Profit of hanoi housing development and investment corporation

MINISTRY OF FINANCE ACADEMY OF FINANCE -🙞🙞🙞🙞🙞 - STUDENT: LE NGOC KIEN CLASS: CQ57/11.01CL CODE: 08 GRADUATE THESIS Topic: PROFIT OF HANOI HOUSING DEVELOPMENT AND INVESTMENT CORPORATION Major: Corporate Finance Class: 11.01CL Supervisor: PhD Bui Thi Ha Linh Hanoi, 2023 Internship Report Ph.D Bui Thi Ha Linh DECLARATION I am aware of academic honesty violations in behavior I vouch for the fact that I independently crafted this report based on my preparation and commitment, and that the rules of academic integrity were upheld Student Le Ngoc Kien Le Ngoc Kien CQ57/11.01CL Internship Report Ph.D Bui Thi Ha Linh ACKNOWLEDGEMENT I want to express my sincere gratitude to everyone who made it possible for me to finish my graduation thesis As I prepared this graduation thesis, I received a lot of helpful advice and assistance from my professors, peers, family, and friends I want to express my heartfelt gratitude to each and every one of them First and foremost, I would like to express my heartfelt gratitude to my supervisor, PhD Bui Thi Ha Linh, who has provided me with invaluable assistance, continuous supervision, and invaluable counsel whenever I have required it I couldn’t have finished my thesis without his assistance She patiently read and corrected my thesis, which I greatly appreciate I also want to thank the staff at Hanoi Housing Development and Investment Corporation for their invaluable assistance during the internship period Without their assistance, I would be unable to complete this assignment Last but not least, I’d like to express my heartfelt appreciation to my family, whose incredible love and care for my soul and health inspired me to complete the thesis Le Ngoc Kien CQ57/11.01CL Internship Report Ph.D Bui Thi Ha Linh TABLE OF CONTENTS DECLARATION i ACKNOWLEDGEMENT ii TABLE OF CONTENTS iii INTRODUCTION .1 CHAPTER 1: THEORETICAL BACKGROUND OF PROFIT OF A COMPANY .15 1.1 Profits and profitability ratios .15 1.1.1 Profit of a company 15 1.1.2 Profitability ratios 17 1.2 Factors determining profitability of a company 20 1.2.1 Internal factors 20 1.2.2 External factors 22 CHAPTER 2: SITUATION OF PROFIT OF HANOI HOUSING DEVELOPMENT AND INVESTMENT CORPORATION 24 2.1 Overview of Hanoi Housing Development and Investment Corporation 24 2.1.1 Establishment and Development of HANDICO .24 2.1.2 Business characteristics of HANDICO 26 2.1.3 General information on the financial situation of HANDICO 26 2.2 The situation of profit of HANDICO 39 2.2.1 Advantages and Disadvantages of business activities of HANDICO 39 2.2.2 The profits of HANDICO .40 2.3 Assessment of the profit of HANDICO 53 2.3.1 Achievements 53 2.3.2 Shortcomings and causes 54 CHAPTER 3: SOLUTIONS TO IMPROVING THE PROFITS OF HANDICO .56 Le Ngoc Kien CQ57/11.01CL Internship Report Ph.D Bui Thi Ha Linh 3.1 Objectives and strategic development directions of HANDICO 56 3.1.1 Socio-economic context 56 3.1.2 Objectives and strategic development directions of HANDICO 59 3.2 Solutions to improving the profits of HANDICO .60 3.2.1 Increase revenue 60 3.2.2 Reduce inventory .63 3.2.3 Cut the cost 77 3.2.4 Improve efficiency of use and investment in fixed assets .81 3.3 Conditions for implementing solutions 84 3.3.1 For the Government 84 3.3.2 For the enterprise .85 CONCLUSION 87 REFERENCE 89 Le Ngoc Kien CQ57/11.01CL Internship Report Ph.D Bui Thi Ha Linh TABLE Table 2.1: Changes in assets, capital, revenue, expenses and profits 32 Table 2.2: Changes in revenue, costs, and profits .34 Table 2.3: Profitability ratios of HANDICO (Source: Author’s calculation based on company financial statements) .41 Table 2.4: Table of sales and service revenue (Source: Author’s calculation based on company financial statements) 43 Table 2.5: Revenue from financial activities (Source: Author’s calculation based on company financial statements) .44 Table 2.6: Table of cost of goods sold (Source: Author’s calculation based on company financial statements) 45 Table 2.7: Table of cost (Source: Author’s calculation based on company financial statements) 46 Table 2.8: Revenue Expense of HANDICO (Source: Author’s calculation based on company financial statements) .49 Le Ngoc Kien CQ57/11.01CL Internship Report Ph.D Bui Thi Ha Linh INTRODUCTION In the context of globalization and international economic integration, the "4.0" revolution is occurring rapidly and widely, and businesses must not only pay attention to all aspects of the production and business process, but also to the management of the enterprise's profits, in order to survive and develop in an increasingly fierce competitive environment Corporate financial management is a component of, and the most important component of, corporate governance; it is intimately related to