Long Hau LGH - Sonadezi Chau Duc SZC - Case Study Q7 Review

Introduction
The case study analyzes the financial statements of 2 corporates:

Abbreviations:
SCZ Sonadezi Chau Duc
LHG Long Hau Corporation
Appendix:
1 Profs. Maton's template
2 Long hau annual reports (2013-2022)
3 Sonadezi Chau Duc annual reports (2013-2022)
4 Chapter 5, Financial analysis
Questions about the 2 companies:
What are the main differences in the two companies strategies and
1
what are the expected effects on financial performance?
2 Calculate the EBIT and NOPAT (i.e. net operating profit after tax).
Create the common-size income statement (including the EBIT
3
margin).
Create the average managerial balance sheet (including working
4 capital requirement, net non-current operating assets, non-operating
assets, equity and debt).
Calculate the ratios and periods: average WCR / Revenue, days sales
5 outstanding (DSO), days inventories outstanding (DIO), days payables
outstanding (DPO) and cash-conversion-cycle (CCC).
Decompose the RNOA before tax with the EBIT margin and net
6
operating assets turnover
Decompose the ROE with the RNOA before tax, return on non-
7 operating assets after tax, cost of debt after tax and debt-to-equity
ratio
Comparison about the two companies strategies and financial
8
performance
013-2022)
Income Statement in billions (LHG)
LHG (Long Hau Coporation) 2013 2014
Sales 269.58 319.39
Sales deductions - 29.04 - 6.65
Net sales 240.54 312.74
Cost of sales - 97.90 - 146.16
Gross Profit 142.64 166.58
Financial income 9.90 8.60
Financial expenses - 60.91 - 89.61
of which: interest expenses - 51.39 - 30.33
Gain/(loss) from joint ventures (from 2015) - -
Selling expenses - 8.13 - 8.92
General and admin expenses - 34.38 - 32.40
Operating profit/(loss) 49.12 44.25
Other incomes 10.87 3.34
Other expenses - 8.90 - 0.59
Net other income/(expenses) 1.97 2.75
Income from investments in other entities - -
Net accounting profit/(loss) before tax 51.09 47.00
Corporate income tax - current - 2.66 -
Corporate income tax - deferred - 24.24 - 21.83
Corporate income tax expenses - 26.90 - 21.83
Net profit/(loss) after tax 24.19 25.17
Attributable to parent company 24.19 25.17

Audit Status Audited Audited
Audit Firm AFC Auditing
Audit Opinion Type Unqualified O
Balance Sheet in billions (LHG)
CURRENT ASSETS 823.65 803.57
Cash and cash equivalents 56.22 118.81
Cash 46.22 33.56
Cash equivalents 10.00 85.25
Short-term investments 2.04 1.68
Short-term investments 2.04 1.68
Held-to-maturity investment - -
Accounts receivable 442.04 408.99
Trade accounts receivable 422.04 392.52
Prepayments to suppliers 3.60 4.28
Other receivables 16.41 12.19
Provision for doubtful debts - -
Inventories 320.62 272.15
Other current assets 2.72 1.95
Short-term prepaid expenses 2.01 1.30
VAT to be claimed - -
Other taxes receivable 0.17 0.17
LONG-TERM ASSETS 824.84 671.99
Long-term trade receivables 10.00 51.50
Long-term trade receivables from customers 10.00 51.50
Long-term loans receivables - -
Other long-term receivables - -
Provision for doubtful LT receivable - -
Fixed assets 61.23 58.32
Tangible fixed assets 60.76 57.82
Cost 81.05 83.30
Accumulated depreciation - 20.30 - 25.48
Intangible fixed assets 0.47 0.50
Cost 1.23 1.31
Investment properties 312.68 317.28

Cost 357.97 384.29
Long-term incomplete assets 78.28 50.51
Long-term cost of work in progress
Construction in progress 78.28 50.51
Long-term investments 360.89 192.06
Other long-term assets 1.76 2.32
TOTAL ASSETS 1,648.49 1,475.56
LIABILITIES 1,005.13 836.69

Current liabilities 500.98 447.18
Trade accounts payable 21.29 12.07
Advances from customers 37.38 14.96
Taxes and other payable to State Budget 0.35 2.05
Payable to employees 2.02 2.31
Accrued expenses 171.96 202.41
Short-term unrealized revenue
Other payables 103.77 87.13
Short-term borrowings 155.02 119.67
Provision for ST liabilities
Bonus and welfare funds 9.19 6.58
Long-term liabilities 504.15 389.51
Long-term accrued expenses
Unrealized revenue - 0.93
Other long-term payables 21.50 24.78
Long-term borrowings 259.20 118.53
Deferred income tax liabilities 223.45 245.28
OWNER'S EQUITY 643.37 638.87

Capital and reserves 643.37 638.87
Paid-in capital 260.83 260.83
Common shares 260.83 260.83
Share premium - -
Treasury shares - 0.14 - 0.72
Investment and development funds 51.60 51.60
Financial researve funds 26.49 27.70
Undistributed earnings 304.60 299.47
Beginning accumulated undistributed earnings - -
Current period undistributed earnings 304.60 299.47
TOTAL RESOURCES 1,648.49 1,475.56
2015 2016 2017 2018 2019 2020
298.81 609.13 820.30 577.15 598.87 675.48
- 66.58 - 128.90 - 332.25 - 146.90 - - 31.90
232.23 480.23 488.05 430.24 598.87 643.58
- 131.85 - 206.87 - 216.75 - 186.34 - 385.42 - 350.12
100.37 273.35 271.30 243.90 213.45 293.46
6.76 18.98 13.37 38.41 28.66 34.37
- 21.52 - 8.88 - 6.26 - 5.03 - 5.18 - 15.86
- 17.00 - 7.58 - 5.85 - 4.92 - 4.88 - 15.63
- - - 5.83 8.15 9.01
- 8.31 - 15.17 - 19.79 - 14.12 - 10.25 - 10.79
- 43.71 - 73.79 - 59.50 - 56.67 - 58.43 - 65.11
33.59 194.50 199.12 212.33 176.40 245.07
1.71 5.37 13.28 3.83 4.13 1.73
- 1.18 - 2.43 - 4.47 - 1.56 - 1.23 - 0.39
0.53 2.95 8.81 2.27 2.90 1.34
- - - - - -
34.12 197.45 207.94 214.60 179.30 246.41
- 1.69 - - 8.99 - 10.63 - 18.61 - 18.31
37.17 - 31.97 - 33.14 - 27.99 - 17.97 - 29.45
35.48 - 31.97 - 42.13 - 38.62 - 36.58 - 47.76
69.60 165.48 165.81 175.98 142.72 198.65
69.60 165.48 165.81 175.98 142.70 198.63
2015 2016 2017 2018 2019 2020

Audited Audited Audited Audited Audited Audited
EY Vietnam PwC VietnamPwC Vietnam PwC VietnamPwC Vietnam
Unqualified OUnqualified OUnqualified Opinion Unqualified OUnqualified O
771.89 903.00 1,340.38 1,437.14 1,396.66 1,716.08

