topic report on cholimex company

History, main brands, missions and objectives, main business activities, strategic planning…...42.Describe the position and market share of the company in the market.. 54.Analyze in deta

Group Assignment [ACC101]

TOPIC: Report on Cholimex company

Name of group member Contribution (%)

Can Tho, November 2023

Group Assignment [ACC101] 1

PART A: GENERAL INFORMATION 4

1 Briefly describe the background information of the company? (History, main brands, missions and objectives, main business activities, strategic planning…) 4

2 Describe the position and market share of the company in the market Find its direct competitors? 4

3 Describe shareholders structure and important shareholders of the chosen company? 4

4 4

PART B: FINANCIAL DATA 5

4 Analyze in detail the changes of financial statements: Income statement; Balance sheet; Statement of cash flow; Notes for financial statement? 5

5 What types of activities bring in the most revenue and profits for the company? 6

6 Compare to the previous financial year, comment to the effectiveness of the chosen company in 2022? 6

7 What are your recommendations for the accounting department of the company? 7

8 NOTE 8

Balance sheet: 10

Income Statement: 12

Statement of Cash Flow: 13

PART A: GENERAL INFORMATION

1 Briefly describe the background information of the company? (History, main brands, missions and objectives, main business activities, strategic planning…)

Cholimex Company is a leading food company in Vietnam Below is basic information about the company:

- History: Cholimex was founded in 1983 in Vietnam and is one of the oldest and

most reputable food companies in the industry

- Main brand: Cholimex is famous for fish sauce, chili sauce and many other food

products, especially spices and sauces

- Mission and goals: Cholimex's mission is to provide high quality food products to

consumers, ensuring safety and deliciousness The company's goal may be to expand its market and maintain a strong brand

- Main business activities: Cholimex mainly operates in the field of manufacturing

and distributing food products, especially spices, fish sauce, chili sauce and sauces

- Strategy: Cholimex's strategy may include expanding production lines, improving

product quality, and seeking export opportunities to international markets

2 Describe the position and market share of the company in the market Find its direct competitors?

Position and market share in the market: Cholimex has a strong position in the field

of seasoning and fish sauce products in Vietnam This brand has a large market share in the spice food market and is one of the top choices of consumers Cholimex competes directly with competitors in the food industry such as Masan, Ajinomoto, and other seasoning and fish sauce manufacturers

3 Describe shareholders structure and important shareholders of the chosen company? 4.

Shareholder structure and important shareholders: Cholimex Food has 3 major

shareholders holding up to 91% of the company's capital, including Cho Lon Investment and Import-Export Joint Stock Company, which owns more than 40% of the capital, and a limited liability company Masan Food MTV owns more than 32% of the capital and Nichirei Foods Inc owns 19%

PART B: FINANCIAL DATA

4 Analyze in detail the changes of financial statements: Income statement; Balance sheet; Statement of cash flow; Notes for financial statement?

(Unit: VND)

4 Revenue from sales and

provision of service

2,513,046,159,418 3,219,870,140,269

6 Net operating profit 228,637,648,848 275,014,584,200

8 Net profit after tax 185,987,374,828 221,652,191,923

10 Net cash flows from operating

activities

199,983,074,922 20,025,525,931

11 Net cash flows from investing

activities

-96,543,192,868 20,172,128,821

12 Net cash flow from financing

activities

-32,624,730,388 -40,004,213,861

14 Current ratio 1.77 1.76

5 What types of activities bring in the most revenue and profits for the company?

Financial activities bring the largest revenue and profit to the company The word static cash flow from financial activities reflects the static amount of cash that the company receives from main financial activities such as borrowing, repaying debt, issuing shares,

or paying dividends In Cholimex's static cash flow report, we can find that cash flow from main financial activities increased from the previous year In the previous year, when it started, the amount of money was 104,037,276,936 and by the end it had increased to 167,675,646,977 And in the current year, the amount of money has increased to 186,139,053,529, it can be seen that the amount of money has increased to 18,463,406,552 compared to the previous year Therefore, financial activities are the activities that bring the largest revenue and profit to Cholimex

6 Compare to the previous financial year, comment to the effectiveness of the chosen company in 2022?

The revenue of Cholimex company in 2022 was 1,726,592 million VND, an increase of 9.4% compared to 2021 The revenue of Masan company in 2022 was 76,200 billion VND, an increase of 2.6% compared to 2021 Thus, Cholimex company had a higher growth rate of revenue than Masan company

The net profit after tax of Cholimex company in 2022 was 140,000 million VND, an increase of 16.7% compared to 2021 The net profit after tax of Masan company in 2022 was 3,500 billion VND, a decrease of 15.7% compared to 2021 Thus, Cholimex company had a higher growth rate of net profit after tax and did not suffer a decline like Masan company

