VIETNAM NATIONAL UNIVERSITY HO CHI MINH UNIVERSITY OF ECONOMICS AND LAW ⁕⁕⁕֍֍֍⁕⁕⁕ FINANCIAL STATEMENT ANALYSIS OF TUONG AN VEGETABLE OIL JOINT STOCK COMPANY SUBJECT: Financial Statement Analysis Teacher: Mr. Nguyen Vinh Khuong GROUP 6 1 Member of group 6 1. Do Thi Nguyet …………………………………………………………… K174050530 2. Ho Nguyen Yen Nha …………………………………………………….
Nguyen Huong Nhi ……………………………………………………… K174050533 4. Le Kieu Oanh ……………………………………………………………. Phuong Vo Ngoc Thao ……………………………………………………K174050548 2 Table of Contents I. TUONG AN OVERVIEW.
Establishment and development history. Organization and human resources. BUSINESS STRATEGY ANALYSIS. Competitive Strategy Analysis.
Corporate Strategy Analysis. Identifying Key Accounting Policies. Assess Accounting Flexibility. Evaluate Accounting Strategy.
Evaluate Quality of Disclosure. Identify Potential Red Flags. Undo Accounting Distortions. Analysis of the Statement of Financial Position/ Balance Sheet.
Analysis of statement of cash flow:. Common-size analysis. Analysis of Profitability. Analysis of Liquidity of Short-term Assets.
Analysis of Long-term Debt-Paying Ability. Analysis of Ratios in Cash Flows. TUONG AN OVERVIEW 1. General Information Charter capital (Equity): VND 338,796,480,000 Address: No.
138-142 Hai Ba Trung Street, Da Kao Ward, District 1, Ho Chi Minh, Vietnam Phone number: (028) 38 277 489 Fax: (028) 38 277 832 Email: tuongan@tuongan.vn Website: www. Establishment and development history 1977 Established in 1977, Tuong An has been a trademark associated with all generations of Vietnamese families for the past 42 years. 1986 After being empowered to self-supervise production and business activities, plus the completion of a new production facility, Tuong An quickly expanded its development between 1985 and the early 1990s. 1990 In the late 1990s, Tuong An faced new challenges as the economy began to integrate with the world and fierce competition from imported brands of avocado and vegetable oil.
Tuong An has been flexible and creative in promoting and approaching consumers in order to raise awareness about nutritional cooking oil by launching many new products that are fortified with micronutrients, using high quality raw materials, increasing production of bottled refined cooking oil products to serve the domestic market. 1991 In October 1991, "Cooking Oil - Tuong An Cooking Oil" - the most famous product of the Company until now has been officially introduced to the market and since then Tuong An brand 4 has been and has been leading. market leader in edible oil production in Vietnam. Currently, Tuong An cooking oil continues to lead the market share and Cooking Oil becomes Tuong An key product always trusted and used by consumers.
2003 In December 2003, the Company conducted an experimental study to add micronutrients to edible oil products with products such as pure soybean oil for heart health; ViO oil supplements nutrients for children found in Gac fruit oil, helps brain development, good for the skin, eyes and heart. Today Tuong An will realize the corporation's goal of dominating the essential food market to bring nutritious, safe and quality products to millions of Vietnamese families' meals. Along with preserving the core values, developing sustainably with its valuable assets, Tuong An has deepened the hearts of the Vietnamese people for 42 years, becoming a "national brand". Always focusing the happiness in every meal of every Vietnamese family, Tuong An still makes great efforts to offer consumers excellent products at reasonable prices.
Organization and human resources As at 31/12/2019, total number of employees was 1,407 persons. With large and increasingly growing number of employees, Tuong An’s BOD and BOM always focus on human resource development as this is the key to the success and effectiveness of the company. Nguyen Thi Hanh Tran Le Nguyen Le Thi My Van Board of Directors Nguyen Thi Thanh Van Nguyen Van Thuan Ha Binh Son Ha Binh Son Board of Management Vu Duc Thinh Nguyen Duc Thuyet Supervisory Board Ho Minh Son Cao Hoai Thu 5 4. Corporate structure Tuong An is a key business unit of the packaged food channel system that contributes to building the distribution platform of KIDO Group.
In order to achieve the set goals, the management system of the member units must be closely connected, in order to provide the right products with the right specifications, in the right place and at the right time for consumers. Each company is guided by the Executive Management Committee (EMC), which oversees the implementation of the Group's strategic goals and promotes business performance at the unit. Tuong An is organized in a 3 Team structure and shares with its member companies a number of support services. The Group's goal is to create a balance between long-term and short-term goals.
Team 1 Business activities Team 2 Supply chain management Team 3 Support Tuong An owns 2 large-scale factories: Phu My Oil Factory (80,000m2) and Dau Vinh Factory (37,000m2). Vision & Mission Vision: The Vietnamese brand is the most popular of the delicious dishes that help nurture and unite the happiness of the Vietnamese family. Mission: Tuong An is committed to bringing the best quality of delicious and healthy food to the community and every Vietnamese family with dedication, understanding and responsibility to people and society. BUSINESS STRATEGY ANALYSIS 1.
