TIỂU LUẬN TIẾNG ANH AN PHAT ’s FINANCIAL STATEMENT ANALYSIS

In the First 6 months GDP rose 5.52% as estimates. Growth rates higher in this year despite the general rate of the same period of year 2012 2014 (r espectively 4.93%, 4.9%, 5.22%), but there are signs of slowing compared with the speed rose 6.28% in the first 6 months of 2015. For Vietnams economic prospects in 2017, most experts, organizations and the international media have stated that Vietnam will be a bright spot of economic growth in Southeast Asia in this year.

AN PHAT PLASTIC AND

GREEN ENVIRONMENTAL JOINT STOCK COMPANY

AN PHAT ’S FINANCIAL STATEMENT ANALYSIS

1 MACRO ANALYSIS 2

1.1 ECONOMIC GROWTH 2

1.2 EXPORTS AND IMPORTS 3

1.3 INDEX OF INDUSTRIAL PRODUCTION 5

1.4 INFLATION 5

2 INDUSTRY ANALYSIS 6

2.1 PLASTICS INDUSTRY IN THE WORLD 6

2.2 VIETNAM PLASTICS INDUSTRY 7

3 OVERVIEW ABOUT BUSINESS ACTIVITIES 9

3.1 INTRODUTION 9

3.2 SHAREHOLDER STRUCTURE AND ORGANIZATION 9

3.3 AAA HAS TWO SUBSIDIARIES AND ONE ASSOCIATE COMPANY 10 3.4 POSITION OF AN PHAT COMPANY IN PLASTIC BRANCH 11

3.5 ABILITY IN MANUFACTURING 11

4 INCOME STATEMENT ANALYSIS 12

4.1 Horizontal analysis 12

4.2 Vertical analysis 14

5 CAPITAL STRUCTURE AND ASSETS ANALYSIS 17

5.1 ANALYSIS OF CAPITAL SOURCING AND CAPITAL USE 17

5.2 ANALYSIS OF FINANCIAL STRUCTURE 19

6 FINACIAL RATIOS ANALYSIS 21

6.1 SHORT-TERM SOLVENCY RATIOS 21

6.2 PROFITABILITY RATIOS 22

1 MACRO ANALYSIS

In the First 6 months GDP rose 5.52% as estimates Growth rates higher

in this year despite the general rate of the same period of year 2012 - 2014 (r espectively 4.93%, 4.9%, 5.22%), but there are signs of slowing compared with the speed rose 6.28% in the first 6 months of 2015

For Vietnam's economic prospects in

2017, most experts, organizations and theinternational media have stated that Vietnamwill be a bright spot of economic growth inSoutheast Asia in this year

1.1 ECONOMIC GROWTH

Vietnam's economy has expanded an

annual 6.68 percent in the fourth quarter of 2016, compared to an upwardlyrevised 6.56 percent growths in the previous three months, a preliminaryestimate from the General Statistics Office showed It was the strongestquarterly growth since the December quarter of 2015, boosted by risingexports For full year of 2016, the economy grew by 6.21 percent, slowing from

a 6.68 percent expansions in the same period a year earlier and falling short ofthe government's target of 6.7 percent It was the first annual slowdown since

2012, mainly driven by adverse weather, a marine environmental disaster and

an unfavorable global economy GDP Annual Growth Rate in Vietnam averaged6.47 percent from 2000 until 2017, reaching an all time high of 8.48 percent inthe fourth quarter of 2007 and a record low of 3.12 percent in the first quarter

of 2009

Manufacturing, construction, and services expanded in Viet Namrobustly in the first half of 2016, driven by inflows of foreign direct investment,but growth in gross domestic product was weighed down by weakperformance in agriculture and mining Although the economy is expected topick up in the second half of 2016, Growth forecasts for the year as a wholeand for 2017 are nevertheless revised down Inflation has stirred, as expected,but is forecastted to remain moderate

