Financial statements analysis HOA PHAT SJC

Table of content1 ABOUT HOA PHAT JSC 2 ANALYSIS OF THE FINANCIAL SITUATION OF HOA PHAT GROUP CORPORATION IN 2019 3 ANALYSIS OF BUSINESS RESULTS OF HOA PHAT GROUP JSC IN 2019 6 ANALYSIS

GROUP 9 ’S PRESENTATION

FINANCIAL MANAGEMENT MRS LAN ANH

FINANCIAL ANALYSIS OF

HOA PHAT JSC

Table of content

1 ABOUT HOA PHAT JSC

2

ANALYSIS OF THE FINANCIAL SITUATION

OF HOA PHAT GROUP CORPORATION IN 2019

3

ANALYSIS OF BUSINESS RESULTS

OF HOA PHAT GROUP JSC IN 2019

6

ANALYSIS OF BUSINESS RESULTS OF HOA PHAT GROUP JSC IN 2020

7 8

ANALYSIS OF FINANCIAL INDICATORS

CASH FLOW ANALYSIS OF HOA PHAT GROUP CORPORATION IN 2019

9 ACHIVEMENT AND SOLUTION

ACHIVEMENT AND SOLUTIONCASH FLOW ANALYSIS OF HOA PHAT 4

GROUP CORPORATION IN 2019

5ANALYSIS OF THE FINANCIAL SITUATION

OF HOA PHAT GROUP CORPORATION IN 2020

Company Name

01.ABOUT HOA PHAT JSC

General introduction

Company name: Hoa Phat Group Joint Stock Company

Short name: Hoa Phat Group

Stock ticker: HPG

Field: Basic materials

Charter capital: 8,428,749,560,000 VND

Address: Pho Noi A Industrial Park, Giai Pham Commune, Yen My

District, Hung Yen Province, Vietnam.

Website: http://www.hoaphat.com.vn

BUSINESS INFOMATION

200,000 tons/year

12-14%

Hoa Phat Group is an economic and industrial

group with multi-industry business including

steel, equipment, furniture, refrigeration,

construction and trade

Production and trading of construction steel and steel pipes are two important industries of Hoa Phat, contributing about 60% of the Group's profit

60%

Hoa Phat is the No 1 manufacturer in Vietnam, accounting for about 40% of the country's market share, accounting for 12-14% of the Group's annual profit

The company owns a billet factory

with a capacity of 200,000

tons/year, helping the company to

ensure 80% of the billet for steel

rolling activities

40%

1,3%

7,8%

4,2%

MAIN PRODUCTS

ANALYSIS OF THE FINANCIAL SITUATION

OF HOA PHAT GROUP CORPORATION IN 2019

Short-term assets

28 29 30 31 32 33 34

Cash and cash equivalents

1 2 3 4 5 6 7

5 10 15 20 25

Short-term Receivables

1 2 3 4 5 6

Long-term assets

65 66 67 68 69 70 71

Fixed assets

5 10 15 20 25 30 35

48.5 49 49.5 50 50.5 51 51.5 52 52.5 53 53.5

Short-term debt

22.5 23 23.5 24 24.5 25 25.5 26 26.5 27

Long-term debt

22 23 24 25 26 27 28 29

46.4 46.6 46.8 47 47.2 47.4 47.6

ANALYSIS OF CHANGE OF BUSINESS RESULTS OF HOA PHAT GROUP JOINT STOCK COMPANY IN 2019

Revenue from sales of goods and provision of services

Q1/20190 Q2/2019 Q3/2019 Q4/2019 2000000

4000000 6000000 8000000 10000000 12000000 14000000 16000000 18000000 20000000

17,975,302

Revenue from sales of goods and provision of services

Net profit from operating activities

1,900,000 2,000,000 2,100,000 2,200,000 2,300,000 2,400,000 2,500,000

Total accounting profit before tax

2000000 2100000 2200000 2300000 2400000 2500000 2600000

Profit after tax

1,650,000 1,700,000 1,750,000 1,800,000 1,850,000 1,900,000 1,950,000 2,000,000 2,050,000 2,100,000

