Content is deleted for demo purpose

Content is deleted for demo purpose

1

STEEL INDUSTRY REPORT Q1/2020


CONTENT

2

Section Page Section Page

Abbreviations 4 4. Raw materials

27

Executive summary 65. Production

34

I. Business environment8

6. Consumption37

1. Macroeconomic situation9

7. Import - export39

2. Legal framework12

8. Current situation of key nations in the industry41

3. Trade agreements15

9. Regional current situation49

II. Global market18

10. Major companies in the industry50

1. Definition and classification19

III. Vietnam market51

2. Production process21

1. History of development52

3. Production technology 25 2. Industry value chain 53


CONTENT

3

Section Page Section Page

3. Production technology55 1. Risks 84

4. Raw materials57 2. SWOT analysis 86

5. Scale66 V. Planning and forecasts 87

6. Construction steel 70 1. Planning 87

7. Steel pipe74 2. Global market forecasts 88

8. Galvanized steel75 3. Vietnam market forecasts 90

9. Import - export76 VI. Enterprise analysis 91

10. Distribution channel 79 1. Enterprise introduction 92

11. Competitive analysis 80 2. Financial analysis 96

IV. Risk analysis 84 VII. Appendix of financial statements 111


ABBREVIATIONS

4

Abbreviation Full written Abbreviation Full written

ACFTA ASEAN - China Free Trade Agreement DBS Development Bank of Singapore

AEC ASEAN Economic Community EAEU Eurasian Economic Coalition

AISI American Iron and Steel Association EAF Electric Arc Furnace

ATIGA ASEAN Trade in Goods Agreement (ATIGA) EVFTA EU-Vietnam Free Trade Agreement

MONREMinistry of Natural Resources

and Environment GDP Gross domestic product

BOF Basic Oxygen Furnace HRC Hot Rolled Coil

Census The United States Census Bureau IEA International Energy Agency

CISA China Iron and Steel Association ITA US International Trade Administration

G&A expenses General administrative expenses JISF Japan Iron and Steel Federation

CRC Cold Rolled Coil JPC Joint Plant Committee

JSC Joint Stock Company CPTPPComprehensive and Progressive

Agreement for Trans-Pacific Partnership

ABBREVIATIONS


ABBREVIATIONS

5

Abbreviation Full written Abbreviation Full written

KOSA Korean iron and steel Association VSA Vietnam Steel Association

OECDOrganization for Economic Co-operation

and Development WCA World Coal Association

GDVC General Department of Vietnam Customs WSA World Steel Association

GSO General Statistics Office of Vietnam Co., Ltd Liability Limited Company

ABBREVIATIONS


EXECUTIVE SUMMARY

6

WORLD

Raw materials:

• World steel supply: World crude steel production in 2019 reached X

million tons, increasing by X% compared to 2018.

Steel consumption demand:

Total steel consumption of Asia always ranked first in the world in the period of 2011 - 2018

VIETNAM

• It is estimated that in 2019 steel pipe production will reach X thousand

tons and consumption will reach X thousand tons.


EXECUTIVE SUMMARY

7

Enterprises

Business performance of steel enterprises in 2018 was quite optimistic but

paled in comparison with 2 years ago. Forecasts

2019 will continue to be a hard year for steel enterprises.


8

BUSINESS ENVIRONMENT


Part I. Business environment

1. Macroeconomic situation

9

• Gross domestic product (GDP) the whole year of 2019 is estimated to

increase by X%

• VND/USD exchange rate in 2019 continues the slight upward trend.

Source: VIRAC, GSO

Source: VIRAC

Urbanization rate in Vietnam, 2012 - 2019

Source: VIRAC, SBV

GDP growth rate by quarter, 2016 - 2019

VND/USD, 1/2013 – 12/2019



1. Macroeconomic situation

10

• Domestic coal supply in the near future will be in great shortage and

continue to be imported.