and affects all aspects of business operations Corporate financial analysis allows business administrators to see the causes and extent of the influence of factors on the profits of the business, as well as assess the business's strengths and weaknesses As a result, improving measures are proposed, as well as appropriate forecasts and financial plans for each stage of business development Increasing profits will promote business development, while decreasing profits will inhibit it The construction industry is one of the industries that makes a very important contribution to the economy of our country In recent years, the construction industry has consistently been one of the most successful Hanoi Housing Development and Investment Company is an enterprise operating in the field of manufacturing and providing construction services As a field of operation with many characteristics and strict requirements, there are more and more competitors, not only in the country but also abroad In the past, the company has made many efforts to overcome difficult times and achieve certain successes However, there are still some shortcomings, such as the decrease in revenue of the business and the fact that the amount of inventory is always at a high level, affecting the profit of the business Le Ngoc Kien CQ57/11.01CL Internship Report Ph.D Bui Thi Ha Linh Realizing the importance and urgency of the problem, along with the practice gained during my internship at Hanoi Housing Development and Investment Company, and with the dedicated help of Dr Bui Thi Ha Linh and the staff in the Finance and Accounting Department of the company, I decided to choose and analyze and research the topic "Profit of Hanoi Housing Development and Investment Company" as a key topic for my argument Rationale of the study 1.1 Related Concepts 1.1.1 The concept of joint stock company - A joint stock company is an enterprise in which the members contribute capital, share profits, and share losses in proportion to their capital contribution, and are only liable for the enterprise’s debts and other property obligations within the scope of the business The amount of capital invested in the business - According to Article 4, Clause 10, of Enterprise Law 2020: “Enterprise means an organization which has its own name, assets and a transaction office, and is lawfully established or registered for establishment for the business purpose” The business operation has always been associated with the formation, distribution, use of monetary funds, or the movement of cash flows So it's also possible to say, the operating process of an enterprise is also the process of creating, distributing, and using monetary funds to form the financial activities of the enterprise From there, generating and creating the movement of cash flows including cash inflows and outflows associated with investment activities and regular business activities of the enterprise Within that process are economic relations in the form of value that constitute Le Ngoc Kien CQ57/11.01CL Internship Report Ph.D Bui Thi Ha Linh the financial relations of enterprises, including financial relations between enterprises and the State, with other economic actors and social organizations, with employees in the enterprise, with other owners, or financial relationships internal enterprise The formation, distribution, and use of the enterprise's monetary funds are always associated with the movement of cash flows Therefore, there is an opinion that: “Corporate finance is cash flows arising in the process of creating and using monetary funds associated with business operations” Behind the cash flows arising in the process of creating and using monetary funds of enterprises are economic relationships in the form of value between enterprises and entities in the distribution of financial resources – the financial relations of the enterprise There are also other opinions that: “Corporate finance is a method of mobilizing, allocating, and using financial resources of an enterprise to achieve goals in business activities” - Features of Joint Stock Company:  The capital of the company is divided into equal parts called shares and expressed in the form of securities as shares The person who has shares is called a shareholder, or a member of the company  Shareholders can be organizations or individuals; The minimum number of shareholders is 03, regardless of whether it is a legal entity or a natural person, there is no maximum number of members  Shareholders have the right to freely transfer their shares to others, except for the cases specified in Clause 3, Article 119 and Clause 1, Article 126 of the Enterprise Law 2014  Having legal status from the date of issuance of the business registration certificate Le Ngoc Kien CQ57/11.01CL