Professional Documents
Culture Documents
1. Company overview
American Vietnamese Biotech Incorporation (AMVI BIOTECH,INC) established on
26/ 08/ 2002 with the capital of 15 billion Vietnam Dong was the corporation of The Sun
company (100% foreign investment), Incomex SaiGon (100% state investment) and Dopharco
(100% state investment).
AMVI BIOTECH, INC. is operating in the field of manufacturing and trading of Bio
Medical Diagnosis, which is the first leading enterprise in Vietnam to develop and manufacture
the series product quick bio diagnosis with modern technology and high quality. These
products are as good as exotic products but with cheaper prices. They are Quick Test for
pregnant HCG, HIV, Hepatitis B HBsAg, Hepatitis C, Malaria, Dengue Hemorrhagic fever,
Syphilis, prostate cancer PSA, LH Ovulation, Opirates Heroin Morphine, combo 5 categories
of Hepatitis B (HbsAg, HbeAg, HbcAb, HbsAb, HbeAb), combo 5 categories of Drugs.
All of the equipment of the firm is imported from the USA, German, Japan, Swiss, China,
which can meet the requirements of quality, capacity, manufacture demand and R&D.
Main business activities:
Operational function
1.
-
Industry
AMV Vaccine
AMV Diagnostic
AMV Pharmaceutical
AMV Food Supplement
Comestic
tests, expanded its business, develop some additional rapid diagnostic test products.
Expand distribution network inland to run business of biologicals qualitative
investors.
Strengthen cooperation in depth research, workshops with hospitals and research
institutes in the whole country to serve the development of new products, such as
Rapid Tests (Qualitative diagnosis biologicals), Elisa (quantitative diagnostic
BOARD OF MANAGEMENT
ACCOUNTING DEPARTMENT
ADMINISTRATION DEPARTMENT
SALES DEPARTMENT
MANUFACTURING PLANTS
Manufacturing Dept.
Printing Dept.
Packing Dept.
R&D Dept.
Southern General
Agency
- Summarize the information, analysis and report to the Board of Director for reference and
decision-making of business operations.
Administration Department
- Recruit new employees, train employees.
- Decide salary scale, approve day off.
- Receive and draft documents, application documents to register products, organize
workshops to introduce products.
Sales Department
- Manage the entire distribution systems and general agencies throughout the country,
support agencies the implementation of the marketing for the procurement and sale of
products.
- Forecast product demand; propose business policies consistent with market conditions.
Manufacturing Plants include following departments:
Quality Control Department: Deploy, implement and monitor quality control activities and
ensure the quality of the Company's products. Establish, implement plans in standards and
maintain quality-test equipment.
Printing Department: design sample packaging, order printing frame and packages.
Operate and organize the printing of packaging products.
Packing Department: Package and storage products.
PART 2: FINACIAL ANALYSIS
Items
A. CURRENT ASSETS
I. Cash and cash equivalents
1. Cash
2. Cash equivalents
II. Short-term investments
1. Short-term investments
2. Provision for diminution in
the value of short-term
investments
III. Account receivables
1. Trade accounts receivable
2. Prepayments to suppliers
3. Intercompany receivables
5. Other receivables
6. Provision for doubtful debts
IV. Inventories
1. Inventories
V. Other current assets
1. Short-term prepayments
2. Value Added Taxed
2012
6,507,419,017
1,784,426,962
1,784,426,962
-
2013
9,455,003,249
2,181,523,772
2,181,523,772
-
2014
8,887,993,228
1,503,535,227
1,503,535,227
-
1,408,344,076
1,209,473,633
98,330,000
100,540,443
2,758,273,074
2,758,273,074
556,374,905
299,344,060
81,183,970
4,982,321,443
3,068,323,064
1,913,232,730
765,649
1,999,663,847
1,999,663,847
291,494,187
67,337,685
177,693,595
4,529,774,607
334,846,232
4,194,928,375
2,095,996,728
2,095,996,728
