Corporate financial analysis through financial ratios and recommendations for german foods JSC’s development

JSC, assessments of financial position through financial ratios analysis of GERMAN FOODS.. JSC could be able to find out strengths and weaknesses as well as opportunities and potential t

I hereby declare that this thesis is my own work and effort and that has notbeen submitted anywhere for any award Where other sources of informationhave been used, they have been acknowledged

The data and results described in the thesis are derived from the actualsituation of the practice company

Hanoi, 27 April, 2016

Student

Tran Thu Huong

Firstly, I am deeply indebted to my supervisor Ms Pham Phuong Oanh whogave me useful suggestions, encouraged me a lot during the time of doingresearch

Secondly, I want to thank German Foodstuff Processing Joint Stock Companyfor giving me permission to commence this thesis in the first instance, to dothe necessary research work and to use departmental data

Furthermore, I would like to appreciate the Director and the Sale manager aswell as all seniors at German Foodstuff Processing Joint Stock Company foraccepting and encouraging me to go ahead with the thesis

My friends from Faculty of Foreign Languages also supported me in thethesis I am much obliged to them for all their help, support, interest andvaluable hints

Especially, I would like to give my special thanks to my family whosepatient love enabled me to complete this work

Finally, because of limitation of time and knowledge, mistakes areunavoidable, so I wish to have more opportunities to receive morecontribution and suggestions to make the thesis better

In the modern global economy, especially when there are a lot oforganizations founded every day, corporate finance has become increasinglyimportant, for all companies in general, and for GERMAN FOODS JSC in

particular Therefore, the thesis with the topic “Corporate financial analysis through financial ratios and recommendations for German Foods JSC’s development” will point out the importance of having a healthily and

effectively financial performance in order to survive and compete with others.The main content is reflected in three chapters The first chapter is aboutliterature review which provides general knowledge about the globaleconomy as well as Vietnamese economy and introduces the financial

situation of GERMAN FOODS JSC In chapter 2, by taking a scenario in

GERMAN FOODS JSC, assessments of financial position through financial

ratios analysis of GERMAN FOODS JSC through 2011-2013 will be

demonstrated through figures from balance sheets, income statements andcharts built from those figures And chapter 3 will provide somerecommendations for GERMAN FOODS JSC’s development basing on thegeneral knowledge and assessments which have been achieved in chapter 1and 2 of the study

In conclusion, the thesis has already been completed in comparison withproposed objectives and targets in the introduction

1.3.2.3 Making comparison and selection of appropriate policy as well as

1.3.4 Methods of corporate financial analysis 13

3.1.2 Weaknesses 423.2 Recommendations for GERMAN FOODS JSC’s development 433.2.1 Quality as a key driver Reducing mistakes 43

3.2.4 Exploring new markets or improving marketing 45

LIST OF APPENDIXES Appendix 1 Tables

Appendix 2 Charts

Chart 2.1 Liquidity ratios

Chart 2.2 Leverage ratios

Chart 2.3 Efficiency ratios

1 Rationale of the study

In 1986, a program of broad economic reforms known as the Doi Moi or

“renovation” introduced new market rules and improved the business climate

By and large, the “Doi Moi” reforms brought about profound changes in theVietnamese “social fabric.” In January 2007, Vietnam joined the World TradeOrganization (WTO) following a long and tedious negotiation process whichlasted over ten years And most recently, on February 4 2016, Vietnam alongwith eleven countries: Australia, Canada, Japan, United States,… came to an

agreement of signing Trans-Pacific Partnership (TPP), which writes the

rules for global trade helping increase Made-in-America exports, grow theAmerican economy, support well-paying American jobs, and strengthen theAmerican middle class New opportunities and challenges created byinternational economic integration have had significant impacts on theeconomy Domestic businesses, therefore, must follow the global rules as well

as set up strategic plans in order to find potential partners, cooperate andmaximize the market value of the business

In order to survive and develop in the modern economy, each company has toshow its positive financial performance through one useful tool, which isfinance Finance is the language of business It is important to be circumspect

in analyzing and choosing an ideal partner And financial statements areuseful tools for managers to have a look through other companies’ financialsituations Not only managers but also other different users could takeadvantage of financial statements for various purposes: to assess thebusiness’s liquidity, profitability, solvency,… Therefore, corporate financialanalysis will facilitate users with an overview about financial activities todetermine factors impacting on the financial situation and suggest effective

solutions to strengthen their financial position German Foodstuff ProcessingJoint Stock Company founded in 2008 specializes in the production ofGerman Foods and promotes the brand of sausage “Steffi” to a wide range ofpeople all over the world Due to the small business scale and highly

competitive business environment, GERMAN FOODS JSC still has to face

difficult challenges to survive and compete with others Through financial

statement’s analysis, GERMAN FOODS JSC could be able to find out

strengths and weaknesses as well as opportunities and potential threats so thatmanagers can build strategic plans to develop the value of the company,

