GROUP REPORT ANALYSIS OF FINANCIAL STATEMENTS TOPIC CUU LONG PHARMACEUTICAL JOINT STOCK COMPANY

VIETNAM GENERAL CONFEDERATION OF LABOR TON DUC THANG UNIVERSITY FACULTY OF FINANCE AND BANKING FINANCIAL PLANNING AND POLICY GROUP REPORT ANALYSIS OF FINANCIAL STATEMENTS TOPIC CUU LONG PHARMACEUTICAL JOINT STOCK COMPANY Instructors : Ha Tuan Anh Members: Nguyen Thi Kim Cuc – B19H0010 Tran My Huyen – B19H0208 Nguyen Trung Hieu – B19H0194 Ta Tan Hoang - B19H0198 TP.HCM, Ngày 05 tháng 08 năm 2022 TEACHER'S COMMENTS OVERVIEW 1.1 General information 1.2 Development milestones 1.3 Operational Status 1.3.1 Distribution syste 1.3.2 Company Position 1.3.3 Company's Outlo 1.3.4 Development Stra 1.3.5 Core Values and M 1.4 Companies in the same industry 1.5 Equity and Shareholding Information BUSINESS PERFORMANCE ANALYSIS COMMENTAIRE 3.1 Asset use efficiency analysis: 3.2 Inventory ratios 3.3 Vòng quay tài sản 3.4 Vòng quay tài sản cố định 3.5 Vòng quay tài sản ngắn hạn 3.6 Phân tích tỷ suất sinh lời 3.7 Tỷ suất lợi nhuận sau thuế doanh thu (ROS) 3.8 Tỷ suất sinh lời tài sản bình quân (ROA) 3.9 Tỷ suất sinh lời vốn chủ sở hữu bình quân (R 3.10 Hệ số giá thu nhập (P/E) OVERVIEW 1.1 General information • Company name: Cuu Long Pharmaceutical Joint Stock Company • Short name: DCL • Established date: 1976 • Securities: DCL • Business registration number: 0311124093 • Charter capital: VND 730,410,300,000 • Owner of investment capital: VND 1,414,387,000,000 • Tax code: 1500202535 • Head office: 150 Street 14/9, Ward 5, Vinh Long City, Vinh Long Province, Vietnam • Phone: (+84) 27038225 • Fax: (+84) 27038221 • Website: http://dcl.com.vn/ • Domain: Healthcare • Parent company: F.I.T Group Joint Stock Company • Subsidiaries: Benovas Pharmaceutical Joint Stock Company, VPC - SG PHARMA Co., Ltd 1.2 Development milestones In early 1976, Vinh Long and Tra Vinh provinces merged to form Cuu Long province, the health sector of Cuu Long province was established, Cuu Long Pharmaceutical Factory and Cuu Long Pharmaceutical Company were born on the basis of the book "Pharmaceuticals" of Cuu Long Tra Vinh province together with a number of pharmaceuticals of Vinh Long province were reorganized to the task of producing and distributing pharmaceutical products; 1984 Cuu Long Pharmaceutical Enterprise and Cuu Long Pharmaceutical Company merged into Cuu Long Pharmaceutical Union Enterprise 1992 Cuu Long province was separated into provinces of Vinh Long and Tra Vinh, Cuu Long Pharmaceutical Union Enterprise continued to divide assets to establish Tra Vinh Pharmaceutical Company and re-established Cuu Long Pharmaceutical Company, then Renamed Cuu Long Pharmaceutical and Medical Consulting Company (Pharimexco) according to Decision No 538/QD-YBT dated 20/11/1992 of YBND of Vinh Long province 08/ 2004 Cuu Long Pharmaceutical Company transformed from a Stateowned enterprise into a joint-stock company with the new name of Cuu Long Pharmaceutical Joint Stock Company under Decision No 2314/QDUB dated August 9, 2004 of Chairman of Vinh Long Provincial People's Committee with initial capital of 56 Billion VND 2007 Issuing additional shares for existing shareholders, Key, outside auction with 2,500,000 shares, raising charter capital to VND 81,000,000,000 17/ 9/ 2008 DCL shares were officially listed and traded on Ho Chi Minh City Stock Exchange 2008 Issuing more 1,619,308 shares to pay dividends and bonus shares, raising charter capital to VND 97,193,080,000 2009 The company implemented the first ESOP program for employees with the amount of 194,384 to upgrade the charter capital to 99,136,920,000 VND 19/ 05/ 2015 charter capital increased to VND 100,594,800,000 15/ 7/ 2015 the company's charter capital increased to 201,189,600,000 VND 04/ 8/ 2016 charter capital