Source: VIRAC, Indexmundi

Source: VIRAC, GSO

Coal price movements, 2013 – 2019

Coal production output and export volume, 2008 – 2019



2. Legal framework

11

• Circular No. 101/2015/TT-BTC dated June 29, 2015

• Decree No. 38/2015/ND-CP of the Government

• Circular No. 165/2014/TT-BTC was issued by the Ministry of Finance on January 1, 2015



2. Legal framework

12

• Ministry of Industry and Trade issued Decision No.1656/QD-BCT

• Joint Circular No. 58/2015/BCT-BKHCN issued by the Ministry of Industry and Trade, and the Ministry of Science and Technology

Country/Territory ProducerOld anti-dumping duty (applied from

October 5, 2014 to May 13, 2016)

New anti-dumping duty (applied from

May 15, 2016 to October 6, 2019)



2. Legal framework

13

• On March 3, 2016, the Minister of Industry and Trade issued Decision No. 818/QD-BCT

• Resolution No. 1084/2015/UBTVQH13 dated 10/12/2015 of the National Assembly Standing Committee

• Ministry of Industry and Trade issued Circular No. 12/2015/TT-BCT

• Decision No. 1931/QD-BCT

• Decision No. 2754/QD-BCT



2. Legal framework

14

• Ministry of Industry and Trade issued Decision No. 2968/QD-BCT dated July 18, 2016.

Item

Previous self-

defense tariff

Temporary self-defense tariff

(valid until October 2016)

Official self-defense tariff (effective from

02/08/2016)

Official schedule of applying self-defense tariff, 3/2016 – 3/2019

Source: VIRAC, Ministry of Industry and

TradeSource: VIRAC, Ministry of Industry and Trade



3. Trade agreements

AEC’s impacts on Vietnam steel enterprises

ASEAN Trade in Goods Agreement (ATIGA)

18



3. Trade agreements

19

Impacts of CPTPP on Vietnam’s steel industry



3. Trade agreements

20

EU – Vietnam Free Trade Agreement

Vietnam – Eurasian Economic Union Free Trade Agreement

ASEAN-China Free Trade Area


18

GLOBAL MARKET


Part II. Global market

1. Definition and classification

Definition

Classification

22



1. Definition and classification

23



2. Production process

Steel production process

Closed production process model

25

Source:

VIRAC,




26

Steel production process

Source: VIRAC, WSA




Process: including 4 basic steps

1) Ironmaking:

26

Chemical reactions in the furnace

Source: VIRAC

2) Steelmaking:




3) Continuous Casting:

4) Rolling:

26



3. Production technology

Method

According to the World Coal Association (WCA), there currently exist 4 steel production methods:

• BOF – Basic Oxygen Furnace

• EAF – Electric arc furnaces

30




• Pulverised coal injection:

• Recycling:

31



4. Raw materials

Raw materials for steel production include: metal scrap and iron ore.

Fuel in steel production includes coal and gas

27



4. Raw materials

• Iron ore production in 2019 is estimated to increase by X%

compared to 2018, reaching X million tons.

Source: VIRAC,

Statista

32

World iron ore production 2013 – 2019e

Source: VIRAC, Statista

Country 2015 2016 2017 2018 2019e

Iron ore production in some world regions, 2015 – 2019e



4. Raw materials

• In 2018, world iron ore exports reached X billion tons, equivalent to X

billion USD.

Source: VIRAC, Trademap

32

World iron ore exports, 2014-2018

World iron ore prices, 2013 – 2019• The average price of iron ore in the second quarter reached X

USD/ton,

Source: VIRAC, Indexmundi


Iron, steel scrap


4. Raw materials

Source: VIRAC, WSA

• In 2018, world recycled steel consumption reached X million tons

33

Source: VIRAC, BIR

Global steel recovery rates by sector, 2018

Recycled steel consumption by region, 2018



4. Raw materials

• Europe is the largest recycled steel exporter and importer.

• In 2018, EU’s recycled steel exports reached X million tons,

increasing by X% compared to 2017.