1.2 EXPORTS AND IMPORTS

According to statistics 17.01.2016 of General Administration ofCustoms, the total import-export turnover in May 12/2016 reached more than33.66 billion dollars, up 3.5% respectively increase more than 1.15 billiondollars from the previous month In particular, exports reached more than16.58 billion, up 2.8%, corresponding to 451 million increase over theprevious month; imports reached nearly 17.08 billion dollars, up 4.3%respectively, up 702 million US dollars

By the end of 12 months / 2016 total exports and imports over thecountry reached 350.74 billion dollars, up 7.1%, corresponding to an increase

of nearly 23.16 billion dollars over the same period last year In particular,

exports reached 176.63 billion US dollars, up 9%, respectively increase 14.62billion; imports reached 174.11 billion US dollars, up 5.2%, more than 8.54billion USD Balance of trade in goods deficit country May 12/2016 494million, bringing the trade surplus in 2016 of the more than $2.52 billion.

Exports: Export turnover in the first half of this year was estimated at $

82.24 billion, up 5.9% over the same period of 2015 (6 months in 2015, up9.2% over the same period last year) This is a low increase, even consideringthe correlation with GDP growth this year Low export growth was mainly due

to a 6.3% fall in export prices, including falling crude oil prices and exportprices of processed goods Excluding the price factor, export growth in the first

6 months was 10.1% (albeit still lower than the growth rate of 13.4% in thesame period last year but higher than that of the same period last year)

Imports: In the first 6 months, import turnover reached $ 80.7 billion,

down 0.5% over the same period last year The surplus in the first six monthswas estimated at $ 1.54 billion, equaling about 1.9% of export turnover Importprices of raw materials, fuels and materials fell sharply over the same period,leading to a decrease in total import value despite the increase in imports ofcommodities, such as iron and steel, petroleum, liquefied gas , Plasticmaterials, rubber, paper, textile fiber, metal

1.3 INDEX OF INDUSTRIAL PRODUCTION

Industrial production in Vietnam jumped 15.2 percent year-on-year inFebruary of 2017, compared to a 0.7 percent growth in January It was thestrongest increase since January 2015, mainly driven by a surge in the output

of processing (22.4 percent from 6.6 percent in the prior month) In contrast,mining output fell 8.6 percent (compared to a 2.4 percent rise in January) Forthe first two months of 2017, industrial output rose 2.4 percent, much slowerthan a 6.6 percent gain in the same period a year earlier Industrial Production

in Vietnam averaged 9.06 percent from 2009 until 2017, reaching an all timehigh of 28.40 percent in January of 2010 and a record low of -10.10 percent inFebruary of 2013

1.4 INFLATION

CPI accelerated in recent months, rose 0.46% in June from the previousmonth, an increase of 2.35% compared with 12/2015 and six-month averageincrease of 1.72% over the same period The Main cause is due to the recovery

of world oil prices caused domestic gas prices are continuously adjuste

Nevertheless, the CPI rose by 6 months of the year remained below 5%

of the target for the whole year Our highly price inflation remains below than5% by the end of this year thanks to the mainly oil prices stabilize at 45-50USD / barrel and gasoline prices will not be adjusted compared to the first twoquarters The 6/2016 core inflation rose 0.13% month over the previousmonth and increased 1.88% over the same period of last year Average coreinflation of the first 6 months in 2016 increased 1.80% compared to the sameperiod in 2015 Basic inflation low supportted in running monetary policy ofthe central bank to support economic growth

The inflation 4,74% lower than target that is proposed

According to GENERAL STATISTICS OFFICE of VIET NAM , there are 6commodity groups that their price has increased Garment has increased by0.25%, beacause of shopping for winter clothes Drinks and cigarettes haveincreased by 0.21% Buldibng and marterials have increased 0.19% beacauseneed of repairing house in the last months of year Equipment and householdappliances increased by 0,08% Medical group has increased , CPI indexincreased by 2,7%