758,686,666
226,616,485
430,863,330
2012
27.12%
7.44%
7.44%
-
2013
34.96%
8.07%
8.07%
-
5.87%
5.04%
0.41%
0.42%
11.50%
11.50%
2.32%
1.25%
0.34%
18.42%
11.35%
7.07%
0.00%
7.39%
7.39%
1.08%
0.25%
0.66%
2
35
5
5
17
1
16
8
8
3
0
1
deductibles
4. Other current assets
B. NON CURRENT
ASSETS
I. Non-current account
receivables
II. Fixed assets
1. Tangible fixed assets
Cost
Accumulated depreciation
2. Financial leasehold of
Fixed assets
Cost
Accumulated depreciation
3. Intangible fixed assets
Cost
Accumulated amortisation
4. Construction in progress
III. Goodwill
IV. Long-term investments
1. Investment in subsidiaries
2. Investment in joint ventures
and associates
V. Other non-current assets
1. Long-term prepayments
2. Other long-term assets
TOTAL ASSETS
175,846,875
46,462,907
101,206,851
2,609,442,583
-595,374,372
9,348,306,480 8,892,914,988 4,614,523,496
13,530,830,000 13,530,830,000 9,707,830,000
-4,182,523,520 -4,637,915,012 -5,093,306,504
3,590,518,501 5,139,435,958 2,363,483,322
2,510,208,355
-
2,510,208,355
1,236,732,659
43,072,059
1,193,660,600
756,784,003
31,446,003
725,338,000
368,120,363
368,120,363
-
0.73%
0.17%
72.88%
65.04%
64
67.72%
5.40%
17.00%
-11.60%
62.24%
10.35%
22.38%
-12.03%
53
25
40
-14
8.39%
10.88%
-2.48%
38.96%
56.39%
-17.43%
14.96%
-
32.88%
50.03%
-17.15%
19.00%
-
5.15%
0.18%
4.97%
100.00
%
2.80%
0.12%
2.68%
100.00
%
1. Financial structure
1.1 Assets structure
Structure of total assets of the company Amvi Biotech as follows:
Current assets of the company over the years 2012-2014 tended to rise gradually, from 27% to
35% of total assets and long-term assets decreased from 73% to 65% in total assets. Specifically,
in 2014 the company's total assets reached 25,220,923,921 VND, of which current assets reached
8,887,993,228, representing 35.24% of total assets and long-term assets reached 16,332,930,693,
representing 64.76% of total assets. In particular, the structure of current assets and long-term
assets as follows:
Current assets mainly consist of accounts receivables and inventories. Specifically,
receivables represent high proportion in total assets 17.96% ( 4,529,774,607VND),
18
38
-20
9
9
1
1
10
inventories account for 8.31% of total assets (2,095,996,728 VND). Cash accounted for
5.96% and the company has no short-term financial investments .
Long term assets mainly fixed assets are accounted for 50% to 60% of total asset in this
period.
Assets
fluctuation
Items
A. CURRENT ASSETS
I. Cash and cash equivalents
II. Short-term investments
III. Account receivables
IV. Inventories
V. Other current assets
B. NON CURRENT ASSETS
I. Fixed assets
II. Long-term investments
III. Other non-current assets
TOTAL ASSETS
Growth
2012/2011
-37.51%
-29.02%
Growth
2013/2012
Growth
2014/201
3
45.30%
-6.00%
22.25%
-31.08%
Through the
table shows that the
-52.53%
253.77%
-9.08%
total assets of the
-18.16%
-27.50%
4.82%
company have strong
fluctuations over the
-64.38%
-47.61%
160.28%
years. Specifically, in
-1.15%
0.58%
-7.14%
2012 total assets
-0.45%
3.58%
-20.06%
growth is -14.62%
compared with 2011.
-9.52%
-38.81%
-51.36%
In 2013, it got a
-14.62%
12.71%
-6.74%
positive growth rate of
12.71%, but in 2014 it was -6.74%. The variation in total assets is mainly caused by fluctuations
in current assets. Details are as follows:
Current assets show a abnormal fluctuations, in 2012 all the items in of current assets
decreased compared with the previous, especially, short-term assets and accounts
receivable decreased over a half (yoy) . The period 2013-2014 also fluctuated erratically.
Revenue fell steadily through the year, while short-term assets showed abnormal
movements, this show that company are facing up with many difficulties in business and
inventory, debt, account receivables management are not effective.
Long-term assets of the company also declined in recent years, in 2014 it decreased to
20% compared to previous year.