127.67 254.52 455.72 351.84 151.47 260.52
23.98 46.86 37.52 34.77 38.04 54.27
103.69 207.66 418.20 317.07 113.43 206.25
1.51 12.44 361.77 279.04 335.30 433.06
- - - - - -
1.51 12.44 361.77 279.04 335.30 433.06
362.55 418.89 215.61 339.26 340.62 314.01
343.49 290.59 54.37 21.64 33.57 41.21
9.40 14.62 11.06 10.77 11.57 9.07
9.90 138.54 150.42 307.09 295.72 263.98
- 0.25 - 24.86 - 0.25 - 0.25 - 0.25 - 0.25
277.29 216.30 306.83 463.57 561.89 699.65
2.87 0.84 0.46 3.43 7.38 8.84
2.87 0.84 0.46 0.80 0.60 0.73
- - - 2.64 6.09 6.75
- - - - 0.70 1.36
- - - - - -
606.92 623.64 647.92 679.83 838.50 883.55
19.06 2.52 - - 5.23 5.23
19.06 2.52 - - - -
5.00 5.00 5.00 5.00 5.00 5.00
- - - - 5.23 5.23
- 5.00 - 5.00 - 5.00 - 5.00 - 5.00 - 5.00
53.25 49.29 52.89 50.35 57.26 75.17
52.88 49.05 52.66 48.66 55.55 73.57
83.81 83.52 91.85 93.17 106.02 132.37
- 30.93 - 34.47 - 39.18 - 44.51 - 50.47 - 58.80
0.37 0.24 0.22 1.69 1.70 1.59
1.31 1.31 1.40 2.94 3.05 3.05
- 0.94 - 1.08 - 1.18 - 1.25 - 1.35 - 1.46
297.10 293.61 305.02 279.73 451.48 509.36

385.71 403.92 437.17 437.23 639.33 739.28
- 88.61 - 110.31 - 132.15 - 157.50 - 187.85 - 229.92
49.98 51.03 48.44 127.37 92.69 41.02
49.98 51.03 48.44 127.37 92.69 41.02

185.13 225.16 225.16 201.59 203.69 205.84
2.41 2.03 16.41 20.78 28.16 46.94
1,378.81 1,526.63 1,988.29 2,116.97 2,235.16 2,599.63
694.81 856.49 896.95 970.01 1,043.98 1,315.96

411.93 541.82 557.48 581.63 590.88 753.30
10.83 11.31 12.25 25.49 61.14 72.55
25.82 76.83 103.02 11.97 0.02 36.73
6.87 9.04 12.51 2.31 3.80 11.15
4.83 5.27 5.69 5.69 7.72 14.36
237.82 364.13 337.07 319.27 423.71 458.47
33.30 47.28 50.97 169.63 38.38 82.47

87.03 21.60 24.28 20.89 21.34 42.54
5.44 6.37 11.69 26.37 34.77 35.03

282.88 314.67 339.47 388.38 453.10 562.66
1.12 0.88 1.57 1.54 1.17 1.86

25.51 54.86 56.69 68.72 75.85 76.05
48.14 49.54 38.68 47.60 87.58 166.81
208.10 209.39 242.53 270.52 288.49 317.94
684.01 670.14 1,091.34 1,146.96 1,191.18 1,283.67

684.01 670.14 1,091.34 1,146.96 1,191.18 1,283.67
260.83 260.83 500.12 500.12 500.12 500.12
260.83 260.83 500.12 500.12 500.12 500.12
- - 71.77 71.77 71.77 71.77
- 0.72 - 0.72 - - - -
79.30 79.30 79.30 79.62 97.22 97.22
- - - - - -
344.61 330.74 440.16 494.84 521.45 613.92
275.01 165.26 274.35 318.87 378.75 415.29
69.60 165.48 165.81 175.98 142.70 198.63
1,378.81 1,526.63 1,988.29 2,116.97 2,235.16 2,599.63
2021 2022
781.65 628.90
- -
781.65 628.90
- 369.95 - 372.41
411.70 256.48
33.27 46.64
- 16.49 - 13.52
- 15.79 - 13.52
4.45 7.54
- 10.33 - 4.90
- 49.79 - 54.14
372.81 238.10
2.30 17.92
- 0.23 - 1.63
2.06 16.28
- -
374.88 254.39
- 27.52 - 34.19
- 51.05 - 17.78
- 78.57 - 51.97
296.31 202.41
296.29 202.40
2021 2022
Audited Unaudited
PwC Vietnam
Unqualified Opinion
2,013.79 2,189.24
91.86 84.93
63.05 69.91
28.81 15.02
985.60 1,138.25
- -
985.60 1,138.25
302.70 347.99
21.45 15.97
10.79 21.29
270.70 310.97
- 0.25 - 0.25
626.89 611.44
6.75 6.63
1.10 0.75
5.59 5.48
0.06 0.39
- -
831.57 813.23
5.23 5.23
- -
5.00 5.00
5.23 5.23
- 5.00 - 5.00
69.65 60.02
68.09 58.48
135.27 135.18
- 67.18 - 76.70
1.56 1.54
3.05 3.05
- 1.49 - 1.51
466.22 423.28
739.28 739.28
- 273.06 - 316.00
38.79 73.24
38.79 73.24
202.00 202.83
49.68 48.63
2,845.36 3,002.47
1,381.25 1,469.26
816.06 919.55
42.39 58.55
40.51 27.10
10.53 4.33
9.74 10.08
546.93 670.50
72.50 58.04
46.47 43.62
47.00 47.32
565.19 549.71
1.91 1.80
54.20 63.17
140.09 97.97
368.99 386.77
1,464.10 1,533.21
1,464.10 1,533.21
500.12 500.12
500.12 500.12
71.77 71.77
- -
97.22 97.22
- -
794.34 863.43
498.04 661.03
296.29 202.40
2,845.36 3,002.47
Income Statement in Billions (SZC)
SZC (Sonadezi Chau Duc) 2013 2014
Sales 140.79 240.16
Sales deductions - 0.27 - 0.30
Net sales 140.52 239.86
Cost of sales - 100.07 - 170.78
Financial expenses - - 0.01
of which: interest expenses - - 0.01
- -
Operating profit/(loss) 31.82 61.44
Other incomes 0.02 0.01
Other expenses - -
Income from investments in other entities - -
Net accounting profit/(loss) before tax 31.84 61.45
Corporate income tax - current - - 11.08
Corporate income tax - deferred - -
Corporate income tax expenses - - 11.08
Net profit/(loss) after tax 31.84 50.37
Attributable to parent company 31.84 50.37

Audit Status Audited Audited
Audit Firm
Audit Opinion Type
Balance sheet in Billions (SZC)
CURRENT ASSETS 77.72 366.34
Cash and cash equivalents 44.63 32.01
Cash 26.63 7.01
Cash equivalents 18.00 25.00
Short-term investments - 300.00
Short-term investments - 300.00
Held-to-maturity investment - -
Accounts receivable 32.42 23.20
Trade accounts receivable 14.90 4.77
Prepayments to suppliers 3.61 4.51
Other receivables 13.98 13.99
Provision for doubtful debts - 0.08 - 0.08
Inventories 0.04 0.38
Short-term prepaid expenses - -
VAT to be claimed 0.59 10.68
Other taxes receivable 0.04 0.07
Other current assets
LONG-TERM ASSETS 1,054.16 1,461.63
Long-term trade receivables - -
Fixed assets 61.14 58.50

Tangible fixed assets 59.37 57.05
Cost 78.92 81.09
Intangible fixed assets 1.77 1.45
Cost 5.47 5.47
Investment properties - -
Cost - -
Accumulated depreciation - -
Long-term incomplete assets 942.23 1,354.54
Long-term cost of work in progress - -
Construction in progress 942.23 1,354.54
Long-term investments 45.02 45.02
Other long-term assets 5.78 3.57
TOTAL ASSETS 1,131.88 1,827.97
LIABILITIES 365.85 744.42

Current liabilities 277.23 442.64
Trade accounts payable 62.31 47.45
Advances from customers - 1.69
Taxes and other payable to State Budget 0.19 2.45
Payable to employees 1.68 2.35
Accrued expenses 191.82 348.36
Short-term unrealized revenue - -
Other payables 1.12 3.83
Short-term borrowings 12.86 32.67
Provision for ST liabilities - -
Bonus and welfare funds 7.26 3.83
Long-term liabilities 88.62 301.78
Long-term accrued expenses - -
Unrealized revenue - -
Other long-term payables 0.02 -
Long-term borrowings 88.60 301.78
Deferred income tax liabilities - -
OWNER'S EQUITY 766.03 1,083.55