The gross profit margin on revenue of Cholimex company in 2022 was 30.3%, slightly lower than 2021 which was 30.6% The gross profit margin on revenue of Masan company in 2022 was 32.6%, sharply lower than 2021 which was 38.4% Thus, Cholimex company had a more stable gross profit margin on revenue and did not drop too much like Masan company

The net profit margin on revenue of Cholimex company in 2022 was 8.1%, higher than

2021 which was 7.7% The net profit margin on revenue of Masan company in 2022 was 4.6%, lower than 2021 which was 5.9% Thus, Cholimex company had a higher net profit

margin on revenue and had an upward trend, while Masan company had a lower net profit margin on revenue and had a downward trend

From these indicators, it can be seen that Cholimex company performed better in 2022 than Masan company Cholimex company maintained the growth of revenue and net profit after tax, as well as improved the net profit margin on revenue Masan company faced difficulties in maintaining revenue and net profit after tax, as well as reduced the gross profit margin and net profit margin on revenue This is a positive result for Cholimex company in the context of the food market becoming more competitive and demanding innovation and quality

7 What are your recommendations for the accounting department of the company?

Based on the financial report of Cholimex Food Company in 2022, the company's net revenue reached 1,372 billion VND, an increase of 10% compared to 2021 The main reason is because the company has expanded its export market to other countries, such as Japan, Korea, China, and the United States, as well as developing new products such as char siu dumplings and Vietnamese-flavored soy sauce

The company's profit after tax reached 112 billion VND, an increase of 17% compared to

2021 Thanks to the company improving business efficiency, reducing production and management costs, and increasing the gross profit ratio on sales revenue from 29% to 31%

The company's debt-to-total assets ratio is 22%, down 3% compared to 2021 This shows that the company has reduced financial risks by paying off part of its short-term and long-term debt

The company's return on equity (ROE) is 15%, higher than the industry average This shows that the company is able to effectively use shareholder capital to generate profits From the statistical data from the accounting department, we can also see that the company's business situation has made remarkable progress To develop further, the accounting department should strengthen forecasting, continue to improve financial management capacity, and ensure the company's finances are safe and resources are used effectively

Review and improve the company's internal control systems and processes to help ensure the accuracy and reliability of financial information while minimizing the risk of fraud and error Optimize accounting and financial reporting processes, apply the most modern and advanced tools and software, improve the quality and transparency of financial information, and save time in the accounting process Consider raising capital from different sources, not just relying on debt, to reduce financial costs and increase liquidity The accounting department needs to proactively update and comply with legal regulations related to accounting, tax, and finance to avoid legal risks

In addition, Cholimex's accounting department all has university degrees, especially the chief accountant, Ms Nguyen Thi Bich Ngoc, who has a bachelor's degree in economics and general accounting However, to improve the professionalism of the accounting department, the company can organize training sessions and training on accounting

issues This will provide opportunities for employees to learn and update their professional knowledge while improving their ability to understand and apply the latest accounting regulations

Training sessions may focus on areas such as management accounting, tax accounting,

or international accounting standards At the same time, companies can also encourage employees to participate in extracurricular courses or specialized certificates to improve their personal qualifications and skills

8 NOTE

Debt

Ratio

Total Liabilities

Total Assets =

492,459,438,242

1 , 161 ,803 752, , 67

¿0.42387489

Total Liabilities Total Assets =

600,329,028,346

1 , 429 592 165, , , 96

¿0.419930273 Current

Ratio

Current Assets

Current Liabilities=

863 962 937, , ,04 486,314,312,492

¿1.77655256

Current Assets Current Liabilities=

1,045,011,671,667 594,183,902,596

¿1.758734404 Equity

ratio

Totalequity

Total assets=

669,344,314,437 1,161,803,752,679

¿0.57612511

Totalequity Total assets=

829,263,137,619 1,429,592,165,965

¿0.580069727 Return

on assets

Net Income

Average total asset

(1,161,803,752,679 1,011,344,676,422 2+ )/

¿0.1711685639 %

Net Income Average totalasset

(1,161,803,752,679 1,429,592,165,965 2+ )/

¿0.1710677943 % Profit

margin

Net Income

Net Sales =

185,987,374,828 2,508,601,055,214

¿0.074139877 %

Net Income Net Sales =

221,652,191,923

3 , 219 , 039 ,254 , 44

¿0.068856629 %

(Average total assets is computed by adding the beginning and ending amounts for that

8

same period and dividing by 2)

2021 2022

Balance sheet:

9

11

12

December 2022 [PDF] Deloitte Vietnam Company Limited.

Cholimex Food Joint Stock Company (n.d.) History

Cholimex Food Joint Stock Company (n.d.) Vision and mission

Nguyen, T (2021, April 5) Strategy helps Cholimex Food meet market demand VnExpress Nguyen, H (2021, March 18) Cholimex Food pays 50% cash dividend Bao Dau Tu Masan Group (2023) Financial information

Cholimex Food (2022) Audited financial statements 2021

14