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BUSINESS ADMINISTRATION DEPARTMENT

PRINCIPLES OF
CORPORATE FINANCE
(FIN202)
GROUP ASSIGNMENT
Thieu Nien Tien Phong Plastic Joint Stock Company

Team members:
1. Nguyễn Ngọc Minh Châu - HS150227
2. Nguyễn Diệu Tú - 150490
3. Nguyễn Thu Uyên - 153194
4. Trần Hoài Anh - 150639
5. Bùi Hồng Quân - HS153133

Class: IB1602 - Team 6

Lecturer: Hoàng Văn Tưởng
Date: Fall 2021

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I.Describe the company’s business operations
1.1 Current market strategy
Currently, in the North alone, NTP is holding about 70-80% of the market share of pipes
and fittings plastic parts. On a national scale, NTP's products account for about 30% of total
consumer demand. Under the pressure of maintaining market share as well as revenue growth
while ensuring benefits to shareholders, NTP's plans need to be very careful in execution.
NTP's Board of Directors has set a goal to compete with other competitors in domestic
markets domestic and foreign, mainly by building and developing effective distribution
channels,at the same time applying information technology in the management and control of
the system distribution channels to optimize business efficiency, timely supply products to
customers.
Regarding the value chain, NTP actively participates in closed value chain models from the
"raw" stage materials – production – distribution” to ensure the brand reputation of the
company and bring benefits best for customers and shareholders.

1.2 Competitive advantage

a) Production and distribution capacity

• Production of plastic pipes and spare parts: Currently, the company owns 06 factories across
the country with a total workshop area of nearly 450,000 m2 and nearly 1,900 employees,
with a total annual output of about 112,000 tons of products. . Specifically:

Northern Central Southward

Factory 04 factories with a 01 factory with a total 01 factory with total

total area of about area of about 62,000 area about
350,000 m2 m2 37,000 m2

Year output 80,000 tons of 15,000 tons of 17,000 tons of

products products products

Total employees 1,400 people 125 people 347 people

Besides, NTP also has a nationwide consumption network including 09 distribution centers,
about 400 agents and 15,000 sales points nationwide.

• Real estate: With about 20ha of land in the old factory area at No. 2 An Da, Ngo Quyen
District, City. Hai Phong, NTP are implementing projects of commercial complexes, offices
for rent and high-class apartments.

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b) Partnerships

c) Financial resources
• Low cost of capital:
With a background as an equitized state-owned enterprise, NTP is given relatively favorable
incentives: capital sources with low interest rates and high credit lines with short-term
interest rates on average only about 6% with short-term loans and 9% with long-term loans.
• Stable cash flow:
The clearest proof for this point is the fact that NTP has been listed on HNX since 2006
Up to now, NTP has never offered shares to new investors or existing shareholders and only
Currently increasing charter capital from profit after tax. Another point worth noting is that
NTP is still continuous pay regular dividends to shareholders

d) Competitive advantage
• Brand: owning a huge distribution network and a market share of 70-80% in the region
Northern, Tien Phong Plastic Youth brand has become an affirmation of quality for plastic
pipes and fittings.
• Research and development: NTP has always been a pioneer in investment, research and
application using new products with top quality in the region.
✓ In 2004: NTP was the first company to produce standard PP-R heat-resistant pipes
DIN8077-2008-09 and DIN8078-2008-09
✓ 2016: The company put into operation the DN2000 HDPE pipe production line
and HDPE/PP pipes with 2 layers of corrugated iron up to DN800 according to European
technology with a total amount of 150 billion VND investment. This is 1 of 8 lines that can
produce HDPE pipes diameter as large as 2,000 mm is available in the world, NTP is the first
enterprise from Vietnam and Asia to invest in this chain.
✓ In 2017 – 2018: NTP continues to spend more than 100 billion VND to invest in
machinery and equipment for PVC pipe production lines; HDPE and PP-R pipes; PVC pipe
fittings production and PP-R; laboratory equipment and product quality control; chain
investment
MVPC pipes DN110 – DN355; PP-R pipe production line DN20 – DN63; cord production
line for single-walled corrugated pipes for electrical cable conduit 500kg/h; production line
double-walled corrugated pipe for drainage 1,000kg/h; equipped with 250T, 350T and
injection molding machines 650T; grain dryer, PP-R spare parts packing machine; tube weld
inspection ultrasonic machine HDPE;…

3
II.Financial statement analysis
1. Common-size analysis for Balance sheet and Income Statement

a) Balance sheet
Total assets:
In general, NTP's total assets decreased gradually over the years. Specifically, year
2019 compared to 2018, it decreased by 323,975,511,919 VND, corresponding to a decrease
of 7.12%. By 2020 compared to 2019 it will be reduced by 656,900,810,903 VND, equivalent
to a decrease of 16.86%. The reason that the company's total assets tend to decrease rapidly is
due to the decrease in short-term assets. In 2018 total assets are 54.61%, in 2019 total assets
are 51.91% and in 2020 total assets are 43.10%.

Short-term assets and long-term assets

Chart comparing short-term assets and long-term assets

Through the comparison chart of short-term assets and long-term assets above, it can be seen
that short-term assets and long-term assets have a change in the period 2018-2020.
Specifically, in the period 2018-2020, short-term assets decreased and long-term assets
increased.

+ About short-term assets:

* Period 2018-2019: 54.61% in 2018 and 51.91% in 2019 down 2.7%
* Period 2019-2020: 51.91% in 2019 and 43.10% in 2020 down 8.81

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 + About long-term assets
* Period 2018-2019: 45.39% in 2018 and 48.09% in 2019 up 2.7%
* Period 2019-2020: 48.09% in 2019 and 56.90% in 2020 up 8.81%
=> Firms tend to invest more in long-term assets

The fluctuations in the size of current assets and long-term assets are due to the impact
of the following components:

Cash and cash equivalents:

In 2019 increased by 213,956,975,033 VND compared to 2018 respectively, an increase of
257.6 percent. The reason for the rapid increase is that the company is saving costs for the
purchase of input materials or the enterprise has recovered its debt. The company's
maintenance of a large amount of cash has the advantage of the company's solvency. is
always guaranteed, the company always has a high amount of liquid assets such as cash and
cash equivalents to secure due debts. However, storing a lot of cash also makes the company
lose business opportunities when it always maintains a large amount of cash in the fund.
In 2020, a decrease of VND 84,852,237.244 compared to 2019 corresponding to a decrease
of 28.6%. The reason for the decrease is that the company spends on some of its activities.

Short-term accounts receivables:

Short-term accounts receivables tend to decline over three years. In 2018, short-term
receivables were VND 1,549,583,689,783, accounting for a relatively high proportion of
short-term assets. However, in 2019 it decreased to 958,486,969,352 VND, down
591,096,720,431 VND compared to 2018 respectively, down 38.15%. And in 2020 it will
decrease to 813,391,481,075 VND, down 145,095,488,277 VND compared to 2019
respectively, down 15.14%. The decrease in short-term receivables shows that the company
is not misappropriating capital and they are tightening credit policy, enhancing debt
collection.

Inventory
Inventories are not stable. The increase in 2019 was 78,289,174,862 VND higher than in
2018, equivalent to an increase of 7.86%. An increase in inventory is a sign that the company
is in a state of capital backlog. At that time, the company needs to take measures to increase
the speed of inventory turnover and reduce the amount of goods stored in the warehouse.
Such as improving product designs, diversifying products, bringing products abroad, etc.
However, in 2020 inventory has decreased compared to 2019 by VND 429,624,312,403
equivalent to a decrease of 40%. This shows that the company's capital stagnation, reduced
goods, good and favorable product consumption activities of the company.

Fixed assets
The company's fixed assets fluctuate. In 2019 decreased by 15,792,741,641 VND compared
to 2018 respectively, a decrease of 1.02% and in 2020 increased by 263,198,816 VND
compared to 2019 respectively, an increase of 0.02&. In general, the company's fixed assets

5
 in the period 2018-2020 increased and decreased insignificantly. The company still maintains
stable fixed assets.

