(TIỂU LUẬN) COURSES FINANCIAL MANAGEMENT TOPIC FINANCIAL STATEMENTS OF VIETJET AIR JOINT STOCK COMPANY

OVERVIEW OF VIETJET AVIATION JOINT STOCK COMPANY

Overview of Vietjet Aviation Joint Stock Company

Vietjet Air is the first airline in Vietnam operating under the new generation airline model, low cost and providing a variety of services for customers to choose from The airline not only transports air but also provides the consumer needs of goods and services to customers through advanced e-commerce technology applications

Vietjet is an official member of the International Air Transport Association (IATA) with the IOSA Operational Safety Certificate Safety Culture is an important part of Vietjet's corporate culture, which is thoroughly understood from the leadership to each employee throughout the system

• Vietnamese name: VIETJET AIRLINES JOINT STOCK COMPANY

• Enterprise code: 0102325399 issued by Hanoi Department of Planning and Investment for the first time on July 23, 2007, changed for the 27th time on August 1, 2018

• Air transport business license: No 04/2016/GPKDVCHK issued on December 30, 2016

• Listing date on Ho Chi Minh City Stock Exchange (HOSE): February 28, 2017

• Independent Auditor: Branch of KPMG Co., Ltd in Ho Chi Minh City Ho Chi Minh – Vietnam

Line of business

Vietjet's business activities focus on 5 main groups, including:

Main activities the main activities of the Company and its subsidiaries are to provide passenger and cargo transportation services on domestic and international routes and related support activities and purchases aircraft and aircraft parts.

ANALYSIS OF FINANCIAL STATEMENTS OF VIETJET AVIATION

Data source for analyzing financial statements of Vietjet Aviation Joint Stock

- Consolidated financial statements for the quarters of 2019 include:

Financial statements for the first quarter of 2019 for the period from January 1, 2019 to March 31, 2019 (form B01 - DH/HN) issued in accordance with Circular No 202/2014/TT- BTC dated 22 December 2014 of the Ministry of Finance

Financial statements for the second quarter of 2019 for the period from April 1, 2019 to June 30, 2019 (form B01 - DH/HN) issued in accordance with Circular No 202/2014/TT- BTC dated 22 December 2014 of the Ministry of Finance

Financial statements for the third quarter of 2019 for the period from July 1, 2019 to September 30, 2019 (form B01 - DH/HN) issued in accordance with Circular No 202/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance

Financial statements for the fourth quarter of 2019 for the period from October 1, 2019 to December 31, 2019 (form B01 - DH/HN) issued in accordance with Circular No 202/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance

Consolidated financial statements for the quarters of 2020 include:

Financial statements for the second quarter of 2020 for the period from April 1, 2020 to June 30, 2019 (form B01 - DH/HN) issued according to Circular No 202/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance

Financial statements for the third quarter of 2020 for the period from July 1, 2020 to September 30, 2020 (form B01 - DH/HN) issued in accordance with Circular No 202/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance

Financial statements for the fourth quarter of 2020 for the period from October 1, 2019 to December 31, 2020 (form B01 - DH/HN) issued in accordance with Circular No 202/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance

Consolidated financial statements for the quarters of 2021 include:

Financial statements for the second quarter of 2021 for the period from April 1, 2021 to June 30, 2019 (form B01 - DH/HN) issued in accordance with Circular No 202/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance.

Analysis of balance sheet

2.2.1 Analysis of the situation of asset fluctuations:

The balance sheet is a consolidated financial statement, which generally reflects the total value of existing assets and the source of capital to form an enterprise's assets at a certain asset

The content of the balance sheet is shown through a system of indicators reflecting the situation of assets and the source of capital to form assets The targets are classified and arranged into categories, specific objectives and targets in accordance with the requirements of management

Criteria Quarter 1-2019 Quarter 2-2019 Quarter 3-2019 Quarter 4-2019 Quarter 1-2020 Quarter 2-2020 Quarter 3-2020 Quarter 4-2020

3 Long-term assets in progress

Graph 2.1 Changes in assets of Vietjet from the first quarter of 2019 to the second quarter of 2021

(Source: Table 2.1 Movement of assets from the first quarter of 2019 to the second quarter of 2021)

From "Graph 2.1: Changes in total assets between the second quarter of 2021 compared to the first quarter and the quarters of 2019 and 2020", we can see that the company's total assets grew in the second quarter of 2019 reaching VND 44,460,886,357,649 and started to decrease in the third quarter of 2019 with VND 43,146,293,080,207 Then there was a strong growth in the fourth quarter of 2019 reaching VND 47,608,358,739,075 However, the company's total assets began to show signs of a slight decrease in the first quarter of 2020 with VND 46,905,133,409,742 and continued to grow strongly in the second quarter of 2020 with total assets of VND 48,392,509,085,938 Then it decreased again in the third quarter of 2020 with VND 45,304,421,406,045 From the fourth quarter of 2020, the company's total assets tended to grow steadily in the fourth quarter of 2020 and the first quarter of 2021 with total assets of 47,088,256,669,717 VND and 47,497,810,235,588 VND respectively Then

Total asset total assets reached a record number in the second quarter of 2021 with 48,620,658,091,886 VND

And to better understand the volatility of the company, we go into detailed analysis of asset items and their impact on the financial position of the company

Graph 2.2 Changes in total short-term assets between the second quarter of 2021 compared to the first quarter and the quarters of 2019 and 2020

Based on graph 2.2 The fluctuation of total short-term assets between the second quarter of 2021 compared to the first quarter and the quarters of 2019 and 2020 shows that the company's current portfolio of short-term assets accounts for only VND 28,112,440,761,524 Compared to the first quarter of 2019, the difference between the short-term asset portfolio is 9,110,348,779,053 VND and is also the highest difference with the rate of 47.96% By the second quarter of 2019, the ratio of short-term assets was 22,505,968,973,232 dong, the difference between the second quarter of 2019 and

Short-term assets the second quarter of 2021 decreased compared to the difference in the first quarter, with the difference falling to 5,606,471,788,292 dong, equivalent to VND 5,606,471,788,292 with the rate of 24.91% However, by the third quarter of 2019, the ratio of short-term assets compared to the second quarter of 2021 continued to increase and it can almost be said that the number is at the highest approximation level, with about the difference fell to 7,267,876,022,392 billion VND, equivalent to 34.86% It was thought that this ratio would continue to increase with fluctuations over time at the end of 2019 However, by the fourth quarter of 2019, the difference in short-term assets had decreased to 1,485,969,315,618 VND and applied with a rate of 5.58%