Because of the importance of the corporate financial analysis, the researcher

has chosen “Corporate financial analysis through financial ratios and recommendations for German Foods JSC’s development”

2 Aims of the study

The study primarily aims to study the financial position of GERMAN

FOODS JSC from 2011 to 2013 through financial statements such as balance

sheets, income statements, notes to financial statements Thus, it is easy toassess the company’s strengths and weaknesses based on financial ratios aswell as identify potential opportunities and threats influencing the health ofthe company Depending on these analysis, the thesis could also suggest

recommendations to enhance position of GERMAN FOODS JSC not only in

Viet Nam but in global economy as well

3 Scope of the study

The thesis mainly focuses on analyzing financial ratios and assessing

financial position of GERMAN FOODS JSC in accounting fiscal year

2011-2013

4 Methodology

4.1 Data collection

In my study, analysis and assessments will be based on data from two sourcesThe primary sources are materials and statistics from company’s databaseincluding annual financial statements, reports and data related to the companyfrom the security market and magazine.

The secondary sources are market data The company’s financial situation isaffected and dominated by the current events in the economic environment ofthe country as well as of the whole world

4.2 Real observation

In this method, the researcher must go to the company, observe staff working

as well as raising questions if having any problems or misunderstanding Thismethod will help the researcher to understand the company’s operationalprocess, preparing process of financial statement basing on accountingdocuments such as VAT bills, delivery bills or invoices,…as well as identifyfactors affecting to the company’s activities in order to have clear andadequate analysis, true and fair assessments about the company

4.3 Data analysis

Comparative analysis along with data summarization and analysis will beused to give out assessments basing on figures and financial statements of thecompany Comparative analysis is based on comparing data in the sameitems on financial statements among years, data summarization and analysis,

on the other hand, is the calculation using to evaluate the practice of financialanalysis based on financial statements

5 Organization of the study

Except for the acknowledgement, table of contents, introduction, abstract,conclusion and references, this thesis is divided into three chapters as follow:

Chapter 1: Literature review provides general knowledge about the global

economy as well as Vietnamese economy and introduces the financial

situation of GERMAN FOODS JSC.

Chapter 2: Assessments of financial position through financial ratios analysis

of GERMAN FOODS JSC through 2011-2013 will be demonstrated through

figures from balance sheets, income statements and charts built from thosefigures

Chapter 3 will provide some recommendations for development of GERMAN

FOODS JSC basing on the general knowledge and assessments which havebeen achieved in chapter 1 and 2 of the study

CHAPTER I LITERATURE REVIEW 1.1 Corporate finance

1.1.1 Definition

Ross, Westerfield cooperated Jordan and Roberts analyzed and illustratedfundamentals of corporate finance, which means that corporate finance is thestudy of ways to answer these three questions: what long-term investmentsbusinesses should take on or what lines of business managers will be in andwhat sorts of building, machinery and equipment will be needed The secondquestion is where to get the long-term financing to pay for investment andconsider whether or not they will bring in other owners or company bosseswill have to borrow the money Last but not least, they also mentioned theway to manage everyday financial activities such as collecting fromcustomers and paying suppliers

In large corporations, the owners often employ managers to represent theowners’ interests and make decisions on their behalf The financial managerwould be in charge of answering the three questions above and having generalresponsibility for a significant corporate financial decisions

Corporate finance has three main areas of concerns: capital budgeting, capitalstructure and working capital management Capital budgeting answers thequestion “What long-term investments should the firm take?” while capitalstructure displays the solutions for “Where will the firm get the long-termfinancing to pay for its investments? Or what mixture of debt and equityshould the firm use to fund operations? And working capital managementdeals with “How should the firm manage its everyday financial activities?

Corporate finance plays an important role in two main areas, which areresource acquisition and resource allocation.