Long-term financial investment

Long-term financial investments can be seen steadily increasing over three years.
Specifically, in 2019 an increase of VND 53,822,933,803, equivalent to an increase of 11.8%,
and an increase of VND 17,358,831,905 in 2020 compared to 2019 respectively, an increase
of 3.4%. This shows that the company is actively making long-term financial investments
that will bring long-term results for the company.

Funding situation:

Liabilities
Liabilities tend to decrease steadily over three years. In turn, 2019 decreased by
638,889,202,261 VND compared to 2018 respectively, down 24.3% and in 2020 decreased
by 678,770,094,288 VND compared to 2019 respectively, down 34.2%. Liabilities decreased
as short-term debt and long-term debt both decreased in three years. Short-term debt in 2019
decreased by 533,263,299,950 VND compared to 2018 respectively, down 22.3% and in
2020 decreased by 583,436,466,406 VND compared to 2019 respectively, down 31.5%.
Long-term debt in 2019 decreased by 105,625,902,311 VND compared to 2018 respectively,
down 44.68%, and in 2020 it decreased by 95,333,627,882 VND compared to 2019
respectively, down 72.89%.

Equity
Equity tends to increase over three years. In 2019, an increase of 314,913,690,342 VND
compared to 2018 respectively, an increase of 13.98% and in 2020 an increase of VND
21,869,283,385 compared to 2019 respectively, an increase of 0.85%. In addition, equity
always accounts for a high proportion of total capital, especially in 2019 it is 56.40% and in
2020 it is 66.47%. A high proportion of equity indicates that the company has a high degree
of financial independence and financial autonomy.

The relationship between assets and capital

Targets 2018 2019 2020 2019/2018 2020/2019

(times ) (times) (times)

Debt-to-asset ratio 0,54 0,44 0,34 -0,1 -18,52% -0,1 -22,73%

Overall solvency 1,86 2,29 2,98 0,43 23,12% 0,69 30,13%

ratio

Asset to Equity 2,16 1,77 1,50 -0,39 -18,06% -2,27 -15,25%

Ratio

The three-year debt-to-assets ratio is low, the three-year expenses are all less than 1. It shows
that the company has used a lot of equity to purchase operating assets, making the company

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more financially autonomous and actively in business activities because it is heavily
dependent on debt capital. In 2019 compared to 2018 decreased by 0.1 with a reduction rate
of 18.52%. 2020 compared to 2019 decreased by 0.1 with a decrease rate of 22.73%.

The three-year general solvency ratio is both greater than 1. It proves that the company has
excess solvency, strong financial position, has a positive impact on business activities. In
2019 compared to 2018 increased by 0.43 with an increase rate of 23.12%. 2020 compared to
2019 increased by 0.69 with an increase rate of 30.13%.
The three-year asset-to-equity ratio is close to 1, showing that the company's assets are
invested mainly with equity. In other words, the company is financially independent. 2019
compared to 2018 decreased by 0.39 with a reduction rate of 18.06%. 2020 compared to 2019
decreased by 2.27% with a reduction rate of 15.25%.

Ability to pay short-term debt

Targets 2018 results 2019 results 2020 results

(times) (times) (times)

Ability to pay 1,12 1,27 1,32

short-term debt

The company's short-term debt solvency for three consecutive years 2018 - 2020 is greater
than 1, the company has excess capacity to pay for short-term debts. That is, the financial
situation of the company in 3 years is very positive, it has a positive impact on the business
activities of the company.

b) Income statement
Revenue from sales of goods
In general, the period 2018-2020 tends to be unstable. In 2019 compared to 2018 increased
by 254,069,099,506 VND, equivalent to an increase of 5.60%. This shows that the sales and
products of the company are very good and convenient. The company has effective plans,
policies and business plans from which to bring growth in sales. revenue from providing sales
and services during the above period. However, 2020 compared to 2019 decreased by VND
142,503,633,540, equivalent to a decrease of 2.98%. It shows that in the period of 2019-2020
the company is facing difficulties in sales and services. The reason is that the Covid-19
epidemic caused the company to stall, it was difficult to supply goods and services to the
market, and the demand and use of products during this period was limited.

Net sales
There was a fluctuation in net sales over the three years. In 2019 compared to 2018
increased by 154,227,935,920 VND, corresponding to an increase of 3.41%. In 2020
compared to 2019 it decreased by VND 187,762,390,827, equivalent to a decrease of 4.02%.
In the period of 2018-2020, net revenue is not stable. In the period of 2018-2019, the increase
shows that the company is profitable, operating effectively and bringing profits to the

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company. The decrease in the period of 2019-2020 shows that the company is facing
difficulties in operation and needs solutions to improve the situation and stabilize the
company.

Cost of goods sold

Cost of goods sold over the years has not been stable. In 2019 compared to 2018 it
increased by 136,684,801,182 VND, corresponding to an increase of 4.29%, showing that the
cost of raw materials and workers directly used to create goods chemical increase. In 2020
compared to 2019 it decreased by 227,437,030,546 VND, equivalent to a decrease of 6.84%,
due to the decrease in the price of plastic input materials..

Financial activities income

Financial activities income tends to increase steadily in the period 2018-2020. Specifically,
the increase in 2019 compared to 2018 is VND 1,727,001,858, an increase of 11.47%, an
increase of VND 4,526,068,099 in 2020 compared to 2019 is VND 4,526,068,099, an
increase of 26.97%. This shows that the company is focusing on financial activities and the
company's financial investment activities in this period are good, favorable, and highly
effective with investment policies and plans. thoroughly effective.

Selling expenses & General and Administrative expense

Selling expenses of the company tended to decrease steadily over the past three years, while
general and administrative expenses fluctuated. Specifically in terms of selling expenses, the
decrease in 2019 compared to 2018 was VND 73,371,641,445, equivalent to a decrease of
10%. The decrease in 2020 compared to 2019 is VND 77,634,520,465, equivalent to a
decrease of 11.77%. This shows that the reduction in selling expenses will save some money
for the company, but this reduction in selling costs also affects the company's sales activities
such as limiting service provision such as limited service delivery. Product introduction,
advertising, etc. For business administration expenses, in 2019 the decrease compared to
2018 was 12,113,103,214 VND, equivalent to 8.18% decrease. The increase in 2020
compared to 2019 is 79,809,874,219 VND, equivalent to an increase of 58.71%. The reason
is that the company has expanded a number of new factories in Tien Phong in the South and a
new factory in Binh Duong.

Gross profit
In general, the company's gross profit in this period tended to increase steadily.
Specifically, in 2019 the increase compared to 2018 is 17,543,134,738 VND, equivalent to an
increase of 1.32%. The increase in 2020 compared to 2019 is 39,674,639,719 VND,
equivalent to an increase of 2.94%. The reason for the strong increase in gross profit is that
the increase in net sales is larger than the increase in cost of goods sold.

Other income
Other income in this period generally tends to increase and decrease unstable. The increase
in 2019 compared to 2018 is 3,504,323,366 VND, equivalent to an increase of 62.05%. The
decrease in 2020 compared to 2019 is 5,019,798,026 VND, equivalent to a decrease of

8
54.85%. This shows the instability in profits and other income of the company during the
period when it increased very quickly but when it decreased very quickly.

Profit before tax

Profit before tax tends to increase steadily over the years. The increase in 2019 compared to
2018 is 91,341,114,234 VND, equivalent to an increase of 24.05%. The increase in 2020
compared to 2019 is 52,232,242,143 VND, equivalent to an increase of 11.09%. This shows
that the company's profit is still increasing steadily over the years and this is really a good
sign for the company's business.

Net income
After deducting incurred expenses and paying taxes to the state in full, the company's final
business results in the three years of 2018, 2019 and 2020 achieved positive and stable
growth. Specifically, in 2019 the increase compared to 2018 is VND 77,508,948,948,
equivalent to an increase of 23.38%. The increase in 2020 compared to 2019 is
38,163,029,980 VND, equivalent to an increase of 9.33%. It can be seen that the company
has been profitable over the years with quite stable profit growth and this is a good sign and
shows that the company's business results in the period 2018-2020 are very effective.

c, General comments

Through the above analysis, we can see that in the period of 2018-2020 the economy faced
many difficulties, but the company's production and business results were still very positive.
The company's business results show that the company's ability to expand production and
business, make use of good resources, and policy guidelines and wise leadership have
brought about a successful financial year of the company. The results of revenue and profit
show that the company's growth rate is good, meets the expectations of the leadership and
needs to continue to try harder in the future.