Capital and reserves 766.03 1,083.55
Paid-in capital 700.0 1,000.0
Common shares 700.0 1,000.0
Share premium 5.48 5.41
Investment and development funds 7.03 8.62
Financial researve funds 7.03 8.62
Other funds 7.03 8.62
Undistributed earnings 39.45 52.27
Beginning accumulated undistributed earnings - -
Current period undistributed earnings 39.45 52.27
TOTAL RESOURCES 1,131.88 1,827.97
- -
2015 2016 2017 2018 2019 2020
155.38 101.36 219.67 290.23 329.42 432.98
- - - - - -
155.38 101.36 219.67 290.23 329.42 432.98
- 91.37 - 49.00 - 115.35 - 148.70 - 151.93 - 199.24
64.01 52.36 104.32 141.53 177.49 233.74
19.30 23.05 16.87 13.12 26.75 21.81
- 0.00 - 13.98 - 12.03 - 10.83 - 9.70 - 8.35
- 0.00 - 13.98 - 12.02 - 10.83 - 9.69 - 8.31
- - - - - -
- 1.04 - 1.17 - 5.79 - 6.07 - 7.11 - 3.75
- 11.59 - 12.68 - 20.57 - 24.69 - 31.38 - 30.64
70.68 47.59 82.80 113.06 156.05 212.80
0.09 0.01 0.23 0.12 0.29 7.01
- - - - 0.59 - -
0.09 0.01 0.23 - 0.47 0.29 7.01
- - - - - -
70.77 47.60 83.04 112.59 156.34 219.82
- 6.95 - 4.96 - 10.34 - 15.24 - 22.21 ###
- 1.50 1.50 - - - -
- 8.45 - 3.46 - 10.34 - 15.24 - 22.21 - 33.81
62.32 44.14 72.70 97.35 134.13 186.00
62.32 44.14 72.70 97.35 134.13 186.00
2015 2016 2017 2018 2019 2020

Audited Audited Audited Audited Audited Audited
RSM Vietnam ARSM Vietnam ARSM Vietnam A
Unqualified OpiUnqualified OpiUnqualified Opi
474.18 334.85 312.00 398.40 559.91 236.58

338.45 18.74 83.05 236.12 291.80 89.15
7.45 3.74 28.05 19.01 12.21 13.56
331.00 15.00 55.00 217.11 279.59 75.59
- 250.00 100.00 90.00 120.00 80.00
- - - - - -
- 250.00 100.00 90.00 120.00 80.00
111.15 60.28 122.50 69.79 143.74 45.97
80.69 32.64 108.20 54.81 29.71 3.94
9.24 12.63 12.71 13.37 112.76 40.95
21.22 15.00 1.59 2.39 3.47 1.08
- - - - 0.79 - 2.19 -
6.48 1.15 0.75 1.14 1.04 2.96
18.11 4.68 5.70 1.35 3.33 18.50
0.06 0.01 0.20 0.24 1.16 6.98
17.99 4.61 4.77 - 2.17 11.52
0.07 0.07 0.73 1.11 - -
1,657.34 1,485.96 1,889.41 2,182.61 2,529.91 4,181.17

0.17 0.17 0.17 0.17 0.17 0.31
55.10 333.46 326.95 319.74 315.57 308.37

53.97 332.65 326.45 319.48 315.49 308.34
82.43 369.55 371.99 374.35 381.15 385.14
- 28.47 - 36.91 - 45.54 - 54.87 - 65.65 - 76.80
1.13 0.82 0.50 0.26 0.08 0.03
5.47 5.47 5.47 5.51 5.51 5.51
- 4.34 - 4.66 - 4.97 - 5.25 - 5.44 - 5.48
- 51.40 72.51 71.56 44.65 42.91

- 476.07 498.03 500.04 500.04 500.04
- - 424.67 - 425.53 - 428.47 - 455.39 - 457.13
1,555.74 1,050.19 1,428.50 1,732.73 2,106.01 3,767.52
0.48 - - - - -
1,555.26 1,050.19 1,428.50 1,732.73 2,106.01 3,767.52
45.02 45.02 48.02 48.02 49.52 52.82
1.31 5.73 13.28 10.39 13.99 9.25
2,131.52 1,820.81 2,201.41 2,581.01 3,089.83 4,417.75
1,028.21 731.09 1,083.23 1,424.60 1,893.89 3,153.51

119.58 116.65 366.97 218.78 445.55 1,043.01
53.55 36.32 157.10 26.35 58.35 205.81
0.97 0.48 5.52 66.57 219.47 558.44
4.24 0.85 0.32 3.21 3.91 11.56
1.66 1.12 7.58 4.61 4.86 9.92
0.05 0.05 - 2.28 1.58 1.56
- 1.27 1.27 9.73 11.74 9.70
6.07 15.71 15.28 18.11 20.44 37.82
46.67 55.59 173.42 79.90 110.71 187.09
- - - - 5.00 3.71
6.37 5.26 6.49 8.02 9.49 17.39
908.62 614.44 716.26 1,205.82 1,448.34 2,110.50
424.08 19.92 92.82 192.26 264.07 399.77
21.08 46.48 50.79 168.91 328.16 240.94
0.12 0.26 3.92 1.97 1.94 1.96
461.85 547.79 568.73 842.68 854.17 1,467.82
1.50 - - - - -
1,103.31 1,089.72 1,118.18 1,156.41 1,195.93 1,264.24

1,103.31 1,089.72 1,118.18 1,156.41 1,195.93 1,264.24
1,000.0 1,000.0 1,000.0 1,000.0 1,000.0 1,000.0
1,000.0 1,000.0 1,000.0 1,000.0 1,000.0 1,000.0
5.41 5.41 5.41 5.41 5.41 5.41
22.28 28.89 28.89 28.89 28.89 44.39
- - - - - -
11.14 11.14 11.14 11.14 11.14 -
64.48 44.28 72.75 110.97 150.50 214.44
2.16 0.14 0.04 13.62 16.37 28.44
62.32 44.14 72.70 97.35 134.13 186.00
2,131.52 1,820.81 2,201.41 2,581.01 3,089.83 4,417.75
- - - - - -
2021 2022
713.22 858.89
- -
713.22 858.89
- 262.20 - 549.25
451.02 309.64
13.02 15.23
- 7.22 - 32.20
- 7.20 - 32.20
- -
- 11.04 - 9.96
- 53.69 - 40.07
392.08 242.64
4.61 1.54
- -
4.61 1.54
- -
396.69 244.18
- 73.06 - 46.81
- -
- 73.06 - 46.81
323.63 197.37
323.63 197.37
2021 2022
Audited Unaudited
RSM Vietnam Auditing
Unqualified Opinion
352.14 1,734.82
199.38 265.63
69.27 101.67
130.11 163.97
60.00 40.00
- -
60.00 40.00
52.17 39.57
9.68 25.78
39.08 11.43
3.43 2.40
- 0.02 - 0.04
6.59 1,343.14
34.01 46.47
1.07 1.98
32.93 44.50
- -
5,264.23 4,600.18
0.31 0.31
307.45 668.93
307.35 668.85
387.76 771.67
- 80.41 - 102.82
0.10 0.08
5.59 5.59
- 5.49 - 5.51
41.16 1,123.22
500.04 1,807.02
- 458.87 - 683.80
4,855.53 2,699.35
- -
4,855.53 2,699.35
52.82 52.82
6.97 55.56
5,616.38 6,335.00
4,150.79 4,800.74
1,258.89 1,540.05
216.81 248.30
487.78 421.53
26.92 7.90
12.17 10.65
1.88 9.24
9.70 12.11
81.32 293.89
386.16 491.19
6.22 -
29.92 45.24
2,891.90 3,260.69
625.82 832.61
231.24 283.16
221.43 0.91
1,813.42 2,144.01
- -
1,465.59 1,534.25
1,465.59 1,534.25
1,000.0 1,000.0
1,000.0 1,000.0
5.41 5.41
51.83 87.83
- -
- -
408.35 441.01
84.72 243.65
323.63 197.37
5,616.38 6,335.00
- -
Question 1
Introduce
VISION
MISION
CORE VALUES
PRODUCT
What are the main differences in the two companies strategies and what are
the expected effects on financial performance?
Long Hau industrial park is a mixed INDUSTRIAL ZONE, many professions
and less polluting.
Established on May 23, 2006, Long Hau Corporation (stock symbol: LHG) is the
investor of Long Hau Industrial Park projetcs with a total area of nearly 500
hectares, divided into phases: Long Hau Industrial Park with area of 137,02
hectares (in 2006), Long Hau Industrial Park Extended with area of 108.48
hectares (in 2009), Long Hau Commune's Residential - Resettlement Area has
total area of 55 hectares (in 2009) and now is Long Hau Industrial Park 3 – Phase 1
with area of 123.98 hectares. The two founding shareholders are Tan Thuan
Industrial Promotion Company Limited (IPC) and Viet Au Joint Stock Company.
Long Hau Industrial Park owns a strategic location near Ben Luc – Long Thanh
Highway, Saigon – Hiep Phuoc port and SPCT port which helps investors save
time, transportation costs and conveniently connect to Ho Chi Minh City center.
With over 13 years of development, more than 200 domestics and foreign investor
have chosen Long Hau Industrial Park as a sustainable development partner. We
are continually improving and innovating in our products and services, as well as
focusing on infrastructure and landscape investment in order to bring the highest
benefits for each investor when choosing Long Hau Industrial Park.
Successfully develop the ecological and sustainable growth cities.