Resource acquisition refers to the generation of funds from both internal and

external sources at the lowest possible cost to the corporation Two maincategories of resources are equity and liability

Resource allocation is the investment of funds with the intent of increasing

shareholder wealth over time Two basic categories of investments are currentassets and fixed assets

Besides that, corporate finance is important to all managers because itprovides the skills managers need to identify and select the corporatestrategies and individual projects that add value to the firm It also helpmanager forecast the funding requirements of their company and devisestrategies for acquiring those funds

1.2 Corporate financial management

1.2.1 Definition

Corporate financial management means planning, organizing, directing andcontrolling the financial activities such as procurement and utilization offunds of the enterprise

There are some main areas of corporate financial management:First comes investment decision (Capital budgeting), which is the process of

planning and managing a firm’s long-term investments is called capital budgeting The investment decision starts with the identification of

investment opportunities, often referred to as capital investment projects Thefinancial manager has to help the firm identify promising projects and decidehow much to invest in each project

Second comes the financing decision (Capital structure), in which thefinancial manager is also responsible for raising the money that the firm needsfor its investments and operations.

The third is dividend decision, which means that the financial manager needs

to decide what dividends that the firm should pay Should the firm pay thedividend or not?

And finally, working capital management or working capital refers to a

firm’s short-term assets such as inventory and its short-term liabilities.Managing the firm’s working capital is a day-to-day activity that ensures thatthe firm has sufficient resources to continue its operations and avoid costlyinterruptions

Corporate financial management is generally concerned with procurement,allocation and control of financial resources of a concern in order to ensure:regular and adequate supply of funds to the concern; adequate returns to theshareholders which will depend upon the earning capacity, market price of theshare, expectations of the shareholders; optimum funds utilization…

1.2.2 Role of corporate financial management

There are several fields that signify the important roles of corporate financialmanagement

In planning, during the day-to-day financial activities of business, it’s

common that the firm needs to raise both short-term and long-term capital toensure operations and investments Planning involves making sure thatappropriate funds are available to run the business, pay the employees and tomake investments Without proper planning, the available funds may not meetthe requirements for the working capital budget of the company which canlead to defunct businesses, late payments and insufficient means to continue ahealthy operation

In monitoring, business’s financial performance depends greatly on the use of

capital The task of financial monitoring involves creating and analyzingfinancial reports on a regular basis, which include cash flow, working capital,fixed and current assets, revenue statements, accounts payable and accountsreceivable Raising the appropriate funds on the right time along withidentifying profitable investment projects enable the firm to use the capitaleffectively and avoid costly interruptions, which may result in overall goodfinancial performance

In controlling, financial control is established by drafting policies and

procedures that help prevent mismanagement of money The policies includehow to document income and expenditures, what method of financialreporting is adopted and how the company wishes to manage the moneyoverall As a result, weaknesses and difficulties in running process would bereduced and recommendations for improvement would be available to ensurethe smooth process of running business

1.2.3 Factors influencing corporate financial management

Factors affecting financial management include forms of businessorganization, government regulations, the state of the economy, securitiesexchanges and borrowing costs

1.2.3.1 Form of business organization

Forms of business organization: basically, there are three different legal forms

of business The first type, which is the simplest one, is sole proprietorship, a

type of business that a person who is also the manager owns all assets of his

company The second form is called partnership, which is a type of business

in which different parties agree to co-operate in order to enhance their profits

And corporation is the final form organized as a separate legal entity owned

by stockholders

There are some differences between Sole Proprietorship, Partnership andCorporation.

Sole proprietorship Partnership Corporation

Unlimited Unlimited Limited

Ways to raise funds

Borrowing Borrowing

Borrowing andissuing shares

Separation of

personal & business

Differences among these forms of business organization put a great impact oncapital raising, capital using and capital distribution

1.2.3.3 Corporate solvency

In general, solvency means a borrower's ability to repay a loan Investors payattention to solvency metrics to determine whether or not to invest in theentity A firm with high degree of solvency is always appeal to outsideinvestors as they expect to gain profits as much as possible from their shares.Thus, managers have to build strategic plans of controlling cash flow, fundusing and borrowing accounts in order to ensure its business a strong ability

of solvency

1.2.3.4 Securities markets

Securities markets and businesses enjoy a mutually beneficial relationship.Healthy conditions in financial exchanges positively affect corporate financialstrategies Analyzing characteristics of markets and making predictions aboutpotential opportunities enable businesses to adapt to a variety of changes inmarkets and achieve the business’s targets

