose of establishing HATAY PHARMACEUTICALS JSC's reputation within the respective industry failed to reveal any adverse information.

NEGA-SCAN - ADVERSE DATA MONITORING
DISHONORED CHECKS		No Record Found

DEBT

No Record Found

CIVIL LITIGATION

No Record Found

PERFORMANCE DEFAULTS

No Record Found

ADVERSE LOCAL MEDIA COVERAGE / ADVERSE FILING HISTORY

No Record Found

SHARE & SHARE CAPITAL INFORMATION

Capital

US$ 2,949,731

CAPITAL (Currency: VND - Vietnam Dong)

Authorized Capital

₫ 62,826,020,000

SHAREHOLDERS

Total number of shareholders	:	n/a
Total number of shares	:	n/a

Currency

VND - Vietnam Dong

No.	Shareholders	Country	Shares
No.	Shareholders	Country	Number	Amount (VND)	%
1	Undisclosed Shareholders	n/a	n/a	n/a	39.35
2	Mr. Hoang Trong Nguyen	Vietnam	n/a	n/a	10.03
3	Mr. Le Viet Linh	Vietnam	n/a	n/a	8.14
4	Mr. Nguyen Nhu Hoa	Vietnam	n/a	n/a	7.96
5	Mr. Le Xuan Thang	Vietnam	n/a	n/a	7.09
6	Mr. Le Van Lo	Vietnam	n/a	n/a	5.40
7	HA TAY DEVELOPMENT INVESTMENT FUND	n/a	n/a	n/a	5.34
8	Ms. Nguyen Thi Minh Hau	Vietnam	n/a	n/a	4.64
9	Mr. Hoang Van Tue	Vietnam	n/a	n/a	3.64
10	STATE CAPITAL & INVESTMENT CORP	Vietnam	n/a	n/a	3.37
11	Mr. Ngo Van Chinh	Vietnam	n/a	n/a	3.24
12	Mr. Nguyen Van Minh	Vietnam	n/a	n/a	1.80
Total			n/a	n/a	100.00

Based on corporate statutory laws / regulations in Vietnam, there is no requirement for public disclosure of Shareholders. In this case, the Shareholders information was supplied by the Subject Business Entity.
However in the absence of data normally obtained from local Statutory Authorities, it is not possible to verify the accuracy of data supplied and hence is provided as reference ONLY.

PAYMENT INFORMATION

Sales Trend – Analysis

2004	2005	2006	2007	2008	2009	2010	2011	2012	2013
-	-	-	-	-	-	-	-

Supplementary Business

In addition to the core business, HATAY PHARMACEUTICALS JSC also is engaged in the following areas of business:

Exporting

Exporting - Finished products

Importing

Importing - Raw materials

DOMESTIC SALES & PURCHASES

Annual Sales Analysis	Percentage
Domestic Sales	70%
International Sales (Export)	30%

Annual Purchases Analysis	Percentage
Local Purchases	60%
Imports	40%

PAYMENT TERMS

Selling

Type

Terms

Local

Cash on delivery (COD)

Export

Letter of Credit (At-sight)

Telegraphic Transfer (T/T) - Received at time of transaction

Purchasing

Type

Terms

Local

Cash on delivery (COD)

Import

Letter of Credit (At-sight)

Telegraphic Transfer (T/T) - Executed at time of transaction

INTERNATIONAL TRADE - Activity & Markets
Country / Region	Estimated level of importance	Trading Activity
Asia / Pacific	Medium	Importing, Exporting
Europe	Medium	Importing
China	Medium	Importing
Germany	Medium	Importing
India	Medium	Importing
Korea, South (Republic of Korea)	Medium	Importing

GROUP STRUCTURE & AFFILIATED COMPANIES

N/A

FINANCIAL INFORMATION

Financials - Summary (Currency: USD - US Dollar)

Year	Sales	Assets	Net Income
2011 Annual	30,264,762	14,598,800	805,569
2012 Annual	32,516,737	14,071,346	706,662
2013 Annual (*)	35,345,828	15,401,110	1,451,862

Note: (*)

Financials listed are the most recent available for this company.

FINANCIAL STATEMENT - DETAILED

Balance Sheet

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights

2011 Annual

2012 Annual

2013 Annual

Current Assets(*)

253,254,000,000

245,722,000,000

254,206,000,000

Non Current Assets(*)

50,838,000,000

47,310,000,000

70,574,000,000

Non Current Liabilities(*)

1,913,000,000

1,061,000,000

1,255,000,000

Share Capital(*)

62,826,000,000

Other long term assets

Total Assets(*)

304,093,000,000

293,031,000,000

324,780,000,000

Total Liabilities(*)

184,553,000,000

160,318,000,000

156,879,000,000

Current Liabilities(*)

182,640,000,000

159,257,000,000

155,624,000,000

Long term liabilities

Shareholders Funds(*)