With a high Focus:
- Customer commitment and sense
Our products andofprocess
responsibility, we strivetoward
are developed for creating the living
customer's
and
needsmost
andfavourable working environment, being a part for a sustainable social
satisfaction.
growth.
- Professionalism: Each product or service are provided at the highest standard.
- Cooperation: Incorporation in solutions, coordination in execution sharing
achievements.
- Responsibility: Full dedicated to every detail with highest effectiveness.
INDUSTRIAL LAND
Owning potential of strategic location, flexible leasable area, one-time land use fee
is paid, industrial land is an ideal solution for investors wishing to build factories
near Ho Chi Minh City and surrouding areas.
READY BUILT FACTORY FOR LEASE
High-quality ready built factory helps investor save time, costs and quickly go into
operation. The factory has flexible leasable area to meet investors’ needs and their
production scale.
BUILD-TO-SUIT FACTORY
The model is constructed to meet the design and specifications of enterprises. LHC
will support the selection of design and construction units, helping investors save
time and management manpower.
LONG HAU HIGH-RISE FACTORY
The factory is ideal for enterprises in supporting industries, businesses renting
offices... The workshop is equipped with full utilities such as elevators, garages,
generators, fire protection systems...
LONG HAU HIGH-TECH FACTORY IN DA NANG
Enterprises leasing the factories not only enjoy attractive tax incentives, but also
take advantage of the location of the high-tech park, labor force and rapid
economic development of Danang.
LONG HAU TRADING CENTER
The retail and office premises is located in the heart of Long Hau IP, easily
reaching a community of 200 businesses with more than 20,000 employees.
Customers will be granted sales license on the spot.
>> 3km from SPCT Port and Hiep Phuoc Port;
>> 12km from Phu My Hung;
>> City Center Ho Chi Minh City 19km and Tan Son Nhat International
Airport 25km
CHAU DUC GOLF AND URBAN INDUSTRIAL PARK
After more than 15 years of establishment, Chau Duc Urban Industrial Park & Golf
Course which was invested by Sonadezi Chau Duc Shareholding Company, has
been perfecting the synchronous and modern technical infrastructure, fully meet
the requirements of investors and become an attractive bright spot for investors in
the Southern Key Economic Zone to connect with global commerce.
With the area of 2,287 hectares, Chau Duc Urban Industrial Park & Golf Course is
one of the leading industrial complex projects in the country, including Industrial
Park (1,556 hectares) and Urban Industrial Park- International standard Golf
Course with 36-holes. Up to now, the technical infrastructure in Chau Duc Urban
Industrial Park & Golf Course has been invested in a modern and synchronous
manner with diversified and convenient transportation system; improvement about
the communication network, gas supply, electricity supply, water supply, waste
water treatment system, fire prevention and fighting system etc.
On the basis of defining the responsibility for protection of the living environment
associated with the sustainable and efficiency development of the Company,
Sonadezi Chau Duc Shareholding Company is attentive specially to create "the
green space" in the industrial park by planting trees on the roads, thereby creating
beautiful scenery and contributing to protect and balance the production
environment; Aims to Chau Duc Urban Industrial Park & Golf Course becomes a
green-clean-beautiful industrial park with fully utilities for investors.
With morden and perfect technical infrastructure system, Sonadezi Chau Duc
Shareholding Company always pushes up marketing and attracts investors with
special incentives in leasing land in industrial park and supporting procedures
related to investment.
We always commit to accompany and support for investors by our best when
arising problems during the period of operation in the Industrial Park, and annually
we organize many activities to enhance the cooperation and create a business
community with sustainable development.
Industrial Real Estate CHAU DUC URBAN INDUSTRIAL PARK
Civil Real Estate
RESIDENTIAL AREA
COMMERCIAL AREA
Other Constructions
Services
Logistics
Warehouses
Container Deport and ICD
Electrical and water supply services
Security services
Supervision and consultancy Department
Wasted water treatment / environmental protection services
Golf Course
ITS PROJECT BELONGS TO CHAU DUC URBAN AND INDUSTRIAL PARK
PROJECT - 2,287.55 ha
THE SCALE:
Area: 152 ha
The Golf course 36 holes including Resort golf course - 18 holes and Tournament
golf course - 18 holes and ancillary items for golf courses such as club house,
maintenance area, golf practice room, etc.
Chau Duc golf course is designed to meet international PGA.
(1) Roads:
Connect to National Road No.56
13 km from National Road No.51
44 km from Vung Tau City
75 km from Ho Chi Minh City
(2) Ports:
16 -19 km to Thi Vai - Cai Mep Deep Water Port
21 km to Go Dau Port
(3) Airports:
54 km to Long Thanh International Airport
INTERNAL TRANSPORTATION SYSTEM
Asphalted road with 30 tons loading capacity.
Center main road North South with 6 lanes, separation 2 meters, width 54 meters.
Branch roads with 2 lanes, width 29 meters.
LOADING CAPACITY OF THE GROUND
From 1m to 3.5m : 9.31 tons/ sqm
From 3.5m to 6.5m : 16.33 tons/ sqm
From 6.5m - 12m : 31.68 tons/ sqm
ELECTRICITY
Facilities: Two transformer stations of 110/22 KV with capacity 2x63 MVA each.
Electricity charge: price offered by Electricity Company of Vietnam for voltage from
22KV to under 110 KV
WATER SUPPLY SYSTEM
Currently, Pure Water Supply Factory is running with capacity of 150,000 m³ / day.
Price according to regulations of Ba Ria – Vung Tau province
WASTED WATER TREATMENT SYSTEM
Building three (03) wastewater treatment plants with estimated capacity of 45,000
cubic meters/day night
Currently wastewater treatment plant is running with capacity of 4,500 m³/day night
Wastewater to be treated: both sanitary and industrial wastewater
According to the State regulations, the volume of wastewater is calculated by 80%
Calculate the EBIT and NOPAT (i.e. net
Question 2
operating profit after tax).