Continuing, entering the beginning of 2020 The portfolio of short-term assets falls at about VND 22,232,501,052,662 This number seems to approximate the figure of the beginning of the second quarter of 2019 Therefore, this difference is 5,879,939,708,862 VND, while the difference between the second quarter of 2021 and the second quarter of 2019 on this item is 5,606,471,788,292 This difference decreased again in the second quarter of 2020 with VND 3,304,296,403,575 with the rate of 13.32% and continued to increase in the third quarter of 2020, the difference was approximately the same as the first quarter of 2020 with 5,561,791,289,712 accounting for 24.66 % From the third quarter of 2020, the difference in the short-term asset portfolio gradually decreased The difference in the fourth quarter of 2020 decreased by 1,945,975,817,892 VND compared to the third quarter of 2020 and 3,615,815,471,820 VND with the second quarter of 2021, equivalent to 14.76% Short-term assets continued to increase and stopped at VND 27,353,003,817,452 in the first quarter of 2021, the difference compared to the second quarter of 2021 fell to VND 759,436,944,072 and also the lowest difference with 2.77%

Graph 2.3 Movements of cash and cash equivalents over the quarters from 2019 to 2021

In the second quarter of 2021, this item reached VND 1,517,051,455,785 And in general, if we compare the second quarter of 2021 with the first two quarters of 2019, the cash and cash equivalents items have an increasing trend Specifically, from the first quarter of 2019, the threshold is 5,098,305,305,035 VND, the difference compared to the second quarter of 2021 is -3,581,253,849,250 VND, equivalent to -11.4% By the second quarter of 2019, this item continued to increase with the figure of 5,265,462,335,773 VND It was thought that this number of categories would continue to fluctuate in an increasing direction, but in the third quarter of 2019, this item suddenly dropped sharply to only 3,168,319,367,301, the difference compared to the second quarter of 2021 is -1,651,267,911,516, equivalent to 1,651,267,911,516 with a rate of -52.11% In the fourth quarter of 2019, this category had a record increase of 6,076,130,859,648 and compared to the second quarter of 2021, the figure was - 4,559,079,403,863, equivalent to -75.03% The reason for this sudden growth is that Vietjet has chartered 9 more aircraft, bringing the number of ships put into operation by the end of 2019 to 78 aircraft with total operating hours of 321,000 safe hours to meet

Cash and cash equivalents the needs of customers Meeting the needs of passengers with 139,000 flights The seat utilization factor reached 87%, the technical reliability reached 99.64%, belonging to the group of airlines with the leading operating safety index in the Asia-Pacific region International organization Airline Ratings rated Vietnam's safety index at 7 stars - the highest level on the rankings In addition, thanks to the ancillary revenue growth strategy, which mainly includes additional service revenues, freight revenue, in-flight sales (food, beverage, beverage, etc.) souvenirs) and advertising revenue

However, at the beginning of 2020, the cash and cash equivalents items continuously decreased sharply in the first 3 quarters In the first quarter of 2020, this category reached VND 2,459,284,982,899, a decrease of 3,616,845,876,749 compared to the first quarter of 2019 and a difference of -942,233,527,114 compared to the second quarter of 2021, corresponding to a rate of -38.31% Entering the second quarter of 2020, this number continued to decrease with VND 2,413,573,361,917, nearly equivalent to the first quarter of 2020, and a difference of -896,521,906,132 VND compared to the second quarter of 2021, equivalent to -37.14% Not stopping there, 2,298,775,806,473 VND is the number in this item in the third quarter of 2020, compared to the second quarter of

2021, the difference in cash items and cash equivalents is -781,724,350,688 VND, equivalent to the rate - 34% So, what are the reasons for the high growth of this category in the fourth quarter of 2019 but then it suddenly dropped to very low in the first three quarters of 2020? According to the company's explanation, the COVID-19 epidemic has had a huge impact on the global economy and the aviation industry is one of the industries most affected by the drop in travel demand Vietjet Air has suspended all international scheduled flights and reduced domestic flights In the fourth quarter of

2020, the cash and cash equivalents portfolio grew slightly with a figure of 3,054,995,683,706 VND, an increase of 756,219,877,233 VND compared to the previous third quarter and the difference compared to the second quarter of 2021 was -1,537,944,227,921 VND corresponding to the level of rate -50.34% The reason for this growth is that Vietjet has converted a number of aircraft configurations into freight transport, applying a new mode of operation to increase the cargo capacity of the fleet The airline is also the first airline to be approved by the authorities to carry cargo in the cabin

However, entering the first two quarters of 2021, this category continued to decline sharply In the first quarter of 2021, this item decreased sharply to only 2,054,231,746,882 VND, the lowest compared to the previous quarters, the difference compared to the second quarter of 2021 was -537,180,291,097 VND with a rate of - 26.15% We can see that the reason for the decrease in the cash and cash equivalents portfolio in the first two quarters of 2021 is due to the high increase in liabilities and the serious impact of the outbreak of the epidemic In Ho Chi Minh City and the southwestern provinces, Vietjet was affected due to reduced travel demand and limited cargo transportation

Graph 2.4 Movements of short-term revenues over the quarters in the period of

In general, short-term revenues tend to increase gradually over the years As of the second quarter of 2021, this item is VND 24,789,364,603,511 Looking at graph 2.4

"Changes in short-term receivables between the second quarter of 2021 and the first

S hort-term receivables quarter of 2021 and the quarters of 2019 and 2020", we can comment as follows: Movement of receivables short-term is 12,230,652,002,429 VND in the first quarter of

2019 The difference between the second quarter of 2021 and the first quarter of 2019 at an increase of VND 12,558,712,601,082, equivalent to a rate of 102.68% and also the highest difference Looking to the second quarter of 2019, this range continued to increase to 15,651,866,716,676 VND, an increase of 3,421,214,714,247 VND compared to the first quarter of 2019 and the difference with the second quarter of 2021 with the figure of 9,137,497,886,835 VND corresponding to the rate of 58, 38% The reason short-term revenue increased during this period was due to the increase in short- term loans and other receivables in the second quarter of 2019 Specifically, the item of other receivables in the second quarter of 2019 increased by VND 4,829,183,996,780 compared to the first quarter of 2019 By the third quarter of 2019, this item increased slightly to VND 16,067,006,684,052 just higher than the second quarter of 2019 at VND 415,139,967,376 and lower than the second quarter of 2021 with VND 8,722 billion, equivalent to 54.28% This item continued to increase when entering the fourth quarter of 2019, receivables increased to VND 18,985,742,138,634 The reason why short-term revenues in this quarter increased is due to the increase in receivables from customers by VND 2,713,381,622,640 compared to the third quarter of 2019 Therefore, the difference between the fourth quarter of 2019 compared to the second quarter of 2020 is also lower than the difference of the third quarter of 2019 when compared to the second quarter of 2021, the number is only 5,803,622,464,877 VND, corresponding to the rate of 30 56%

However, in the first quarter of 2020, short-term receivables decreased slightly, only 18,359,305,350,281 Comparing the difference with the second quarter of 2021, this figure is 6,430,059,253,230 VND, an increase of 626,436,788,353 VND compared to the previous fourth quarter of 2019 This item increased strongly again when entering the second quarter of 2020 reaching VND 20,339,426,388,480, the highest compared to the previously presented quarters The difference compared to the second quarter of

