Financial statements analysis vietjet

SHORT-TERM ASSETS The company's term asset portfolio currently accounts for the highest proportion in quarter II/2021 and the lowest in quarter I/2019.. Vietjet's inventory has increased

VIETJET

AIRLINES

JOINT STOCK COMPANY

FINANCIAL STATEMENT

GROUP

5

• Vietnamese name: VIETJET AIRLINES JOINT STOCK COMPANY

• Short name: VIETJET., JSC

• Trade Name: VIETJET AIR

• Stock code: VJC

LINE OF BUSINESS:

• Air transport

• Support services

• Activitity direct support air transportation

• Education training air

• Air planes business

1.VIETJET OVERVIEW

2

ACCOUNTIN

G BALANCE SHEET

HORIZONTAL ANALYSIS

CHANGES IN ASSETS OF VIETJET FROM QUARTER

I/2019 TO QUARTER II/2021

The company's total assets fluctuated unevenly, but in general, there was an increase over the years Specifically, the quarter II/

2021 reached the highest number with 48,620 billion VND, an increase of 7,233 billion VND compared to the lowest quarter, which

is the quarter I/2019, equivalent to 17.47%.

Total assets

SHORT-TERM

ASSETS

The company's term asset portfolio currently accounts for the highest proportion in quarter II/2021 and the lowest in quarter I/2019 Thereby, it shows that the company's short- term assets are growing.

short-CHANGES IN SHORT TERM ASSETS OF VIETJET FROM

QUARTER I/2019 TO QUARTER II/2021

In quarter IV/2019, this category increased by a record

of VND 6,076 billion,

an increase of about 92% compared to the previous quarter.

However, cash and cash equivalents gradually decreased and reached the lowest level in quarter I/2021.

CASH AND CASH

EQUIVALENTS

CHANGES IN CASH AND CASH EQUIVALENTS OF

VIETJET FROM QUARTER I/2019 TO QUARTER II/2021

SHORT-TERM

RECEIVABLES

In general, short-term revenues tend to increase gradually over the years As

of the second quarter of

2021, this item is VND 24,789 billion, a sharp increase compared to quarter I/2019 in particular,

an increase of 102.68%.

The larger the receivables, the more capital is occupied by the business, which will partly affect the efficiency of capital use of the enterprise.

CHANGES IN SHORT-TERM RECEIVABLES OF VIETJET

FROM QUARTER I/2019 TO QUARTER II/2021

Vietjet's inventory has increased gradually over the years, specifically reaching the highest proportion in quarter II/2021.

The fluctuation of inventory over the quarters in the period of 2019 - 2021, we can see that Vietjet Air is recovering strongly after the epidemic.

INVENTOR

Y

CHANGES IN INVENTORY OF VIETJET FROM QUARTER

I/2019 TO QUARTER II/2021

LONG-TERM

ASSETS

- Long-term assets tend to

increase and decrease year

by year but generally

decrease

- The proportion of long-term

assets in the proportion of total

assets was highest in the

quarter I/2020 and the lowest

in quarter I/2021.

- The volatility of long-term

assets is influenced by the

items in long-term assets

CHANGES IN LONG TERM ASSETS OF VIETJET FROM

QUARTER I/2019 TO QUARTER II/2021

FIXED ASSETS

- The company's fixed assets have a gradual decrease over the

I/2019-II/2020

- The difference between the quarter II/2021 and the quarter I/2019 decreased

by VND 789 billion, equivalent to -49.09%.

CHANGES IN FIXED ASSETS OF VIETJET FROM QUARTER

I/2019 TO QUARTER II/2021

- The proportion of term assets over the years has increased slightly.

short Along with that, the company's long-term

assets also tended to decrease.

> The company's restructuring from long- term assets to short-term assets during the time of Covid 19 is a right direction.