And through that, when comparing the company with companies in the same industry such
as Binh Minh Plastic Company or some other companies in the industry, in general, Tien
Phong Plastic Company has indicators as well as financial business situation. stable,
efficiency is evaluated better than other companies in the same industry.

2.Ratios analysis

a) Liquidity Ratios

● Current ratio

2018 2019 2020

Current asset 2,663,120,671,142 2,363,188,726,746 1,678,805,704,398

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 Current liabilities 2,387,372,889,586 1,854,109,589,636 1,270,673,123,230

Current ratio 1.11 1.27 1,32

Current ratio business 2018-2020

2018 2019 2020

BMP 5.04 4.2 4.03

DNP 1.29 1.08 1.22

TPC 1.4 1.44 1.3

AAA 1.24 1.54 1.19

From the table above, we see that the current ratio of Tien Phong company in 3 consecutive
years from 2018 to 2020 is greater than one. Enterprises always ensure the ability to pay
short-term debts and due debts. The company's current solvency has slightly increased over
the years 2018-2020 because the decreasing rate of short-term liabilities tends to be higher
than current assets. The current ratio in 2018 reached 1.11 times; in 2019 reached 1.27 times;
2020 will reach 1.32 times. This shows that the enterprise is able to pay its debts and
increasingly ensures its ability to pay its short-term debts with short-term assets such as cash,
inventory, and receivables. The financial situation of the enterprise is stable and can be
assessed as gradually improving.

● Quick Ratio

2018 2019 2020

Current asset 2,663,120,671,142 2,363,188,726,746 1,678,805,704,398

Inventory 995,457,074,011 1,073,746,248,873 644,121,936,470

Current liabilities 2,387,372,889,586 1,854,109,589,636 1,270,673,123,230

Quick ratio 0.698 0.695 0.814

Quick Ratio business 2018-2020

2018 2019 2020

BMP 3.46 2.93 3.28

DNP 1.08 0.84 0.99

TPC 0.79 0.79 0.81

AAA 0.98 1.16 0.94

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Although short-term debt payments increased, in 2019 the ability to make quick payments
decreased by 0.003 times compared to 2018 and increased again in 2020 (up 0.119 times). In
2019, because the company had a little difficulty in importing raw materials from abroad, in
which the company's inventory of raw materials and materials increased in price, making the
total value of inventory also increase. As a result, the company's quick payment ability
decreased slightly. Quick solvency of the company for 3 consecutive years 2018-2020 is less
than. This proves that the Company will not be able to immediately pay all short-term debts
or in other words, the enterprise will face difficulties if it has to pay short-term debts. This
demonstrates that the Company will be unable to pay all short-term obligations quickly, or, in
other words, that the company will have difficulties if it must pay short-term loans.
It can be observed that NTP still has sufficient current payment capacity and the ability to
make quick payments. These liquidity ratios, however, do not appear to be completely safe,
in our opinion. Although the amount of cash and cash equivalents held by businesses has
risen, it still accounts for a small percentage of total assets (in 2018, it was 3.12 percent; in
2019, it was 12.57 percent; in 2020, it was 12.64 percent). If debt levels rise, NTP may face
liquidity issues.

b) Efficiency Ratios
● Inventory Turnover

2018 2019 2020

Average inventory 924,215,724,081.5 1,034,601,661,442 858,934,092,671.5

Cost of goods sold 3,188,696,872,956 3,325,381,674,138 3,097,944,643,592

Inventory turnover 3.45 3.21 3.61

Inventory Turnover Business 2018-2020

2018 2019 2020

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 BMP 6.4 6.56 8.09

DNP 5.19 5.01 4.85

TPC 3.76 3.42 4.01

AAA 10.49 7.88 6.14

The inventory turnover ratio at NTP fell from 3.45 times in 2018 to 3.21 times in 2019,
before rising to 3.61 times in 2020. In comparison to the plastic industry average, the
turnover rate of items in stock is at a typical level. As previously stated, the minor rise in
inventory balance at the end of 2019 and a dramatic fall in 2020 have an impact on this ratio.
Considering the peculiarities of the plastics sector, the company's sales and volume are still
quite stable. When market demand spikes unexpectedly, inventories are still sufficient to
fulfill the reserve of raw materials for manufacturing stages.
In general, NTP's inventory and receivables management is superior. From 2018 to 2019, the
inventory turnover ratio remained relatively stable, but rose from 2019 to 2020. Furthermore,
the receivables turnover ratio rose from 2.91 to 5.51.

● Account receivable turnover

2018 2019 2020

Net sales 4,519,645,454,137 4,673,873,390,057 4,486,110,999,230

Accounts receivable 1,549,583,689,783 958,486,969,352 813,391,481,075

Accounts receivable 2.91 4.87 5.51

turnover

According to the ratio table, the firm's receivables turnover in 2018 was 2.91; the
company's low receivables turnover is due to high receivables, which account for 34%
of net sales, and the company is incurring a significant risk from distributors. The
reason for this is that the company is expanding its credit policy to allow distributors
to purchase on credit in order to grow the market and compete with other companies
in the same sector. Minh Hai Import-Export Trading Co., Ltd. is the distribution
center with the highest percentage of receivables, as well as a distribution center with
many major project clients, therefore payment speed cannot be as fast as retail
customers. However, Tien Phong Plastic is in charge of all client debts, including
Minh Hai's, and Minh Hai's debt is falling, which is the major cause for the decline in
receivables in 2019 and 2020.
Receivable’s turnover has risen steadily over time, indicating that the corporation is
sticking to its discounting agents and distribution channels policy while retaining
sales income. The fact that receivables turnover is steadily increasing indicates that
consumers are using the company's money for a shorter period of time. This will have
a positive impact on the company's capacity to transform money into profit. However,
in a still-developing economy, allowing consumers to take control of capital aids their

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 development, and the firm gains more new partners to expand production and
commerce.

● DSI and DSO

2018 2019 2020

Inventory turnover 3.45 3.21 3.61

Account receivable turnover 2.91 4.87 5.51

DIS 105.8 113.7 101.1

DSO 125.43 74.94 66.24

DSI: With inventory turnover, analyzing inventory turnover also gives us a better idea of the
time from when a business buys goods to when it is sold out. We see the number of rotations
in 2018 is 105.8 days. That is, one batch of inventory takes 105.8 days to be consumed. In
2019, the inventory turnover time trend increased to 113.7 days or 7.5%. In 2020, the trend is
down to 101.1 days corresponding to 11.08%. This shows that the company's sales situation
is faster than previous years, which is the result of the policy of supporting discount agents
and distribution channels, creating business development opportunities for partners.

DSO: In 2018, the company's DSO index was higher than in 2019, and in 2020, it was
125.43. The average number of days it takes for a firm to get money for a sale is
125.43 days, according to this measure. This is a high DSO, indicating that Tien
Phong is facing payment delays, which might result in cash flow issues. The DSO
index reduced considerably in 2019 and 2020 compared to 2018, owing to Tien Phong
Company progressively recovering a big number of receivables from Minh Hai Plastic
Company (one of Tien Phong's key distributors) improves revenue and decreases
receivables. The account receivable index rose, but DSO fell dramatically.
Furthermore, a high DSO score indicates that the company and the distributor have a
working connection. Tien Phong Plastic Company's index is high because the
company has regulations that allow major distributors to pay faster and has a long-
term cooperative connection with enterprises. These figures will steadily decline in
2019 and 2020 as Tien Phong Plastic Enterprise gradually recovers earlier receivables
from distributors as the payment deadline approaches.