2021 decreased to only 4,449,938,215,031 VND, lower than the first quarter of 2020 was 1,980,121,038,199, equivalent to the rate of 21.87% It seemed that this item would continue to increase, but when entering the third quarter of 2020, the number decreased to only VND 18,907,398,112,367, approximately equivalent to this item in the first quarter of 2020 and down 1,432,028,276,113 compared to the second quarter of 2020. The difference compared to the second quarter of 2021 increased to 5,881,966,491,144 VND, the rate increased to 31.1% From the second quarter of 2020, short-term receivables tend to increase gradually In the fourth quarter of 2020, this item reached VND 19,907,228,134,374, a slight increase compared to the third quarter of 2020 The difference is 4,882,136,469,137 VND compared to the second quarter of 2021 with a rate of 24.52% Entering the first quarter of 2021, this number increased by 3,162,472,036,038 VND, reaching 23,069,700,170,412 VND, compared with the second quarter of 2021, the difference was 1,719,664,433,099, also the lowest difference, corresponding to the rate of 7.58% The reason for this gradual increase is that other receivables started to increase in the fourth quarter of 2020 Specifically, VND 9,986,988,481,423 in the fourth quarter of 2020, VND 13,943,995,045,004 in the first quarter of 2021 and VND 14,882,986,870,318 in the second quarter of 2021 The larger the receivables are, the more capital is occupied by the enterprise (ie the enterprise's capital is stagnant in the payment stage), this will partly affect the efficiency of capital use of the enterprise enterprise To overcome the above situation, minimize risks for the company, the company needs to take measures to ensure the ability to recover debts and avoid affecting the company's finances And to get a more accurate conclusion about the causes and effects of short-term receivables on Vietjet's financial situation, we will study more closely in the following sections:

Graph 2.5 Changes in inventory over the quarters in the period of 2019 - 2021

In the second quarter of 2021, Vietjet's inventory was 791,016,757,252 product units This number, if compared with the first quarter of 2019, will be at a higher level Specifically, the inventory item in the first quarter of 2019 was 433,738,248,016 product units That is, the difference between the first quarter of 2019 and the second quarter of 2021 will increase by 357,278,509,236 product units, the equivalent rate will increase by 82.37% Inventory items in the next 3 months of 2019 tend to change at 609,426,772,775 respectively; 589,575,595,705 and 683,568,930,196 product units Because the fluctuation is not too large, the amount of difference between the second quarter of 2021 and the above three quarters has fluctuated, but only at a relative level Specifically, as follows: The level of difference in turn: 181,589,984,477; 201,441,161,547 and 107,447,827,056 product units, respectively: 29.79%, 34.16% and 15.71%

Continuing to look at graph 2.5, this item doesn't seem to have changed much In the first quarter of 2020, the inventory category accounted for 686,629,885,804 product

Iventory units, an increase of only 3,060,955,608 product units compared to the fourth quarter of

2019, so the difference in the first quarter of 2020 compared to the second quarter of

Analysis the situation of capital fluctuations

Capital is the source of assets, so in addition to analyzing asset fluctuations, we also have to analyze capital fluctuations as well as each item in the capital Thereby seeing the level of financial independence, helping to better assess the financial capacity of the business.

Table 2.2.2.1 The situation of capital fluctuations from quarter I/2019 to quarter II/2021

Quarter 1-2019 Quarter 2-2019 Quarter 3-2019 Quarter 4-2019 Quarter 1-2020 Quarter 2-2020 Quarter 3-2020 Quarter 4-20

Graph 2.15 "Variations of equity over the quarters in the period of 2019 - 2021"

(Source: Table 2.2.2.1 The situation of capital fluctuations from quarter I/2019 to quarter II/2021)

Looking at the graph, we can see that the company's equity has changed up and down over the quarters, especially in the second quarter of 2021 with the figure of 17,005 billion dong Specifically, the company's equity is 15,507 billion dong, this figure is 1,498 billion dongs less, equivalent to the rate of 8.8% compared to the second quarter of 2021 In the second, third and fourth quarters of 2019, equity fluctuated flexibly with numbers: VND 15.622 billion, VND 14,847 billion and VND 15,314 billion in the fourth quarter of 2019

In the first quarter of 2020, this item decreased to VND 13.753 billion, which is also the lowest equity figure compared to all other quarters Compared to the second quarter of 2021, the equity of the first quarter of 2020 is much lower, with a difference of VND 3,251 billion, accounting for 19.12% compared to the second quarter of 2021 Looking at the graph from the second quarter of 2020 to the first quarter of 2021, the company's equity fluctuates continuously and the difference between quarters is relatively small

In general, the company's equity has different changes over the years, especially the company's equity capital peaked at VND 17,005 billion in the second quarter of 2021

This shows us that: The financial position of the company is being improved by investors' efforts to compensate for capital, not because of increased profit after tax.

Table: Movement of vertical capital from the first quarter of 20129 to the second quarter of 2021

1.1 Short-term payable to the seller 17353% 24230% 13016% 29643% 64955% 60724% 119285% 96891% 97471%

1.2 Buyer pays short-term advance 17204% 15120% 20959% 14072% 16755% 12507% 17338% 16414% 12743%

1.3 Taxes and other payables to the State 6312% 6693% 12362% 8625% 6482% 6875% 8015% 6338% 6975%

1.7 Payable according to the construction contract schedule 0% 0% 0% 0% 0% 0% 0% 0% 0%

1.10 Borrows and short-term financial leases 156335% 164370% 188019% 171382% 142277% 127982% 192380% 215124% 198999%

1.14 Transaction of buying and selling Government bonds 0% 0% 0% 0% 0% 0% 0% 0% 0%

2.1 Long-term payables to suppliers 0% 0% 0% 0% 0% 0% 0% 0% 0%

2.2 Long-term prepayment by buyers 0% 0% 0% 0% 0% 0% 0% 0% 0%

2.4 Internal payable for working capital 0% 0% 0% 0% 0% 0% 0% 0% 0%

2.5 Long-term internal long-term payables 0% 0% 0% 0% 0% 0% 0% 0% 0%

2.8 Loans and long-term financial lease debt 13587% 12263% 26439% 76956% 79299% 75164% 37796% 28607% 34007%

2.12 Provision for long-term payables 219994% 214687% 225089% 192601% 249180% 243268% 202842% 197439% 189058%

2.13 Science and Technology Development Fund 0% 0% 0% 0% 0% 0% 0% 0% 0%

- Common shares with voting rights 0% 0% 125529% 113764% 115470% 111920% 119549% 0% 0%

- Accumulated undistributed NPAT at the end of the previous period 0% 0% 85327% 88614% -21093% 1512% -20422% 0% 0%

12 Source of investment capital for construction 0% 0% 0% 0% 0% 0% 0% 0% 0%

2 Funding sources and other funds 0% 0% 0% 0% 0% 0% 0% 0% 0%

2.2 Sources of funding for the formation of fixed assets 0% 0% 0% 0% 0% 0% 0% 0% 0%

III - TOTAL LIABILITIES AND OWNERS’EQUITY 0% 0% 0% 0% 0% 0% 0% 0% 0%

Graph 2.16 “The situation of vertical capital fluctuations in the period from the first quarter of 2019 to the second quarter of 2021”