The other commodities ‘ve decreased such as traffic, food services,etc.Education group hasn’t changed Inflation 2016 is higher than 2015 Theinflation in 2017 is forecasted to depend on adjustment of the public services :

if public services are not adjusted, inflation is forecasted about 4% If publicservices are adjusted , inflation is predicted about 5%

2 INDUSTRY ANALYSIS.

2.1 PLASTICS INDUSTRY IN THE WORLD

Plastics industry is an integral and integral part of the global economy.Plastic is the name of the material means that "flexible and easy to shape"

Recently, plastic is also used torefers to polymeric materials,consisting of repetitive chains ofmonomers formed primarily ofcarbon and hydrogen atoms,under appropriate conditions,joined to the chain structure.

Over the past 150 years,plastic materials have been constantly improved and have contributed greatly

to the development and advancement of human beings Plastics are present incomputers, cell phones and most of modern medical advances Thanks to itslight weight and good insulation, plastic help save fuel for heating andtransportation Thanks to its cheap price, plastic replaces much of the naturalmaterial, making more of the material produced, at a lower cost, lighter, saferand stronger

More than 90% of plastic production is produced from fossil fuels Theplastics industry consumes about 6% of global oil demand, which is equivalent

to that of the aviation industry If plastics continue to grow as predicted, by

2050, the plastics industry is expected to consume 20 percent of its oil outputand 15 percent of global carbon emissions

The United States, Europe and Asia produce 85% of plastic production,with Asia accounting for about half, in which China is the largest plasticsproducer with 26% of global output The United States and Europe, however,account for only about 40 percent of the production of plastics, but themajority of global businesses involved in plastic packaging are headquartered.These are decision makers at the start of the plastic value chain

2.2 VIETNAM PLASTICS INDUSTRY

Over the past few years, the plastics industry has grown rapidly,becoming one of the most dynamic sectors of the economy The growth rate ofthe plastics industry is just behind the telecommunications and textile sectors.The sector's output increased from 890 thousand tons in 2000 to 13,238thousand tons in 2015, corresponding to an average growth of 19.7% per year

The role of the plastics industry in the economy is increasing As of theend of October 2015, the plastics industry contributed 4.8% to the totalindustrial production value of the whole country, and it is forecasted that thetotal production value of the industry will reach 8.81 billion USD in 2020

Plastic production increased sharply thanks to high economic growth.Per capita income increased from $740 in 2006 to $1,078 in 2014 Populationincreased from 77.6 million in 2000 to more than 94 million in 2015, whileplastic consumption per capita also increased From low starting point.According to the Vietnam Plastics Association, Vietnam's per capita plasticconsumption is projected to increase to 45 kg per year by 2020, equivalent to acompound annual growth rate of 4%.

Nationally, there are about 1,500 plastic enterprises operating Thenumber of domestic firms is still dominated by 85% More than 80% of localbusinesses are small and medium sized enterprises (SMEs) with limitedtechnology About 85% of equipment in the industry is imported The domesticplastics industry does not have the research and technology and technologyfoundations, so it has not produced high-level details to participate in theglobal supply chain

The plastic productsmainly serve the domesticmarket, export is very lowed,accounting for only 1.2 - 1.5% oftotal output Vietnamese plasticproduct s are available at all retailchannels in the country

Demand in the domesticmarket is growing rapidly underthe impact of low plasticconsumption per capita and the recovery of the construction plastics segment(+ 15% in 09 months 2015) In 2014, consumption of plastic per capitareached 40 kg / person / year, much lower than many countries in the regionand in the world (69.7 kg / person / year), in the US and EU 120 kg / person /year It is forecasted that this consumption will increase to 45 kg by 2020

Export value of plastics by 2015 will be $ 2.48 billion, down 0.1%compared to 2014, of which plastics export about 2 USD billion, plasticmaterials export about 475 million USD)

