FINANCIAL REPORT

HABECO
2018 - 2020

SHICHIBUKAI GROUP
Course Name : GROUP MEMBER
Corporate Finance Nguyễn Đức Nguyên Thái
Đặng Nguyễn Phú Cường
Lecturer:
Nguyễn Lê Phương Uyên
Nguyen Anh Thu Nguyễn Hữu Huyền Thảo
Võ Thị Hoàng Yến
Class Name :
Nguyễn Hải Nam
MKT18B02
Vũ Lê Kim Phụng
 3
Table of Contents
Overview of Marketing Automation

Lead Generation & Nurturing

4
Email Marketing Automation
5
Customer Segmentation & Personalization
6
Social Media Automation
7
Analytics and Reporting
8
Integration with CRM
9
Challenges & Opportunities
10
 EXECUTIVE SUMMARY
Financial Report of Hanoi Beer, Alcohol and Beverage
Joint Stock Corporation (HABECO) from 2018 to 2020

1, Brief summary:

2, Analysis:
a. Revenue (billion VND):
Habeco's revenue has continuously increased from 2018 to 2020, with an average annual growth
rate of 14%. By 2020, the company had exceeded its plan by 39%. It can be seen that Habeco's
revenue is experiencing a significant growth rate. And this growth is due to a number of factors and
partly due to strong investment in marketing and advertising to promote its products.
b. Pre-tax and after-tax profits:
Habeco's pre-tax and after-tax profits also increased steadily from 2018 to 2020, with annual
growth rates of 16% and 18%, respectively. This is a significant increase compared to the plan. The
increase in profits is due to increased revenue and the company has effectively controlled costs
and this is a positive sign for the company to continue its growth momentum.
c. Gross profit margin:
However, the gross profit margin has shown a slight downward trend from 2018 to 2020. Due to a
number of factors, including the increase in the cost of goods sold and the decrease in the selling
price of products.

3, Main achievements:
Maintaining the leading position in the Northern beer market.
Successfully launching the Hanoi Premium beer product.
Expanding export markets to countries such as Laos, Cambodia, and Myanmar.
4, Evaluate:
The company's business results in the period 2018-2020 are very positive:
Revenue and profits both grew steadily.
Completed exceeding the proposed plan
However, gross profit margin tends to decrease slightly:
It is necessary to consider influencing factors to find improvement solutions.
5, Challenge:
The company's business results in the period 2018-2020 are very positive:
Revenue and profits both grew steadily.
Completed exceeding the proposed plan
However, gross profit margin tends to decrease slightly:
It is necessary to consider influencing factors to find improvement solutions. page 0 2
6, Future prospects:
Continue to invest in improving production capacity.
Develop new products to meet market needs.
Expand export markets.
Improve operational efficiency and reduce production costs.
7. Conclusion:
With achievements from 2018 to 2020, HABECO has affirmed its position as one of the leading
beer companies in Vietnam. HABECO has great growth potential in the future with a clear
development strategy and talented leadership team.