Net sales 240.54 312.74
Cost of sales - 97.90 - 146.16
Earning before Interest (EBIT) 100.13 125.25
Financial expenses - 60.91 - 89.61
Gain/(loss) from joint ventures - -
Earning before Income Tax (EBT) 51.09 47.00
Income Tax (current) - 2.66 -
Earning after current Income Tax (EAT) 48.43 47.00
Effective Income Tax rate 5.2% 0.0%

NOPAT 94.91 125.25

Net sales 140.52 239.86
Cost of sales - 100.07 - 170.78
Earning before Interest (EBIT) 28.92 57.80
Financial expenses - - 0.01

Earning before Income Tax (EBT) 31.84 61.45
Income Tax (current) - - 11.08
Earning after current Income Tax (EAT) 31.84 50.37
Effective Income Tax rate 0.0% 18.0%

NOPAT 28.92 47.38
2015 2016 2017 2018 2019 2020
232.23 480.23 488.05 430.24 598.87 643.58
- 131.85 - 206.87 - 216.75 - 186.34 - 385.42 - 350.12
100.37 273.35 271.30 243.90 213.45 293.46
- 8.31 - 15.17 - 19.79 - 14.12 - 10.25 - 10.79
- 43.71 - 73.79 - 59.50 - 56.67 - 58.43 - 65.11
48.35 184.39 192.01 173.11 144.77 217.56
6.76 18.98 13.37 38.41 28.66 34.37
- 21.52 - 8.88 - 6.26 - 5.03 - 5.18 - 15.86
- - - 5.83 8.15 9.01
0.53 2.95 8.81 2.27 2.90 1.34
34.12 197.45 207.94 214.60 179.30 246.41
- 1.69 - - 8.99 - 10.63 - 18.61 - 18.31
32.42 197.45 198.95 203.97 160.69 228.10
5.0% 0.0% 4.3% 5.0% 10.4% 7.4%

45.95 184.39 183.71 164.54 129.74 201.39
2015 2016 2017 2018 2019 2020

155.38 101.36 219.67 290.23 329.42 432.98
- 91.37 - 49.00 - 115.35 - 148.70 - 151.93 - 199.24
64.01 52.36 104.32 141.53 177.49 233.74
- 1.04 - 1.17 - 5.79 - 6.07 - 7.11 - 3.75
- 11.59 - 12.68 - 20.57 - 24.69 - 31.38 - 30.64
51.38 38.51 77.97 110.77 139.00 199.35
19.30 23.05 16.87 13.12 26.75 21.81
- 0.00 - 13.98 - 12.03 - 10.83 - 9.70 - 8.35
0.09 0.01 0.23 - 0.47 0.29 7.01

70.77 47.60 83.04 112.59 156.34 219.82
- 6.95 - 4.96 - 10.34 - 15.24 - 22.21 - 33.81
63.82 42.64 72.70 97.35 134.13 186.00
9.8% 10.4% 12.4% 13.5% 14.2% 15.4%

46.33 34.50 68.26 95.77 119.25 168.68
2021 2022
781.65 628.90
- 369.95 - 372.41
411.70 256.48
- 10.33 - 4.90
- 49.79 - 54.14
351.58 197.44
33.27 46.64
- 16.49 - 13.52
4.45 7.54
2.06 16.28
374.88 254.39
- 27.52 - 34.19
347.36 220.20
7.3% 13.4%
325.78 170.90
2021 2022
713.22 858.89
- 262.20 - 549.25
451.02 309.64
- 11.04 - 9.96
- 53.69 - 40.07
386.28 259.61
13.02 15.23
- 7.22 - 32.20
4.61 1.54
396.69 244.18
- 73.06 - 46.81
323.63 197.37
18.4% 19.2%
315.14 209.84
Create the common-size income
Question 3
statement (including the EBIT margin).
LHG (Long Hau Coporation) 2013 2014 2015

Net sales 100% 100% 100%
Cost of sales -40.7% -46.7% -56.8%
Gross Profit 59.3% 53.3% 43.2%
Selling expenses -3.4% -2.9% -3.6%
General and admin expenses -14.3% -10.4% -18.8%
Earning before Interest (EBIT) 41.6% 40.1% 20.8%
Financial income 4.1% 2.8% 2.9%
Financial expenses -25.3% -28.7% -9.3%
Gain/(loss) from joint ventures (from 2015) 0.0% 0.0% 0.0%
Net other income/(expenses) 0.8% 0.9% 0.2%
Earning before Income Tax (EBT) 21.2% 15.0% 14.7%
Income Tax (current) -1.1% 0.0% -0.7%
Earning after current Income Tax (EAT) 20.1% 15.0% 14.0%
Effective Income Tax rate 5.2% 0.0% 5.0%

NOPAT 39.5% 40.1% 19.8%
SZC (Sonadezi Chau Duc) 2013 2014 2015

Net sales 100% 100% 100%
Cost of sales -71.2% -71.2% -58.8%
Gross Profit 28.8% 28.8% 41.2%
Selling expenses 0.0% -0.1% -0.7%
General and admin expenses -8.2% -4.6% -7.5%
Earning before Interest (EBIT) 20.6% 24.1% 33.1%
Financial income 2.1% 1.5% 12.4%
Financial expenses 0.0% 0.0% 0.0%
Net other income/(expenses) 0.0% 0.0% 0.1%

Earning before Income Tax (EBT) 22.7% 25.6% 45.5%
Income Tax (current) 0.0% -4.6% -4.5%
Earning after current Income Tax (EAT) 22.7% 21.0% 41.1%
Effective Income Tax rate 0.0% 18.0% 9.8%

NOPAT 20.6% 19.8% 29.8%
2016 2017 2018 2019 2020 2021 2022
100% 100% 100% 100% 100% 100% 100%
-43.1% -44.4% -43.3% -64.4% -54.4% -47.3% -59.2%
56.9% 55.6% 56.7% 35.6% 45.6% 52.7% 40.8%
-3.2% -4.1% -3.3% -1.7% -1.7% -1.3% -0.8%
-15.4% -12.2% -13.2% -9.8% -10.1% -6.4% -8.6%
38.4% 39.3% 40.2% 24.2% 33.8% 45.0% 31.4%
4.0% 2.7% 8.9% 4.8% 5.3% 4.3% 7.4%
-1.8% -1.3% -1.2% -0.9% -2.5% -2.1% -2.1%
0.0% 0.0% 1.4% 1.4% 1.4% 0.6% 1.2%
0.6% 1.8% 0.5% 0.5% 0.2% 0.3% 2.6%
41.1% 42.6% 49.9% 29.9% 38.3% 48.0% 40.4%
0.0% -1.8% -2.5% -3.1% -2.8% -3.5% -5.4%
41.1% 40.8% 47.4% 26.8% 35.4% 44.4% 35.0%
0.0% 4.3% 5.0% 10.4% 7.4% 7.3% 13.4%

38.4% 37.6% 38.2% 21.7% 31.3% 41.7% 27.2%
2016 2017 2018 2019 2020 2021 2022

100% 100% 100% 100% 100% 100% 100%
-48.3% -52.5% -51.2% -46.1% -46.0% -36.8% -63.9%
51.7% 47.5% 48.8% 53.9% 54.0% 63.2% 36.1%
-1.2% -2.6% -2.1% -2.2% -0.9% -1.5% -1.2%
-12.5% -9.4% -8.5% -9.5% -7.1% -7.5% -4.7%
38.0% 35.5% 38.2% 42.2% 46.0% 54.2% 30.2%
22.7% 7.7% 4.5% 8.1% 5.0% 1.8% 1.8%
-13.8% -5.5% -3.7% -2.9% -1.9% -1.0% -3.7%
0.0% 0.1% -0.2% 0.1% 1.6% 0.6% 0.2%

47.0% 37.8% 38.8% 47.5% 50.8% 55.6% 28.4%
-4.9% -4.7% -5.3% -6.7% -7.8% -10.2% -5.5%
42.1% 33.1% 33.5% 40.7% 43.0% 45.4% 23.0%
10.4% 12.4% 13.5% 14.2% 15.4% 18.4% 19.2%