3 OVERVIEW ABOUT BUSINESS ACTIVITIES

3.1 INTRODUTION

An Phat Plastic and Green Environment Joint Stock Company (AAA)(formerly known as An Phat Plastic and Packaging Joint Stock Company) wasestablished on March 09, 2007 with initial chartered capital of VND 30 billion.Precursor of AAA Anh Hai Duy Co., Ltd was established in 2002 with 02members the charter capital is VND 500 million AAA transformed into an oldcompany in 2007 and listed on the HNX in 2010

3.2 SHAREHOLDER STRUCTURE AND ORGANIZATION

AAA's shareholder structure includes 19.5% foreign ownership, 31.9%Ownership of the Board of Directors and the rest of domestic shareholders.The management of AAA includes Mr Pham Anh Duong, Chairman, Mr Nguyen

Le Trung, CEO, and other members of the board Administrators include, Mr.Pham Hoang Viet, Ms Hoa Thi Thu Ha, and Mr Pham Dinh Ngu

Domestic individuals 48.4% Foreign individuals 0.4%

Foreign Organization 19.1%

3.3 AAA HAS TWO SUBSIDIARIES AND ONE ASSOCIATE COMPANY

An Phat Plastic and Mineral Joint Stock Company - Yen Bai: Thecompany has capital Chartered capital of VND86 billion, of which AAA owns91.86% stake Currently, An Phat Yen Bai owns a factory with an area of 40,000m2 is equipped with modern production lines capacity of 20,000 tons ofproduct per year Main product of the company is ANPHAT CALBEST Additive(PE and PP) Additive used as additives in plastic products In addition ANPHATCALBEST additives are used in public manufacturing construction materials:baitpowder, paint, industrial cosmetic production, paper industry,etc

Thakkhek Plastic Company Limited: is a company established underdeveloped project number 007 / TSZ on 05/03/2013 between the separateThakhek Special Economic Zone Authority Council Governance ThakhekPlastic has a chartered capital of $ 2.5 million, owned by AAA 100% capital

In addition, AAA also associates with Vinh Plastic Packaging JSCSpecialized in manufacturing and trading cement packaging, agriculturalpacking Products and plastic products Plastic and Packaging Joint StockCompany Vinh has a chartered capital of VND29,999,890,000 on December 31,

2015 in which An Phat owns 32.22% of capital

Subsidiary and affiliated

Charter capital ( biliion)

Invesment value ( biliion)

Subsidiary

An Phat Plastic and Mineral

Thakhek Plastic Company

Associated company

3.4 POSITION OF AN PHAT COMPANY IN PLASTIC BRANCH

An Phat is a company that they not only manufacture and serve thedomestic market but also export to the external markets An Phat company has

a biggest capacity in Vietnam that they are able to manufacture 4000tons/month

95% of products ,which An Phat produced, have high quality An Phat is

in the top 10- best companies produce self-decomposing bag in Asia-PacificEconomic Cooperation

( arcoding to the statics of Chevron Phillips )

An Phat is senior in plastic branch They have a lot of traditionalcustomers; good relations in business An Phat’s market share is to exportproducts for big brand all over the world such as Public Embal, Compoplast,etc Those company distribute products to European markets

On the other hand, An Phat company has imported a huge amount ofraw materials for manufacture They can easily negotiate to buy materials withcheaper price and discounts

3.5 ABILITY IN MANUFACTURING

Produce the plastic things : An Phat company has 4 factories in HaiDuong province with the capacity 4000 tons/month Two more factories arebeing built (2015).If the factories is ready , the total capacity can reach 80000tons/year An Phat can become a top 1 company about manufacturing plasticbags in Southest Asia Most products are exported to Japan, Europe, etc

Plastic bags : include bags for

supermarket,garbage bags , coloured or be colourlesse

is up to customer’s orders Especially, An Phat

manufacture self-decomposing plastic bags which can

be self-decomposed in 3 months to 2 years and no harm

to the environment