Based on the table data "Vertical capital fluctuations from the first quarter of 2019 to the second quarter of 2021" and the graph of "Vertical capital fluctuations in the period from the first quarter of 2019 to the second quarter of 2021" As we can see, from the first quarter of 2020 to the present, the proportion of liabilities has gradually decreased while the proportion of equity has increased gradually

The ratio of liabilities to total capital in the first quarter of 2021 compared to the first quarter of 2021 decreased from 69.25% to 65.02%, compared to the second quarter of

2020 is also 4% lower It can also be said that the proportion of liabilities in the second quarter of 2021 is the lowest in the period from the second quarter of 2019 until now, this figure is only higher than the first quarter of 2019 and the second quarter of 2019 The decrease in proportion is mainly because Vietjet continues to manage its costs well through improvement, innovation and creativity programs, and cost-saving solutions; reducing average operating costs per flight hour by 71%, selling and administrative expenses by 30% compared to the same period last year; the proportion of short-term

Liabilities Equity finance lease loans and debt was 3% lower than the previous quarter, in general, the proportion of short-term finance lease loans and debts gradually decreased in the first 2 quarters and then gradually increased towards the end of the year; the proportion of short-term unrealized revenue decreased by 0.8% compared to the previous quarter, decreased by 1.92% compared to the same period last year and decreased by 4.17% compared to the same period of 2 years ago (second quarter of 2019) In addition, the government has many policies to exempt and reduce some costs, and solutions to support capital for the aviation industry, helping the proportion of taxes and payables to the state decrease by 0.17% compared to the previous quarter and by 0.18 % compared with the same period last year Due to the epidemic situation, the number of flights was limited, leading to the proportion of short-term prepaid buyers, mainly customers who booked tickets, down 0.17% qoq, down 0.15% yoy period of the previous year and decreased by 0.4% compared to the same period 2 years ago (second quarter of 2019) Proportion of other short-term payables, including payables to

43 received, dividends payable to shareholders and other payables, down 6.3% q o q, 2.2% y-o-y and 4.4% y-o-y

Owner's equity, the proportion decreased from the beginning of 2019 to the first quarter of 2020 and gradually increased to the second quarter of 2021 The main reason is due to the company's stock sales, in the second quarter of 2021 the company sold all of nearly 17.8 million treasury shares, earning nearly VND 2.35 trillion, helping the proportion of treasury shares from while the negative numbers in the previous quarters recovered to non-negative numbers in the second quarter of 2021, thereby increasing charter capital, increasing the number of outstanding shares, and supplementing cash sources for business In the context of the Covid-19 epidemic, the core business segment became difficult, the company also took new steps, diversified revenue sources, and saved itself In addition, other items in equity did not change much from quarter to quarter On the other hand, undistributed after-tax profit in the second quarter of 2021 accounted for 23.32% while cash and cash equivalents only accounted for 3.1%, which showed that the company is in a state of excessive capital appropriation, which is not good in its operations business action Businesses need to control their cash flow

- General comments on the company's capital situation from the first quarter of 2019 to the second quarter of 2021

The company's debt ratio in the past year has tended to decrease gradually, which proves that the company is having a good plan in managing its costs, and supportive policies from the state also help companies The airline company reduces some costs Regarding equity, from the first quarter of 2019 to the first quarter of 2021, the proportion of equity tended to decrease, but increased in the second quarter of 2021, thanks to the treasury stock offering policy of the Company company, helping the company to supplement the source of money for business

In general, in the period from the first quarter of 2019 to the second quarter of 2021, the ratio of liabilities to equity is greater than 1, showing that the company's assets are

Analysis of Income sheet

Table of data analyzing business results from the first quarter of 2019 to the second quarter of 2021

Criteria Quarter 1-2019 Quarter 2-2019 Quarter 3-2019 Quarter 4-2019 Quarter 1-2020 Quarter 2-2020 Quarter 3-2020 Quarter 4-2020 Quarter 1-2021 Qu

8 Profit, loss or loss in joint ventures or associates

11 Net profit from business activities

18.2 Profit after tax of the parent company

The income statement shows the movement of capital in the production and business process, indicating the balance between income (revenue) and expenses in each accounting period This report summarizes the situation and results of production and business activities by type in an accounting period and the performance of obligations to the State It provides information on the situation and results of using potential capital, labor, technology and business management level The following is the business performance report for the three years 2019, 2020, and 2021 of Vietjet air joint stock company

2.3.1.1 Gross Revenues from Sales and Services Rendered:

Graph: The situation in gross profit between quarters in the period of 2019-2021

(Source: Table of data analyzing business results from the first quarter of 2019 to the second quarter of 2021)

Through the graph, we can see that the Gross Revenues from sales and services rendered of the second quarter of 2021 suffered a loss of -1,277,566,483,775 VND Lower than the first quarter of 2019 is 3,523,393,529,191 VND, equivalent to 157% Compared to the second quarter of 2019, the gross profit of the second quarter of 2021 decreased by 2,483,274,998,079 VND, equivalent to 206%, and decreased by 3,338,031,020,047 VND compared to the third quarter of 2019 or 162% The gross profit of the fourth quarter of 2019 was VND 1,324,781,792,392 so the second quarter of 2021 still had a loss of about VND 2,602,348,276,167 compared to the fourth quarter of 2019 or 196%

Net Revenues From Sales And Services Rendered

Gross Revenues From Sales And Services Rendered

Through analysis, it shows that in 2019, the company's situation is good, net revenue between quarters has increased compared to the second quarter of 2021

49 previous four quarters but was still higher than the second quarter of 2021 at 436,541,320,841 VND, equivalent to 52% Net profit in the second quarter of 2020 still decreased compared to the previous quarter due to the impact of the first Covid-19 pandemic outbreak in Vietnam was -108,925,176,399 VND but still high compared to the second quarter of 2021 at 1,168,641,307,376 VND equivalent 1073% In the third quarter of 2020, the economic situation has not yet recovered and the profit is still down but still higher than the second quarter of 2021 at VND 665,603,441,246, equivalent to 109% By the fourth quarter of the same year, the profit increased due to the recovery of the economy and was 1,771,660,601,974 dongs higher than the second quarter of

By the first quarter of 2021, due to the complicated developments of the covid-19 epidemic, the profit decreased to -1,013,746,142,834 VND and higher than the second quarter of 2021 was 263,820,340,941 VND, equivalent to 26% It can be said that the fourth Covid-19 epidemic in Vietnam has adversely affected the company's business situation The factors affecting net profit are net sales and the cost of goods sold So, we go into the analysis of net sales and cost of goods sold

- Net Revenues from Sales and Services Rendered:

The company's business results tended to increase and decrease unevenly over each quarter of the years