increased to 563,328,240,000 VND 2017 charter capital increased to VND 568,328,240,000 2021 The company issues shares for employees, upgrading its charter capital to VND 588,328,240,000 03/2022: Company charter upgraded to VND 730,410,300,000 Information through the form of issuing shares to investors 1.3 Operational Status Cuu Long Pharmaceutical Joint Stock Company (DCL) was established in 1997, based on the merger and separation of two units: Cuu Long Pharmaceutical Enterprise and Cuu Long Pharmaceutical Company In 2004, the company switched to operating under model shares DCL currently owns factories in operation, including factories meeting GMP-WHO standards and a 40-hectare pharmaceutical farm in Binh Phuoc, a medical instrument factory, and a capsule factory Vicancap DCL's main business activities are manufacturing, trading, importing and exporting pharmaceuticals, capsules, medical equipment for the pharmaceutical industry, medical, manufacturing cosmetics, nutritional foods, medicinal herbs, chemicals, raw materials and other pharmaceutical products, Manufacture of packaging used in the pharmaceutical industry, Cultivation of pharmaceutical products 1.3.1 Distribution system DCL's product distribution network spans all provinces and cities of Vietnam This is also a reputable and long-standing pharmaceutical supplier for many large hospitals in Vietnam Currently, Cuu Long Pharmaceutical has expanded its network with a distribution system of 13 branches and more than 55 distributors across the country Since the first quarter of 2015, DCL has officially become a subsidiary of F.I.T Group JSC As a strategic sector in F.I.T's investment structure, DCL is heavily invested in both capital and human resources by the parent company Accordingly, along with the comprehensive restructuring plan, DCL has been supplemented with key human resources in administration, operation, production, sales in order to develop production and business activities business, along with good control of debt management of the company At the same time, DCL continues to receive capital investment to expand and upgrade the factory and increase capacity With the strong investment from the parent company, DCL has set the goal to become the leading pharmaceutical enterprise in Vietnam in the production of pharmaceuticals and medical equipment through continuous research and development of product lines new, owning advanced machinery system, and building a professional personnel system Besides production and business activities, DCL has and continues to carry out social responsibilities: sharing values with the community, protecting the environment, caring for employees, building a suitable corporate culture with the company and the core management values of F.I.T 1.3.2 Company Position DCL is a in 10 largest pharmaceutical manufacturing companies in Vietnam The company has 678 agents and retail pharmacies nationwide and over 4,000 domestic and international customers In addition to the domestic market, the company's products are also exported to Cambodia, Laos, Myanmar and Nigeria The company is currently manufacturing and supplying to the market more than 250 kinds of Pharmaceuticals The company currently has operating factories, of which meet GMPWHO standards 1.3.3 Company's Outlook According to the forecast of the General Statistics Office of Vietnam, with the average fertility method, the population of Vietnam will reach 102.7 million people in 2029 The population growth along with the population aging trend in Vietnam will promote the demand for medical care, the use of pharmaceuticals Investment to expand Capsule Factory Phase 4, the project has been completed and put into operation from the second quarter of 2021 by installing new