Financial Information for Pinhome:

1) The impact of mergers, and acquisitions on its liquidity has not been seen and
changed significantly in the first year. But, the liquidity ratio in the first year started to
increase. It can be predicted that acquisitions can increase the companies’ liquidity
ratio but it needs a longer time to see the results. The current ratio remained higher
since there were additional FMS from acquisitions from 2021 to 2020 but total asset
turnover and net profit margin resulted in decreasing value at the time of acquisitions
compared with one year before.

Current Ratio 2021 : 4.771.850.000/1.323.850.000 = 3.6

Current Ratio 2022: 10.678.333.333/2.827.833.333 = 3.8

Asset turnover 2021: 17,000,000,000/5,851,850,000 = 2.9

Asset turnover 2022: 25,000,000,000/12,818,333,333 = 1.95

NPM 2021: 3.11%

NPM 2022: -6.15%

2) Leverage ratio has not been seen and changed significantly in the first year. It tends to
be the failure, of acquisitions based on their leverage ratio. This may affect the
company’s performance to run the business where they are assessed to lack
experience in doing, acquisitions. Creditors will think twice when the firms need to
borrow the loan. The difference on companies’ before and after mergers, and
 acquisitions is the debt ratio significance value increases one year after mergers, and
acquisitions more than the previous year which means that acquisitions of companies
tend to be failures. While the debt-to-equity ratio of companies’ performance after
mergers, and acquisitions is better than the previous year. This means that there is any
performance improvement from companies, but still, they have to struggle to result
the significant value in two or three years to increase the leverage ratio.

Debt to equity 2021: 1,323,850,000/4,528,000,000 = 0.29

Debt to equity 2022: 4,827,833,333/7,990,500,000 = 0.60

3) The impact of acquisitions on its profitability ratio is the net profit margin and return
on assets increase while return on asset, and return on equity decrease in value at the
time. The return on equity of companies’ performance after mergers, and acquisitions
approaches to a minus number which means it is getting worse than the previous year.

ROE 2021: 528,000,000/ 4,528,000,000 = 11.7%

ROE 2022: (1,537,500,000)/7,990,500,000 = (19%)

Achieve the target:

Have target of increasing the revenue by 15% (ideal revenue growth for startup company)
and allow the cos and operating expenses to increase only 5% each year (to make sure the
cost to revenue not exceed 70%). To reduce it, Pinhome can do further negotiation related
to the property. Pinhome can also reassess which unprofitable services they can terminate
and focus on the profitable one instead. Moreover, Pinhome also can reduce the employee
turnover and optimize the employee schedule. Below is the speculation if the revenue
increase by 15%, the operating expense increases by 5%, and the cos increase by 5% each
year while the other stay constant to achieve profitability:

3. How if goal not achieveable:

You are leading a project to invest in a new facility. How would you work with the
BD/Strategy team to execute the project?

1) Collaborate with the Strategy team to conduct a thorough market analysis. Identify
goals, demand-supply dynamics, and potential opportunities or threats in investing
in the new facility.
2) Develop financial projections in collaboration with the Finance team to estimate
costs, revenue, and profitability of the investments
3) Seek out potential partners, customers, or clients for the new facility. Identify
strategic alliances that can accelerate growth. Collaborate with the BD team to
 negotiate agreements, contracts, or partnerships with potential stakeholders. Ensure
that these agreements align with the project's objectives.
4) Site selection with the Strategy team to choose an appropriate location for the
facility, considering factors such as accessibility, cost, and logistics.
5) Collaborate with the Operations team to set up and optimize the facility's
operations, including staffing, equipment procurement, and supply chain
management.
6) Develop a marketing strategy in collaboration with the Strategy team to promote the
new facility to the target audience.
7) Establish key performance indicators (KPIs) to track the facility's performance.
Regularly review progress and make data-driven decisions.
8) Fostering strong collaboration between the BD and Strategy teams, will increase the
chances of successfully executing this project and achieving your facility investment
goals.