VERTICAL ANALYSIS

CHANGES IN VERTICAL ASSET STRUCTURE FROM THE I/2019 TO THE II/

2021

Analysis The situation of capital

fluctuations

TOTAL LIABILITIES AND

HORIZONTAL ANALYSIS

CHANGES IN LIABILITIES AND OWNERS'EQUITY OF VIETJET FROM

QUARTER I/2019 TO QUARTER II/2021

S

-Liabilities grow unevenly from quarter to year, increasing from 2019-2020 but in 2021 this item tends to decrease

-The company's liabilities over the quarters is a very large amount, the highest proportion in the second quarter of 2020 and the lowest in quarter I/2019

-The company needs to consider and consider carefully to use these resources in a reasonable way

CHANGES IN LIABILITIES OF VIETJET FROM QUARTER

I/2019 TO QUARTER II/2021

SHORT-TERM LIABILITIES

In general, this item has grown year by year The proportion was the lowest in the first quarter of

2019 and increased sharply in the first quarter of 2021.

CHANGES IN SHORT-TERM LIABILITIES OF VIETJET FROM

QUARTER I/2019 TO QUARTER II/2021

LONG-TERM

LIABILITIES

Long-term debt ratio has increased and decreased year by year

This item is the highest

in the first quarter of

2020 and the lowest in the first quarter of 2019

CHANGES IN LONG-TERM LIABILITIES OF VIETJET FROM

QUARTER I/2019 TO QUARTER II/2021

TY

The company's equity capital fluctuates continuously and the difference between quarters is relatively small, especially in quarter II/2021 The lowest proportion of this item in the first quarter of 2020

Equity gradually increased in the first two quarters of 2021, thereby showing that the company's financial position is being improved by investors' efforts to offset capital

CHANGES IN EQUITY OVER THE QUARTERS IN THE PERIOD OF

2019-2021

“THE SITUATION OF VERTICAL CAPITAL FLUCTUATIONS IN THE PERIOD FROM

QUARTER I/2019 TO QUARTER II/2021”

- The proportion of the company's liabilities in the past year has tended

to decrease gradually, proving that the company has a good plan in managing its expenses

- The equity ratio in quarter II/2021 increased significantly thanks to stock trading activities reaching 34.98%

- However, undistributed after-tax profit in quarter II/2021 accounted for 23.32% while cash and cash equivalents only accounted for 3.1%, which showed that the company is in

a state of excessive capital appropriation, which is not good in business activities

VERTICAL

3 INCOME

STATEMENT

CHANGES IN GROSS REVENUES FROM SALES AND SERVICES

RENDERED

The company’s business results tended to increase and decrease unevenly over each quarter of the years Before the fourth wave of the COVID-19 epidemic broke out

at the end of April, Vietjet set a target of 32 trillion dongs in revenue and 1,000 billion dongs

in consolidated profit after tax However, when the epidemic spread with thousands of new infections every day, Vietjet only strives to break even this year

HORIZONTAL ANALYSIS

CHANGES IN GROSS REVENUES FROM SALES AND SERVICES

RENDERED

HORIZONTAL ANALYSIS

The company's profit after tax tends

to increase and decrease unevenly.The highest profit in 3 years was in quarter III/2019 and the lowest was in quarter I/2020

The difference between quarter II/2021 and quarter I/2020 is about 993 billion VND Thereby, it can be seen that, despite being affected by the COVID-19 epidemic, Vietjet has made efforts to restore a stable economic level to ensure that the company does not suffer too much damage

4-CASH FLOW

4-CASH

FLOW CHANGES IN NET CASH FLOW FROM OPERATING

ACTIVITIES

Overall, the cash flow entries for all quarters were negative The lowest cash flow in quarter IV/2020 was -4,897 billion VND, however, it increased sharply in quarter I/2021, reaching -407 billion VND, the highest in all quarters It was thought that the situation in

2021 would be more developed, but in quarter II2021, this item decreased sharply - 3,939 billion VND.