CASH FLOW ANALYSIS OF HOA PHAT GROUP CORPORATION IN 2019

Nguồn vốn Q1/2019 Q2/2019 Q3/2019 Q4/2019 Difference

Q1-2/2019 Q2-Q3/2019 Q3-Q4/ 2019Value Rate(%) Value Rate (%) Value Rate (%)

Net cash flow

for the year

Net cash flow from operating activities

As you can see the graph, the fourth quarter of 2020 recorded a strong increase, up 427.92% compared to the third quarter The reason is that the consumer demand at the end of the year is often high, so the revenue

in the quarters near the end of the year is usually very high and construction materials in the first quarter are often hit at the end of the year Due to trading in 4 key industries, including steel, real estate, other industries, and agriculture, it proves that business investment

performance in these fields is very effective.and agriculture, it proves that business investment performance in these fields is very effective.

Cash flow from financing

activities

The value of cash flow from financial activities continuously

increased in all 4 quarters, This cash flow shows the good

development of the company It shows good growth in

business activities that can maintain the flow and measure

the amount of cash generated from business activities

Net cash flow from investing

activities

As shown on the graph, we can see Although in 4 quarters, net cash flow from investing activities is always negative, but this is still a good sign, because Hoa Phat invests in trading and investment securities.

ANALYSIS OF THE FINANCIAL SITUATION

OF HOA PHAT GROUP CORPORATION IN 2020

Short-term assets

0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000

Cash and cash equivalents

0 500,000 1,000,000 1,500,000 2,000,000 2,500,000

0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000

19,554,348

26,286,822

Inventory

Account Receivables

0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000

Long-term assets

72,000,000 72,500,000 73,000,000 73,500,000 74,000,000 74,500,000 75,000,000

Fixed assets

0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000

52,405,246

65,561,657

Fixed assets

0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000

Short-term debt

0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000

Long-term debt

0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000

44,000,000 46,000,000 48,000,000 50,000,000 52,000,000 54,000,000 56,000,000 58,000,000 60,000,000

ANALYSIS OF CHANGE OF BUSINESS RESULTS OF HOA PHAT GROUP JOINT STOCK COMPANY IN 2020

Revenue from sales of goods and provision of services

0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000

Net profit from business activities

0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000

Total accounting profit before tax

0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000

Profit after coporate income tax

0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000

CASH FLOW ANALYSIS OF HOA PHAT GROUP CORPORATION IN 2020

Targets Year 2020 Q2 / Q1 Q3 / Q2 Q4 / Q3

Q1 Q2 Q3 Q4 Absolute Relative Absolute Relative Absolute Relative

Profit before tax 2.657.091 5.752.812 10.024.684 15.354.933 3.095.721 116,51 4.271.872 74,26 5.330.249 53,17

Profit from business

Net cash flow from operating activities

Based on the data "Cash flow statement summary for the period from Q1/2020 to Q4 2020", we see that net cash flow from production and business activities in the second quarter of 2020 increased strongly compared to the previous quarter I, increased from 714.368 million VND to 5,990,493 million VND, the increased value was 5,276.125 million VND, equivalent to 738.57% This increase shows Hoa Phat's positive business situation in the context of the Covid-19 pandemic affecting the economy The third quarter continued to record growth, but the value increased only VND 2,961,819 million, or an increase of 49.44% compared to the second quarter, a sign that investment projects, interest income, dividends and solutions be put into effective use, bringing profits to the company

