Download Business plan targets for production and business in 2017

SOCIALIST REPUBLIC OF VIỆT NAM
Independence – Freedom – Happy
-------o0o------Ha Noi, Aprial 14th, 2017
THĂNG LONG INVESTMENT
GROUP JSC
*****
No.: 17/2017/BC-TGĐ
REPORT
RESULTS OF BUSINESS TRADE IN 2016 AND BUSINESS PLAN FOR 2017
Dear all delegate and Shareholders.
On behalf of the Executive Board, I would like to present the report on the results of business
activities in 2016 and the targets of production and business in 2017 as follows:
I.
OVERVIEWS OF ACTIVITIES IN 2016:
1. The situation of production and business activities:
Indicators
2015
2016
(million VND)
(million VND)
2016 / 2015 ratio
Parent
Compan
y
Consolid
ated
Parent
Compan
y
Consolid
ated
Parent
Company
Consolida
ted
Revenue
350.352
355.261
216.303
231.523
61,74%
65,17%
Real estate revenue
184.049
184.049
55.309
55.309
30,05%
30,05%
Trading revenue
123.732
126.730
110.900
122.308
89,63%
96,51%
Financial revenue
35.093
36.071
49.904
53.152
142,20%
147,35%
-
933
-
550
-
58,95%
7.478
7.478
190
204
2,54%
2,73%
231.698
241.763
160.081
175.086
69,09%
72,42%
Profit (loss) in joint
ventures, associates
Others cost
Total cost
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Cost of real
bussiness capital
estate
114.184
112.987
42.385
41.108
37,12%
36,38%
108.007
110.732
105.285
115.581
97,48%
104,38%
Financial cost
576
1.810
413
657
71,70%
36,30%
Goods selling cost
263
263
168
168
63,88%
63,88%
Management cost
6.186
13.423
7.398
13.023
119,59%
97,02%
Other cost
2.482
2.548
4.432
4.549
178,57%
178,53%
Before tax Profit
118.654
113.499
56.222
56.436
47,38%
49,72%
After tax Profit
92.537
87.248
43.898
44.013
47,44%
50,44%
Cost of goods and
services bussiness capital
About revenue:
In 2016 TIG achieved total consolidated revenue of 231.52 billion VND, equaling 65.17%
compared to 2015 and 39.92% of the planned target. Turnover from real estate investment was VND
55.31 billion, equaling 30.05% of the year 2015 and accounting for 23.89% of the total revenue of the
Company. Sales revenue of the commercial segment in 2016 reached VND 122.31 billion, equaling
96.51% of the year 2015 and accounting for 52.83% of the total revenue of the Company. The main
cause of the decrease in business results is the fact that TIG has focused on investing in key projects
to develop long-term tourism (Vườn Vua resort & villas), or completion of houses delivery to
customers (TIG Dai Green Green Garden), has not launched sales activities, as well as the start of
projects slower than planned, along with the lag of the house hold goods and electric vehicles field…
In addition, market difficulties such as the competition of many large-scale real estate projects,
developed by large developers with strong financial strength, the project is rushing, customers
increasingly difficult and have many choices, real estate prices down while the cost of capital be
higher, the profit margin be lower .... The home appliance market has a lot of potential and growth
potential, but TIG's Hyundai brand has just entered the market less than a year ago. These difficulties
are the factors that make the revenue and profit in 2016 decline and not completed the plan.
About profits:
In terms of profit, in 2016 pre-tax profit of parent company and consolidation reached 56.22
billion dong and 56.44 billion dong, equaling 47.38% and 49.72% of the year 2015. Before tax profit
of the combined chartered capital is 8.86%; Before tax profit/charter capital of the parent company is
8.83%; The profitability target for 2016 is 41.65% (for parent company profit) and 35.27% (for
consolidated profit). Falling profit in 2016 was the main reason for the drop in real estate business
profits. In addition, the profit from home appliances and electric vehicles is not high as it is in the
early stages of market development, high promotion promotion costs, but this is a basic and
sustainable business. Start early effectively, stabilize and grow. Plans and profits are built with the
assumption of a plan to issue VND500 billion of bonds in 2016 to invest in successful real estate
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projects. However, as the company has not yet implemented the bond issue plan, it has had a great
impact on the business plan and the direct profit target is low.
About Cost:
2016 continues to be the year in which TIG strengthens cost management, cost of capital and the
establishment of rigorous, scientific financial structures; Toward the standards of sustainable
development of corporate finance. Management expenses, business expenses and financial expenses
are all reduced, financial ratios are maintained at a safe and stable level.