Based on the graph "Income sheet" we see that the net revenue of each quarter has a strong fluctuation Specifically, net revenue in the first quarter of 2019 was VND 13,636,768,648,167, equivalent to 74%, and in the second quarter of 2019 decreased to VND 12,664,237,887,158, equivalent to 72% By the third quarter of 2019, it was 13,577,576,074,250 VND, equivalent to about 74% and tended to increase in the fourth quarter of 2019 at 13,925,759,710,091 VND, equivalent to 75% The volatility of 2019 was stable, Vietjet maintained its leading position in the domestic transportation industry and the international market Accordingly, passenger transportation revenue reached VND 10,500 billion, up 25% Due to the maintenance of revenue growth in

2019, it can be said that at a stable level, financial and other revenue also fluctuated with an increasing trend

However, by 2020, the economic situation due to the pandemic will have a great impact on businesses, including Vietjet Net revenue in the first quarter of 2020 was 7,230,230,374,771 VND, equivalent to 51%, to the peak of the epidemic in the second quarter of 2020 the revenue was only 4,969,817,152,005 VND, equivalent to 29% And continued to decrease in the third quarter of 2020 with 2,809,498,694,891 VND equivalent to 26%, although it recovered in the fourth quarter of 2020 but only increased slightly by 4,429,932,083,395 VND but decreased by 68.1% compared to the same period in 2019 In which, revenue from passenger transport was only 1/5 of the same

(VND 1,727 billion), transfer of ownership and trade-in aircraft (VND 1,219 billion), and other revenue (386 billion VND) all decreased sharply compared to the fourth quarter of 2019 Although financial revenue in 2020 increased by 32.2% compared to

2019, reaching VND 1,032.5 billion, after deducting expenses, Vietjet's net profit from business activities was still negative VND 2,395 billion while last year reached VND 2,395 billion 3,847 billion

For the whole year of 2021, Vietjet sets a revenue target of VND 21,900 billion After the first half of the year, the business has made nearly 35% Net revenue in the first two quarters of 2021 was recorded at VND 1,013,746,142,834 and VND 1,277,566,483,775 Compared to the same period last year, which is the second quarter of 2020, the second quarter of 2021 is 1,428,040,886,227 VND higher, equivalent to 28.73% Before the fourth wave of the COVID-19 epidemic broke out at the end of April, Vietjet set a target of 32 trillion dongs in revenue and 1,000 billion dongs in consolidated profit after tax However, when the epidemic spread with thousands of new infections every day, Vietjet only strives to break even this year

Based on the graph, we see that the cost of providing services in the first quarters of

2019, 2020, and 2021 are all higher than the cost of the second quarter of 2021 Specifically, the cost of service provision in the second quarter of 2021 is VND 4,819,342,749,553, down 6,571,598,853,198 VND compared to the first quarter of

2019 equivalent to 58%, and at the same time down 3,251,912,788,152 VND compared to I/2020, equivalent to about 57.94% Although the first quarter of 2021 was also low, it was still higher than the second quarter of 2021 at 243,046,678,942 VND, equivalent to about 5% The cost of goods sold increased in the quarters of 2019 and 2020 due to the high selling and administrative expenses

Gross Revenues From Sales And Services Rendered

Gross profit margin on net sales

Based on the table "Analysis of business ratios above, we can see that the negative percentage appeared from the first quarter of 2020 until the peak negative level in the second quarter of 2021 with a rate of -36.07% All of this can say that Vietjet's business is losing money The cause comes from the epidemic and there is also fierce competition in other airlines Through the analysis, it can also be seen that the ratio in the quarters of 2019 was stable and the first quarter of 2019 was the highest with 16.47% Besides, the fourth quarter of 2020 also has a high level compared to the rest of the year at 11.15% due to the good economic recovery after the epidemic

2.3.1.2 Net profit from operating activities:

Graph “The fluctuation of net profit between quarters in the period of 2019-2021”

Net profit from operating activities

Through the graph, we can see that net profit from operating activities fluctuates up and down erratically between quarters, but in general, in the period from the first quarter of

2019 to the second quarter of 2021, the company's figure is on the rise decrease In early 2021, due to the impact of the Covid-19 pandemic, the aviation industry in general and Vietjet, in particular, could not avoid heavy impacts on business activities Specifically, in the second quarter of 2021, the company's net profit from business activities reached VND 10 billion, down VND 1,636 billion compared to the first quarter of 2019, equivalent to a decrease of about 99.38% In the second quarter of

2019, this list decreased to VND 731 billion, the lowest in the quarters of 2019, but still higher than the second quarter of 2021 at VND 721 billion By the third quarter of 2019, the profit increased significantly, reaching the highest result in the whole period with VND 1,908 billion, 187.4 times higher than that of the second quarter of 2021 By the fourth quarter of 2019, net profit decreased to VND 797 billion, but still higher than the figure of VND 10 billion in the second quarter of 2021

By 2020, net profit will still be volatile Due to the outbreak of the Covid-19 pandemic in many parts of the country and around the world, many domestic and international flights were canceled, but costs did not decrease much, making quarterly profits fall to negative levels In the first quarter of 2020, net profit dropped to the lowest negative level in the whole period, negative 971 billion dongs, 9.637% lower than the second quarter of 2021 In the second quarter of 2020, this figure showed signs of improvement and rebounded to VND 625 billion, 61.4 times higher than that of the second quarter of

Analysis Statements of Cash Flows

Table 2.9 Summary of cash flow statement for the period from the first quarter of 2019 to the second quarter of 2021

Criteria Quarter 1-2019 Quarter 2-2019 Quarter 3-2019 Quarter 4-2019 Quarter 1-2020 Quater 2-2020 Quarter 3-2020 Quarter 4-2020

Net cash flows from operating activities

Net cash flows from investing activities

Net cash flows from financial activities

Net cash flow for the year -2,064,228,213,010 163,356,983,886 -3,975,146,553,091 -1,173,692,272,844 -2,874,893,537,056 -3,088,753,942,809 -3,190,175,498,356 -2,447,126,520,713 Cash and cash equivalents at the beginning of the year

2.4.1 Net Profits from Operating Activities

Graph Net Profits from Operating Activities

(Source: Table 2.9 Summary of cash flow statement for the period from the first quarter of 2019 to the second quarter of 2021)

Through graph 2.19, we see that the Cash Flow Statement of the business from business activities has irregular fluctuations and is always negative:

In the first quarter of 2019, this item was not recorded Through the second quarter of

2019, this portfolio was at -1,162 billion dongs, the difference compared to the second quarter of 2021 was -2,777 billion dongs, equivalent to a rate of 238.98 percent In the third quarter of 2019, the number continued to decrease to -2.335 billion VND, down 1,173 billion VND compared to the second quarter of 2019 and a difference of -1.603 billion VND compared to the second quarter of 2021, equivalent to 68.65% By the fourth quarter of 2019, the portfolio tends to increase, specifically increasing by 1,259 billion VND compared to the third quarter of 2019 and reaching the equivalent of the second quarter of 2019 of -1,076 billion VND, compared to the second quarter of 2021 difference of -2,862 billion dongs, equivalent to the rate of 265.98%

After the fourth quarter of 2019, this category tends to decrease sharply until the end of the fourth quarter of 2020 Specifically, in the first quarter of 2020, cash flow from