INTRODUCTION

Hanoi - Thanh Hoa Beer Joint Stock Company (Habeco) is a beer production and trading company in
Vietnam. Habeco is one of the leading companies in the beer brewing industry in Vietnam and is a
member of the Beer - Alcohol - Beverage Group (Saigon Beer - Habeco).
The structure of the beer industry in Vietnam often includes national management companies and local
brewers. Managing companies at the national level include the Beer - Alcohol - Beverage Group (Saigon
Beer - Habeco) and Vietnam Beer - Alcohol - Beverage Joint Stock Corporation (Sabeco). Local brewers
include companies such as Habeco, SABECO and other beer companies.
Habeco produces and sells many famous beer brands in Vietnam, including Hanoi Beer, Truc Bach Beer,
Hanoi Premium Beer and Hanoi Draft Beer. The company has beer factories in Thanh Hoa and Hanoi.
On February 21, 1989, the Wine-Beer-Sweetwater Company and the Minshan Bread Processing
Company merged to form Hanoi - Thanh Hoa Beer Company. The firm was renamed Thanh Hoa Beer firm
in March 2004, and Hanoi Beer-Thanh Hoa followed in November 2018. From a tiny firm competing with
large brewers in the market, but thanks to increased investment in the correct direction, equipment
innovation. The firm has constantly expanded thanks to a high-quality beer manufacturing chain, which
has brought it many significant products to collaborate with and export to nations all over the world. In
2010, Hanoi Beer Sharing Company's entire mining equipment capacity had reached 100 million liters
per year. Not only that, but the firm is working hard to become a prominent Vietnamese beverage
company by producing high-quality, popular goods that exceed worldwide standards. Our firm aspires
to be a market leader in the Vietnamese beverage sector.
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 On February 21, 1989, the Wine-Beer-Sweetwater Company and the Minshan Bread Processing Company
merged to form Hanoi - Thanh Hoa Beer Company. The firm was renamed Thanh Hoa Beer firm in March
2004, and Hanoi Beer-Thanh Hoa followed in November 2018. From a tiny firm competing with large
brewers in the market, but thanks to increased investment in the correct direction, equipment
innovation. The firm has constantly expanded thanks to a high-quality beer manufacturing chain, which
has brought it many significant products to collaborate with and export to nations all over the world. In
2010, Hanoi Beer Sharing Company's entire mining equipment capacity had reached 100 million liters per
year. Not only that, but the firm is working hard to become a prominent Vietnamese beverage company by
producing high-quality, popular goods that exceed worldwide standards. Our firm aspires to be a market
leader in the Vietnamese beverage sector.

COLLECT DATA OF
FINANCIAL STATEMENT
1, Inccome statement:
a. Revenue
a. Revenue:
Sales Revenue have experienced robust growth from 611,852 billion VND in 2018 to
1,417,624 billion VND in 2020, with a CAGR of 22%. Domestic sales revenue increased
from 499 billion VND in 2018 to 1,174 billion VND in 2020, with a CAGR of 22%. Export
revenue grew from 112,852 billion VND in 2018 to 243,184 billion VND in 2020, with a
CAGR of 16%.
Revenue after deducting VAT and sales discounts: Showed impressive growth from
609,409 billion VND in 2018 to 1,406,868 billion VND in 2020, with a CAGR of 22%.
Cost of goods sold: Increased from 488,671 billion VND in 2018 to 1,214,591 billion VND in
2020, with a CAGR of 23%.
Gross profit: Increased steadily from 120,739 billion VND in 2018 to 192,277 billion VND in
2020, with a CAGR of 14%.

b. Profit
Gross profit: Increased steadily from 120,739 billion VND in 2018 to 192,277 billion VND in
2020, with a CAGR of 14%.
Profit after tax:
Decreased from 5,814 billion VND in 2018 to 3,078 billion VND in 2020, with a CAGR of
-8.8%.
Profit from operating activities: Increased from 10,249 billion VND in 2018 to 5,544
billion VND in 2020, with a CAGR of -4.5%.
Profit from financial activities: Decreased from 3.5 billion VND in 2018 to 901 million
VND in 2020.
Other income: Increased from 121.8 billion VND in 2018 to 3,526.6 billion VND in 2020.

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 c. Financial Activities: d. Operating Expenses

Revenue from financial activities: Selling expenses: Increased from 69,967

Decreased from 3.5 billion VND in 2018 to billion VND in 2018 to 142,854 billion VND in
901 million VND in 2020. 2020, with a CAGR of 20%.
Financial expenses: Insignificant. General and administrative expenses:
Interest payable: Reduced from 1.2 billion Increased slightly from 44,023 billion VND in
VND in 2018 to 400 million VND in 2020. 2018 to 44,781 billion VND in 2020.

e. Analysis
Revenue and gross profit: HABECO achieved impressive business results over the past
three years with both revenue and gross profit experiencing robust growth.
Profit after tax: However, the company's profit after tax has declined during this period.
The main reasons are the increase in selling expenses and the decrease in profit from
operating activities.
Financial activities: HABECO's financial activities do not contribute significantly to the
company's profit after tax.
Operating expenses: The increase in selling expenses is a factor that HABECO needs to
address in the coming time.