119,540,000,000

132,713,000,000

167,901,000,000

Current assets & short term investments

253,254,000,000

245,722,000,000

254,206,000,000

Cash & cash equivalents

22,973,000,000

21,165,000,000

42,202,000,000

Cash

22,973,000,000

21,165,000,000

42,202,000,000

Accounts recievable

76,811,000,000

90,075,000,000

66,743,000,000

Accounts recievable trade

62,154,000,000

69,956,000,000

61,585,000,000

Trade prepayment

13,107,000,000

4,660,000,000

4,982,000,000

Other receivables

2,099,000,000

15,709,000,000

491,000,000

Provision for bad debts

(549,000,000)

(249,000,000)

(315,000,000)

Inventories

144,329,000,000

130,211,000,000

138,655,000,000

Other short term asset

9,140,000,000

4,270,000,000

6,606,000,000

Prepaid expenses

78,000,000

VAT deductible

2,394,000,000

1,440,000,000

440,000,000

Other tax receivables

31,000,000

108,000,000

i.Other short term asset

6,746,000,000

2,799,000,000

5,980,000,000

Long term assets

50,838,000,000

47,310,000,000

70,574,000,000

Fixed assets

48,749,000,000

45,204,000,000

60,896,000,000

Tangible fixed assets

42,016,000,000

37,987,000,000

58,896,000,000

Cost

151,905,000,000

157,942,000,000

198,890,000,000

Accumulated depreciation

109,889,000,000

119,954,000,000

139,994,000,000

Intangible fixed assets

2,000,000,000

i.Cost

2,000,000,000

Construction in progress

6,733,000,000

7,217,000,000

Long term investments

2,000,000,000

5,661,000,000

Other long term investments

2,000,000,000

6,945,000,000

Provision for long term investments

(1,284,000,000)

Other long term assets

90,000,000

105,000,000

4,017,000,000

Long term prepayments

90,000,000

105,000,000

3,845,000,000

Asset of income tax delay

101,000,000

i.Other long term assets

71,000,000

Total assets

304,093,000,000

293,031,000,000

324,780,000,000

Liabilities

184,553,000,000

160,318,000,000

156,879,000,000

Current liabilities

182,640,000,000

159,257,000,000

155,624,000,000

Short term borrowings

145,694,000,000

112,925,000,000

102,095,000,000

Accounts payables-trade

19,994,000,000

28,715,000,000

38,450,000,000

Advances from customers

8,701,000,000

10,889,000,000

354,000,000

Taxes and payable to state budget

2,055,000,000

2,282,000,000

5,401,000,000

Payable to employees

3,797,000,000

1,026,000,000

3,121,000,000

Accrued expenses payable

377,000,000

485,000,000

298,000,000

Othe payables

2,023,000,000

2,936,000,000

5,075,000,000

Long term liabilities

1,913,000,000

1,061,000,000

1,255,000,000

Long term borrowings

1,613,000,000

1,061,000,000

1,255,000,000

Provision funds for unemployment

300,000,000

Owner's equity

119,540,000,000

132,714,000,000

142,195,000,000

i.Owner's equity

119,474,000,000

132,517,000,000

142,195,000,000

Business capital

62,826,000,000

Share capital's surplus

29,335,000,000

Other owner's equity

18,886,000,000

20,603,000,000

21,005,000,000

(15,000,000)

Foreign exchange differences

(2,000,000)

Business development funds

89,000,000

Financial reserved funds

4,123,000,000

4,962,000,000

5,570,000,000

Retained earnings

4,231,000,000

14,716,000,000

23,385,000,000

Budget sources

66,000,000

197,000,000

Bonus and welfare funds

66,000,000

197,000,000

Minority Interest

25,706,000,000

Total resources

304,093,000,000

293,031,000,000

324,780,000,000

Note: (*)

Financial Highlights

Income Statement

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights

2011 Annual

2012 Annual

2013 Annual

Turnover(*)

630,415,000,000

677,150,000,000

745,376,000,000

Profit (Loss) Before Tax(*)

22,393,000,000

19,413,000,000

39,292,000,000

Profit After Tax attributable to Shareholders(*)

16,780,000,000

14,716,000,000

30,617,000,000

Gross sales

630,415,000,000

677,150,000,000

745,376,000,000

Less deductions

329,000,000

118,000,000

2,394,000,000

Net income

630,086,000,000

677,031,000,000

742,982,000,000

Cost of goods sold

540,419,000,000

582,898,000,000

624,594,000,000

Gross margin

89,666,000,000

94,133,000,000

118,388,000,000

Income from financial activities

8,787,000,000

9,866,000,000

5,647,000,000

Expenses from financial activities

24,196,000,000

20,047,000,000

10,543,000,000

In which: Interest expenses

23,862,000,000

10,543,000,000

Selling expenses

30,281,000,000

35,950,000,000

43,120,000,000

General & administration expenses

21,584,000,000

28,944,000,000

36,978,000,000

Net income from operating activities

22,392,000,000

19,059,000,000

33,394,000,000

Extraordinary income

1,000,000

355,000,000

6,136,000,000

Extraordinary expenses

238,000,000

Extraordinary gains

1,000,000

355,000,000

5,898,000,000

Net profit before tax

22,393,000,000

19,413,000,000

39,292,000,000

Income tax

5,612,000,000

4,697,000,000

8,776,000,000

Income tax delay

101,000,000

Net profit after tax

16,780,000,000

14,716,000,000

30,617,000,000

Note: (*)