NET PROFITS FROM OPERATING ACTIVITIES business activities was at -2,008 billion dongs, down 931,946 million dongs compared to the fourth quarter of 2019 and a difference of -1.930 billion dongs compared to the second quarter of 2021, equivalent to 99.11% In the second quarter of 2020, this number did not change much, only decreased compared to the first quarter of 2020 by 62,605 million VND, reaching -2.071 billion VND The difference compared to the second quarter of 2021 is -1.868 billion dongs, equivalent to 90.19% In the third quarter of 2020, this category decreased at a record rate, almost the lowest in quarters - only higher than the fourth quarter of 2020, namely - 3,713 billion VND, down 1.642 billion VND compared to the second quarter of 2020 and down 1,377 billion VND compared to the third quarter of 2019 of the same period last year The difference compared to the second quarter of 2021 is -225,847 million VND, the rate is 6.08% In the fourth quarter of 2020, cash flow from operating activities reached the lowest figure in all quarters, reaching -4.897, down VND3,820 billion compared to the fourth quarter of 2019 in the same period last year The difference is 958.287 million VND compared to the second quarter of 2021 The numbers show that Vietjet Air is facing difficulties in doing business and providing services That situation will have a negative impact on the financial situation of the business: stagnant capital, increased capital misappropriation, increased funding sources, increased cost of capital… Causes of the moving portfolio The continuous decrease in cash from business activities in 2020 is due to the severe impact of the epidemic situation, travel is restricted and freight transportation becomes difficult However, when entering the first quarter of 2021, this category tends to increase sharply, reaching -405,684 million, the highest figure in all quarters, an increase of 4,492 billion VND compared to the fourth quarter of 2020 - a number record and increased by VND 1,603 billion compared to the first quarter of 2020 of the same period last year The difference is -3,533 billion VND compared to the second quarter of 2021, equivalent to -870.87% Thereby, we can see that the cash flow is more positive compared to previous years

Table 2.10 Cash Flow Ratio Analysis:

Quarter Total net profit before tax Cash flows from operating activities

Ratio of cash flows from operating activities to profit before tax I/2019 1,647,514,447,442

In general, the ratio of cash flow from operating activities to pre-tax profit in most quarters is negative and tends to increase gradually over quarters, the highest is in the first quarter of 2020 and low in the second quarter 2019 In the second quarter of all three years, the number began to increase gradually, specifically in the second quarter of 2019 this figure was -64.55%, in the second quarter of 2020 it increased to -50,15% and in the second quarter of this year 2021 increases to -0.56% Similar to the second quarter, the third quarter over the years also increased gradually In the third quarter of

2019, the ratio of cash flow from business activities to profit before tax was -81.89%, in the third quarter of 2020, this figure increased to 25.07% Just like the previous quarters, the fourth quarter of 2020 increased compared to the fourth quarter of 2019, specifically in the fourth quarter of 2019, this figure was -74.74% to the fourth quarter of 2020 increased to -20.53% We can see that the second quarter of 2021 is higher than most quarters in three years, only lower than the first quarter of 2020 and the third quarter of 2020 The ratio of cash flow from operating activities to profit before tax in

2019 is quite low, which shows that the enterprise is misappropriating capital and receivables showing signs of stagnation But in 2020 and 2021, the situation gradually improves and becomes more stable.

Criteria Quarter 1-2019 Quarter 2-2019 Quarter 3-2019 Quarter 4-2019 Quarter 1-2020 Quarter 2-2020 Quarter 3-2020 Quarter 4-20

Net cash flows from operating activities 0.00% -22.07% -73.73% -17.72% -81.68% -85.82% -161.55% -160.32%

Cash flows from investing activities -48.40% 19.52% -77.93% -57.54% 26.87% 40.78% 83.50% 91.17%

Cash flows from financial activities 29.64% 5.65% 26.19% 55.94% -62.10% -82.94% -60.73% -10.96%

Net cash flow for the year -40.49% 3.10% -125.47% -19.32% -116.90% -127.97% -138.78% -80.10%

Looking at Table 2.11, we see that every quarter has a negative weight in Net Profits from Operating Activities each year:

The second quarter of 2021 accounted for -259680%, much lower than the second quarter of 2019 and the second quarter of 2020, specifically, the second quarter of 2020 accounted for -31% and the second quarter of 2019 accounted for -22.07%; the first quarter of 2021 accounted for -19.75%, an increase of -81.68% in the first quarter of 2020; the third quarter of 2020 accounted for -161.55%, a decrease compared to the third quarter of 2019 (accounting for -73.73%); The fourth quarter of 2020 accounted for -160.32%, a decrease compared to the fourth quarter of 2019 (accounting for - 17.72%), proving that the company is using more money for business activities and business activities in 2020 decreased compared to 2019 In the first quarter of 2021, this number tends to increase, but in the second quarter of 2021, it continues to decrease sharply This is mainly due to the serious impact of the Covid-19 epidemic, leading to a sharp decrease in Vietjet Air's revenue Besides, the cash flow report shows that Vietjet Air has negative cash flow from operating activities of VND 4,897 billion, while this figure was VND 2,026 billion last year To have money, Vietjet Air liquidated fixed assets and other long-term assets for VND 2,137 billion, while this amount was not recorded in 2019 As a result, net cash flow from investing activities was VND2,785 billion, while last year was negative VND3,100 billion Cash and cash equivalents at the end of the year 3,054 billion dongs

2.4.1 Cash Flow from Investing Activities:

Graph “Cash flow fluctuations from investment activities in the first quarter of

2019 to the second quarter of 2021”

From the graph, we can see the highest net cash flow in the fourth quarter of 2020 with VND 2,785 billion, mainly proceeds from the liquidation and sale of fixed assets and other long-term assets, and withdrawals lending and reselling debt instruments of other entities, while the money spent on lending and buying debt instruments of other entities is insignificant This amount is higher than that of the second quarter of 2021 by more than 2.8 trillion VND Net cash flow from investing activities of the second quarter of

2021 was negative 41 billion VND, this negative level was mainly due to the high amount of money spent on procurement and construction of fixed assets and other long- term assets (68,642,691,889 VND) but the amount of money collected from loan interest, the main cash flow, was very little, less than a third of the amount spent (VND 21,690,016,647) leading to negative net cash flow of the quarter

I/2019 II/2019 III/2019 IV/2019 I/2020 II/2020 III/2020 IV/2020 I/2021 II/2021

Net cash flow from investing activities

On the other hand, although at a negative level, the net cash flow of the second quarter of 2021 has not yet fallen to such a low level as the peak of the fourth quarter of 2019 when the company invested quite a lot of money in making deposits to buy aircraft and cash Spending on purchasing assets made this portfolio of the company fall to negative VND 3,496 billion, the lowest figure in the whole period There are also two milestones with a net cash flow lower than the second quarter of 2021, the first quarter of 2019, and the third quarter of 2019 with a negative level of nearly 2.5 trillion

Comparing the second quarter of 2021 with the same period two years ago, we see that only the second quarter of 2021 achieved negative values, both lower than the second quarter of 2019 and the second quarter of 2020 by more than 1 trillion VND With the outbreak of the epidemic in many places, the company's investment has faced many difficulties But in general, although the net cash flow of the second quarter of 2021 was negative, it will bring benefits to the future For example, the second quarter of

2019 and the first quarter of 2020 had a significantly high net cash flow while this number fell to a negative level in the previous quarter Comparing the second quarter of 2021 with the previous quarter, the difference is less than that of other quarters, although it is 30.56% higher than that of the second quarter of 2021, but the first quarter of 2021 still has a negative value (negative 28 billion)

Graph of Cash Flow Analysis from quarter I/2019 to quarter II/2021

Observing the chart, we can see that most of the net cash flow from investing activities accounts for a high proportion in the net cash flow structure of the enterprise, greatly affecting the cash source and potential of the business

I/2019 II/2019 III/2019 IV/2019 I/2020 II/2020 III/2020 IV/2020 I/2021 II/2021

Net cash flow from operating activities Net cash flow from investing activities

Net cash flow from financing activities

Table Component breakdown of net cash flows from vertical investing

Quarter Money spent to purchase and build fixed assets (1)

Money spent on lending, buying debt instruments of other entities (2)

Loan recovery, resale of debt instruments of other entities (3)

Loan interest income, dividends and distributed profits (4)

2.4.3 Cash Flow from Financing Activities

Graph 2.22 Cash flow structure from the first quarter of 2019 to the second quarter of 2021

Through the graph "Cash Flow Basis", we see that the money transfer in financial activities from the first quarter of 2019 to the fourth quarter of 2019 has a positive value This thing is to mean is the working capital convention as well as the management company's liability to the growing capital providers Specifically, the data is that the first quarter of 2019 money transfer in operating finance was VND 1,511,245,426,891 to the second quarter of 2019 with a decreasing trend but still reaching a positive level of VND 297,402,096,150, this number continues to increase gradually up to the third quarter of 2019 was VND 829,847,284,893 and increased at the level of the fourth quarter of 2019 with an amount of VND 3,399,284,992,313

However, in the first quarter of 2020, the value of cash flow turned negative and lasted until the first quarter of 2021 This can be explained by the decrease in the amount mobilized from capital providers, which may be due to the business increasing its internal funding or the decrease in the need for financing during the period Specifically, the data recorded is that in the first quarter of 2020 the value reached -

Operating Cash Flow Cash Flow from Investing Activities Cash Flow from Financing Activities

1,527,101,145,475 VND in the second quarter of 2020 was -2,001,770,696,222 VND until the third quarter of 2020 reached -1,395,967,643,134 VND, the situation improved gradually at the end of the fourth quarter of 2020 with - 334,694,259,294 VND The value level gradually improved but remained negative in the first quarter of 2021 - VND 383,977,918,943 and gradually increased in the second quarter of 2021 to VND 2,689,943,414,895

- General comments on the company's cash flow position:

In 2019, the company's cash source focused on business and investment activities

2020 When the cash flow of the air transport business declines, Vietjet Air decided to transfer the investment portfolio and some assets accumulated in the previous period to focus capital, cash and nurture resources to recover when aviation bounces back up

Analysis of financial ratios

Table 2.13 Analysis of financial indicators

Quarter 1-2019 Quarter 2-2019 Quarter 3-2019 Quarter 4-2019 Quarter 1-2020 Quarter 2-2020 Quarter 3-2020 Quarter 4-2020

Ability to pay short- term deb

Ability to pay short- term deb 1.204838826 1.232658957 1.226785198 1.408347086 1.288283415 1.414198965 1.129661788 1.166891393

The ability to pay quickly 1.177337398 1.199280462 1.192086339 1.37219125 1.248495994 1.370822433 1.09560345 1.134186999

Graph 2.23 Changes in liquidity ratio, quick ratio, and instant ratio in the period of 2019 - 2021 of Vietjet

(Source: Table 2.13 Analysis of financial indicators) 2.5.1.1 Liquidity ratio:

Through the data table, we see that the short-term solvency of the second quarter of

2021 is 1.65, which means that for every 1 dong of short-term debt, it will be paid by 1.65 dong of short-term assets Compared to the same period in 2020- specifically, the second quarter of 2020 was 1.41, the second quarter of 2021 was 0.24 higher, or 17.02%, and when compared to the second quarter of 2019 it was 1.23, it was 0.42 higher, or 34.14% The reason is that short-term assets tend to increase and reach the highest value in the second quarter of 2021 while liabilities tend to increase and decrease unevenly and decrease suddenly in the second quarter of 2021 (with an increasing trend) From the first quarter of 2020 to the first quarter of 2021, it increased by VND 4,896 billion, but in the second quarter of 2021, it decreased by VND 5,148 billion compared to the first quarter of 2021

The company's short-term debt solvency has a coefficient greater than 1, this is due to the steady growth of short-term assets but uneven short-term debt, in the second quarter of 2019-2021, the debt Short-term trend is down In the second quarter of 2021, short- term liabilities were about 17,005 billion VND, compared to the same period last year

- the second quarter of 2020 was about 17,542 billion VND, down 536.929 million

Ability to pay short-term deb of Vietjet

Ability to pay short-term deb The ability to pay quickly Instant payment ability

VND, equivalent to -3.06%, compared to the second quarter of 2019 reached about 18,258 billion VND VND, the second quarter of 2021 decreased by about 1,252 billion, equivalent to -6.58% The reduction of short-term liabilities shows that the company has a good financial balance and a reasonable policy in paying short-term debts

Table 2.14 Liquidity Ratio of companies in the same industry

Ability to pay short-term deb Unit Quarter 1-2019 Qu 2-2019 Quý 3-2019 Quý 4-2019 Quý 1-2020 Quý 2-2020 Quý 3-2020 Quý 4

Ability to pay short-term deb of Vietjet Time 1.204838826 1.232658957 1.226785198 1.408347086 1.288283415 1.414198965 1.129661788 1.16689

Ability to pay short-term deb of Vietnam Airline Time 3.09963991 2.877074818 4.119843545 3.77853796 6.042944736 4.63682103 3.62553859 5.2292

Graph 2.24: Changes Liquidity Ratio between 2019 and 2021 of Vietjet and Vietnam Airlines

(Source: Table Liquidity Ratio of companies in the same industry)

Based on Table 2.14, Vietjet's short-term debt solvency compared to Vietnam Airlines is different The ability to pay the short-term debt of Vietnam Airlines is much higher than that of Vietjet Specifically, in the second quarter of 2021, Vietnam Airlines reached 6.36, higher than the second quarter of 2021 of Vietjet 4.71, accounting for 58.36% Thereby, it can be seen that Vietjet's short-term debt solvency is lower than other companies in the same industry, and its financial strength is lower, but it is not caused by a decrease in short-term assets but due to the uneven increase and decrease of short-term debt Besides, the high short-term debt solvency of Vietnam Airlines is due to the lower short-term debt and decreasing over the quarters Specifically, in the second quarter of 2021, Vietjet's short-term assets were 3.5 times higher than that of Vietnam Airlines, but the short-term debt was 17 times higher, leading to Vietjet's short- term debt solvency being much lower than that of Vietnam Airline

Looking at chart 2.24, we can see the volatility, the change in short-term debt solvency of Vietnam Airlines fluctuates unevenly while Vietjet tends to be quite stable, but in general, both have a tendency to change The trend of increasing short-term debt solvency in particular in the second quarter of 2021 reached the highest figure in all quarters.