34.0% 31.1% 33.0% 36.2% 39.0% 44.2% 24.4%
Create the ` (including working capital requirement, net
Question 4 non-current operating assets, non-operating assets, equity
and debt).
MANAGERIAL BALANCE SHEET
LHG (Long Hau Coporation) 2013
Working capital requirement
Inventories 320.62
Accounts receivable 442.04
Other current operating assets 2.72
Accounts payable 23.66
Other current operating liabilities 103.77
Advances from customers 37.38
Accrued expenses 171.96
Bonus and welfare funds 9.19
Total working capital requirement 419.43

Net non-current operating assets
Tangible fixed assets 451.72
Intangible fixed assets 0.47
Other non-current operating assets 11.76
Non-current operating liabilities 244.95
Total net non-current operating assets 219.00
Total net operating assets 638.44
Non-operating assets
Long-term non-operating assets 360.89
Short-term non-operating assets 58.26
Cash and cash equivalents 56.22
Marketable securities 2.04
Total non-operating assets 419.15
Total capital employed 1,057.59
Total Equity 643.37

Net asset held-for-sale
Total Equity - Net asset held-for-sale
Total Debt 414.22
Non-current debt (including provisions) 259.20
Current debt 155.02
Total invested capital 1,057.59

-
MANAGERIAL BALANCE SHEET
SZC (Sonadezi Chau Duc) 2013
Inventories 0.04
Advances from customers -
Provision for ST liabilities -
Short-term unrealized revenue -
Total working capital requirement - 231.29
Tangible fixed assets 1,001.60
Total net non-current operating assets 1,009.13
Marketable securities -
Total capital employed 867.49
Total Equity 766.03

Total Debt 101.46
Current debt 12.86
Total invested capital 867.49

-
2014 2015 2016 2017 2018
272.15 277.29 216.30 306.83 463.57

408.99 362.55 418.89 215.61 339.26
1.95 2.87 0.84 0.46 3.43
16.44 22.52 25.62 30.45 33.49
87.13 33.30 47.28 50.97 169.63
14.96 25.82 76.83 103.02 11.97
202.41 237.82 364.13 337.07 319.27
6.58 5.44 6.37 11.69 26.37
355.58 317.80 115.81 - 10.31 245.51
425.60 399.96 393.69 406.12 455.76

0.50 0.37 0.24 0.22 1.69
53.82 21.47 4.55 16.41 20.78
270.98 234.74 265.13 300.79 340.78
208.94 187.06 133.35 121.96 137.45
564.52 504.86 249.16 111.65 382.97
192.06 185.13 225.16 225.16 201.59

120.48 129.18 266.96 817.49 630.89
118.81 127.67 254.52 455.72 351.84
1.68 1.51 12.44 361.77 279.04
312.55 314.31 492.12 1,042.65 832.48
877.07 819.18 741.28 1,154.30 1,215.45
638.87 684.01 670.14 1,091.34 1,146.96
238.20 135.17 71.14 62.96 68.49

118.53 48.14 49.54 38.68 47.60
119.67 87.03 21.60 24.28 20.89
877.07 819.18 741.28 1,154.30 1,215.45

- - - - -
2014 2015 2016 2017 2018
0.38 6.48 1.15 0.75 1.14

23.20 111.15 60.28 122.50 69.79
10.75 18.11 4.68 5.70 1.35
52.25 59.45 38.29 165.00 34.17
3.83 6.07 15.71 15.28 18.11
1.69 0.97 0.48 5.52 66.57
348.36 0.05 0.05 - 2.28
3.83 6.37 5.26 6.49 8.02
- - - - -
- - 1.27 1.27 9.73
- 375.63 62.83 5.05 - 64.61 - 66.60
1,411.59 1,609.71 1,434.24 1,827.46 2,123.77

1.45 1.13 0.82 0.50 0.26
3.57 1.48 5.90 13.45 10.56
- 446.77 66.65 147.53 363.14
1,416.61 1,165.55 1,374.31 1,693.88 1,771.45
1,040.98 1,228.38 1,379.36 1,629.27 1,704.85
45.02 45.02 45.02 48.02 48.02

332.01 338.45 268.74 183.05 326.12
32.01 338.45 18.74 83.05 236.12
300.00 - 250.00 100.00 90.00
377.03 383.47 313.76 231.07 374.14
1,418.01 1,611.85 1,693.12 1,860.34 2,078.99
1,083.55 1,103.31 1,089.72 1,118.18 1,156.41
334.45 508.52 603.38 742.15 922.58

301.78 461.85 547.79 568.73 842.68
32.67 46.67 55.59 173.42 79.90
1,418.00 1,611.83 1,693.10 1,860.33 2,078.99

- 0.010 - 0.020 - 0.020 - 0.010 -
AVERAG
2019 2020 2021 2022
561.89 699.65 626.89 611.44

340.62 314.01 302.70 347.99
7.38 8.84 6.75 6.63
72.66 98.06 62.66 72.96
38.38 82.47 72.50 58.04
0.02 36.73 40.51 27.10
423.71 458.47 546.93 670.50
34.77 35.03 47.00 47.32
340.35 311.75 166.74 90.14
599.72 623.95 573.10 555.01

1.70 1.59 1.56 1.54
33.39 52.16 54.91 53.85
365.51 395.85 425.10 451.74
269.30 281.86 204.46 158.66
609.65 593.61 371.21 248.80
203.69 205.84 202.00 202.83

486.76 693.58 1,077.45 1,223.18
151.47 260.52 91.86 84.93
335.30 433.06 985.60 1,138.25
690.45 899.42 1,279.45 1,426.01
1,300.10 1,493.02 1,650.66 1,674.81
1,191.18 1,283.67 1,464.10 1,533.21
108.92 209.35 186.56 141.59

87.58 166.81 140.09 97.97
21.34 42.54 46.47 43.62
1,300.10 1,493.02 1,650.66 1,674.81

- - - -
AVERAG
2019 2020 2021 2022
1.04 2.96 6.59 1,343.14

143.74 45.97 52.17 39.57
3.33 18.50 34.01 46.47
67.12 227.29 255.90 266.85
20.44 37.82 81.32 293.89
219.47 558.44 487.78 421.53
1.58 1.56 1.88 9.24
9.49 17.39 29.92 45.24
5.00 3.71 6.22 -
11.74 9.70 9.70 12.11
- 186.73 - 788.48 - 779.95 380.32
2,466.15 4,118.77 5,204.04 4,491.42

0.08 0.03 0.10 0.08
14.16 9.56 7.28 55.87
594.17 642.68 1,078.48 1,116.68
1,886.22 3,485.68 4,132.94 3,430.69
1,699.49 2,697.20 3,352.99 3,811.01
49.52 52.82 52.82 52.82

411.80 169.15 259.38 305.63
291.80 89.15 199.38 265.63
120.00 80.00 60.00 40.00
461.32 221.97 312.20 358.45
2,160.81 2,919.17 3,665.19 4,169.46
1,195.93 1,264.24 1,465.59 1,534.25
964.88 1,654.91 2,199.58 2,635.20

854.17 1,467.82 1,813.42 2,144.01
110.71 187.09 386.16 491.19
2,160.81 2,919.15 3,665.17 4,169.45

- - 0.020 - 0.020 - 0.010
AVERAGE MANAGERIAL BALANCE SHEET
LHG (Long Hau Coporation) 2014
Inventories 296.39
Total working capital requirement 387.51

Tangible fixed assets 438.66
Total net non-current operating assets 213.97
Total capital employed 967.33
Total Equity 641.12

Total Debt 326.21
Current debt 137.35
Total invested capital 967.33

AVERAGE MANAGERIAL BALANCE SHEET
SZC (Sonadezi Chau Duc) 2014
Inventories 0.21
Provision for ST liabilities
Short-term unrealized revenue
Total working capital requirement - 303.46
Tangible fixed assets 1,206.60
Total net non-current operating assets 1,212.87
Total capital employed 1,142.75
Total Equity 924.79

Total Debt 217.96
Current debt 22.77
Total invested capital 1,142.75

2015 2016 2017 2018 2019 2020
274.72 246.79 261.56 385.20 512.73 630.77

385.77 390.72 317.25 277.43 339.94 327.31
2.41 1.85 0.65 1.95 5.41 8.11
19.48 24.07 28.04 31.97 53.08 85.36
60.21 40.29 49.12 110.30 104.01 60.42
20.39 51.32 89.92 57.50 6.00 18.38
220.11 300.98 350.60 328.17 371.49 441.09
6.01 5.91 9.03 19.03 30.57 34.90
336.69 216.81 52.75 117.60 292.93 326.05
412.78 396.82 399.91 430.94 527.74 611.84

0.44 0.30 0.23 0.96 1.70 1.65
37.64 13.01 10.48 18.60 27.09 42.78
252.86 249.93 282.96 320.79 353.15 380.68
198.00 160.21 127.66 129.71 203.38 275.58
534.69 377.01 180.41 247.31 496.31 601.63
188.60 205.14 225.16 213.38 202.64 204.76

124.83 198.07 542.23 724.19 558.82 590.17
123.24 191.10 355.12 403.78 251.66 205.99
1.60 6.98 187.11 320.41 307.17 384.18
313.43 403.22 767.39 937.56 761.46 794.93
848.12 780.23 947.79 1,184.87 1,257.77 1,396.56
661.44 677.07 880.74 1,119.15 1,169.07 1,237.42
186.69 103.16 67.05 65.73 88.71 159.14

83.34 48.84 44.11 43.14 67.59 127.20
103.35 54.32 22.94 22.59 21.11 31.94
848.12 780.23 947.79 1,184.87 1,257.77 1,396.56

2015 2016 2017 2018 2019 2020
3.43 3.82 0.95 0.95 1.09 2.00

67.18 85.72 91.39 96.15 106.77 94.86
14.43 11.40 5.19 3.53 2.34 10.92
55.85 48.87 101.65 99.59 50.65 147.21
4.95 10.89 15.50 16.70 19.28 29.13
1.33 0.73 3.00 36.05 143.02 388.96
174.21 0.05 0.03 1.14 1.93 1.57
5.10 5.82 5.88 7.26 8.76 13.44
- 156.40 33.94 - 29.78 - 65.61 - 126.67 - 487.61
1,510.65 1,521.98 1,630.85 1,975.62 2,294.96 3,292.46

1.29 0.98 0.66 0.38 0.17 0.06
2.53 3.69 9.68 12.01 12.36 11.86
223.39 256.71 107.09 255.34 478.66 618.43
1,291.08 1,269.93 1,534.10 1,732.67 1,828.84 2,685.95
1,134.68 1,303.87 1,504.32 1,667.06 1,702.17 2,198.35
45.02 45.02 46.52 48.02 48.77 51.17

335.23 303.60 225.90 254.59 368.96 290.48
185.23 178.60 50.90 159.59 263.96 190.48
150.00 125.00 175.00 95.00 105.00 100.00
380.25 348.62 272.42 302.61 417.73 341.65
1,514.93 1,652.49 1,776.73 1,969.67 2,119.90 2,539.99
1,093.43 1,096.52 1,103.95 1,137.30 1,176.17 1,230.09
421.49 555.95 672.77 832.37 943.73 1,309.90

381.82 504.82 558.26 705.71 848.43 1,161.00
39.67 51.13 114.51 126.66 95.31 148.90
1,514.92 1,652.47 1,776.72 1,969.66 2,119.90 2,539.98

2021 2022
663.27 619.17
308.35 325.34
7.80 6.69
80.36 67.81
77.48 65.27
38.62 33.80
502.70 608.72
41.01 47.16
239.24 128.44
598.53 564.05
1.58 1.55
53.53 54.38
410.48 438.42
243.16 181.56
482.41 310.00
203.92 202.41
885.52 1,150.32
176.19 88.39
709.33 1,061.92
1,089.43 1,352.73
1,571.84 1,662.73
1,373.89 1,498.66
197.95 164.08
153.45 119.03
44.51 45.05
1,571.84 1,662.73
2021 2022
4.78 674.87
49.07 45.87
26.26 40.24
241.60 261.38
59.57 187.61
523.11 454.66
1.72 5.56
23.66 37.58
- 784.22 - 199.82
4,661.41 4,847.73
0.07 0.09
8.42 31.58
860.58 1,097.58
3,809.31 3,781.82
3,025.10 3,582.00
52.82 52.82
214.27 282.51
144.27 232.51
70.00 50.00
267.09 335.33
3,292.18 3,917.33
1,364.92 1,499.92
1,927.25 2,417.39
1,640.62 1,978.72
286.63 438.68
3,292.16 3,917.31
Calculate the ratios and periods: average WCR / Revenue, days
sales outstanding (DSO), days inventories outstanding (DIO),
Question 5
days payables outstanding (DPO) and cash-conversion-cycle
(CCC).
LHG (Long Hau Coporation)

Cost of sales
Average WCR / Revenue
WCR turnover
DSO
DIO
DPO
CCC
Number of days during the year
DSO = Average Accounts receivable / Daily revenue = Average Accounts receivable / Annual revenue x 360 d
DIO = Average Inventory / Daily Cost of goods sold = Average Inventory / Annual cost of goods sold x 360 day
DPO = Average Accounts payable / Daily cost of goods sold =Average Accounts payable / Annual cost of good
CCC = Days Inventory Outstanding + Days Sales Outstanding - Days Payables Outstanding
SZC (Sonadezi Chau Duc)

Cost of sales
WCR turnover
DSO
DIO
DPO
CCC
Number of days during the year
2014 2015 2016 2017 2018 2019
146.16 131.85 206.87 216.75 186.34 385.42
124% 145% 45% 11% 27% 49%
0.8 0.7 2.2 9.3 3.7 2.0
490 598 293 234 232 204
730 750 429 434 744 479
49 53 42 47 62 50
1,170 1,295 680 622 915 634
360 360 360 360 360 360
s receivable / Annual revenue x 360 days

/ Annual cost of goods sold x 360 days
ccounts payable / Annual cost of goods sold x 360 days
yables Outstanding
2014 2015 2016 2017 2018 2019

239.86 155.38 101.36 219.67 290.23 329.42
-127% -101% 33% -14% -23% -38%
- 0.8 - 1.0 3.0 - 7.4 - 4.4 - 2.6
42 156 304 150 119 117
0 14 28 3 2 3
123 220 359 317 241 120
- 81 - 51 - 27 - 164 - 120 - 1
360 360 360 360 360 360
2020 2021 2022
350.12 369.95 372.41
51% 31% 20%
2.0 3.3 4.9
183 142 186
649 645 599
88 78 66
744 709 719
360 360 360
2020 2021 2022

432.98 713.22 858.89
-113% -110% -23%
- 0.9 - 0.9 - 4.3
79 25 19
4 7 442
266 332 171
- 183 - 300 290
360 360 360
Decompose the RNOA before tax with the EBIT margin and net
Question 6
operating assets turnover

EBIT margin
Net operating assets turnover
RNOA before tax
Net operating assets in % of revenue

Net non-current operating assets / Revenue
Net non-current operating assets turnover
P,P&E turnover
Net operating assets turnover = Revenue / Total net operating assets

Return on net operating asset before tax = EBIT margin x Net operating assets turnover
SZC (Sonadezi Chau Duc)

EBIT margin
Net operating assets turnover
RNOA before tax
Net operating assets in % of revenue

Net non-current operating assets / Revenue
Net non-current operating assets turnover
P,P&E turnover
2014 2015 2016 2017 2018 2019 2020 2021
40.1% 20.8% 38.4% 39.3% 40.2% 24.2% 33.8% 45.0%
0.52 0.43 1.27 2.71 1.74 1.21 1.07 1.62
20.8% 9.0% 48.9% 106.4% 70.0% 29.2% 36.2% 72.9%
192.3% 230.2% 78.5% 37.0% 57.5% 82.9% 93.5% 61.7%

123.9% 145.0% 45.1% 10.8% 27.3% 48.9% 50.7% 30.6%
66.8% 80.6% 27.8% 25.0% 31.9% 45.0% 43.8% 26.2%
1.5 1.2 3.6 4.0 3.1 2.2 2.3 3.8
1.4 1.7 0.8 0.8 1.1 1.0 1.0 0.7
t operating assets turnover
2014 2015 2016 2017 2018 2019 2020 2021

24.1% 33.1% 38.0% 35.5% 38.2% 42.2% 46.0% 54.2%
0.13 0.20 0.11 0.06 0.13 0.17 0.12 0.13
3.3% 6.5% 4.3% 2.2% 4.9% 7.2% 5.6% 7.0%
740.8% 512.1% 887.7% 1607.4% 776.1% 585.6% 818.8% 774.4%

-126.5% -100.7% 33.5% -13.6% -22.6% -38.5% -112.6% -110.0%
590.6% 750.1% 1355.8% 771.1% 610.4% 572.6% 805.0% 579.5%
0.2 0.1 0.1 0.1 0.2 0.2 0.1 0.2
23.0 22.7 30.1 22.0 18.9 15.8 18.7 13.1
2022
31.4%
2.03
63.7%
49.3%
20.4%
25.2%
4.0
0.9
2022
30.2%
0.19
5.7%
534.3%
-23.3%
399.4%
0.3
18.4
Decompose the ROE with the RNOA before tax, return on non-operating
Question 7
assets after tax, cost of debt after tax and debt-to-equity ratio

ROE before tax
= ROCE before tax
+ Spread: ROCE before tax - Cost of debt before tax
x Financial leverage (i.e. Debt / Equity)
ROCE before tax (decomposition)

= RNOA before tax
x Net operating assets / Capital employed
+ Return on non-operating assets before tax
x Non-operating assets / Capital employed
RNOA before tax

= EBIT margin
x Net operating assets turnover
Return on non-operating assets before tax:

Interest and other financial income + Share of profit before tax
Average non-operating assets
Cost of debt before tax:

Interest and financial expense
Average debt
ROE before tax direct

Checking
2014 2015 2016 2017 2018 2019
7.33% 5.16% 29.16% 23.61% 19.18% 15.34%
14.12% 6.56% 26.44% 22.60% 18.54% 14.67%
-13.35% -4.97% 17.84% 13.26% 10.88% 8.83%
0.51 0.28 0.15 0.08 0.06 0.08
14.12% 6.56% 26.44% 22.60% 18.54% 14.67%

20.82% 9.04% 48.91% 106.43% 70.00% 29.17%
62.18% 63.04% 48.32% 19.03% 20.87% 39.46%
3.10% 2.32% 5.44% 2.89% 4.96% 5.22%
37.82% 36.96% 51.68% 80.97% 79.13% 60.54%
20.82% 9.04% 48.91% 106.43% 70.00% 29.17%

40.05% 20.82% 38.40% 39.34% 40.24% 24.17%
0.52 0.43 1.27 2.71 1.74 1.21
3.10% 2.32% 5.44% 2.89% 4.96% 5.22%

11.36 7.28 21.93 22.18 46.52 39.71
365.9 313.4 403.2 767.4 937.6 761.5
-27.47% -11.52% -8.60% -9.33% -7.66% -5.84%

- 89.61 - 21.52 - 8.88 - 6.26 - 5.03 - 5.18
326.2 186.7 103.2 67.1 65.7 88.7
7.33% 5.16% 29.16% 23.61% 19.18% 15.34%

0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
2020 2021 2022
19.91% 27.29% 16.97%
18.78% 24.90% 16.11%
8.81% 16.57% 7.87%
0.13 0.14 0.11
18.78% 24.90% 16.11%

36.16% 72.88% 63.69%
43.08% 30.69% 18.64%
5.63% 3.65% 5.21%
56.92% 69.31% 81.36%
36.16% 72.88% 63.69%

33.80% 44.98% 31.39%
1.07 1.62 2.03
5.63% 3.65% 5.21%

44.72 39.78 70.47
794.9 1,089.4 1,352.7
-9.97% -8.33% -8.24%

- 15.86 - 16.49 - 13.52
159.1 198.0 164.1
19.91% 27.29% 16.97%

0.00% 0.00% 0.00%
Comparison about the two companies strategies and financial
Question 6
performance
ROE after tax (decomposition)

Effective income tax rate
ROE before tax (decomposition)
Checking: ROE after tax (direct calculation)

ROE after tax (direct)
ROE (direct calculation) minus ROE (from ROE decomposition)
Note: ROE direct = Net profit of the period / (Average equity - Net asset held-for-sale)
t held-for-sale)

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Introduction

The case study analyzes the financial statements of 2 corporates:

LHG Long Hau Corporation

LHG (Long Hau Coporation) 2013 2014

Investment properties 312.68 317.28

LIABILITIES 1,005.13 836.69

OWNER'S EQUITY 643.37 638.87

2015 2016 2017 2018 2019 2020

771.89 903.00 1,340.38 1,437.14 1,396.66 1,716.08

297.10 293.61 305.02 279.73 451.48 509.36

49.98 51.03 48.44 127.37 92.69 41.02

694.81 856.49 896.95 970.01 1,043.98 1,315.96

33.30 47.28 50.97 169.63 38.38 82.47

5.44 6.37 11.69 26.37 34.77 35.03

1.12 0.88 1.57 1.54 1.17 1.86

684.01 670.14 1,091.34 1,146.96 1,191.18 1,283.67

SZC (Sonadezi Chau Duc) 2013 2014

Fixed assets 61.14 58.50

LIABILITIES 365.85 744.42

OWNER'S EQUITY 766.03 1,083.55

2015 2016 2017 2018 2019 2020

474.18 334.85 312.00 398.40 559.91 236.58

1,657.34 1,485.96 1,889.41 2,182.61 2,529.91 4,181.17

55.10 333.46 326.95 319.74 315.57 308.37

- 51.40 72.51 71.56 44.65 42.91

1,028.21 731.09 1,083.23 1,424.60 1,893.89 3,153.51

1,103.31 1,089.72 1,118.18 1,156.41 1,195.93 1,264.24

Successfully develop the ecological and sustainable growth cities.

LHG (Long Hau Coporation) 2013 2014

Effective Income Tax rate 5.2% 0.0%

SZC (Sonadezi Chau Duc) 2013 2014

Net other income/(expenses) 0.02 0.01

Effective Income Tax rate 0.0% 18.0%

5.0% 0.0% 4.3% 5.0% 10.4% 7.4%

2015 2016 2017 2018 2019 2020

0.09 0.01 0.23 - 0.47 0.29 7.01

9.8% 10.4% 12.4% 13.5% 14.2% 15.4%

LHG (Long Hau Coporation) 2013 2014 2015

Effective Income Tax rate 5.2% 0.0% 5.0%

SZC (Sonadezi Chau Duc) 2013 2014 2015

Net other income/(expenses) 0.0% 0.0% 0.1%

Effective Income Tax rate 0.0% 18.0% 9.8%

0.0% 4.3% 5.0% 10.4% 7.4% 7.3% 13.4%

2016 2017 2018 2019 2020 2021 2022

0.0% 0.1% -0.2% 0.1% 1.6% 0.6% 0.2%

10.4% 12.4% 13.5% 14.2% 15.4% 18.4% 19.2%

Total working capital requirement 419.43

Total capital employed 1,057.59

Total Equity 643.37

Total invested capital 1,057.59

Total capital employed 867.49

Total Equity 766.03

Total invested capital 867.49

272.15 277.29 216.30 306.83 463.57

355.58 317.80 115.81 - 10.31 245.51

425.60 399.96 393.69 406.12 455.76

192.06 185.13 225.16 225.16 201.59