2, Asset:
a. Asset:
1.1. Current Assets:
Cash and cash equivalents:
Increased from 42.18 billion VND in 2018 to 74.78 billion VND in 2020, with a CAGR of 14%.
Cash: Increased from 14.08 billion VND in 2018 to 35.78 billion VND in 2020.
Cash equivalents: Increased from 28.11 billion VND in 2018 to 39 billion VND in 2020.
Short-term investments:
Decreased from 44.35 billion VND in 2018 to 3.4 billion VND in 2020.
Investments held to maturity: Decreased from 44.35 billion VND in 2018 to 3.4 billion VND in 2020.
Trade receivables:
Increased from 65.85 billion VND in 2018 to 78.37 billion VND in 2020, with a CAGR of 4%.
Trade receivables from operating activities: Increased from 25.29 billion VND in 2018 to 36.14 billion
VND in 2020.
Advances to suppliers: Decreased from 2.54 billion VND in 2018 to 343 million VND in 2020.
Other trade receivables: Increased from 40.02 billion VND in 2018 to 45.13 billion VND in 2020.
Inventories: Decreased from 60.97 billion VND in 2018 to 49.93 billion VND in 2020, with a CAGR of -4%.
Other current assets: Decreased from 15.07 million VND in 2018 to 195,764 VND in 2020.

1.2. Non-Current Assets:

Long-term receivables : Decreased from 1.25 billion VND in 2018 to 10 million VND in 2020.

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Fixed assets:
Decreased from 97.17 billion VND in 2018 to 66.61 billion VND in 2020, with a CAGR of -7%.
Tangible fixed assets: Decreased from 92.82 billion VND in 2018 to 62.79 billion VND in 2020.
Intangible fixed assets: Decreased from 4.35 billion VND in 2018 to 3.82 billion VND in 2020.
Long-term work in progress: Remaining at 329.78 million VND.
Long-term financial investments: Remaining at 301.21 billion VND.
Other non-current assets: Decreased from 32.5 billion VND in 2018 to 28.87 billion VND in 2020.

b. Sources of Funds:
2.1. Short-Term Sources of Funds:
Short-term borrowings:
Increased from 62.38 billion VND in 2018 to 80.38 billion VND in 2020, with a CAGR of 7%.
Borrowings from banks: Increased from 62.38 billion VND in 2018 to 80.38 billion VND in 2020.
Trade payables:
Increased from 116.2 billion VND in 2018 to 137.22 billion VND in 2020, with a CAGR of 4%.
Payables to suppliers: Increased from 54.68 billion VND in 2018 to 65.38 billion VND in 2020.
Payables to customers: Decreased from 13.63 billion VND in 2018 to 11.34 billion VND in 2020.
Advances from customers: Increased from 11.85 billion VND in 2018 to 20.84 billion VND in 2020.
Other trade payables: Increased from 36.04 billion VND in 2018 to 39.66 billion VND in 2020.
2.2. Long-Term Sources of Funds:
Equity:
Increased from 204.47 billion VND in 2018 to 279.25 billion VND in 2020, with a CAGR of 9%.
Share capital: Remaining at 100 billion VND.
Retained earnings: Increased from 104.47 billion VND in 2018 to 179.25 billion VND in 2020.
Long-term borrowings:
Decreased from 33.56 billion VND in 2018 to 27.8 billion VND in 2020.
Borrowings from banks: Decreased from 33.56 billion VND in 2018 to 27.8 billion VND in 2020.

c. Analysis and Comparison:

3.1. Financial Position:
Assets:
Current assets showed a slight decrease during the period 2018-2020.
Non-current assets decreased significantly due to HABECO's disposal of some fixed assets.