capsule production lines, increasing capacity after expansion to 56 billion follicles/year Benovas medical equipment factory project started construction in the first quarter of 2021, is expected to be completed and put into operation in the second quarter of 2022 The factory with a designed capacity of 300 million products/year focuses on manufacturing medical equipment to serve domestic and export medical needs 1.3.4 Development Strategy Building the Company to become one of the leading national pharmaceutical companies in the field of manufacturing and trading pharmaceuticals, cosmetics, functional foods and medical equipment and instruments In-house product portfolio enhancement Expand your brand portfolio Cooperation in product outsourcing (CMO) or brand acquisition Research and invest in a pharmaceutical factory that meets EU-GMP standards 1.3.5 Core Values and Mission Vision 1.4 Companies in the same industry - On the stock exchange today, the number of stocks in the pharmaceutical industry also has a few notable names outside (DCL - Cuu Long Pharmaceutical JSC) such as: DMC - Domesco Medical Import Export Joint Stock Company DHG - Hau Giang Pharmaceutical Joint Stock Company DBT - Ben Tre Pharmaceutical Joint Stock Company OPC - OPC Pharmaceutical Joint Stock Company JVC - Viet Nhat Medical Equipment Joint Stock Company DBD - Binh Dinh Pharmaceutical - Medical Equipment Joint Stock Company DVN - Vietnam Pharmaceutical Corporation 1.5 Equity and Shareholding Information 1.5.1 Listed Shared First trading day Price of the first trading day Initial Listing Volume Current listing volume Volume of shares 73,041,030 outstanding 1.5.1 Leadership Position Chairman of the Board of Directors Member of the Board of Directors Member of the Board of Directors Member of the Board of Directors Member of the Board of Directors Member of Supervisor y Board Member of Supervisor y Board Member of Supervisor y Board General Director Deputy General Director Director Table 3.1: Analysis of fluctuations of DCL's asset items in 2018-2020 (Unit: VND million) Data and proportion of items in the balance sheet of DCL Pharmaceutical Joint Stock Company in the period of 2019 – 2020 Chỉ tiêu A-TỔNG TÀI 1,376,618,362 SẢN NGẮN HẠN Tiền tương đương tiền Giá trị đầu tư ngắn hạn Các khoản phải thu Khoản phải thu khách hàng Hàng tồn kho ròng Tài sản lưu động khác B- TỔNG TÀI 1,712,471,441 SẢN DÀI HẠN Phải thu dài hạn Tài sản hữu hình Tài sản vơ hình Tài sản cổ định Đầu tư dài hạn Tài sản dài hạn khác TỔNG TÀI SẢN Bảng 3.2: Phân tích biến động khoản mục nguồn vốn DCL 2019-2020 (ĐVT: Triệu đồng) Chỉ tiêu C- NỢ PHẢI TRẢ Nợ ngắn hạn Phải trả người bán ngắn hạn Nợ dài hạn D- VỐN CHỦ SỞ HỮU Vốn quỹ Trong đó: Lãi chưa phân phối TỔNG NGUỒN VỐN COMMENTAIRE Bảng 3.3: Số liệu thể biến động tài sản nguồn vồn DCL từ 2017 – 2019 (ĐVT: Triệu đồng) CHỈ TIÊU TỔNG TÀI SẢN NGẮN HẠN Tiền tương đương tiền Giá trị đầu tư ngắn hạn Các khoản phải thu Trong đó: Khoản phải thu khách hàng Hàng tồn kho ròng Tài sản lưu động khác TỔNG TÀI SẢN DÀI HẠN Tài sản vơ hình Tài sản cổ định Đầu tư dài hạn Tài sản dài hạn khác Phải thu dài hạn Tài sản hữu hình TỔNG TÀI SẢN NỢ PHẢI TRẢ Nợ ngắn hạn 16,933,414 Phải trả người bán ngắn hạn Nợ dài hạn VỐN CHỦ SỞ HỮU Vốn quỹ 86,573,019 Trong đó:Lãi chưa phân phối TỔNG NGUỒN VỐN 87,935,513 Through the data of the period 2019 - 2021, comparing the balance sheet of DCL Pharmaceutical Joint Stock Company, we can see that the size of total assets and total corporate capital has increased relatively steadily as follows: Year 2019 compared to 2020 Size of assets and capital resources of the business: an increase scarcely of 87,936 million VND (equivalent to 5.14%) In which, the short-term assets rose by 4.77% (about 65,600 million VND) corresponding to the calculated weight 80.39% to 80.11% and longterm assets increase noticeably by 6.65% (about 22,336 million VND) Besides that, owner's equity increased moderately by 9.79%, making total resources rise 5.14% Concerning the source of capital: Owner's equity increased by 86,573 million dong, equivalent to the gain of 9.79% due to the increase in wealth and researves (9.79%) and undistributed earnings (27.25%) The increase in liabilities from 828,049 million VND to 829,411 million VND, corresponding to the proportion (0.16%), is mainly due to the reduction of short-term trade payables (-34.08%) ❖ Short-term assets Cash and cash equivalents: Increased 27,379 million VND (about 188.83%) Most of these items increased due to the reduction of debt receivables and recovered profits from short-term investments We can see the proportion of cash in 2019 is 0.85% and will increase to 2.33% in 2020 Short-term investments: The main reason for the slight increase in short-term investments from 838,255 million VND to 877,876 million VND with a rising percentage difference of 4.73 Short-term receivables: receivables decreased slightly by 495 million VND, the difference decreased by 0.17%, showing the feasibility of debt collection, mainly due to reducing customer receivables is -12.93% Inventory: concentrating primarily on raw material items, the company reserves in advance and provides some before the goods Inventory decreased slightly and remained at a difference of -0.04%, about 93,949 million VND, because of the supplier for COVID patients ❖ Equity Increased by 109,299 million dongs, equivalent to 7.83% compared to 2017 This shows that the plan to mobilize capital is quite good Investors and owners are looking forward to the company's future development §Year 2020 compared to 2021 Size of assets and capital resources of the business: an increase scarcely of -19,378 million VND (equivalent to -1.08%) In which, the short-term assets go down by -12.55% (about -181,062 million VND) corresponding to the calculated weight 80.11% to 70.81%, and long-term assets increase noticeably by 45.14% (about 161,683 million VND) Besides that, Owner's equity increased moderately by 5.22%, but making total resources decreased -1.08% Concerning the source of capital: Owner's equity increased by 50,674 million dong, equivalent to the gain of 5.22% due to the increase in wealth and researves (5.22%) and undistributed earnings (24.20%) The decrease in liabilities from 829,411 million VND to 759,357 million VND, corresponding to the proportion (8.45%) is mainly due to the increasing of short-term trade payables 16.45% ❖ Short-term assets Cash and cash equivalents: Decreased 622,670 million VND (about -1.49%) Most of these items decreased due to the reduction of debt receivables and loss from short-term investments We can see the proportion of cash in 2020 is 2.33% and go down to 2.32% in 2021 Short-term investments: The main reason for the slight decrease in shortterm investments from 877,875 million VND to 655,923 million VND with a decreasing percentage difference of -25.28% Short-term receivables: receivables decreased dramaticaly by 55,102,585 million VND, the difference decreased by -19.08% Inventory: concentrating primarily on raw material items, the company reserves in advance and provides some before the goods Inventory increased enormously and remained at a difference of 35.78% about 81,208 million VND chart 4.4: PMC's long-term ratio for the period 2019-2021 Chart Title Nợ / Tổng Tài Sản N ợ/ Vốốn Chủ Sở Hữu 13.54% In general, the company has good debt management and utilization ability PMC has taken a safe, low-risk step when taking on a risk of borrowing and using its own capital to invest and accordingly the loan is not too large to take advantage of the tax shield It can be seen that the business is in a period of good business operation, the items are always safe and under control in a timely manner 3.1 Asset use efficiency analysis: Evaluate the efficiency of assets use, operation cycle and ability to convert into money of short-term assets in business production and business activities of enterprises Duty cycle is the period associated with activities related to inventory, accounts receivable and payable through purchase and sale of goods Performance ratios can be calculated for inventories, trade receivables and trade payables 3.2 Table of inventory turnover ratios Năm Vịng quay hàng tồn kho Thời bình xử lý HTK (ngày) The inventory management situation of PMC company is all greater than Although there is a inlfuence over the years, the difference is about 0.03 0.21% Thereby, we can see that the company performs good inventory management at a safe level On average, the medicinal product has a shelf life of about 3-4 years, PMC has chosen to keep a little inventory to keep it at a safe level, by 2021, the inventory will be 110.01 days On average a company can turn around 1.05 times the company's average inventory 3.3 Vòng quay tài sản Bảng tỷ số vòng quay tài sản (Đơn vị giá x1000 (VND) Chỉ tiêu Doanh thu Tổng tài sản bình quân Hệ số vòng quay tổng tài sản (lần) The turnover of fixed assets over the years tends to decrease gradually and is more than and less than in 2021 showing that the company using assets has really achieved high efficiency Although Net sales are net sales over the years, these numbers are stable but decreasing In 2019, from VND of assets, it can generate VND 1.26 in revenue 3.4 Vòng quay tài sản cố định Bảng tỷ số vòng quay tài sản cố định (Đơn vị giá x1000 (VND) Chỉ tiêu Doanh thu Tài sản Cố định Vòng quay tài sản cố định Fixed asset turnover decreased over the years 2019-2021, from 9.76 to 7.28 For every dong of fixed asset, it generates 7.28 dong of net revenue, part of the main reason comes from the fact that the company is exploiting via OTC channel after some new policy changes in the pharmaceutical industry, prioritizing the selection of low-priced drugs with high prices and A part of the company is not operating at full capacity due to quality inspection and upgrading of transmission lines In general, the company's revenue increased slightly over the years as shown by the above figures and assets 3.5 Vòng quay tài sản ngắn hạn Bảng tỷ số vòng quay tài sản ngắn hạn (Đơn vị giá x1000 (VND) Chỉ tiêu Doanh thu Tài sản ngắn hạn Vòng quay tài sản ngắn hạn PMC's efficiency in using short-term assets gradually decreases over the years and decreases decrease in the year 2019-2021 When seeing that short-term assets increase and short-term asset turnover communicates when the company starts shortterm restructuring long-term assets and assets, but the company is still efficient in the short-term Asset turnover is still high more than and bring in revenue for the company Source PMC management is taking place effectively when converting from short-term assets Long-term assets Chart Title 12 10 2019 vòng quay tài s nả cốố định Vòng quay Tài 9.76 sản cố định Vòng quay tài sản ngắn hạn Vòng quay tổng 2020 2021 vòng quay tài s nả ngắốn hạn vòng quay tổng tài sản tài sản 3.6 Phân tích tỷ suất sinh lời 3.6.1 Biên độ lợi nhuận Net income is the first thing that many investors look at to gauge a company's profitability On the contrary, margins can provide investors with insight into management performance The margin is the income expressed as a percentage or percentage of sales Percentages allow investors to compare the profitability of different companies There are three types of margins: gross margin, operating margin, and