1.2.3.5 Business lending

All organizations borrow money to carry out its operational and investmentactivities in case of lacking money or not being able to collecting receivablesfrom customers Finding the right mix of debt and equity is part of acompany's formula for success Failure to adequately think about what debtlevel is appropriate for the firm may cause corporate income to drop

1.3 Corporate financial analysis

1.3.1 Definition

Investopedia studies financial analysis as the process of evaluating

businesses, projects, budgets and other finance-related entities to determinetheir suitability for investment Typically, financial analysis is used to analyzewhether an entity is stable, solvent, liquid, or profitable enough to be investedin

Analytical or financial tools are used to examine and compare financialstatements in order to make business decisions In other words, financialanalysis helps investors and creditors to examine financial statements anddecide whether or not to invest in the entity

1.3.2 Significance of corporate financial analysis

1.3.2.1 Financial statement analysis is useful to different parties to obtain the required information about the organization

Shareholders are interested in financial statement analysis to know theprofitability of the organization, which shows the growth potentiality of anorganization and safety of investment of shareholders

Investors and lenders are interested to know the solvency position of anorganization By analyzing the financial statement position, they can gainknowledge of the safety of their investment and business’s ability to payinterest and repayment of principle amount on due date

Furthermore, creditors are interested in analyzing the financial statements inorder to understand the short term liquidity position of an organization.Financial statement analysis enables creditors to know either the organization

is enable to pay the amount of short term liabilities on due date.And management also pays attention to analyze the financial statement formeasuring the effectiveness of its policies and decisions It analyzes thefinancial statements to know short term and long term solvency position,profitability, liquidity position and return on investment from the business.Lastly but playing a very important role is government, who could determinethe amount of tax liability basing on financial analysis It also helps forformulating effective plans and policies for economic growth

1.3.2.2 Knowing profitability, solvency of business and judging the growth of business

Financial statements are required to ascertain whether the enterprise is earningadequate profit and to know whether the profits have increased or decreased

as compared to the previous year Besides that, they also help to analyze theposition of the business as regards to the capacity of the entity to repay itsshort as well as long-term liabilities

Through comparison of data of two or more years of business entity, we candraw a meaningful conclusion as regard to growth of the business Forexample, increase in sales with simultaneous increase in the profits of thebusiness, indicates a healthy sign for the growth of the business

1.3.2.3 Making comparison and selection of appropriate policy as well as forecasting and preparing budgets

To make a comparative study of the profitability of the entity with otherentities engaged in the same trade, financial statements help the managementadopt sound business policy by making intra firm comparison Financialstatement provides information of the business so that the management cantake corrective measures to remove these short comings They are also helpfulfor the management to make forecast and prepare budgets

1.3.3 Objectives of corporate financial analysis

The objective of financial statement analysis is to understand and diagnosethe information contained in financial statement with a view to judge theprofitability and financial soundness of the firm, and to make forecast aboutfuture prospects of the firm The purpose of analysis depends upon the personinterested in such analysis and his object Additionally, financial analysis isalso used to make a detailed study about the cause and effect of theprofitability and financial condition of the firm

In the first place, financial analysis is the assessment of past performance.Past performance is a good indicator of future performance

Investors or creditors are interested in the trend of past sales, cost of goodssold, operating expenses, net income, cash flows and return on investment.These trends offer a means for judging management's past performance andare possible indicators of future performance.

In the second place, financial analysis means assessment of current position.Financial statement analysis shows the current position of the firm in terms ofthe types of assets owned by a business firm and the different liabilities dueagainst the enterprise

In the third place, these analysis shows the prediction of profitability andgrowth prospects of the business Financial statement analysis helps inassessing and predicting the earning prospects and growth rates in earningwhich are used by investors while comparing investment alternatives andother users in judging earning potential of business enterprise.And the final place is prediction of bankruptcy and failure as well asassessment of the operational efficiency Financial statement analysis is animportant tool in assessing and predicting bankruptcy and probability ofbusiness failure, which helps to assess the operational efficiency of themanagement of a company The actual performance of the firm which arerevealed in the financial statements can be compared with some standards setearlier and the deviation of any between standards and actual performance can

be used as the indicator of efficiency of the management

1.3.4 Methods of corporate financial analysis

Financial analysis can be performed by employing a number of methods ortechniques: horizontal analysis, vertical analysis, ratio analysis, …

1.3.4.1 Horizontal and vertical analysis

Firstly, horizontal analysis (trend analysis) is a financial statement analysis

technique showing changes in the amounts of corresponding financial

statement items over a period of time The statements for two or more periodsare used in horizontal analysis The earliest period is usually used as the baseperiod and the items on the statements for all later periods are compared withitems on the statements of the base period The changes are generally shownboth in dollars and percentage.