● Asset Turnover Ratios

2018 2019 2020

Net sales 4,519,645,454,137 4,673,873,390,057 4,486,110,999,230

Total assets 4,876,295,184,157 4,552,319,672,238 3,895,418,861,335

Net fixed assets 1,552,279,210,843 1,536,486,469,202 1,536,749,668,018

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 Total asset turnover 0.99 1.01 1.06

Fixed asset turnover 2.9 3.04 2.9

Total asset turnover: The asset turnover index of the pioneering teen plastic firm in 2018
was 0.99, which implies that for every dong spent on assets, the company only got 0.99dong
in revenue. The total asset turnover ratio in 2019 and 2020 is 1,01 and 1.06, respectively,
indicating that the corporation is earning more revenue per dollar of assets. The corporation is
correctly allocating its assets and reaping greater benefits from them. The asset turnover ratio
is improving, which might indicate that Tien Phong is steadily growing its capacity.
Fixed asset turnover: The fixed asset turnover index of Tien Phong Plastic Company did not
very much in general. Due to the substantial growth in net revenue from sales and service
provision in 2019, the fixed asset turnover index was greater than in 2018 and 2020, although
net fixed asset declined compared to the previous two years. Tien Phong Plastic said in 2019
that it will invest in a new facility in the Binh Duong and Nghe An districts, where it has
previously invested and successfully exploited. The new industrial investment plan is based
primarily on earnings, with investment expenses amortized over time rather than all at once,
ensuring the company's risk protection.
Fixed assets rise as a result of this process, but revenue and profit suffer as a result and are
unable to break out rapidly. It can be observed that Tien Phong Plastic Company continues to
invest and utilise its long-term assets at a consistent pace. The corporation is taking great care
in making spending decisions for these long-term expenditures in order to avoid
underperformance.

c) Leverage Ratios

Total debt to Total assets

2018 2019 2020

Total assets 4,876,295,184,157 4,552,319,672,238 3,895,418,861,335

Total debt 2,623,789,620,930 1,984,900,418,669 1,306,130,324,381

Total equity 2,252,505,563,227 2,567,419,253,569 2,589,288,536,954

Total debt ratio 0.54 0.44 0.34

Debt-to-equity ratio 1.16 0.77 0.504

Equity multiplier 2.16 1.77 1.5

Total debt ratio: The debt-to-assets ratio of the firm is on the decline in 2018-2020, and it is
at a safe level, indicating that the company is less financially risky. In 2018, the debt ratio
was 0.54 times, suggesting that debt funded the majority of the company's assets. This
reduced to 0.44 times in 2019 and 0.34 times in 2020, indicating that equity financed the
majority of the company's assets. As a result, we envision the company's potential to be self-
sufficient and financially independent growing. The corporation has more assets than
liabilities and, if necessary, can satisfy its commitments by selling its assets.

Debt-to-equity ratio: The company's debt-to-equity ratio in 2018 was 1.16, meaning it had
$1.16 in debt for every $1 in equity. This indicates that the corporation owes more money

14
than it owns. The corporation is depending increasingly on outside finance, thus increasing
the risk of debt payback. This index has improved over time, with the company's debt-to-
equity ratio falling to 0.77 in 2019 and 0.504 in 2020, indicating that the company's equity is
sufficient to cover obligations since liabilities are less than half of equity.
The fact that these coefficients are progressively and modestly improving further indicates
that the firm has struck a balance between assuring debt repayment with equity and using
external loans to finance its debt. assist with business tasks.

Equity multiplier: The company's asset-to-equity ratio has been more than one over the
previous three years, from 2018 to 2020. Tien Phong Plastic Company's asset-equity ratio
was 2.16 times in 2018, indicating that current owners own less assets than current debtors.
The company's leverage ratio is high, indicating that it is largely reliant on debt and other
liabilities. Because the company's equity ratio is low, it must rely heavily on debt to fund its
operations. This coefficient likely to drop gradually in 2019-2020, with a fall of 18.05 percent
in 2019 compared to 2018, and a decrease of 15.25 percent in 2020 compared to 2019. This
lower index indicates that this firm is less reliant on debt financing and, unlike highly
leveraged enterprises, does not need to spend additional cash flow to repay debt. The firm is
rapidly becoming more financially self-sufficient.

● Coverage Ratio

2018 2019 2020

Interest Expenses 107,149,414,700 114,690,167,705 66,756,127,721

EBITDA 620,912,431,370 735,702,295,638 739,464,547,707

EBIT 486,994,735,392 585,876,602,631 590,174,804,790

Times interest earned 4.55 5.11 8.84

Cash coverage 5.8 6.4 11.1

Times interest earned business 2018-2020

2018 2019 2020

BMP 1,813.14 4,229.32 12,913.72

DNP 1.08 1.16 1.11

TPC 3.71 3.67 5.33

AAA 3.02 3.65 2.58

Times interest earned: The firm's interest solvency index is larger than 1, indicating that the
company's obligations are little. Creditors may rest easy knowing that the company can repay
the loans at any moment. Phong Nha's interest coverage ratio in 2018 was 4.55 times,
indicating that the firm can pay current interest at a rate of 4.55 times pre-tax profits. This
index has roughly quadrupled from 2018 to 2020. This demonstrates that vanguard Plastics

15
has a good credit management system in place, since it can consistently improve earnings
without incurring extra debt. This speaks for itself, making it a safer investment for debt
suppliers. Furthermore, we can observe that the interest coverage ratio is increasing year over
year, indicating that the company is effectively managing its creditworthiness by being able
to expand revenues without taking on extra debt.
Tien Phong Plastic Company has a somewhat high interest payment percentage when
compared to other firms in the same sector, just slightly lower than Binh Minh Plastic
Company. Binh Minh Plastics has a stronger ability to pay interest than other firms in the
same sector since it has a lower interest expenditure and a larger pre-tax revenue.
Pioneer Plastics is doing a better job of managing financial leverage than companies with
lower profit margins. Vanguard Plastics is a generally safe investment in the business;
therefore investors are more inclined to lend money to the company.

Cash coverage: The pioneer plastic firm's cash coverage ratio from 2018 to 2020 is all
greater than 1, indicating that the company can cover its present debts with cash alone.
Pioneer Plastic Firm's excellent cash coverage ratio of 5.8 times in 2018 indicates that the
company is completely capable of paying 5.8 times its existing debt with its cash position
alone. Similarly, to 2019, the corporation has adequate cash to pay down 6.4 times its
existing debt in 2019, and 11.1 times its current debt in 2020. These indices have risen
greatly over time as the company's interest expenditures have decreased dramatically and its
capital performance has improved. If the firm must pay its short-term debts promptly,
creditors may be certain that their loans will be returned and that the company will satisfy its
financial responsibilities. must be able to pay interest and make money without selling or
liquidating other assets.

d.Profitability Ratios

● Gross profit margin

2018 2019 2020

Net sales 4,519,645,454,137 4,673,873,390,057 4,486,110,999,230

Cost of goods sold 3,188,696,872,956 3,325,381,674,138 3,097,944,643,592

Gross profit margin 0.3 0.29 0.31

It can be observed that the company's gross profit margin has been rather consistent
throughout time. Tien Phong Plastics' gross profit margin in 2018 was 0.3 times, 0.29
times in 2019, and 0.31 times in 2020. This reveals that in 2018, the firm made a
profit of 0.3 dong vs 1 dong of gross profit from cost of goods sold, 0.29 dong versus
1 dong of gross profit from cost of goods sold in 2019, and 0.31 VND versus gross
profit from cost of goods sold in 2020. The company's Gross Profit Margin is
increasing by 2% from 2019 to 2020, showing that it is profitable based on sales and
COGS. To increase profits, the corporation is selling its inventory. However, we can
observe that the company's gross profit margin hasn't improved significantly. The
reason for this is because income is made up of a big percentage of cost of products
sold. Businesses may minimize COGS by finding lower-cost raw material suppliers,
boosting the company's gross profit ratio.