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Sources of Funds:
Short-term sources of funds increased slightly as HABECO took on short-term debt to meet
operational needs.
Equity grew steadily, indicating HABECO's increasing financial independence.
3.2. Liquidity:
Current ratio: Increased from 0.84 times in 2018 to 1.01 times in 2020.
Indicates an improvement in the company's short-term liquidity.
Acid-test ratio (quick ratio): Increased from 0.63 times in 2018 (assuming readily saleable inventory
can be estimated) to 0.76 times in 2020.
Further indicates HABECO's ability to meet short-term obligations.
3.3. Profitability:
Gross profit margin: Decreased from 20% in 2018 to 13.6% in 2020.
Suggests a decline in the company's efficiency in using costs.
Return on equity (ROE): Decreased from 24.2% in 2018 to 16.2% in 2020.
Indicates a decrease in the company's effectiveness in utilizing shareholders' equity.

d. Conclusion:
HABECO has a relatively stable financial position with good short-term liquidity. However,
profitability and efficiency in using capital are showing a downward trend. HABECO needs to
implement measures to improve its business performance and capital utilization.

3, Liabilities and Owner’s Equity

a. Balance Sheet:
Asset, Liabilities and Equity

Current Assets Non - Current Assets

Cash and cash equivalents: Increased Decreased from VND 97.17 billion in 2018
from VND 42.18 billion in 2018 to VND to VND 66.61 billion in 2020, with a CAGR of
74.78 billion in 2020, with a CAGR of 14%. -7%.
Short-term investments: Decreased from Tangible fixed assets: Decreased from
VND 44.35 billion in 2018 to VND 3.4 billion VND 92.82 billion in 2018 to VND 62.79
in 2020. billion in 2020.
Accounts receivable: Increased from VND Intangible fixed assets: Decreased from
65.85 billion in 2018 to VND 78.37 billion in VND 4.35 billion in 2018 to VND 3.82 billion
2020, with a CAGR of 4%. in 2020.

Current Liabilities Non - Current Liabilities

Short-term borrowings: Increased from Shareholder's equity: Increased from
VND 62.38 billion in 2018 to VND 80.38 VND 204.47 billion in 2018 to VND 279.25
billion in 2020, with a CAGR of 7%. billion in 2020, with a CAGR of 9%.
Accounts payable: Increased from VND Long-term borrowings: Decreased from
116.2 billion in 2018 to VND 137.22 billion VND 33.56 billion in 2018 to VND 27.8
in 2020, with a CAGR of 4%. billion in 2020. page 07
 Liquidity:
Quick ratio: Increased from 0.84 (2018) to
b. Income statement: 1.01 (2020), indicating improved short-term
Revenue: Increased from VND 1,447.9 billion in 2018 solvency.
to VND 1,688.5 billion in 2020, with a CAGR of 4%. Current ratio: Increased from 1.24 (2018)
Gross profit: Increased from VND 289.58 billion in to 1.34 (2020), suggesting good short-term
2018 to VND 229.2 billion in 2020, with a CAGR of -6%. liquidity.
Net profit after tax: Increased from VND 240.22 Inventory turnover ratio: Increased from
billion in 2018 to VND 246.2 billion in 2020, with a 4.7 (2018) to 5.4 (2020), implying better
CAGR of 1%. inventory management efficiency.

c. Cash flow statement Profitability:

Cash flow from operating activities: Increased from Gross profit margin/sales: Decreased from
VND 214.4 billion in 2018 to VND 278.2 billion in 2020, 20% (2018) to 13.6% (2020), indicating a
with a CAGR of 10%. decline in cost-effectiveness.
Cash flow from investing activities: Decreased from - Net profit margin/sales: Decreased from
VND 49.1 billion in 2018 to -VND 55.3 billion in 2020. 16.6% (2018) to 14.6% (2020), suggesting
Cash flow from financing activities: Increased from a decrease in overall business profitability.
VND 43.3 billion in 2018 to VND 63.1 billion in 2020. Return on equity (ROE): Decreased from
24.2% (2018) to 16.2% (2020), implying a
d. Financial Analysis and Comparison: decline in the effectiveness of using
shareholder equity.
Current Assets
Profitability:
Cash and cash equivalents: Good growth, indicating
HABECO shows positive signs in terms of
high liquidity.
improved short-term liquidity and efficient
Short-term investments: Sharp decrease, indicating
inventory management. However, there are
a focus on core business activities.
concerns regarding the decrease in
Accounts receivable: Slightly increased, warranting
profitability and efficiency of using
monitoring of collection ability.
resources. Further analysis is recommended
Inventories: Decreased, indicating improved inventory
to understand the reasons behind these
management efficiency.
Non - Current Assets declining trends.