Industry Analysis: a) Rivalry among existing firms: It can be said that, in the national cooking oil market, there are currently two major brands that account for the majority of market share, Tuong An cooking oil and Neptune cooking oil. Tuong An faces Neptune - a fairly heavy competitor in the market. Neptune is produced by Cai Lan Vegetable Oil Company under the production line of KUOK OILs & GRAINS PTE Company, which has just entered Vietnam market (after Tuong An). But Neptune's products are extremely rich, in addition to having a rich financial source, Neptune constantly promotes its brand with television advertising programs, cooking lessons on TV or manuals.
food on the newspaper. In terms of price, Neptune is not a high-priced product, so it is accepted by many consumers and that is a big barrier for Tuong An. In addition to the aforementioned Neptune, Tuong an has to share the market with many other vegetable oils. Typically, Tan Binh, Vinadaco, Marvela,.
and foreign products such as Ship, Floria, Sun Flower,. These products gradually gain a foothold in the Vietnamese cooking oil market, especially domestic products. The quality of these products is also quite high and knows how to toward to low-income consumers. As for imported products, beautiful designs, diverse products, although high prices but also attract many consumers.
Therefore, the competitiveness on Tuong An is not small, but it only occupies a part of the Vietnamese market. b) Threat of new entrants: Many cooking oil products originating from Malaysia, Singapore, Indonesia rushed into Vietnam. But Tuong An cooking oil has become familiar and close to most Vietnamese consumers. Regarding monopoly of input: Tuong An still does not have this advantage because it has not found a major oil-bearing tree.
7 About conversion costs (costs that customers want to convert their shopping to other suppliers): easy to change without any cost. In particular, in the Vietnamese market, the psychology of preferring to use imported goods and the ASEAN tax preferential policy, the selling price is almost equal. The choice and replacement of products is not difficult so the threat of new entrants is not small. c) Threat of substitute products: Living conditions improved, so people look for more advanced products or products from abroad.
In contrast, low-income people: Find cheaper products when the same volume of bottle. Tuong An must share the market with many other products such as cheese butter or sauces, etc. For example: Instead of mixing salad with oil people will mix with cheese. In addition, to reduce the fat of the food, people use a versatile non-stick pan to fry or fry without vegetable oil.
However, this option is only a temporary method. It cannot use long term during cooking. Therefore, Tuong An's products still retain their market value. d) Buyer’s power: The food market in Vietnam is expected to continue to grow thanks to the increase in disposable income.
Thanks to the improved quality of life, Vietnamese consumers has paid much attention to health to have a better life, from which to pay more attention to substance food intake. In 2018, Vietnam's cooking oil market achieved the above revenue 25,000 billion VND, the level of edible oil consumption in Vietnam remains lower than other countries in the region. The oil industry is expected to continue to grow within the next 5 years. Is one of the big manufacturing cooking oil companies Vietnamese, Tuong An is taking advantage of great opportunity to capture the potential of the industry.
When income increases, people's living standards are improved and the demand for cooking oil is required of the people will get bigger and bigger. 8 e) Supplier’s power: The main input is raw vegetable oils produced from oil fruits and seeds, of which palm and soy beans are the two most used nuts (about 60% and 30%). For cooking oil industry, source of auxiliary production materials large dependence on imports from abroad, mainly from Malaysia and Indonesia (accounting for nearly 80%). The ability to negotiate with suppliers is very low.
So far, Tuong An has not found the main oil-bearing tree to develop on a large scale, so it is difficult to take the initiative in the source of raw materials. Competitive Strategy Analysis In terms of competitive strategy, the decision of TAC is the combination of cost leadership and differentiation. Mission set out for this corporation is “Tuong An commits the community and every Vietnamese families bringing the best quality of delicious and healthy food with our dedication, understandings and responsibilities to people and society.” a) Eco-friendly factory Phu My factory is the biggest vegetable oil manufacturing firm of TAC. This is evaluated to be the one of the most environmentally friendly factories in Vietnam with green coverage accounts for 40% of the total area.
Existing for almost 40 years, TAC always attaches special importance to both the prices and quality. All of their products have a reasonable price in comparison with the other types of cooking-oil even though the quality is appreciated by authorities. For example of the Soybean-oil listing price of TAC is just aroung 36,000VND per 1 liter; whereas, over 40,000VND is the price of the same product of Simply. This leads to the fact that all customers can purchase the TAC products with high quality.
b) Focusing on high technology Being a traditional Vietnamese brand, TAC always pioneers in improving the latest technology. Specific evidences are presented by the modernity and the majesty of high technological machines in TAC manufacturing company. Vegetable oil refining lines imported from Belgium are considered to be the most modern in the "territory" of oil 9 production these days. These systems operate continuously and they are controlled automatically by PLC and Computer systems, ensuring the requirements of the best quality and keep maximum levels of Vitamin A, E naturally in oil.
c) Human is an essential component In addition, in TAC, apart from the most modern technological machines invested, talented human resources with long-term experience and business ethics are also secret factors accompanying with the mission of dedicating to company for all along the way. Through the regular professional training courses organized, the staffs always update the latest trends in the market. Therefore, they can create outstanding solutions, helping TAC to maximize production and minimize costs at the same time along with product efficiently and effectively. The perfect combination of technology and human quintessence has made TAC have remarkable breakthrough in creating the best quality commodities with the best price to meet the needs of customers, bring Vietnamese meals to reach a new level.
Diversifying and improving products through each period while maintaining prices as reasonable as possible. For those reasons mentioned, TAC has really conquered most of Vietnamese consumers’ hearts. Differentition Year Profit Margin Average 2019 0.