2. Financial Situation:
2015 (million VND)
Indicators
2016
Up/down
(million VND)
(%)
Parent
Company
Consolidated
Parent
Company
Consolidated
Parent
Company
Consolidated
REVENU
E
799.403
864.957
888.062
946.204
11,09%
9,39%
SHORT
TERM
ASSET
387.090
497.158
352.506
462.761
(8,93)%
(6,92)%
Cash and
other
assets
equal cash
233.297
240.689
65.017
71.821
(72,13)%
(70,16)%
Financial
investment
in
short
term
8.000
8.000
-
-
-
-
Short term
obligation
collection
145.238
239.986
206.037
301.630
41,86%
25,69%
401
4.347
79.919
82.577
19.829,93
%
1.799,63%
Other
short term
asset
154.567
4.136
1.533
6.733
(99,01)%
62,79%
LONG
TERM
412.313
367.799
535.556
483.443
29,89%
31,44%
Goods
stock
in
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ASSETS
Long term
Liabilities
97.695
130.975
218.488
213.046
123,64%
62,66%
Fix assets
8.454
40.732
7.283
54.200
(13,85)%
33,06%
Long term
current
assets
25.013
45.376
25.500
48.464
1,95%
6,81%
Long term
financial
investment
279.498
109.464
284.098
149.810
1,65%
36,86%
Other long
term assets
1.654
41.251
187
17.923
(88,69)%
(56,55)%
TOTAL
CAPITA
L
799.403
864.957
888.062
946.204
11,09%
9,39%
Current
liabilities
93.021
95.320
81.238
84.216
(12,67)%
(11,65)%
Long term
liabilities
53.485
53.797
16.537
17.057
(69,08)%
(68,29)%
652.896
715.840
790.287
844.931
21,04%
18,03%
-
66.126
-
61.580
-
(6,87)%
Owner
capital
Minority
interests
Property situation:
According to the consolidated financial statement, in 2016, TIG total assets increased by
109.39% compared to 2015, of which:
Short-term assets decreased by 6.92% due to the fact that during the year the Company promoted
its distribution activities and trade, it was necessary to use a large cash flow to reduce its deposits at
banks, As of 2016, it is 70,16% lower than that of 2015. Inventory increased by 1,799.63% due to the
fact that TIG concentrates on completing the resort system of Vuon Vua resort and villas. TIG has
not yet opened the last TIG Dai Mo Green Garden project and has continued to buy some of the
better-performing products of financially troubled investors, waiting for the favorable times and the
planned road going through the upcoming project. To be deployed will proceed to open the last sale.
Prepayments for short-term sellers increased by VND 50.21 billion (equivalent to 44.82%), mainly
including advances to construction contractors.
Long-term assets increased by 31.44% due to the fact that in the year, the company continued to
promote the implementation of investment trust and investment projects for the construction of villas
for lease. King Park and invest in subsidiaries and associates to develop Hyundai's
commercial,
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distribution, and consumer electronics business, entailing other long-term receivables, investment real
estate, finance Long-term incomes and long-term financial investments increase.
The debt situation:
By the end of 2016, TIG's short-term debt is reduced by 11.65% compared to 2015, its shortterm liabilities are mainly payable to sellers, taxes and other state-payables and land use fees. All of
TIG's short-term debt are low or no interest payments.
Long-term debt plummeted from 53.79 billion dong at the beginning of 2016 to 17.06 billion at
the end of 2016, mainly due to the decrease in land use rights. TIG does not have bad debts.
The debt-to-authorized capital ratio and debt to total assets ratio are always low and tend to
decrease. Debt-to-authorized capital in 2016 respectively is 11,98% (2015 is 20,83%) and debt to
asset ratio is 10.70% (in 2015 is 17,24%). With the nature of bank debt is low, no long term debt,
mainly short-term debt, prepaid buyers, other mobilized capital without paying interest, without
pressure to pay due debt. Therefore, it is possible to evaluate TIG's liabilities at a high level of safety,
without imposing financial pressure on the Company.
3. Investment situation, implementation situation of projects:
Real Estate Plate:
In 2016, TIG mainly focused on investing in building and completing two projects of King Vineyards
& villas and TIG Dai Lo Green Garden.
The Royal Gardens Resort & Villas project has now developed nearly 150 rooms, 3 * - 5 * standard
villas and a full complement of utility services. Currently the project is exploiting tourist services,
convalescence, entertainment, events ... four seasons, occupancy rates reached over 75% with the
potential to exploit tourism services, events ... positive. The total investment value for the project is
VND 60.4 billion, and VND 161.5 billion.
The Green Garden TIG project has been invested to complete nearly 70% of villas, adjacent garden
houses, gradually handed over to customers. In the past year, TIG has also invested in acquiring a
number of investors' products at good prices, preparing for better market opportunities and planning
the route through the project to be launched in the final market. The total budget for the TIG Dai Moo
Green Garden project in 2016 is 46.6 billion dong and the cumulative investment is 165 billion dong.
For other projects, in 2016 TIG will continue to improve the preparation of investment, financial
arrangements and will deploy in the future when favorable conditions.
Commercial segment:
In 2016, TIG has invested directly and through affiliated companies (HDE and Hyundai Electronics
& Appliances Vietnam) to develop nearly 100 codes of Hyundai / HDE consumer electronics
products. The school has initially developed more than 500 distributors, agents across the country.
The Hyundai / HDE home appliance brand has been well received and consumed by the market,
creating a precondition for the planned over 200 billion in household appliances sales in 2017.
The bus network with the chain store chain thegioixedien.vn has developed 10 points in the North
and Central provinces.
In 2016, TIG invested VND 30 billion in HDE Distribution JSC to raise the ownership ratio from 0%
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to 50%;
4. Improvements in organizational structure, policies, management:
In 2016, TIG continues to have effective and dynamic improvements in its organizational
structure, policies, corporate governance, and agility in its business activities, contributing to the
company's positive growth. Specific:
* In executive management:
In 2016, TIG continued to make strong improvements in its management and management
policies, particularly focusing on the management of business and financial management systems. In
2017, TIG began to develop in a wide area with three main areas are tourism services convalescence, household appliances delivery systems nationwide and retail chain system for electric
vehicles stretching on many districts. In addition, TIG has beeng setting up internal control and
specialized management personnel at the Group and key businesses. TIG has applied IT to establish a
system of management, remote monitoring with the combination of the installation of camera
systems, management software in the business point and the connection to the central server system
at the Headquarter in Hanoi. Through this online management, the of the system management always
ensures accuracy, focus, depth and timeliness, ensuring safety and high efficiency, reducing the
management cost in operation.
* In business, investment development projects:
In 2016 TIG continues to have many innovations, creations, flexible solutions and agile response
in business strategy, in investment, construction as well as development projects. In particular, the
adjustment of planning and investment solutions such as Vuon Vua resort & villas, TIG Dai Mo
green garden ... in line with the reality of market demand as well as many solutions. Improvements in
architectural options, construction solutions, machine tools, ... as well as the solution to use native
materials locally ingeniously, thereby helping the projects of TIG medium It has a low cost of capital,
while maintaining high culture and being environmentally friendly.
In the distribution of household goods, TIG pays special attention to the quality of its products, form
and especially the category of products, focusing on the most consumable products. Focusing on
consumer psychology, TIG adjusted the ordering, product selection, import/ assembly and
distribution of the most suitable products. In particular, in the development of the distribution system,
TIG is applying various flexible and attractive distributor policies such as progressive commission
rates, co-operate with bank in financial supports for distributors who want to buy cargo ... These
measures help stimulate the rapid development of distributors, dealers. Therefore, being new market
participants, but Hyundai household products have been rapidly covered the national market.
In the development of the supermarket chain, TIG has researched and developed a retail distribution
system for electric vehicles in the model of supermarket chain with the preeminent characteristics in
comparison with the current market that is building a brand system. The retailer is professional, the
product range is rich with all the products are market favorite, the goods fully meet the legal
requirements of origin, professional after sales and apply modern media such as online sales, online
marketing ...
* In company finance management:
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In 2016, TIG continues to improve and flexibly integrate its corporate finance into the adherence to
the principles of risk management in investment, IT application, and application of management
software, good cost, tight cash flow management and efficiency. TIG continues to minimize shortterm loans, interest-bearing loans, regularly restructure debts to minimize interest rates, and transfer
maximum short-term loans to long-term loans. This has helped TIG to have a secure, stable and
secure financial system.
II. BUSINESS PLAN FOR BUSINESS YEAR 2017
Business plan targets for production and business in 2017
Đơn vị tính: Triệu đồng
2016
No.
Indicators
Parent
Company
Plan in 2017
Consolidated
Parent
Company
Consolidated
1 Authorized capital
735.650
735.650
772.432
772.432
2 Authorized capital on
average
3 Total revenue
636.783
636.783
743.824
743.824
216.303
231.517
450.000
550.500
4 Total cost
160.081
175.086
345.000
425.500
5 Before taxes profit
56.222
56.431
105.000
125.000
6 Before taxes profit /
Authorized capital rate
Profit before taxes/ average
7 authorized capital rate
7,64%
7,67%
13,59%
16,18%
8,83%
8,86%
14,12%
16,81%
-
5%
-
10%-12%
8 Propose dividen payout ratio
In the coming years, the General Directors Board and TIG Board of Directors will set up
development plans with specific objectives to strive for TIG to reach out quickly and sustainably. The
development plan was presented by the Board of Directors in the Report at the Annual General
Meeting of Shareholders in 2017. The General Directors Board determined the concentration of all
resources, drastically implemented the successful implementation of plans, development goals
assigned by the General Meeting of Shareholders and the Board of Directors.
III. CONTENT PLEASE CONSIDER THROUGH VOTE AT THE CONFERENCE
Above is the report on business results in 2016, business plan in 2017 of the Board of Directors
submitted to the General Assembly of Shareholders. Please propose the General Assembly of
Shareholders to consider and approve the following contents:
- Audited financial statements of the parent company in 2016 and audited consolidated financial
statements for 2016.
The parent company and consolidated financial statements for 2016 have been announced in
accordance with the regulations and posted on the Company's website www.tig.vn. 7 | P a g e
- Report on business results in 2016 and production and business plan of 2017.
Yours faithfully submitted to the General Meeting of Shareholders for consideration and
approval.
Thank you very much!
To:
-
Shareholders;
Save in BOD, Board of
Supervisor.
Save for document purpose
On behalf of GENERAL DIRECTOR
DEPUTY GENERAL DIRECTOR
(signed and sealed)
Dao Thi Thanh
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