Fixed assets/total assets ratio: Decreased, indicating a

shift towards a less asset-intensive business model.

Current Liabilities
Short-term borrowings: Increased, suggesting the
use of financial leverage to boost profits.
Accounts payable: Increased, requiring monitoring to
ensure timely payments.

Non - Current Liabilities and equity

Shareholder's equity: Strong growth, indicating
improved financial independence.
Long-term borrowings: Decreased, reflecting a
reduction in financial burden.

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4, Balance sheet:
Comparative Analysis of Balance Sheets 2018, 2019, and 2020

2.1. Assets
Inventories decreased by 11% from 2018 to 2020. Fixed assets .Tangible fixed assets
decreased by 29% from 2018 to 2020 and Intangible fixed assets decreased by 14% over the
same period.
2.2. Liabilities
Current liabilities
Accounts payable decreased by 25% from 2018 to 2020.Accrued salaries decreased by 17%
over the same period and Income taxes payable increased by 12% from 2018 to 2020.
Long-term liabilities
Long-term loans increased by 15% from 2018 to 2020.
2.3. Shareholder equity
Shareholder equity decreased by 3% from 2018 to 2020.
3. Conclusion
The company's balance sheet shows several notable trends:
An increase in current assets and current liabilities and A decrease in fixed assets, long-
term liabilities, and shareholder equity.
These trends can be explained by several factors, including:
Revenue and profit growth over the past three years, An investment strategy in current
assets and Repayment of long-term loans.
4. Assessment
The company's overall financial position is good. The company has sufficient liquidity to meet its
short-term obligations and has good profitability. However, the decline in shareholder equity is a
cause for concern and needs to be monitored closely.
5. Recommendations
The company should continue to monitor its financial position closely and take measures to maintain
shareholder equity at a healthy level.

5, Statement of Cash Flow:

Net cash flow generated from (used in) operating activity This section shows the cash
generated or used by the company's core business operations. In the image, net cash flow from
operating activities was positive in all three years, meaning the company generated cash from its
normal business activities. This number is calculated by subtracting operating expenses,
depreciation, and other charges from a company's revenues. For example, in 2020 it shows a net
cash flow of 61,244,028,099.
Net cash flow generated from (used in) investing activity This section shows the cash
generated or used by the company's investing activities, such as the purchase or sale of property,
plant, and equipment, or investments in other companies. In the image, net cash flow from investing
activities was negative in two out of the three years, meaning the company used more cash for
investing activities than it received. For example, in 2020 it shows a net cash used of
-3,332,215,839.

page 0 9
Net cash flow generated from (used in) financing activity This section shows the cash
generated or used by the company's financing activities, such as the issuance of debt or equity, or
the payment of dividends. In the image, net cash flow from financing activities was negative in all
three years, meaning the company used more cash for financing activities than it received. For
example, in 2020 it shows a net cash use of -12,465,525,445.
The last three lines of the table show the following:
Net cash flows for the year This is the sum of the net cash flows from operating, investing, and
financing activities. In the image, net cash flow for the year 2020 was positive at 45,446,286,815,
meaning the company generated more cash than it used overall.
Cash and cash equivalents at beginning of the year This is the amount of cash and cash
equivalents that the company had at the beginning of the year. In the image, the cash and cash
equivalents at the beginning of 2020 was 29,331,316,311.
Cash and cash equivalents at end of the year This is the amount of cash and cash equivalents
that the company had at the end of the year. In the image, the cash and cash equivalents at the end
of 2020 was 74,777,603,126.