16
 ● Operating profit margin

2018 2019 2020

EBIT 486,994,735,392 585,876,602,631 590,174,804,790

Net sales 4,519,645,454,137 4,673,873,390,057 4,486,110,999,230

Operating profit margin 0.11 0,125 0.13

Operating profit margin businesses 2018-2020

2018 2019 2020

BMP 0,13 0,12 0,14

DNP 0.09 0.1013 0.1052

TPC 0.06 0.04 0.04

AAA 0.047 0.088 0.07

From 2018 to 2020, the company's operating profit margin increased. In 2018, the
firm's operating profit margin was 0.11, meaning that for every dong of profit over
that, the company earned 0.11 dong. After subtracting operating expenditures from
sales income, or in other words, for every VND of revenue generated, VND 0.11 is
kept as operational profit. In 2019, an operational profit of VND 0.125 is kept for
every VND of revenue generated. In 2020, VND 0.13 of each VND of revenue will be
kept as operational profit. These indications also demonstrate how much money the
firm makes from its primary businesses, as well as whether or not the company is
successful and increasing over time. The Company is making enough money from the
company to cover all of the expenditures involved with its operation.
Tien Phong Plastic's operational profit margin is comparable to those of significant
firms in the same sector such as Binh Minh Plastics (BMP) and Dong Nai Plastics
(DNP). It also outperforms Tan Dai Hung Plastic Company (TPC) and An Phat Xanh
Plastic in various ways (AAA). The company's profitability is improving, and
operational costs are being properly controlled.

● Net profit margin

2018 2019 2020

Net income 331,517,043,394 409,025,992,342 447,189,022,322

Net sales 4,519,645,454,137 4,673,873,390,057 4,486,110,999,230

Net profit margin 0.07 0.087 0.099

Net profit margin 2018-2020

17
 2018 2019 2020

BMP 0.02 0.015 0.016

DNP 0.0056 0.0097 0.0082

TPC 0.04 0.027 0.025

AAA 0.026 0.053 0.038

The net profit margin of Pioneer Plastic Firm in 2018 was 0.07, which means that for
every dollar of revenue, the company generated 0.07 dong in net profit. In 2019, the
firm's net profit margin is 0.087, which means that for every 1 dong of revenue
earned, the company generates 0.087 dong of net profit. The firm's net profit margin
in 2020 is 0.099, which means that for every dollar of sales generated, the company
gets 0.099 dong in net profit. Pioneer Plastic Company's net profit margin index has
improved over time as a result of the company's successful cost control, which has
resulted in a large increase in net income while net sales has remained consistent in
comparison to prior years.
In comparison to other firms in the same industry, vanguard has a much higher net
profit margin. This indicates that the firm has advantages, that the company's business
operations are efficient, and that the company generates a lot of profit. However, there
are significant limits to this index; for example, a high profit margin does not
necessarily imply a strong cash flow. A low net profit margin, on the other hand, does
not automatically imply that a firm is failing. As a result, in order to attain high
efficiency, the corporation must pay great attention to management activities,
expenses, and pricing strategies.

● Return on Assets

2018 2019 2020

EBIT 486,994,735,392 585,876,602,631 590,174,804,790

Total asset 4,876,295,184,157 4,552,319,672,238 3,895,418,861,335

Net income 331,517,043,394 409,025,992,342 447,189,022,322

EBIT return on assets (EROA) 0.1 0.12 0.15

Return on assets (ROA) 0.07 0.088 0.11

ROA IN BUSINESS 2018-2020

2018 2019 2020

BMP 0.15 0.1493 0.1708

DNP 0.0029 0.003 0.0015

18
 TPC 0.0462 0.0317 0.0319

AAA 0.0298 0.059 0.031

EBIT return on assets (EROA): Tien Phong Plastic Company's CIT before interest
and tax on assets grew marginally from 2018 to 2020. The CIT (before interest and
taxes on assets) rose marginally in 2018. The firm's profit margin is 0.1 times, which
indicates that for every dollar invested in assets employed in the company's daily
business activities, the company makes 0.1 VND before profit loans and taxes. In the
same way, the EBIT return on assets in 2019 is 0.12 times, and the EBIT return on
assets in 2020 is 0.15 times. The EBIT return on assets also highlights the company's
cash flow, which shows that the pioneer plastic company's cash flow is expanding.
The reason for the growth in cash flow in the sector is that corporate revenue before
interest and taxes climbed progressively from 2018 to 2020, while the enterprise's
total assets dropped steadily.

ROA: In 2018, a rate of 0.07 means that for every 1 VND of invested assets, 0.07
VND of profit is generated. In 2019, there is a profit of 0.088 dong for every 1 dong
invested in assets. When we look at the balance sheet, we can see that Total Assets
declined by 6.64 percent in 2019 compared to 2018, but profit after tax increased by
20.38 percent. In comparison to 2018, this resulted in a significant boost in ROA in
2019. (up to about 32 percent). In 2020, profit per asset doing will be 0.11 dong. Total
assets decreased by 14.43 percent in 2020 compared to 2019, but profit after tax
increased by 9.3 percent, causing ROA to rise at a slower rate in 2020 (at a rate of
23.59 percent). Over the years 2018-2020, return on assets (ROA) will also gradually
grow. This demonstrates the Company's increased efficiency in asset use.
The company's rate of return on total assets has been greater for three years in a row
than the industry's average rate of return on total assets by 3.9 percent, indicating that
the company's business performance is consistently among the best in the industry.

● Return on Equity

2018 2019 2020

Net income 331,517,043,394 409,025,992,342 447,189,022,322

Total equity 2,252,505,563,227 2,567,419,253,569 2,589,288,536,954

Return on equity (ROE) 0.15 0.16 0.17

ROE IN BUSINESS 2018-2020

2018 2019 2020
BMP 0.1744 0.1718 0.2115

19
 DNP 0.0112 0.0111 0.0055
TPC 0.0917 0.0635 0.0645
AAA 0.0783 0.1477 0.0721

In 2019, for every 1 dong of equity, 0.16 dong of profit was made, compared to 0.01 dong in
2018. This rise is due to the fact that the growth rate of equity in 2019 was 13.98 percent,
which was lower than the growth rate of profit after tax, which was 23.38 percent in 2018. In
2014, for every 1 dong of equity, the owner generated 0.17 dong, a difference of 0.01 dong
from 2019. The reason for this is that the growth rate of equity is lower than the profit after
tax growth rate. Over the years 2018-2020, the company's return on equity (ROE) has
progressively grown. This demonstrates that the Company's business operations are
progressing successfully. The company's return on equity has been better than the industry's
average return on equity for three years in a row, by 10.88 percent, indicating that the
company's business performance has consistently been among the best in the industry.

e) Market-Value Indicators

● Earnings per Share

2018 2019 2020

Net income 331,517,043,394 409,025,992,342 447,189,022,322

Shares outstanding 89,240,302 98,163,953 11,.796,183

Earning per share 3.714 4.166 3.796

Earning per share 2018-2020

2018 2019 2020

BMP 5.224 5.164 6.384

DNP 232 212 132

TPC 1.417 991 968

AAA 1.338 2.690 1.367

In comparison to 2018, the company's EPS per share grew dramatically in 2019. If one share
of stock made 3,714 dong in after-tax profit in 2018, it will make 4,166 dong in 2019. As a
result, profits per share (EPS) grew by VND 452 in 2019 compared to 2013, or a 12.17
percent rise. In 2020, the Company's profits per share (EPS) fell dramatically compared to
2019, falling by VND 370 in 2020 compared to 2019, a reduction rate of 8.88 percent.
BMP, on the other hand, will have the greatest profits per share in 2020 when compared to

20
 other organizations in the same industry. NTP firm is in second position, bringing in 3,796
dong in profit after taxes for each share. The profit of AAA's firm is 1,367 dong, TPC's profit
is 1,417 dong, and DNP's profit is 232 dong.

● Price-Earnings Ratio

2018 2019 2020

Price per share 40,500 32,300 36,000

Earnings per share 3,714 4,166 3,796

Price-earnings ratio (P/E) 10.9 7.75 9.48

2018 2019 2020

BMP 10.07 8.75 9.81

DNP 68.98 83.68 136.13

TPC 7.55 9.61 10.35

AAA 10.97 4.72 10.53

NTP has a P/E ratio that is comparable to the industry average for the period 2018-2020. In
2018, if investors want a dong of income, they will have to invest 10.9 dong. In 2019, the
price is lower than in 2018, but investors must spend 7.75 VND; in 2020, the price will rise
again, but not to the same level as in 2018, and investors must spend 9.48 VND. DNP's P/E
ratio in 2020 is the highest when compared to other firms in the same sector. Investors in
BMP Company only have to pay 9.81 dong to earn a dong of income, however investors in
NTP must spend 9.48 dong to invest. As a result, NTP must continue to enhance its business
processes in order to increase earnings and, as a result, become more appealing to investors.