Source: VIRAC,

WSA

Source: VIRAC,

WSA

34

World recycled steel import - export, 2011-2018

0

10

20

30

40

50

60

-30

-20

-10

0

10

20

30

Recycled steel import – export by region, 2018



4. Raw materials

Coal and coke

About X% of total world steel production depends directly on the input coal. About X billion tons of coal is used in world steel production, accounting

for about X% of total world coal consumption.

35



4. Raw materials

In 2018, coke production reached X million tons, increasing by X

% compared to 2017;

Source: VIRAC, IEA

36

Source: VIRAC, ITC Source: VIRAC, ITC

Coke production and consumption, 2012 – 2018

Top coke exporters, 2018Top coke importers, 2018



5. Production

38

Source: VIRAC, WSA

• According to World Steel Association (WSA), world crude steel

production in 2019 reached X million tons, increasing by X%

compared to 2018.

World steel production, 2000 - 2019

Source: VIRAC, WSA

World crude steel production, 2011 - 2019


• Steel is an important heavy industry, the input for many other industries

in the world such as construction, mechanical engineering, automobile

manufacturing, energy, ...


5. Production

39

Source: VIRAC, WSA

Top 10 countries by steel production output, 2019

Country 2019 Change (yoy) % Market share



5. Production

39

Source: VIRAC, WSA

Steel production by production method, 2018



6. Consumption

41

Source: VIRAC,

WSA

Source: VIRAC, WSA

World steel consumption in 2012 – 2014 increased sharply owing to great

demand, reaching X million tons in 2014.

Total steel consumption of Asia always ranked first in the world during the

period of 2012 – 2018.

Source: VIRAC,

WSA

1,300

1,350

1,400

1,450

1,500

1,550

1,600

1,650

1,700

1,750

-4%

-2%

0%

2%

4%

6%

8%

10%

World iron and steel consumption, 2012-2018

Steel consumption in some regions, 2012-2018

Steel consumption by region 2018



6. Consumption

42

Source: VIRAC,

OECD

Source: VIRAC,

WSA

• Steel consumption per capita varies among regions

• Steel consumption growth rate by sector also differs among

countries and regions.

Construction Automobile Mechanic Metal product Other vehicles Household applianceYear 2014 2015 2016 2014 2015 2016 2014 2015 2016 2014 2015 2016 2014 2015 2016 2014 2015 2016

Tốc độ tăng trưởng tiêu thụ thép theo ngành giữa các khu vực 2014 – 2016 (%)

Steel consumption per capita, 2018



7. Import - export

44

Source: VIRAC,

WSA

Source: VIRAC,

WSA

• In the last 5 years, world steel import-export has been going up

from 2011-2016 and going down from 2017-2018.

380

400

420

440

460

480

500

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

World steel import - export, 2011-2018

Steel trade balance by region 2017-2018



7. Import - export

45

Source: VIRAC, WSA

Source: VIRAC,

WSA

Source: VIRAC, WSA

Top 10 world exporters, 2018

Top 10 world importers, 2018Top 10 exported steel products, 2018



8. Current situation of key nations in the industry – 8.1 – China

47

Source: VIRAC, WSA,

JISF

• In recent years, China’s steel production and consumption has

experienced many changes.

China’s crude steel production and consumption, 2011 – 2019

In 2019: China's steel output reached a record of X million tons, an

increase of X% compared to 2018



8. Current situation of key nations in the industry – 8.1 – China

47

Source: VIRAC, WSA, China custom

2019 is the fourth consecutive year in which steel exports declined in

China when the country only exported X million tons of steel, down X

% compared to 2018, reaching the lowest level since 2013.

China’s steel import - export, 2011 – 2019



8. Current situation of key nations in the industry – 8.2 – Japan

48

Source: VIRAC, WSA, JISF

Source: VIRAC, WSA,

JISF

2019 is the second consecutive year in which Japan’s position as the world’s

2nd steel producer was claimed by India.