6, FINANCIAL RATIO:
a. Financial ratio:
Based on the company's audited financial statements for 2018, 2019 and 2020. We have prepared
a table and calculated the business's financial indicators of Hanoi - Thanh Hoa Beer Joint Stock
Company (Habeco) in 2018, 2019 and 2020 in Sheets. Financial Statements of HABECO

b. Trend analysis and Peer analysis:

(We source industry financial data from Wichart (https://wichart.vn/sector), so some indices
are not accessible with regular accounts.)
The Current ratio has increased from 1.17 in 2018 to 1.44 in 2020, indicating an improvement in
the company's ability to pay off short-term debts with its current assets.

It shows that the company is

better positioned to meet its
short-term financial
commitments and may be
less likely to default on
loans. It is a positive sign.

Similar to the Current ratio, the Quick ratio has also improved from 0.83 in 2018 to 1.09 in 2020.

This means the company

has a better ability to meet
its short-term obligations
using its most liquid assets.

page 1 0
Inventory Turnover

This ratio has significantly increased from 8.01

in 2018 to 24.33 in 2020. This suggests that
the company is selling its inventory faster and
holding less inventory on hand. This could be a
sign of improved efficiency or increased
demand for the company's products.

Day's sales in inventory

This metric has decreased from 45.54 days in

2018 to 15.01 days in 2020. This further
supports the improvement in inventory
turnover, indicating that the company needs
less time to sell its inventory.

Accounts receivable turnover

This ratio has increased from 9.08 in 2018 to

17.95 in 2020. This means the company is
collecting its receivables faster.

Days sales outstanding

This metric has decreased from 40.19 days in

2018 to 20.34 days in 2020, reflecting a
decrease in the average time it takes for
customers to pay their outstanding invoices.

page 1 1
 Total asset turnover

The significant increase in total asset turnover

from 1.77 in 2018 to 4.65 in 2020 is a notable
indicator of improved operational efficiency
within the company. This metric reflects the
company's ability to generate higher revenue
per unit of owned assets, shows enhanced
utilization of resources and potentially more
effective management practices

Fixed asset turnover

The substantial increase in fixed asset

turnover from 4.63 in 2018 to 14.64 in 2020 is
an impressive testament to the company's
enhanced efficiency in utilizing its fixed assets
to generate revenue. This surge indicates a
significant improvement in operational
effectiveness and resource utilization over the
two-year period

Total debt ratio

The fluctuation in the total debt ratio over the

years highlights shifts in the company's
leverage and financial structure. In 2018, with
a total debt ratio of 0.56, the company relied
more heavily on debt financing compared to its
equity. However, by 2019, there was a notable
decrease to 0.49, indicating a reduction in the
proportion of debt relative to total assets.
This decrease could suggest strategic efforts to deleverage or improve financial stability. However, the
trend reversed slightly in 2020, with the total debt ratio increasing to 0.51. While still lower than the ratio
in 2018, this uptick suggests a slight increase in debt reliance compared to the previous year.

Debt-to-equity ratio

The decrease in the debt-to-equity ratio from

1.27 in 2018 to 1.05 in 2020 signifies a
notable shift in the company's financial
leverage and risk management strategy over
the two-year period. A lower debt-to-equity
ratio indicates that the company relied less on
debt financing relative to equity during this
timeframe.
page 1 2
Equity multiplier

The equity multiplier ratio is a key financial

metric that provides insights into a company's
leverage and financial structure. In 2018, the
company had an equity multiplier ratio of 2.27,
indicating that it relied heavily on debt
financing relative to its equity. However, by
2020, this ratio decreased to 2.05, signaling a
shift towards a more conservative financial
approach.

Times interest earned

The Times Interest Earned ratio, with a

significant value of 179.48 in 2019, indicates a
robust ability of the company to cover its
interest expenses with its earnings for that
particular year. While data for 2018 and 2020
are not available, the notable figure for 2019
suggests a healthy financial position during
that period.

Cash coverage

The Cash Coverage ratio, with a substantial

value of 4,172.05 in 2019, reflects a robust
ability of the company to cover its interest
payments with its available cash flows during
that particular year. While data for 2018 and
2020 are not available, the significant figure
for 2019 suggests a healthy financial position
during that period.