Ability to pay short-term deb of Vietjet and

Ability to pay short-term deb of Vietjet Ability to pay short-term deb of Vietjet

Table 2.15: quick ratios off the capabilities of peers

The ability to pay quickly Unit Quarter 1-2019 Quarter 2-

The ability to pay quickly of

Graph 2.25 Changes in quick ratio 2019 – 2021 of Vietjet and Vietnam Airlines

(Source: Table quick ratios off the capabilities of peers) According to the total data table, Vietjet's quick ratio is very slightly different from the short- term debt ratio and the chart fluctuations are similar to the short-term ratio The reason is that inventory accounts for very little in short-term assets, the reason is that Vietjet is an air transportation company, transporting goods and providing consumer demand for goods and services through applications With e-commerce technology, the inventory is almost minimal Vietjet's quick solvency ratio in the first quarter of 2019 is 1.17, which means that every 1 dong of short-term debt will be guaranteed by 1.17 dong of short-term assets The quick ratio of the second quarter of 2021 reached 1.6, the highest in all quarters from 2019 to the first quarter of 2021 The reason is that short-term assets tend to increase and reach VND 28,112 billion - the highest in the second quarter of 2021 From that, it can be seen that the company's ability to convert short-term assets into cash is quite stable, with little risk

When comparing the quick payment ability between Vietjet and Vietnam Airlines, similar to the ability to pay the short-term debt, the quick payment ability of Vietnam is much higher than that of Vietjet The reason is the same as mentioned before because the fluctuation between short-term accounts and short-term debts of Vietnam Airlines tends to decrease gradually, while short-term liabilities are quite low and inventories account for very little in assets Short-term.

The ability to pay quickly of Vietjet and Vietnam

The ability to pay quickly of Vietjet The ability to pay quickly of Vietnam Airline

Table 2.16 Cash Ratio off the capabilities of peers

Instant payment of Vietjet Time 0.323261049 0.288391018 0.186468144 0.321383222 0.142505607 0.13758679 0.115155849 0.14552

Graph 2.26 Fluctuations in cash Ratio 2019 – 2021 of Vietjet and Vietnam Airlines

(Source: Table Cash Ratio off the capabilities of peers)

Observing the tables and graphs, we see that Vietjet's instant solvency index is at a low level, the highest is only 0.32 in the first quarter of 2019, thereby showing that Vietjet's solvency is assessed as unsolvable concerned, did not make good use of cash for short-term loans, and had difficulty paying debts

Comparing the volatility of the instant payment ability of Vietjet and Vietnam Airlines, the difference is quite large We can see that the instant payment ability of Vietnam Airlines is higher than that of Vietjet, specifically ranging from about 8 to 49, and tends to increase gradually, reaching the highest level in the second quarter of 2021 Meanwhile, Vietjet's instant payment ability is quite low and does not fluctuate much, specifically from 0.1 to 0.3 can be seen in chart 2.26 Vietjet's instant payment ability is a straight line and lies only near zero and reached the lowest level in the second quarter of 2021 with the figure of 0.09, showing that Vietjet is having difficulty paying its debts

- General comments on the company's ability to pay short-term debt:

Vietjet's ability to pay short-term and quick payments is lower than that of other companies in the same industry, but tends to be more stable But the immediate ability to repay debt is low In case of urgent need for money, many debts are due at the same time, the company responds well in managing cash to be able to pay quickly but it is difficult to pay immediately

Instant payment of Vietjet and Vietnam Airline

Instant payment of Vietjet Instant payment of Vietnam Airline

This is not a very good sign, the company needs to maintain and focus on ensuring short-term investments to generate income from abundant cash, and at the same time, it needs to make sure to continue to make good use of the abundant cash source to generate income generate surplus value for the company

Graph "The volatility of long-term debt solvency ratios for the period of 2019 - 2021"

2.5.2.1 Total-Debt-to-Total-Assets Ratio:

Based on the chart " Solvency, we see that the ratio of liabilities to total assets in the second quarter of 2021 is 65.02%, which means 65.02% of the company's asset value is supported by debt and the company's debt accounted for 65.02% of total assets Compared to the same period in 2020, the second quarter of 2020 has a debt ratio of 69.02%, which is 4% higher than in the second quarter of 2021 As for the second quarter of 2019 it is 64.86% compared to the second quarter of 2021, 0.16% lower The reason is that the reduction in total amount shows that the company is managing its capital well

The ratio of payables to total assets of Vietjet is both higher than 60 and lower than 80 figures, although, at a high level, this proves that the company is making good use of financial leverage and is still ensuring its liquidity debt repayment for investors as well as ensuring the

LONG-TERM LIABILITY ON LONG-TERM DEBT

Debt to Total Assets Ratio Debt to Equity Ratio autonomy of corporate finance The company's total liabilities in the first quarter of 2019 were VND 10,108,609,854,655 until the second quarter of 2021, the total liabilities were about VND 13,236,235,007,229, although the debt level increased, it can be answered that the epidemic situation has caused a strong impact and impact strongest in the aviation industry

It can be seen that due to the service business, the company has been affected a lot by long- term loans

Table "Total-Debt-to-Total-Assets Ratio of companies in the same industry"

(Source:Compilation author) Graph Total-Debt-to-Total-Assets Ratio of companies in the same industry

Total-Debt-to-Total-Assets Ratio

Debt to Total Assets (vjc) Debt to Total Assets (HVN)

Based on the table, there is not a big difference between Vietjet's liabilities to total assets compared to Vietnam Airlines Vietjet's liabilities in the second quarter of 2021 is 65.02%, about 39.47% lower than Vietnam Airlines with a long-term liabilities index of 104.49% In general, compared to the same quarter of the same period of years, Vietjet is still lower than Vietnam Airlines And in general, it can be seen that the two companies do not have much fluctuation in their ability to pay long-term debt It can be said that Vietjet is managing well in terms of its ability to pay its long-term debts

COMMENTS AND SUGGESTIONS

Tiêu đề	Financial Statements Of Vietjet Air Joint Stock Company
Tác giả	HÀ Thị Ngọc ANH, PHẠM Thị Ngọc GIÀU, TRẦN Thị Ngọc TRÀ, NGUYỄN Thị Tú VY
Người hướng dẫn	NGUYỄN Thị Lan ANH
Trường học	University Of Technology And Education
Chuyên ngành	Financial Management
Thể loại	Course
Năm xuất bản	2021
Thành phố	Ho Chi Minh

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