Dollar and percentage changes are computed by using the following formulas:

Dollar change = Amount of the item in comparison year – Amount of

the item in base year

Percentage change = x 100

Secondly, vertical analysis (common-size analysis) is method of financial

statement analysis showing each item on a statement as a percentage of a basefigure within the statement

To conduct a vertical analysis of balance sheet, the total of assets and the total

of liabilities and stockholders’ equity are generally used as base figures Allindividual assets (or groups of assets if condensed form balance sheet is used)are shown as a percentage of total assets The current liabilities, long termdebts and equities are shown as a percentage of the total liabilities andstockholders’ equity

Moreover, to conduct a vertical analysis of income statement, sales figure is

generally used as the base and all other components of income statement likecost of sales, gross profit, operating expenses, income tax, and net income etc.are shown as a percentage of sales In a vertical analysis the percentage iscomputed by using the following formula:

Percentage of base = x 100

1.3.4.2 Ratios analysis

❖ Liquidity ratio

Liquidity ratios demonstrate the ability of a company to pay off both itscurrent liabilities as they become due and their long-term liabilities as theybecome current These ratios show the cash levels of a company and theability to turn other assets into cash to pay off liabilities and other currentobligations

➢ Current ratio is calculated by dividing current assets by current liabilities

as the following formula:

➢ Quick ratio: This ratio is very similar to current ratio only that it eliminates

inventory form the calculation of current assets It measures the ability of acompany to pay its current liabilities when they come due with only quickassets Quick ratio is calculated as the following formula: Quick ratio =

Inventory is eliminated as it is often the least liquid current asset It’s also theone for which the book values are least reliable as measures of market value,

because the quality of the inventory isn’t considered Moreover, this ratioshows how well a company can quickly convert its assets into cash in order topay off its current liabilities It also indicates the level of quick assets tocurrent liabilities.

➢ Cash ratio measures a firm's ability to pay off its current liabilities with

only cash and cash equivalents The cash ratio is much more restrictive thanthe current ratio or quick ratio because no other current assets can be used topay off current debt only cash And the formula to calculate cash ratio is: Cash ratio =

A very short-term creditor might be interested in cash ratio They want to see

if a company maintains adequate cash balances to pay off all of their currentdebts as they come due

➢ Net working capital to total assets is frequently viewed as the amount of

short-term liquidity a firm has And it can be worked out with the followingformula

Net working capital to total assets =

➢ Interval measure is useful for newly founded or start-up companies that

often have little in the way of revenue For such companies, the intervalmeasure indicates how long the company can operate until it needs anotherround of financing And interval measure is calculated as follow: Interval measure =

❖ Leverage ratios

Leverage ratios measure the overall debt load of a company and compare itwith the assets or equity This shows how much of the company assets belong

to the shareholders rather than creditors

➢ The debt ratio:

This is a solvency ratio that measures a firm's total liabilities as a percentage

of its total assets The debt ratio shows a company's ability to pay off itsliabilities with its assets The debt ratio can be worked out as the followingformula:

Debt ratio =

Equity ratio = 1 – Debt ratio

Companies with higher levels of liabilities compared with assets areconsidered highly leveraged and more risky for lenders

➢ The asset ratio:

Short-term asset ratio =

Long-term asset ratio =

= 1 – Short-term asset ratio

➢ Times interest earned measures how well a company has its interest

obligation covered and has the following formula:

Times interest earned =

❖ Efficiency ratios

These ratios measure how well companies utilize their assets to generate

income and are used by management to help improve the company as well asoutside investors and creditors looking at the operations of profitability of thecompany.