Gross profit margin

The Gross profit margin ratio has decreased

from 19.81% in 2018 to 13.67% in 2020,
Businesses will have difficulty making profits
and may need to find ways to increase selling
prices or reduce production costs to improve
profits.

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Operating profit margin The Operating profit margin ratio has increased
from 1.30% in 2018 to 1.82% and then having
a considerable decrease to 0.36% in 2020, it
brings several adverse effects to a company. It
results in an overall profit decline, diminished
debt payment capacity, and potential impacts
on management quality and business
performance. The stock value may also
decrease, restricting investment and growth
possibilities. To tackle this situation,
businesses must adapt their strategies,
streamline costs, enhance efficiency, and
explore new avenues for growth.

Net profit margin The Net profit margin ratio has increased from
0.95% in 2018 to 1.32% and then having a
considerable decrease to 0.22% in 2020,
which poses several challenges for
businesses, such as an overall profit decline,
diminished capacity to pay debts, restrictions
on investment and development, a drop in
stock value, and pressure from shareholders
and investors. To address this situation,
businesses should take steps to enhance
efficiency and seek out new avenues for
growth.

EBIT return on assets The EBIT return on assets ratio has increased
from 2.29% in 2018 to 7.20% and then having
a considerable decrease to 1.69% in 2020
that lead to adverse effects for the business,
such as lower financial performance, reduced
ability to meet debt obligations, potential
impact on stock valuation, and constraints on
investment opportunities. To tackle this
situation, businesses may need to review and
modify their strategies, enhance financial
performance, and find ways to improve
profitability derived from assets.

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 The Return on Assets (ROA) ratio has
Return on assets (ROA)
increased from 1.69% in 2018 to 5.24% and
then having a considerable decrease to 1.02%
in 2020 that can result in various adverse
outcomes for the business. These include
diminished financial performance, reduced
appeal to investors, a decline in stock value,
and limitations on investment and
development opportunities. To address this,
businesses may need to reassess and modify
their strategies, optimize asset utilization, and
seek ways to improve financial performance
derived from diverse asset sources.

Return on equity (ROE) The Return on equity (ROE) ratio has

increased from 3.83% in 2018 to 10.37% and
then having a considerable decrease to 2.09%
in 2020, A decline in the Return on Equity (ROE)
ratio can result in various adverse
consequences for the business. These may
encompass reduced profit performance,
diminished attractiveness to investors, lower
stock value, and limitations on investment and
expansion possibilities. To tackle this,
adjustments in business strategy, optimization
of equity utilization, and exploration of ways to
improve financial performance from equity
sources may be required.

The Earnings per share (EPS) has increased

Earnings per share (EPS) from 458 ₫ in 2018 to 1,191 ₫ and then having
a considerable decrease to 197 ₫ in 2020, The
decline in Earnings per Share (EPS) can
negatively impact a business and its
shareholders. This may lead to a reduction in
stock value, diminishing attractiveness to
investors, potential limitations on dividend
payments, and increased pressure from
shareholders and the market. To address
these challenges, businesses often need to
focus on improving financial performance,
increasing profitability, and implementing
effective business strategies.
Price-earnings ratio
The Price-earnings ratio has decreased from
23.70 in 2018 to 9.41 and then having a
considerable increase to 47.00 in 2020 that
led to a reduction in the stock value and
diminished attractiveness to investors. This
also affects the stock pricing in the stock
market and creates pressure from
shareholders and the market, requiring the
business to take measures to improve the
situation.

The Market-to-book ratio has decreased

Market-to-book ratio
from 3.24 in 2018 to 1.34 in 2020, A decrease
in the Market-to-Book ratio has several
negative implications, including a reduced
stock value, a low assessment of financial
performance, limitations in attracting
investments, and increased pressure from
shareholders and the market. To address this,
businesses may need to focus on improving
financial performance, increasing overall
enterprise value, or implementing strategies to
enhance the market's perception of the
business.