● Market-to-book ratio

- Giá trị sổ sách của một cổ phần

BVPS = Vốn chủ sử hữu – Tài sản vô hình

Tổng khối lượng cổ phiếu đang lưu hành

- Market value of equity per share = Price per share

2018 2019 2020

Book value of equity per share 24,833 25,346 21,331

21
Market value of equity per share 40,500 32,300 36,000

Market-to-book ratio (P/B) 1.63 1.27 1.69

Market-to-book ratio 2018-2020

2018 2019 2020

BMP 1.75 1.5 2.07

DNP 0.81 0.86 0.71

TPC 0.69 0.64 0.66

AAA 0.84 0.67 0.79

The Market to Book Ratio (also called the Price to Book Ratio), is a financial valuation
metric used to evaluate a company’s current market value relative to its book value. In other
words, the ratio is used to compare a business’s net assets that are available in relation to the
sales price of its stock.
Looking at the chart above, we can see that the Tien Phong enterprise's book exchange rate
has been more than 1 over the last three years (2018 to 2020). If the index is less than one, it
means that a corporation may be bought for less than its property worth. This figure shows
how much equity investors pay per dollar of net assets. The company's price-to-book ratio in
2018 was 1.63, indicating that its market capitalization was 1.63 times that of its assets' net
book value. This ratio fell to 1.27 times in 2019, indicating that the company's stock is
undervalued in comparison to 2018. In 2020, the price-to-book ratio will be substantially
higher than in 2019 and somewhat higher than in 2019. The fact that the company's stock is
inexpensive, its market capitalization is bigger, and it is performing better than in 2018
demonstrates that the company's stock is undervalued.
When we compare Tien Phong's price-to-book ratio to that of other firms in the same
industry, we discover that NTP's index is second only to BMP's, and far higher than DNP,
AAA, and TPC's.

III. Dupont ratios

- ROA = Net income / Total assets
- ROA= Net profit margin X Total asset turnover
- Net profit margin = Net income/Net sales = EBIT/ Net sales x EBT/EBIT x Net income/ EBT
- ROE = Net income / Total equity
- ROE = ROA x Equity multiplier
- ROE = Net profit margin x Total asset turnover x Equity multiplier
- ROE = Net income/Net sales x Net sales/Total assets x Total assets/Total equity

Year 2018 2019 2020

22
 Firm Firm Firm

ROS 0.073 0.0859 0.0997

ROE 0.1528 0.1697 0.1734

ROA 0.07 0.088 0.1059

Equity multiplier 2.16 1.77 1.5

Net profit margin 0.07 0.09 0.1

Asset turnover 0.99 1.01 1.06

Comparing some profitability indicators of NTP with some enterprises in the same
industry in 2020

BMP DNP TPC AAA

ROS 0.1115 0.0082 0.0251 0.0381

ROA 0.178 0.0015 0.0319 0.0317

ROE 0.2115 0.0055 0.0645 0.0721

To better analyze the return on assets, we use the Dupont model:

ROA = ROS x Asset Turnover

According to the Dupont model, asset profitability is the combined result of Return on Sales
(ROS) with asset turnover. Analyzing the impact of factors on ROA in 2020 we have:

Năm 2019: ROA = 0.0859 x 1.01 = 0.086759

Năm 2020: ROA = 0.0997 x 1.06 = 0.105682

We see that ROA in 2020 increased by 21.81% compared to 2019 due to the influence of two
factors:

+ As the rate of return on sales increases, the return on assets increases:

ROA1 = (0.0997 - 0.0859) x 1.01 = 0.013938

23
+ As the turnover of total assets increases, the return on assets increases:
ROA2 = (1.06 - 1.01) x 0.0997 = 0.004985

Total influence of two factors: ROA = ROA1 + ROA2 = 0.018923

Thus, the return on assets in 2020 of the Company increased to 0.018 mainly due to the
increase in total asset turnover compared to 2019 at 4.95%. It proves that in 2020 the
company is also gradually controlling costs, taking advantage of the capacity of assets. But
this change is not large, the company needs to make more efforts to keep up with the
development of enterprises in the same industry and improve the efficiency of asset use.
Below, the author summarizes the ROA analysis according to the Dupont model to be able to
see more clearly the effects of each asset and cost component on ROA in 2020:

24
25
Through the Dupont model, we consider each indicator affecting the Company's ROE in
2020 as follows:
ROE = ROS x Asset turnover x financial leverage
+ Return on revenue (ROS) increased from 0.0859 in 2019 to 0.0997 in 2020. With the same
100 dong of net revenue, 2014's profit after tax was higher than 2013's 0.0138 dong.
corresponds to an increase of 16.06 %, contributing to an increase in ROE.
+ Asset turnover increased from 1.01 rounds in 2019 to 1.06 rounds in 2020, with an increase
rate of 4.95%, reflecting the company's efficient use of assets, contributing to an increase in
ROE.
+ Financial leverage decreased, in 2020 compared to 2019 it decreased by 0.3 times,
corresponding to a reduction rate of 16.66% because total assets and equity increased. Thus,
the return on equity in 2020 compared to 2019 increased by 0.23% due to the influence of the
following three factors:
+ As the return on sales (ROS) increases, ROE increases:
ROE1 = (0.0997 - 0.0859) x 1.01 x 1.8 = 2.5%
+ Due to an increase in total asset turnover, ROE increases:
ROE2 = 0.0997 x (1.06 - 1.01) x 1.8 = 0.8973%
+ Due to increased financial leverage, ROE also increases:
ROE3 = 0.0997 x 1.06 x (1.5 - 1.77) = -2.85%
Total difference:
ROE = ROE1 + ROE2 + ROE3 = 2.5% + 0.8973% - 2.85% =0.54%
Through the above analysis, ROE increases mainly due to total asset turnover, increasing
total asset turnover ratio makes ROE increase by 2.5%, then the increase in return on revenue
makes ROE increase by 0.8973%, and finally an increase in equity multiplier causes ROE to
decrease by 2.85%. From this result, it can be seen that the company has shown signs that
production and business activities are recovering and are at a high level. Compared with other
companies in the same industry in 2020, the Company's ROE is at the highest level of only
about 17%, while BMF Company has the highest ROE of 21.15%. Company DNP is 0.55%,
TPC Company is also 6.45% and AAA Company is 7.21%. These three companies have
much lower ROE than NTP company. However, the company needs to further improve asset
utilization efficiency, control costs and further improve equity utilization efficiency, thereby
creating attraction for investors and lenders.
Below, the author summarizes the assessment of ROE volatility in order to better clarify the
influence of assets, expenses and equity factors on the return on equity in 2020 according to
the Dupont model:

26
27
 IV. Statement of Cash flows
2020 2019 2018 2020/2019 2019/2018

I. Operating Activities (+/-) % (+/-) %

1 Profit after tax 523,418,677,069 471,186,434,926 379,845,320,692 52,232,242,143 11,08% 91,341,114,234 24,05%

Adjustments for accounts

2 Depreciation and amortization 147,795,673,087 149,825,693,007 133,917,695,978 -2,030,019,920 -1,35% 15,907,997,029 11,9%

3 Provision 77,552,270,807 -8,818,137,228 1,483,243,073 86,370,408,035 -979,5% -10,301,380,301 -694,5%

4 Gains (losses) on exchange rate -123,355,044 58,951,944 - -182,306,988 -309,25% - -

differences from revaluation of accounts
derived from foreign currencies

5 Gains (losses) on investing activities -37,117,384,658 -29,957,455,448 -32,541,302,220 -7,159,929,210 23,9% 2,583,846,772 -7,94%