4-CASH

FLOW CASH FLOW RATIO ANALYSIS:

- Quarter III/2020 decreased compared to quarter III/2019, and quarter IV/2020 decreased compared to quarter IV2019, proving that the company is using more money for business activities and business activities

in 2020 decreased compared to 2019

- In quarter I/2021, this number tends

to increase, but in quarter II/2021, it continues to decrease sharply

Net cash flow from investing activities

HORIZONTAL ANALYSIS

CHANGES IN CASH FLOW FLUCTUATIONS FROM INVESTMENT ACTIVITIES

IN QUARTER I/ 2019 TO QUARTER II/2021

- Comparing the II/2021 with the same period two years ago, we find that only the II/2021 has a negative value and is lower than both the II/2019 and the II/2020

by more than 1 trillion VND.

- The net cash flow of the II/2021 is higher than the IV/2019, which gets the lowest value in the whole period, about 3.5 trillion VND And it lower than the IV/2020, which came top in the whole period, about 2.8 trillion VND

VERTIAL ANALYSIS

CHANGES IN CASH FLOW ANALYSIS FROM QUARTER I/2019 TO

QUARTER II/2021

- Cash flow of investment activities: + Cash spent on purchases and construction of fixed assets;

+ Money spent on lending, buying debt instruments of other entities; + Money for loan recovery, resale of debt instruments of other entities; + Proceeds from loan interest, dividends, and distributed profits

Net cash flow from investing activities in the II/2021 reached 40.33% thanks to the fact that the company sold a large number of shares and collected money for the business

5-FINANCIAL INDICATORS

5-FINANCIAL INDICATORS

CHANGES IN SHORT-TERM RATIO IN THE PERIOD OF

2019 - 2021 OF VIETJET

Vietjet's short-term debt solvency ratio is always greater than 1 and increases over the quarters, reaching the highest level in the second quarter of 2021 at about 2.65 The reduction of short-term liabilities shows that the company has good financial balance and reasonable policy in paying short- term debts.

5-FINANCIAL INDICATORS

CHANGES IN QUICK RATIO IN THE PERIOD OF 2019 - 2021 OF

VIETJET

-Short-term debt solvency

is not much different from short-term debt solvency -The reason is that inventory accounts for a low proportion -Thereby showing that the company has a good financial position, low risk of bankruptcy.

5-FINANCIAL INDICATORS

CHANGES IN INSTANT RATIO IN THE PERIOD OF 2019 - 2021 OF

VIETJET

Vietjet's instant solvency index was low, the highest was only 0.32 in quarter I/2019, thereby showing that Vietjet's solvency is assessed

as not satisfactory, not making good use of cash to give short- term loans and have difficulty paying debts.

5-FINANCIAL INDICATORS

CHANGES IN THE VOLATILITY OF LONG-TERM DEBT SOLVENCY

RATIOS FOR THE PERIOD OF 2019 - 2021

Although the debt level increased, it can be answered that the epidemic situation has caused a strong impact and impact strongest in the aviation industry It can be seen that due to the service business, the company has been affected a lot by long- term loans.

6-RECOMMEND

RECOMMEND - ABOUT

- REGARDING CAPITAL:

Businesses can consider borrowing capital to take advantage of tax shields as well as

create good relationships with banks and create a good credit history to plan for

large business projects Next need the support of the bank Use the money to recoup

the issued shares to ensure the company is not taken over.

RECOMMEND

6 IN TERMS OF SOLVENCY:

Cut unnecessary expenses: Before the serious epidemic situation, Vietjet Air should

suspend the operation of ticket offices and switch to 100% online ticket sales From

there, it will save costs from these activities such as administrative and office costs

Convert invoices and vouchers from paper to digital form to save unnecessary costs

Accurately check the company's invoices and documents to avoid accidental loss.

RECOMMEND

6-Continue to improve the short-term ratio, reduce liabilities such as maximizing short-term unrealized revenues These measures have been presented in the above recommendation.

- ABOUT BUSINESS

ACTIVITIES: