Chapter 2: Analysis of the reality of delivery and receipt of imported medical equipment by air at
2.1. Current status of medical equipment delivery at Airseaglobal Joint Stock Company
2.1.1. Overview of Airseaglobal Joint Stock Company.
2.1.1.1. Introduce about the company
- Company Mame: AIRSEАGLОBАL VIETNAM JOINT STOCK COMPANY
- Trading name: VIET NАM АIRSEАGLОBАL JОINT STОCK CОMРАNY
- Abbreviated Company Name: АIRSEАGLОBАL., JSC - Tax code: 0105308539
- Type of company: Joint Stock Company
- Head office: А9/4 Center of Dia Chat Mine, Co Nhue 2 Ward, Bac Tu Liem District, Hanoi, Vietnam
- Business Office: Р2412, Eurowindow Tower, 27 Tran Duy Hung, Trung Hoa Ward, Cau Giay District, Hanoi
- Branches:
+ Ho Chi Minh City Branch: 135/37/1 Nguyen Huu Canh, Ward 22, Binh Thanh District, Ho Chi Minh City.
+ Hai Phong Branch: 226 Le Lai, May Chai Ward, Ngo Quyen District, Hai Phong City.
+ Da Nang branch: Lot 39, Street 2, Da Nang Industrial Park, Son Tra District, Da Nang City.
- Director: Nguyen Cong Manh
- Phone: (+84) 4 6269 7222/ (+84) 4 6269 7555 - Emai: info@airseaglobal.com.vn
- Website: httр://аirseаglоbаl.cоm.vn
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33 - Field of activity: is a business unit in the field of logistics.
- Line of business: Other supporting service activities related to transportation.
2.1.1.2. History of formation and development
Airseaglobal Vietnam Joint Stock Company was established under the Business Law and was granted the Business Registration Certificate No. The type is Company Limited.
After many years of operation, on March 5, 2019, the Company registered to change the type of Company into a Joint Stock Company. The development of Airseaglobal can be divided into three phases:
Stage 1: The first period (2011-2012): When newly established, Airseaglobal Joint Stock Company operated with only 4 employees doing customs work and picking up goods at Noi Bai airport and delivering them to the car for transportation to the warehouse. This is a difficult period because the Company has to face strong competitors in the general difficult period of the economy. At this time, the company's main customers are small businesses located in Hanoi city.
Stage 2: Adapting to the market (2013-2014): From the end of 2012 to early 2013, Airseaglobal Joint Stock Company expanded its operation area and business scope to provinces and cities across the country. At the same time, Airseaglobal hires more human resources to meet the Company's business goals. At this time, the company has a number of large and potential customers such as: Sumitomo Electric Interconnect Products Co., Ltd., Nam Ha Pharmaceutical Joint Stock Company, Ricoh Vietnam Co., Ltd …
Stage 3: Development stage (2015- now): After 6 years of operation, the Company has finally found its own niche market, which contributes to reducing competitive pressure when there are many other large and small companies doing business in freight forwarding services. Imported as Airseaglobal. At the same time, during this period, the company also cooperates with many major transport agents around the world to help get good input freight rates to sell to customers. At the beginning of 2018, Airseaglobal Joint Stock Company was officially a member of the World Cargo Alliance (WCA), which helps the company increase trust with customers, enhancing its position in the world, position of the company.
Currently, Airseaglobal ranks No. 1 in customs declaration of medical equipment and in the Top 3 in customs declaration of air cargo entering Noi Bai.
2.1.2. Organizational apparatus of the company:
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34 Figure 2. 1: Organization chart of the company
❖ Functions of each department:
Board of Directors: On behalf of the Company to decide issues related to the purposes and interests of the Company; regularly supervise business activities, internal control activities and risk management activities of the Company. When there is a problem, the people on the board will meet together to find the right direction for the company.
Director: Standing on all documents of the company such as business license, power of attorney, contract ... is the legal representative of the company. Decide on business partners and will cooperate with the company. Managing the company's internal activities and daily business activities as appointed by the Board of Directors.
Board of Directors
Director
Head of Department
Field department
(Ops)
Document Department
(Cus)
Seaway document
officer
Airline document
officer
Bussiness Department
(Sale)
Accounting and HR department
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35 Head of Department: These are the people who directly manage the department or department that they are assigned. The manager will plan the activities of the department, recruit potential employees to his department, train new employees.
Agent: This is a department that works directly with partners and agents abroad, always looking for new partners and agents in all countries to get more choices. When there is a shipment, Agent is responsible for checking the shipping cost of each carrier and negotiating and negotiating prices to be able to get a suitable output price.
Field department (Ops): As a department that works directly with goods, Ops employees are directly responsible for going to warehouses, airports, seaports to receive shipments and deliver them to domestic shipping partners, geography. In addition, they also have to go to customs to handle the procedures related to the shipment.
Documenting Department (Cus): This is the department interested in the documents of the shipment to transfer to the field department. Cus staff is the person who directly transmits the customs declaration of the goods, checks the departure and arrival dates, reports the shipment information to Sale and Ops if the documents have problems.
Airseaglobal's documentation department is divided into 2 groups, which are maritime document staff and air document staff.
Bussiness Department (Sales): This is the main source of income for the company.
The sales department is responsible for finding customers, advising customers on the company's services, regularly updating information about incoming shipments to customers. In addition, the sales department must also update the latest circulars and decrees of the government to provide and advise customers in the most accurate way, thereby building customers' trust with the company.
Accounting and human resources department: This is the financial and human resource management department of the company. Pay attention to the revenue and expenditure, calculate the revenue and profit that the company achieves. Distributing salary, paying insurance and paying personal income tax to employees. Pay corporate taxes
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36 to the state. For customers, the department calculates the costs that the customer has to pay and urges the customer to pay.
2.1.3. Business results of Airseaglobal Joint Stock Company 2.1.3.1. Revenue and profit in recent years:
Revenue and profit of Airseaglobal Joint Stock Company are shown in the following table:
Table 2. 1: Revenue and profit in recent years of Airseaglobal Joint Stock Company Unit: billion VND
Year Criteria
2018 2019 2020
Total Revenue 162,111 169,304 180,819
Total Cost 133,001 136,946 145,458
Profit Before Tax 29,119 32,358 35,355
Profit After Tax 22,230 25,073 27,254
(Source: Airseaglobal accounting department)
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37 Figure 2. 2: Chart comparing revenue and profit in recent years of Airseaglobal Joint
Stock Company
According to Table 2.1 and Figure 2.2, the company's general business situation has improved over time; in terms of sales, revenue in 2020 is expected to be higher than in 2018-2019. By the end of 2020, the company's total revenue climbed by around VND 11,059 billion, representing a 6.8% rise over the previous year. This rise is 2.36 percent more than the 2018-2019 period. In general, profits have risen steadily throughout the years, rising by 2,843 billion in 2018-2019 and 2,181 billion in 2019-2020.
Importing medical equipment is Airseaglobal's strength, according to the company's statistics, the company's main revenue comes from medical products, accounting for 80%
of which 38% comes from import procedures such as: do classification, apply for an import license, upload publication files, ... and the rest is freight. After 10 years of construction and completion, Airseaglobal Joint Stock Company affirms its position in import and export freight forwarding activities in general and the No. 1 position in customs declaration in Noi Bai. And with continuous efforts to improve and enhance service quality, the Company's revenue and profit after tax has continuously increased in recent years.
0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000
2018 2019 2020
Revenue Profit before tax Profit after tax
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38 2.1.3.2. Revenue from company services
Figure 2. 3: Chart of the proportion of business sectors contributing to Airseaglobal's revenue in 2020
Based on the chart above, it can be seen that air transport is the main field of the company, contributing to 51.42% of Airseaglobal's revenue, equivalent to VND 92,974 billion. The reason here can be mentioned that the characteristic of air freight is fast shipping, so the time to make an air shipment is also short and profitable, so the company also focuses on service, this over other services. Moreover, in 2020 with the raging of the COVID-19 epidemic, the company's customers are mainly large private enterprises and state-owned enterprises that need to import medical equipment in large quantities to respond promptly. Due to the pandemic, they need to import as soon as possible so that they can be on time to bid at hospitals, so air transport is still their top priority.