6 Interest expenses 66,756,127,721 114,690,167,705 107,149,414,700 -47,934,039,984 -41,8% 7,540,753,005 7,04%

8 Operating profit before changes in 778,282,088,982 697,615,654,906 589,854,372,223 80,666,434,076 11,56% 107,761,282,683 18,3%
working capital

9 Increase (decrease) in receivables 71,769,544,252 602,508,747,511 -260,161,161,404 -530,739,203,259 -88,1% 862,669,908,915 -331,6%

10 Increase (decrease) in inventories 430,955,342,998 -70,101,037,634 -143,868,765,932 501,056,380,632 -714,76% 73,767,728,298 -51,3%

11 Increase (decrease) in payables -150,734,219,419 51,049,069,293 -31,569,391,873 -201,783,288,712 -395.3% 82,618,461,166 -261,7%

12 Increase (decrease) in prepaid expenses 533,570,702 7,996,307,976 -5,422,480,861 -7,462,737,274 -93,33% 13,418,788,837 -
247,46%

14 Interest paid - 69,499,119,336 -114,571,266,552 -106,266,622,542 45,072,147,216 -39,34% -8,304,644,010 7,81%

28
15 Paid enterprise income tax - 81,117,191,574 -28,203,387,482 -66,240,919,220 -52,913,804,092 187,6% 38,037,531,738 -57,4%

17 Other payments on operating activities - 55,768,965,698 -19,994,932,931 -28,628,198,176 -35,774,032,767 178,9% 8,633,265,245 -30.15%

20 Net cash flows from operating activities 924,420,970,907 1,126,299,155,087 -52,303,167,785 -201,878,184,180 -17,9% 1,178,602,322,872 -
2253.4%

II. Cash flow from Investing Activities

- ICF

21 Expenditures on purchase and - 118,033,023,743 - 169,760,204,641 - 294,650,204,815 51,727,180,898 -30,5% 124,890,000,174 -42,4%
construction of fixed assets and long-term
assets

22 Proceeds from disposal or transfer of 1,001,232,372 323,832,727 - 677,399,645 209,2% - -

fixed assets and other long-term assets

23 Deposit money into a deposit account - - 10,000,000,000 -

with a term of more than 3 months

24 Withdrawal of term deposits with a term 10,000,000,000 - -

of more than 3 months

25 Expenditures on equity investments in - -33,120,000,000 -1,128,120,000 -31,991,880,000 2835.85

other entities %

27 Proceeds from interests, dividends and 18,861,188,959 16,711,816,988 13,503,923,132 2,149,371,971 12,9% 3,207,893,856 23,75%
distributed profits

30 Net cash flows from investing activities - 88,170,602,411 - 195,844,554,926 -282,274,401,683 107,673,952,515 -54,98% 86,429,846,757 -30,62%

III. Cash flows from financial activities

33 Proceeds from borrowings 3,175,614,314,278 3,788,555,884,880 3,967,099,907,748 -612,941,570,602 -16.2% -178,544,022,868 -4.5%

34 Repayment of principal -3,723,839,876,428 -4,415,747,204,799 -3,540,104,213,837 691,907,328,371 -15.67% -875,642,990,962 24.7%

36 Dividend payment -373,021,980,500 -89,240,302,000 133,860,453,000 -283,781,678,500 318% -223,100,755,000 -166.7%

29
40 Net cash flows from financial activities -921,247,542,650 -716,431,621,919 293,135,240,911 -204,815,920,731 28.6% -1,009,566,862,830 -344.4%

50 Net cash flow during year -84,997,174,154 214,022,978,242 -41,442,328,557 -299,020,152,396 -139.7% 255,465,306,799 -616.4%

60 Cash and cash equivalents at beginning of 297,022,694,727 83,065,719,694 124,508,048,251

year 213,956,975,033 257.6% -41,442,328,557 -33.3%

61 Effect of exchange rate changes on 144,936,910 -66,003,209 - 210,940,119 -319,6%

foreign currency conversion

70 Cash and cash equivalents at end year 212,170,457,483 297,022,694,727 83,065,719,694 -84,852,237,244 -28,6% 213,956,975,033 257,6%

According to Vietnamese Accounting Standards: The statement of cash flows is an integral part of the statement of cash flows, it provides
information to help users evaluate changes in net assets, financial structure, etc. principal, the convertibility of assets into cash, liquidity and the
ability of the enterprise to generate cash flows during its operations. The statement of cash flows increases the ability to objectively assess the
business performance of the enterprise and the comparability between businesses because it eliminates the effects of using other accounting
methods. each other for the same transaction and phenomenon. So, from analyzing NTP's Cash Flow statement for the three years 2020, 2019,
2018 we can see the trend and proportion of cash flows as follows:

1, Cash flows from operating activities

During three years of net cash flow from operating activities of NTP with many fluctuations, 2020 and 2019 are both positive, showing business
activities that create an increase in cash for the business and the ability to pay business activities. business is good. However, in 2018, net cash
flow from operating activities was negative, showing that the cash capital size of the enterprise is decreasing, affecting the safety of the
enterprise's treasury, as well as the financial security of the enterprise. industry in general. Comparing 2020 with 2019, net cash flow tends to
decrease to -201,878,184,180 VND equivalent to 17.9% because the company has to suffer a large loss from the exchange rate difference from
the assessment. cash items denominated in foreign currencies, sharply reduced receivables from 602,508,747,511 in 2019 to 71,769,544,252 in
2020, which means a decrease of 88.1%. Next, in 2019 with 2018 there was a big change, in 2018 the net cash flow from operating activities was
negative. This shows that in 2018, enterprises had difficulties in consuming products, goods and services, in the collection of sales and service
provision. However, this situation has been improved and thrived by the company in 2019 with net cash flow from operating activities

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+1,126,299,155,087, marking 1 year of an effective business. This big change shows that NTP's pre-tax profit in 2019 was 24.05% higher than
2018, sharply increasing receivables from -260,161,161,404 VND to 602,508,747,511VND, equivalent to 331.6%. Besides, in 2018 there was
no profit from the exchange rate difference, but in 2019, NTP earned a profit of 58,951,944 VND.
In addition, the net cash flow from operating activities in 2020 is higher than the profit after tax of 401,002,293,838 VND
(924,420,970,907 - 523,418,677,069). 2019 is also larger than 655,112,720,161 VND (1,126,299,155,087-471,186,434,926). This shows that the
business is profitable, thriving and generating a lot of revenue, especially in 2019. But in 2018, profit after tax was 379,845,320,692, while net
cash flow from operating activities is very low (52,303,167,785), showing that the revenue quality of the business may not be high (because it
does not generate money for business activities but only profits on the books). Originally, in 2018, NTP had a negative net cash flow, because
there was a risk of appropriating capital of Minh Hai import-export-trading company - a familiar partner of Tien Phong Plastic Company (NTP),
this has made a significant impact on NTP's receivables. Besides, according to Vietstock.vn, in 2018, NTP had to pay high raw material prices,
which directly affected the cash flow and profits of the business.

2. Cash flows from investing activities

Through the three years of 2018, 2019 and 2020 the net cash flow from investment activities has a negative price, showing the expanding
investment scale of the enterprise, the production capacity, the business capacity of the enterprise is tending to develop and have a business
investment in the future. Because businesses have to spend money to buy and build more fixed assets or increase capital investment outside. In
2020, cash flow from investing activities (II) has improved significantly from (195.8) billion to (88.2) billion. This represents money spent on
procurement, construction of fixed assets and other long-term assets, NTP company spent a large amount of money on this purchase, especially
in 2018, the company spent 294,650,204,815 means that there is a large investment for the business, in the following years the company still
spends a large amount of money mainly on this purchase and investment. Cash flow into the business is the income from deposit interest,
dividends and distributed profits. 2020 is 18,861,188,959 the most in 3 years from 2018, it is 12.9% higher than 2019 and 23.75% in 2018.
From here, we can see that over 3 years, cash inflows are not much different, kept at stability level.
Tien Phong Plastic Joint Stock Company is considered one of the largest plastic companies in the country, with large production capacity and
distribution channels covering from North to South. According to NTP's 2020 annual report:
● In 2017 - 2018, Tien Phong Plastic continued to invest more than VND 100 billion for HDPE and PP-R pipe production lines; PVC pipe;
production of PVC and PP-R pipes and fittings; PP-R pipe production line DN20 - DN63; ultrasonic weld inspection machine for HDPE
pipes; equipped with injection molding machines of 250 tons, 350 tons and 650 tons; testing equipment and product quality control,
investing in M-PVC pipe production line DN110 - DN355; PE/PP double-layer corrugated pipe production line 1000kg/h; grain dryer,
PP-R spare parts packing machine; 500kg/h single layer HDPE spiral pipe production line, etc.