The fourth quarter of 2020 recorded a slight increase, only 0.57% compared to the third quarter, due

to the strong re-emergence of the pandemic at the end of the year

Cash flow from financing

activities

- Cash flow value from Q1/2020 to Q4/2020 increased from VND

4,494,494 million to VND 16,051,003 million The value of cash flow

from financial activities continuously increased in all 4 quarters, the

second quarter increased by more than 1,468,137 million dong

compared to the first quarter and the third quarter increased by

1,191,111 million dong, or 19.98% increase in the second quarter

From there, it shows that good development in business activities

can maintain the flow and measure the amount of cash generated

from business activities

Net cash flow from investing activities

- According to the data table, we see that cash flow has a negative value in all 5 quarters from the first quarter to the fourth quarter of 2020 From the second quarter of 2020, net cash flow from negative 3,596,501 million dong to negative 9,020,991 million dong, down 5,424,490 million dong corresponding to

150.83% In the third quarter of 2020 it continued to decrease to minus 15,025,822 million dong with 66.57% due to the increase in money spent from fixed assets and other long-term assets compared to money spent from

liquidation and sale of fixed assets revenue is not enough to pay even though a part of interest and dividends has been collected In the fourth quarter, a slight decrease of 10.51% compared to the third quarter Although in 4 quarters, the net cash flow from investing activities is always negative, but this is still a good sign, because Hoa Phat invests in trading and investment securities

ANALYSIS OF FINANCIAL INDICATORS

Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 Q2/2020 Q3/2020 Q4/2020 0.00

0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60

Liquidity

Cash Current Quick

Asset Management

0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00

Asset Management

Total assets turnover Fixed assets turnover

Debt Management

Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 Q2/2020 Q3/2020 Q4/2020 47.00

48.00 49.00 50.00 51.00 52.00 53.00 54.00 55.00 56.00

Debt Management Unit: Percentage (%)

Q1/20190 Q2/2019 Q3/2019 Q4/2019 Q1/2020 Q2/2020 Q3/2020 Q4/2020 5

10 15 20

25

Profitability

Return on total assets ( ROA ) Return on common equity (ROE) Return on invested capital (ROIC)

Earning Power

Q1/20190 Q2/2019 Q3/2019 Q4/2019 Q1/2020 Q2/2020 Q3/2020 Q4/2020 2

4 6 8 10 12 14 16 18 20

Earning Power

Return on Sales (ROS) Return on Average Equity ( ROAE) Return on Average Assets ( ROAA)

In 2019, the Company has improved production capacity at all factories, meeting the needs of customers better and better with consolidating and maintaining key markets, the Company is constantly expanding and developing new markets The shift in consumer demand from previous traditional products to galvanized steel pipe products, helped this product line grow by over 50% over the same period The Group's goal with the steel pipe business from now to 2020 is to grow by 20-30% per year and reach an output figure of 1 million tons, about 30% market share by 2025

In 2020, Hoa Phat Steel Pipe Co., Ltd has continued to promote the movement of applying 5S and technical and technological improvement initiatives into production in order to reduce production costs and increase product quality There are many initiatives and solutions to reduce power consumption, minimize smoke and dust, and combat environmental pollution has been applied to actual production, contributing to saving tens of billions of dong for the Company.

The company always maintains a positive financial balance, ensures the solvency of due debts, this helps the company to operate stably without having to be under great pressure from investors debts.

ACHIVEMENT

Save costs and reduce product costs

Liquidate outdated machinery and equipment, invest in new and advanced equipment to save labor costs and reduce waste of input materials.

Adjust, consider and balance credit policies to reduce the time taken by customers to occupy the company's capital, but not lose existing customers, and attract new potential customers.

Tighten inventory management policies.

Build a reasonable inventory volume based on market demand.

Carry out planning, market research, analysis, monitoring

and inventory preservation

Choosing the right time and production to minimize inventory

costs, balance the inventory structure reasonably

Promote consumption of goods and expand market share,

avoiding stagnant goods leading to high costs

Reasonable capital structure, making full use of financial

leverage but not overusing borrowed capital

Training and effective use of human resources Improve professional

qualifications for managers, vocational training for workers

F

Build brand, improve reputation and expand business market

of the company

THANK YOU

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