Financial Highlights

Financial Ratios

Financial Highlights	2011 Annual	2012 Annual	2013 Annual
Growth %
Year-on-Year Growth	-	7.41	10.08
Profitability
Profit Margin (%)	2.66	2.17	4.11
Return on Equity (%)	14.04	11.09	18.24
Return on Assets (%)	5.52	5.02	9.43
Leverage
Total Debt Equity (Times)	1.54	1.21	0.93
Current Debt Equity (Times)	1.53	1.20	0.93
Long Term Debt to Equity	0.02	0.01	0.01
Total Asset To Total Equity	2.54	2.21	1.93
Asset Management
Total Assets Turnover (Times)	2.07	2.31	2.30
Fixed Assets Turnover (Times)	12.40	14.31	10.56
Liquidity
Current Ratio	1.39	1.54	1.63

Based on the corporate laws of Vietnam, legal entities which are Joint Stock Company are not required to make public disclosure of their annual financials. Although basic financials were obtained for reference.

FOREIGN EXCHANGE RATES

Today's Exchange rate

1.00 VND
Vietnam Dong

0.000047 USD
United States Dollars

ADDITIONAL INFORMATION

Report Details

Country	:	Vietnam
Business Entity Name	:	HATAY PHARMACEUTICALS JSC
Primary Business Activity	:	Manufacturer
Primary Industry	:	Medical Equipment & Pharmaceutical
Office Contact Details
Operating Address	:	10A Quang Trung St, Ha Dong, Hanoi
Tel	:	[+84] 4-33824432
	:	[+84] 4-33501177
	:	[+84] 4-33824685
	:	[+84] 4-37763172
Fax	:	[+84] 4-33829054
	:	[+84] 4-37763173
Email	:	duochatay@gmail.com
Website Details
Website	:	http://www.hataphar.com.vn
Status	:	Normal - operational
Country of Registration	:	Vietnam
Ownership Type	:	Registered ownership by Subject Business Entity
Tax / VAT Details
Tax Issuing Authority	:	Ministry of Finance
Local Name Used	:	Gia Trj Gia Tang (Value Added Tax)
Acronym	:	GTGT / VAT
GTGT / VAT Number	:	0500391400

Primary Products

Products / Materials / Services Description	Activity
Medicine	Manufacturing, Exporting
Medicine materials	Manufacturing, Exporting
Pharmaceutical preparations	Manufacturing, Exporting
Pharmaceutical products	Manufacturing, Exporting

SIC PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Medical/Dental Equip/Supplies	5047	Manufacturing, Exporting
Pharmaceutical preparations	2834	Manufacturing, Exporting

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Pharmaceutical goods (specified sterile prod etc.)	3006	Manufacturing, Exporting
Pharmaceutical products	3000	Manufacturing, Exporting

CORE BUSINESS DESCRIPTION

Core Business

The primary business focus of HATAY PHARMACEUTICALS JSC is Manufacturing - Finished products.

Key products include :

Medicine

Medicine materials

Pharmaceutical preparations

Pharmaceutical products

An integral part of the core business includes:

Distribution

BANK DETAILS

Bank Name	:	JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM
Global Identifier	:	32400479
Branch	:	Hoan Kiem,Hanoi
Branch Address	:	HA TAY
SWIFT Code	:	BFTVVNVX
Bank Name	:	VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY & TRADE
Global Identifier	:	32404058
Branch	:	Hoan Kiem Dist,Hanoi
Branch Address	:	VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE - HA DONG, HA TAY
SWIFT Code	:	ICBVVNVX

OFFICE & FACILITIES

The following information relates to the Business Entity's office as listed above:

Name	:	HATAY PHARMACEUTICALS JSC - HA DONG, HANOI
Primary Use	:	Office & Administration facilities
Address	:	10A Quang Trung St, Ha Dong, Hanoi
Country	:	Vietnam
Status	:	Operational

COMPANY HISTORY

Date	Details
2001 - Jan	Changed its legal structure from Government Enterprise to Joint Stock Company.

PREVIOUS BUSINESS LICENSE/S

License Date	License No.
6 Apr, 1993	104378
10 Jan, 2001	0303000015

NOTES & COMMENTS

Note

⁽¹⁾ Legal status of the English corporate name
The English name of the Subject Business Entity (SBE) is a randomly selected translation / transliteration made by the owners of the SBE. It is not a registered English corporate name, but simply a translation / transliteration of the local language name.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.46
UK Pound	1	Rs.92.77
Euro	1	Rs.69.03

INFORMATION DETAILS

Analysis Done by :	RAS

Report Prepared by :	NIT

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.