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 ● In 2019, not only that, but the enterprise has also developed a product line of uPVC drainage pipes and fittings according to international
standards ISO 3633 to have a total solution for civil drainage systems. In addition, products used for water supply systems were also
introduced to consumers such as 2-layer PE/PP corrugated pipes.
● In 2020, Tien Phong Plastic pioneered in researching new solutions for vertical shaft drainage of high-rise buildings and launched twisted
core uPVC pipes on Sekisui corporation's technology line with many outstanding features compared to other products. conventional
uPVC products. In addition, the Company has also successfully produced PE Walls to meet the needs of constructing reservoirs to store
fresh water in drought and mangrove areas, serving aquaculture.
From here, we can see that Tien Phong Youth Plastic Joint Stock Company is always pioneering and developing and that shows the cash flow
spent on purchasing and building large, fixed assets. This helps the company's products become more diversified and meet the needs of the
current Vietnamese market.

3. Cash flows from financial activities

Through the 3 years of 2018, 2019 and 2020 there is a decreasing net cash flow of financial activities, in 2020 and 2019 there is a negative cash
flow and positive value in 2018. First, we comment on the item "Proceeds from borrowings", this entry is made based on the total amount of
money received in the period from borrowings from financial institutions, credit institutions and other entities during the reporting period. From
2018 to 2019, enterprises reduced the amount of borrowed money from 3,967,099,907,748 to 3,788,555,884,880, equivalent to a decrease of
4.5%. Continuing to 2020, this loan level further decreased to 3,175,614,314,278, equivalent to 16.2%, a sharp decrease compared to the period
of 2018-2019. This is a good sign, because borrowing money from the company is significantly reduced. Second, the item " Repayment of
principal" is made based on the total amount paid back to the loan principal of the NTP company. From 2018 to 2019, the loan principal
payment decreased by 24.7% and also decreased by 15.67% in the period 2019-2020. Finally, in the item “dividend payments”, this entry is
established based on the total amount of dividends and profits paid to the owners of the business, i.e., from profits earned from operating
activities. business and NTP's payable expenses to the amount left to pay dividends, it represents the financial health and profitability of the
business. We can see, from 2018 to 2020, the cash flow of the item “dividend payments” gradually decreases from a positive value in 2018 of
133,860,453,000 to a negative value of 2019 and 2020. From the above two items, it is reasonable because the net cash flow of financial
activities gradually decreased over 3 years, especially from 2019 to 2020 it decreased significantly from (716,431,621,919) to
(921,247,542,650), equivalent to a decrease of 28.6%. From the above, it is concluded that the company shows that its solvency is not stable
even though the dividend payment over the past 3 years has decreased sharply, so the company needs to have measures to use money wisely.
study, avoid waste and shortage of capital, contribute to improving the efficiency of capital use, enhance debt recovery and attract more capital
flows from investors, shareholders and credit institutions

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Conclusion: For the company, in the statement of cash flows, the most important focus is on cash flows from operating activities, as it
represents the actual cash generation of the business (cash inflows and outflows are mainly related to business). Although the proportion of net
cash flow from investment activities is not the main item of the enterprise, the enterprise must aim at the goals expressed through payments with
banks and economic units. Enterprises must always maximize the use of capital but still have to ensure liquidity.

V. Conclusion.
In recent years, the developing economy has not been really stable, with many potential risk factors such as epidemics, slow handling of bad
debts, leading to many cases of businesses having to stop operating. The fact that raw materials are difficult to buy due to foreign imports has
affected the production and business activities of NTP Company. Therefore, despite achieving encouraging results, the Company has made
efforts to improve its financial situation. main but still not avoid the existence.

1.Debt situation and solvency.

Receivables management: In 2019 and 2020, the Company recovered collect some bad receivables, reverse the provision to reduce the
receivables from customers.
Accounts payable management: The turnover of payables to sellers shows positive signs and is at a reasonable level, while taking advantage of
the appropriated capital but still ensuring to pay debts at a reasonable time.
The Company's solvency is getting better: The short-term ratio and the quick ratio are average and safe compared to other companies in the
same industry, showing that the Company still has conditions to pay its debts in the short term.

2.About business performance.

The efficiency of using assets is having positive changes.Total asset turnover and inventory turnover increased over the past three years,
showing positive signs in sales, sales promotion and assets being used more efficiently. Return on equity performance The ownership is
gradually increasing, showing a positive sign for investors who have been, are and will invest in the Company

3.The company needs to focus on the core issues.

Focusing on core activities: For sustainable development, the Company needs to develop its core activities in the mineral sector because it has
certain advantages in terms of partners, inputs, outputs and directions. strategy.
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 Profit maximization: The ultimate goal of the Company is to generate profits, focus on developing business activities at each stage, each stage
and the whole process, focusing on achieving profits in depth, that is to collect both the root and the top.
Risk management: Without good management of risks that occur in the business process, it will not be possible to have the desired profit, so it
is necessary to have a strict management policy to minimize losses, risks when implementing policies such as risk management of contract
signing, risk of bad debts, ...
Expanding business activities: First, expanding the business within the core activities of the Company, after having sustainable development,
good governance, and maximizing profits, the Company continues to consider new development directions and add their core values. Business
expansion is also to avoid the risk of developing a particular industry due to policy issues.

VI. Reference.
1. Tien Phong Plastic Joint Stock Company (2018, 2019, 2020); Consolidated financial statements.
2. Tien Phong Plastic Joint Stock Company (2018, 2019, 2020); Annual Report
3. Binh Minh Plastic Joint Stock Company (2018, 2019, 2020); Consolidated financial statements.
4. Dai Hung Plastic Joint Stock Company (2018, 2019, 2020); Consolidated financial statements.
5. An Phat Plastic Joint Stock Company (2018, 2019, 2020); Consolidated financial statements.
6. Dongnai Plastic Joint Stock Company (2018, 2019, 2020); Consolidated financial statements.
7. Huy Bình, Nhựa Tiền Phong: Rủi ro từ nhà phân phối than hữu….., 05/09/2020
Link: https://viettimes.vn/nhua-tien-phong-rui-ro-tu-nha-phan-phoi-than-huu-post137935.html
8. Thu Lê, Nhựa Tiền Phong Vững bước tiên phong, 18/05/2020
Link:
https://tinnhanhchungkhoan.vn/nhua-tien-phong-vung-buoc-tien-phong-post240060.html?
fbclid=IwAR3oZMFbZsO8TrUMxBy0ZwFQpi5OM2PuhkSYsU3VPlhnpTkVNjuJQr2CVTc

9. Thu Le, Chủ tịch Nhựa Tiền Phong Đặng Quốc Dũng: “ Tương lai không nằm trên đường kéo dài quá khứ”, 19/05/2020
Link: https://baodautu.vn/chu-tich-nhua-tien-phong-dang-quoc-dung-tuong-lai-khong-nam-tren-duong-keo-dai-cua-qua-khu-
d122316.html?fbclid=IwAR1qd5xYh24B1FXT3vMMxtk69JRpbUIal_GLNB3hRfYHWmT1E3MDKm7Me7A
10. Hương Dịu, Nhựa Tiền Phong-Mở rộng sản xuất trong bối cảnh khó khăn, 31/03/2020
Link: https://haiquanonline.com.vn/nhua-tien-phong-mo-rong-san-xuat-trong-boi-canh-kho-khan-101989-101989.html
11. Website:
https://finance.vietstock.vn/
https://www.stockbiz.vn/Industries.aspx?Code=2000&view=0

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