Besides, shipping services by sea also account for a significant part of the company's revenue with VND 43,973 billion, equivalent to 24.32% of total revenue in 2020. This
24.32%
51.42%
12.36%
3.3% 8.9%
Sea transport Air freight Inland transport Customs procedures Other services
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39 service is mainly for shipments, having a large volume of goods and the owner of that shipment wants to save on shipping costs.
Domestic transportation service is mainly transporting shipments from ports or airports to customers' warehouses after having cleared import goods or bringing goods from warehouses to ports or airports for export. This service contributes 12.36% of the company's revenue in 2020, equivalent to VND 22,348 billion.
Customs clearance is also a very important step in the import-export process, but it does not account for much of the company's revenue in 2020 when only 3% of the total revenue is equivalent to VND 5,424 billion.
Other services of the company include services related to procedures for importing medical equipment (the company's main products) such as applying for an import license from the Ministry of Health, classification and announcement, … These services are just ancillary services for the company's import process, but it's obviously also quite important to help create a service chain from start to finish when importing medical equipment, and it's also very important, accounted for a significant part of revenue when reaching 8.9% of total revenue, equivalent to VND 16,092 billion.
2.1.4. Evaluate the business performance of Airseaglobal Vietnam Joint Stock Company
2.1.4.1. Sales growth rate and Profit growth rate
Through the data summarized in the company's financial statements in Table 2.1, based on the indicators of revenue and profit after tax from 2018 - 2020 to determine the values of “Sales growth rate” and “Profits growth rate” are as follows:
Table 2. 2: Growth rate of the company in the period 2018-2020
Indicators Year
2018-2019 2019-2020
Sales growth rate (%) 4.44 6.80
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40
Profits growth rate (%) 12.79 8.70
Revenue has gradually increased over time, as can be shown. In particular, it climbed by 4.44 percent in 2019 and 6.80 percent in 2020 compared to the previous year, indicating a substantial need for medical equipment, particularly during the 2020
epidemic season. The speed, on the other hand, because the company's operating model isn't particularly huge, revenue growth remains moderate, resulting in difficulty in negotiating to reduce transportation costs and other minor expenses.
Because the company's revenue is the entire result of the organization's production and business activities of the unit, not a certain field, the target does not reflect all the strengths and weaknesses of the company, but must be relied on profit. The company's profit after tax has increased, typically 12.79% in 2019 compared to 2018. However, in 2020 due to the impact of the COVID-19 epidemic, transportation routes from air to road The sea is going to be more difficult and there will be many other small costs when
transporting the products to customers in accordance with the original plan. Therefore, the profit growth rate in 2020 in general has increased but not as fast as the previous year, only 8.70%.
2.1.4.2. ROA – ROE Coefficient
Table 2. 3: Total asset and equity
Indicators 2018 2019 2020
Total asset 145,100 157,033 153,992
Total equity 83,336 95,288 95,701
Return on asset (ROA) (%) 15.32 15.96 17.70
Return on equity (ROE) (%) 26.27 26.31 28.48
(Source: Airseaglobal accounting department)
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41 In general, ROA and ROE have went up slightly from 2018 to 2019 and then, the figure rose significantly till the end of 2020. It appears that company is using assets and capital better than in previous years.
The ROA ratio of Airseaglobal Company had been above 10% for the past three years, increasing gradually from 2018 to 2020, indicating that the company's debts were getting less and better. Because ROA is a measure of profit per dollar of assets and the upward trend is due to an increase in net profit while the total assets decrease.
The company's ROE ratio remained over 15% from 2018 to 2020, indicating that the company was doing well. The high ROE of 2020 indicates a good use of the equity of the company due to the growth rate of profit after tax is greater than the growth rate of equity and vice versa. In 2020, every 100 dong of capital will generate 28.48 dong, up 26.31 against 2019.