1.2 Capital-sources structure
A. LIABILITIES
I. Current liabilities
1. Short-term loans and
borrowings
2. Trade accounts payable
3. Advances from
customers
4. Tax and other payables
to the State Budget
5. Payables to employees
6. Accrued expenses
7. Other current liabilities
II. Non-current
liabilities
Long-term loans and
borrowings
B. OWNERS' EQUITY
1. Contributed capital
2. Investment and
Development fund
3. Retained earnings
TOTAL RESOURCES
2012
2013
2012
2013
2014
6,038,550,759
4,525,416,539
2014
13,420,419,67
0
2,058,885,450
3,133,450,674
2,056,017,826
13.06%
8.57%
22.33%
16.73%
53.21%
8.16%
1,500,000,000
230,231,950
500,000,000
117,026,800
930,183,461
587,100,180
6.25%
0.96%
1.85%
0.43%
3.69%
2.33%
64,866,608
8,218,935
164,430,320
0.27%
0.03%
0.65%
157,753,751
44,742,776
17,172,741
41,250,000
42,128,441
96,792,363
3,761,250,000
0.66%
0.19%
0.07%
0.17%
0.16%
0.36%
13.91%
0.65%
0.68%
0.16%
1,077,432,848
1,513,134,220
4.49%
5.60%
45.05%
1,077,432,848
20,859,819,47
0
21,157,500,00
0
1,513,134,220
21,004,535,49
1
21,157,500,00
0
163,639,105
172,282,384
41,250,000
11,361,534,22
0
11,361,534,22
0
11,800,504,25
1
21,157,500,00
0
4.49%
5.60%
45.05%
86.94%
77.67%
46.79%
88.18%
78.24%
83.89%
1,562,792,834
1,562,792,834
6.51%
5.78%
6.20%
1,860,473,364
23,993,270,14
4
1,715,757,343
27,043,086,25
0
-7.75%
100.00
%
-6.34%
100.00
%
43.30%
100.00
%
1,562,792,834
10,919,788,58
3
25,220,923,92
1
Capital
86.94%
100%
77.67%
46.79%
90%
80%
70%
60%
45.05%
50%
40%
30%
5.60%
16.73%
20%
4.49%
8.57%
10%
8.16%
0%
2012
2013
Current liabilities
2014
Non-current liabilities
Owner's equity
a. Self-funded Analysis:
Table 4.4: Quota to analyze financial resoures by years
Ratio
1. Liabilities
2. Current liabilities
3. Non-current liabilities
4. Owners' equity
5. Total asset
6.Dept ratio = (1):(5)
7.Self- funded ratio = (4):(5)
2014
13,420,419,670
2,058,885,450
11,361,534,220
11,800,504,251
25,220,923,921
53.21%
46.79%
2013
6,038,550,759
4,525,416,539
1,513,134,220
21,004,535,491
27,043,086,250
22.33%
77.67%
2012
3,133,450,674
2,056,017,826
1,077,432,848
20,859,819,470
23,993,270,144
13.06%
86.94%
23,162,038,471
22,517,669,711
21,937,252,318
2,058,885,450
4,525,416,539
2,056,017,826
91.84%
83.27%
91.43%
8.16%
16.73%
8.57%
As we can see from the table, in 2014 the self-funded ratio is increasing significantly
(30,88%) from 2013 to 2014. The main reason is that the owner equity decrease by 56,2% (while
other items in equity remains stable, the retained earning has a sharpen decrease in 2014 by
536% (-10,919,788,583 VND) compared with that in 2013 (-1,715,757,343 VND) and 2012 (1,860,473,364) while the liabilities has a considerable rise by 122% equal to 7,381,868,911 VND
(while current liabilities goes down 54,55% and the non-current liabilities goes up to 650%).
This lead to the increase in the dept ratio of the company because the company need to finance
themselves by other resources besides the equity.
2013
2014
1.Owner equity
23,993,270,144
27,043,086,250
25,220,923,921
2. Long-term assets
17,485,851,127
17,588,083,001
16,332,930,693
= (1)-(2)
6,507,419,017
9,455,003,249
8,887,993,228
4.Inventory
2,758,273,074
1,999,663,847
2,095,996,728
5.Short-term receivable
1,408,344,076
4,982,321,443
4,529,774,607
556,017,826
4,025,416,539
1,128,701,989
=(4)+(5)-(6)
3,610,599,324
2,956,568,751
5,497,069,346
2,896,819,693
6,498,434,498
3,390,923,882
6.Short-term debts
( without bank loan )
7.Need for NWC
From the table we can see that NWC always positive implying financing from capital is quite
good. And even though company not only has enough long-term capital to support its long-term
assets but also surplus to finance short-term needs.
In addition, owner equity always greater than zero and increases steadily over years, hit the
top in 2013. Otherwise, long-term debts rising continuously and unevenly in 2014 shows that
company has invested such relatively large projects and has possibility to face to uncertainty in
safety as well as ability of autonomy in capital.
Net working capital analyzing: is the short-term capital that company needs to offset part of
current assets including inventory and account receivable.
Need for NWC is low, however does not remain constant due to poor inventory and account
receivable management, and ineffective financing support seeking also. However, positive
numbers indicate that financial balance is still in safe because company is not required to borrow
in order to offset the lack of demand for NWC.
Net buget : although NWC of company quite low and the pace of growth is not high,
however, the need still larger than NWC. Positive net budget shows that company does not
encounter harship in short-term payment and its enabled to maintain current business.
Inconclusion, companys financing reaches the equilibrium in short-term and NWC meets the
needs of short-term capital.
2. The operational efficiency analysis
2.1 Assets use efficiency
3. Items
2014
2013
2012
1.Sales and
revenues (net
revenue from
sales + Financial
income + other
income)
7,093,913,253
9,094,600,906
9,807,380,538
26,132,005,086
25,518,178,197
26,047,625,067
3. Average fix
assets
15,142,950,487
16,540,208,733
16,285,592,264
4. Net sales
4,172,714,450
7,740,903,709
9,583,300,417
5.Average
working capital
9,171,498,239
7,981,211,133
8,460,255,695
4,361,282,599
5,449,016,139
6,969,518,062
7.Average
inventory
2,047,830,288
2,378,968,461
3,064,232,760
8.Average account
receivables
4,756,048,025
3,195,332,760
2,187,497,381
9.Assets turnover
= (1):(2)
0.27
0.36
0.38
10.Fix assets
0.47
0.55
0.60
2. Average total
assets
6.Cost of goods
sold
0.45
0.97
1.13
12. Number of
days of working
capital turnover
791.27
371.18
317.81
2.13
2.29
2.27
169.04
157.17
158.28
15.Acount
receivables
turnover = (4): (8)
0.88
2.42
4.38
16.Account
receivable period
410.33
148.60
82.17
13.Inventories
turnover =(6) : (7)
14.Inventories
turnover period
2014
2013
38,742,467,046
25,518,178,197
1. Revenue
4,172,714,450
7,740,903,709
9,583,300,417
7,093,913,253
9,094,600,906
9,807,380,538
4,177,507,086
7,747,600,906
9,628,449,174
-7,592,624,458
122,412,495
-356,415,307
4,792,636
6,697,197
45,148,757
2,916,406,167
1,347,000,000
178,931,364
2012
-3,108,615,140
438,607,209
507,811,663
302,557,523
307,467,642
903,712,250
-3,411,172,663
746,074,851
1,411,523,913
-7,290,066,935
429,880,137
547,296,943
-107.03%
1.35%
-3.63%
-74.41%
5.66%
5.27%
-82%
10%
15%
4.19
11.95
-0.20
0.0048
9.Interest expense
debt was approximately 6 billions and about 5 billions in 2013 but jumped to 13.5 billion at the
year of 2014.
To illustrate clearly about the factors affecting the rising in ROA, we have Dupont
equation
Profit before
tax
ratio * Property efficiency
revenue
Criteria analyzing:
ROA= ROA2014 ROA2013 = (34,67%) - (-1,51%) = (-33,16%)
Effect of
Profit before
AERe
tax
ratio :
revenue
*x
Property
efficiency
in 2013
Property efficiency
in 2014
in 2013
ROA
From 2013 to 2014, the owner equity had got nearly halved, despiting the company's assets have
not changed much, making the ratio of assets to owner equity double, or we can see that
possibilities of ROE changes proportionaly (in the same direction) with ROA.
Items
1. Owner's Equity
2. Profit before tax and interest
3. Interest expenses
4. Profit after tax
5. Return on Equity (ROE)
(5) = (4):(1)
2014
11,800,504,251
(8,901,473,717)
302,557,523
(9,204,031,240)
2013
21,004,535,491
452,183,663
307,467,642
144,716,021
2012
20,859,819,470
373,953,326
903,712,250
(529,758,924)
-78%
0.69%
-2.51%
(29.42)
1.47
0.41
-0.35
0.02
0.02
0.47
-0.3522
0.78
0.87
0.0057
-0.0203
Source: http://ezsearch.fpts.com.vn
According to table 4.9, it can be seen that ROE is fluctuated through years. ROE in 2012
was -2.51%; in 2013 was 0.69% and in 2014 was -78%. If in 2012, each 100 dong of equity
made 2.51 dong of loss in profit after tax, this number in 2014 was 78 dong. This means that
financial efficiency of the company was very bad.
2014
(9,204,031,240)
4,172,714,450
25,220,923,921
11,800,504,251
2013
144,716,021
7,740,903,709
27,043,086,250
21,004,535,491
2012
(529,758,924)
9,583,300,417
23,993,270,144
20,859,819,470
-220.58%
1.87%
-5.53%
213.73%
128.75%
115.02%
16.54%
28.62%
39.94%
We have: ROE =
Source: http://ezsearch.fpts.com.vn
Total sales
Total assets
x
Total assets
Average equity
Indicator to be analyzed:
ROE = ROE2014 ROE2013 = (-78%) - 0.69% = -78.69%
-
2014
2,058,885,450
11,800,504,251
2013
4,525,416,539
21,004,535,491
2012
2,056,017,826
20,859,819,470
25,89%
37,47%
30,54%
-0.35
0.02
0.02
Source: http://ezsearch.fpts.com.vn
The ROE-RE equation and its factors:
Debt
ROE = RE + (RE I) x Equity
x (1 T)
In which:
I: Average interest rate
T: Income tax rate
From the table above, it can be seen that RE < I, because average interest rate in market
through years always larger than RE. This means that the companys debt didnt increase
financial efficiency. In this case, financial leverage ratio is negative; the company shouldnt
increase their debt for business expansion.
3. Risk analysis
3.1 Business risk
Competitive risks.
Vietnam is in the process of integration into the region and world economy. Especially when
Vietnam joins the WTO, along with the removal of tariff barriers, will attract the participation of
abroad companies with strong financial strength and modern technology. Since then, the business
environment will be more intense competitive for pharmaceutical manufacturing enterprises in
the country in terms of price, quality and product categories.
3.2 Financial risk analysis:
Table 4.13: Items reflect financial risk
Items
2014
2013
2012
(8,901,473,717)
452,183,663
373,953,326
(9,204,031,240)
144,716,021
(529,758,924)
0.97
3.12
-0.71
Source: http://ezsearch.fpts.com.vn
From the table above, it can be seen that the degree of financial leverage was fluctuated
through years and remained at low level. In 2014, there were only 0.0008% of short-term loans
and borrowings over total owners equity and 0.0096% of long-term loans and borrowings over
total owners equity. Interest expenses in 2014 were 302,557,523 dong, a small amount in profit
before tax and interest, so the degree of financial leverage was low. Consequence, the company
used less debts, the lower DOL was, the lesser the financial risk was.
3.3 Insolvency risk analysis:
Table 4.14: Item reflect insolvency risk of the company
Items
2014
2013
2012
Current assets
8,887,993,228
9,455,003,249
6,507,419,017
1,503,535,227
2,181,523,772
1,784,426,962
Inventories
2,095,996,728
1,999,663,847
2,758,273,074
Current liabilities
2,058,885,450
4,525,416,539
2,056,017,826
Current ratio
4.32
2.09
3.17
Quick ratio
3.30
1.65
1.82
Cash ratio
0.73
0.48
0.87
Source: http://ezsearch.fpts.com.vn
It can be seen from the table above that quick ratio of the company in 2014 was nearly
doubled compared to 2013. This was because in 2014 current assets growth (-6.00%) was higher
than current liability growth (-54.50%). Quick ratio of the company in 2014 was also higher than
in 2013 even though inventories in 2014 were increased compared to 2013 while inventories in
2013 were decreased compared to 2012. This was also because in 2014 current assets growth
was higher than current liability growth. Cash ratio of the company was improved in 2014. This
was because in 2014 cash and cash equivalents growth (-31.08%) was higher than current
liability growth (-54.50%). While in 2013, cash and cash equivalents growth (22.25%) was lower
than current liability growth (120.11%).