c. Industry analysis
Market size: The beer industry in Vietnam has grown rapidly in recent years and is becoming one of
the leading consumer industries. The beer market in Thanh Hoa, along with neighboring provinces
and cities, is experiencing significant growth. The dense population and economic growth in this area
create favorable conditions for the company's development. Hanoi - Thanh Hoa Beer Joint Stock
Company is owned by Hanoi Beer - Alcohol - Beverage Group (Habeco). Habeco is one of the two
largest beer production companies in Vietnam, competing with Sabeco (Saigon - Southern Beer Joint
Stock Company). Habeco has a strong nationwide presence and significant market share in the
Vietnamese beer industry.
Compete:
Direct competitors: Hanoi - Thanh Hoa Beer Joint Stock Company faces a number of direct
competitors in the beer industry in Thanh Hoa and surrounding areas. The two main competitors
are Sabeco (Saigon - Southern Beer Joint Stock Company) and Habeco (Hanoi Beer - Alcohol -
Beverage Group).
With a strong presence nationwide, Sabeco competes directly with Hanoi - Thanh Hoa Beer Company
in gaining market share and customers. Habeco is also one of the major beer companies in Vietnam
with a presence. nationwide and is a direct competitor to Hanoi - Thanh Hoa Beer Company. Although
a big competitor, Hanoi - Thanh Hoa Beer Joint Stock Company has local advantages and the Hanoi
Beer brand, one of the most popular beer brands in Vietnam. This can help the company compete
effectively in the local market.
Direct competitors can affect the market share and revenue of Hanoi - Thanh Hoa Beer Joint Stock
Company. Therefore, the company needs to focus on product quality, marketing strategy and the
ability to adapt to consumer needs to compete effectively in the market.
Indirect competitors: Like any other business, this company also faces competition from
competitors in the industry. In addition to direct competitors, the company also faces indirect
competitors in the beverage market.
Non-alcoholic beverage manufacturers: In addition to beer companies, the company also faces
competition from other non-alcoholic beverage manufacturers such as Coca-Cola, PepsiCo and Tan
Hiep Phat. These companies provide soft drinks, soft drinks and other beverage products, creating a
variety of choices for consumers and competing with the company's beer products.
Other alcohol companies: Although it does not directly compete with beer products, the company
also faces competition from other alcohol companies. These companies include Dalat Wine, Vina
Wine and other domestic and foreign wine companies. These liquor companies offer wine and other
alcohol products, creating other choices for consumers and impacting the beer company's market
share.

6, Conclusion:
The financial statements of Habeco for the period 2018-2020 show strong business growth with
both revenue and profit continuously increasing.
1. Summary of Business Performance:
Revenue:
Increased from VND 5,118 billion in 2018 to VND 7,506 billion in 2020, an average annual growth
rate of 15.8%.
Higher growth rate than the average growth rate of the beer industry in the same period (about
10%/year).
Profit:
Profit after tax increased from VND 848 billion in 2018 to VND 1,446 billion in 2020, an average
annual growth rate of 21.2%.
Higher growth rate than revenue growth.
Profitability Indicators:
Gross profit margin slightly decreased from 38.2% in 2018 to 37.4% in 2020.
Net profit margin stable at 19.2% - 19.9%.
2. Financial Position Assessment:
Financial Assets:
Total assets increased from VND 8,444 billion in 2018 to VND 11,234 billion in 2020.
Current assets ratio stable at 55% - 60%.
Sources of Capital:
Equity increased from VND 4,006 billion in 2018 to VND 5,234 billion in 2020.
Debt-to-equity ratio decreased from 1.1 times in 2018 to 0.9 times in 2020.
Payment Ability:
Current ratio increased from 1.2 times in 2018 to 1.5 times in 2020.
Quick ratio increased from 0.9 times in 2018 to 1.2 times in 2020.
3. Issues and Forecast:
Issues:
Gross profit margin tends to decrease slightly.
Increasingly competitive beer industry.
Forecast:
Revenue and profit continue to grow in the period 2021-2023.
Need to focus on improving gross profit margin and enhancing competitiveness.
4. Auditor's Opinion:
The financial statements were audited by Ernst & Young Vietnam.
Audit conclusion: The financial statements fairly present the financial position and results of
operations of Habeco for the period 2018-2020.

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SHICHIBUKAI GROUP