net profit margin 3.6.1.1 Tỷ suất lợi nhuận gộp Bảng tỷ suất lợi nhuận gộp (ĐVT: Triệu đồng) Chỉ tiêu Lợi Nhuận gộp Doanh thu Biên Lợi Nhuận gộp 2019 was the year with the highest gross profit margin with 38.32%, that is100 VND of revenue will generate 38.32 VND of profit The above version shows that operating company has a slight decrease in gross profit margin from 38.32% to 38.30%, but in 2021, gross margin will decrease to 35.60% as the main reason leading to gross profit margin In 2021, the company decreased because net revenue and gross profit decreased 3.7 Tỷ suất lợi nhuận sau thuế doanh thu (ROS) Tỷ suất lợi nhuận sau thuế doanh thu Chỉ tiêu Lợi Nhuận Sau Thuế Doanh thu ROS In recent years, 2020 has been the year with the most outstanding profit margins.16.19% means that 100 VND of revenue will generate 16.19 VND of profit Through ROS index by which we can assess the company is maintaining stable and profitable business through the analysis of the last years 2019-2021 from 16.01% to 15.63% of the rating ROS index analysis shows that the company is doing business sustainably and develop PMC is trying to catch up with companies in the same industry and develop regularly through ROS when in 2020 the ROS index is 16.19% compared to In the pharmaceutical and medical sectors, the company is now a strong company 3.8 Tỷ suất sinh lời tài sản bình quân (ROA) Tỷ suất sinh lời tài sản bình quân (ROA) Chỉ tiêu Lợi Thuế Tổng Bình Quân Nhuận Tài ROA The period 2019-2021 decreases over the years, showing a signal that by 2021, for every 100 dong of assets, the company will get 14.71 dong of profit ROA is a ratio used to assess the profitability of an investment this is a a measure of a firm's performance regardless of its financial structure It also shows How much profit the company generates for every penny of assets specifically, in 2021, ROA decreased year-on-year, ie in 2010 it decreased by 1.8% to 18.35% and decreased by 13.64% to 14.71% in 2021 3.9 Tỷ suất sinh lời vốn chủ sở hữu bình quân (ROE) Tỷ suất sinh lời vốn chủ sở hữu bình quân (ROE) Chỉ tiêu Lợi Nhuận Sau Thuế Vốn chủ sở hữu bình quân ROE From 2019 to 2021, ROE plummets to 2021 from 23.54% to 21.43% and continue to decrease to 17.2% in 2021 This shows 100 equity of the company ability energy generated 17.2 dong of profit 3.10 Hệ số giá thu nhập (P/E) Hệ số giá thu nhập (P/E) Chỉ tiêu EPS Giá trị thị trường P/E P / E measures the relationship between the market price and the earnings for each security The P/E also shows how many times the current stock price is higher than its income, or how much an investor must pay for a penny of income The company's P/E ratio increased partially year over year from 6,625 to 9,364 shows dividend growth REFERENCES VietnamCredit (2021) Overview of vietnam’s pharmaceutical industry Báo cáo tài hợp kiểm tốn 2018 DCL Báo cáo tài hợp kiểm tốn 2019 DCL Báo cáo tài hợp kiểm toán 2020 DCL Báo cáo tài hợp kiểm tốn 2021 DCL Báo cáo thường niên năm 2019 DCL Báo cáo thường niên năm 2020 DCL https://finance.tvsi.com.vn/Enterprises/OverView?symbol=DCL https://finance.tvsi.com.vn/ DCL: CTCP Dược phẩm Cửu Long - VPC | VietstockFinance ... to form Cuu Long province, the health sector of Cuu Long province was established, Cuu Long Pharmaceutical Factory and Cuu Long Pharmaceutical Company were born on the basis of the book "Pharmaceuticals"... Status Cuu Long Pharmaceutical Joint Stock Company (DCL) was established in 1997, based on the merger and separation of two units: Cuu Long Pharmaceutical Enterprise and Cuu Long Pharmaceutical Company. .. - Cuu Long Pharmaceutical JSC) such as: DMC - Domesco Medical Import Export Joint Stock Company DHG - Hau Giang Pharmaceutical Joint Stock Company DBT - Ben Tre Pharmaceutical Joint Stock Company