➢ Inventory turnover shows how effectively inventory is managed by

comparing cost of goods sold with average inventory for a period Thismeasures how many times average inventory is "turned" or sold during aperiod In other words, it measures how many times a company sold its totalaverage inventory dollar amount during the year The formula for inventoryturnover is

Inventory turnover =

Days’ sales in inventory =

➢ Receivables turnover measures how many times a business can turn its

accounts receivable into cash during a period In other words, the accountsreceivable turnover ratio measures how many times a business can collect itsaverage accounts receivable during the year It can be calculated with theformula:

Receivable turnover =

Days Sales Outstanding =

DSO represents the average length of time that the company must wait aftermaking a sale before receiving cash, which is the average collection period.The DSO may be short or long, it depends on the firm’s credit policy orcustomers not paying their bill on time

➢ Fixed assets turnover measures how effectively the firm uses its plant and

equipment The formula for fixed assets turnover is:

Fixed assets turnover =

Total assets turnover =

The asset turnover ratio measures a company's ability to generate sales fromits assets by comparing net sales with average total assets In other words, itshows how efficiently a company can use its assets to generate sales

❖ Profitability ratios

These ratios are intended to measure how effectively the firm uses its assetsand how efficiently the firm manages its operations

➢ Profit Margin measures the amount of net income earned with each dollar

of sales generated by comparing the net income and net sales of a company

In other words, the profit margin ratio shows what percentage of sales are leftover after all expenses are paid by the business Additionally, creditors andinvestors use this ratio to measure how effectively a company can convertsales into net income An extremely low profit margin formula would indicatethe expenses are too high and the management needs to budget and cutexpenses ROS can be calculated as following:

Profit Margin =

This ratio is best used to compare like sized companies in the same industryand also effective for measuring past performance of a company

➢ Basic earning power (BEP)

This ratio shows the raw earning power of the firm’s assets, before theinfluences of taxes and leverage It’s useful for comparing companies withdifferent tax situations and different degrees of financial leverage

The formula for BEP is BEP =

➢ Return on assets (ROA) measures the net income produced by total assets

during a period by comparing net income to the average total assets In otherwords, the return on assets is a measure of profit per dollar of assets ROAcan be calculated as:

ROA =

In general, a positive ROA ratio usually indicates an upward profit trend aswell ROA is most useful for comparing companies in the same industry asdifferent industries use assets differently

➢ Return on equity (ROE) measures the rate of return on owner’s

investment In other words, the return on equity ratio shows how much profiteach dollar of common stockholders' equity generates ROE is calculated as: ROE =

❖ Market value ratios

➢ Price-Earnings ratio shows how much investors are willing to pay per

dollar of reported profits The formula for PE ratio is:

PE ratio =

PE ratios are higher for companies with high growth prospects and safety Butthey are lower for riskier companies

➢ Book value per share:

Book value per share =

➢ Market-to-book ratio is the ratio of a stock’s market price to its book

value It is worked out as:

Market-to-book ratio =

This ratio gives another identification of how investors regard the company.Companies with relatively high rates of return on equity generally sell athigher multiplies of book value than those with low return

1.3.4.3 Dupont Analysis

Dupont analysis is used to analyze a company's ability to increase its return

on equity In other words, this model breaks down the return on equity ratio toexplain how companies can increase their return for investors Thus,managers can use Dupont system to analyze ways of improving the

company’s performance

Here ares some formulas included in Dupont system

ROA =

= x = Profit margin x Total assets turnover

ROE = =xx = Profit Margin x Total assets turnover x Equity multiplier

Specifically, Dupont measures operating efficiency of the business, whichmeans how efficiently input are being used to generate profits (Earnings).Assets use efficiency is also demonstrated, which shows how well capitalassets are being used to generate gross revenues (Turnings) And Dupont also

indicated financial leverage or how well the business is leveraging its debtcapital (Leverage).

Basing on these three performances measures, the model concludes that acompany can raise its ROE by maintaining a high profit margin, increasingasset turnover, or leveraging assets more effectively

CHAPTER 2 ASSESSMENTS OF FINANCIAL POSITION THROUGH FINANCIAL

RATIOS ANALYSIS OF GERMAN FOODS JSC THROUGH 2011-2013

2.1 Overview of GERMAN FOODS JSC

2.1.1 Business history

German Foodstuff Processing Joint Stock Company or GERMAN FOODS.JSC was founded on October 16, 2008 The company has a representativeoffice at Hoang Mai, Ha Noi, Viet Nam and a factory in Bac Ninh city, BacNinh province

On September 28, 2008, GERMAN FOODS JSC completed the first businessregistration and the second registration took place on October 30, 2012 toadjust some of business information

Throughout the years, the company has developed a wide range of food itemsranging from Jumbong, Sausage to Smocked meat Business managers alwayspay attention to the market demand and try to bring Vietnamese customers thetraditional favor of German Foods through its special product “Steffi”sausage, which represents the most natural taste of German sausage