Source: VIRAC, WSA, JISF

Steel consumption by sector, 2017e

Japan’s steel production – consumption 2011 – 2019

Japan’s steel import – export 2011 – 2019



8. Current situation of key nations in the industry – 8.3 – India

49

Source: VIRAC, JPC, Indian ministry of steel

India is a country with strong growth in steel industry, especially in 2018,

India’s steel import and export also had significant change, especially the

fluctuations in steel imports and a continuous reversal in the trade balance

in the last 5 years.

Source: VIRAC,

WSA

India’s finished steel product import – export, 2012 – 2019p

India’s finished steel production, 2012 – 2019p

0

20

40

60

80

100

120

140

0%

5%

10%

15%

20%

25%



8. Current situation of key nations in the industry – 8.4 – Korea

50

Source: VIRAC,

WSA

Source: VIRAC,

WSA

• Korea is always in the top 10 steel producing countries.

• After reaching a record production of X million tons in 2018, Korean steel

output has decreased by X% to X million tons in 2019.

Korea’s steel consumption per capita, 2011 - 2018

Korea’s steel production - consumption, 2011 - 2019


• Despite being the world’s third largest importer and exporter for many consecutive years, Korea has no big difference in the trade balance.

Source: VIRAC, World’s top

exports

Source: VIRAC, World’s top

exports


8. Current situation of key nations in the industry – 8.4 – Korea

51

Main exported products, 2019 Main imported products, 2019


• United States is the fourth largest steel producer in the world, but it is the

second largest steel consumer after China in 2018.

• However, from 2017 to the present, the U.S steel industry has recovered, the

average steel output increased by X% in the period of 2017-2019 .

Source: VIRAC,

WSA

Source: VIRAC, AISI


8. Current situation of key nations in the industry – 8.5 – United States

52

U.S crude steel production and consumption, 2011 – 2019

U.S steel consumption by sector, 2017


• In 2018, United States is the second largest steel net importer after EU.

Source: VIRAC, AISI,

Census

Source: VIRAC, ITA


8. Current situation of key nations in the industry – 8.5 – United States

53

Steel imports by product, 11M/2018

U.S steel trade, 2011- 2018


• Asia has always been a world leader in steel production and

consumption. In 2019, steel production in Asia reached X million tons,

equal to X% of the world's total production.

Source: VIRAC,

WSA


9. Regional current situation

55

Source: VIRAC, WSA

Asia’s steel import - export, 2011-2018

-

200.0

400.0

600.0

800.0

1,000.0

1,200.0

1,400.0

1,600.0

1,800.0

2,000.0

-

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

3,500.0

Asia’s steel production and consumption, 2011 - 2019


Source: VIRAC, WSA

Top 10 steel producing enterprises in the world, 2017 – 2018


10. Major companies in the industry

57

Ranked in 2017 Ranked in 2018 Enterprise2017 2018 Growth rate

Market share 2018(Million tons) (Million tons) 2017 – 2018


51

VIETNAM MARKET


• Vietnamese steel industry started from 1959

• In recent years, Vietnam’s steel industry has experienced high growth rate

Part III. Vietnam market

1. History of development

64


Long steel industry value chainThe current value chain of long steel production in Vietnam includes:

Ore + limestone + coal => Cast iron => Steel refining => Steel casting => Steel rolling.


2. Industry value chain

66


Flat steel industry value chain

World flat steel value chain, 2015


2. Industry value chain

Source: VIRAC

Source: VIRAC

67


69



BOF vs EAF

Source: VIRAC, Steel onthenet

Crude steel production by method in Vietnam, 2012 - 2015

Source: VIRAC, WSA


70



Enterprise Method applied Product

Method applied by enterprises


BOF: Main input raw materials: Iron ore and coke

72


4. Raw materials


73


4. Raw materials

Iron ore and refined iron ore production, 2011 - 2018 Iron ore import volume and value, 2013 – 2018

Source: VIRAC, UncomtradeSource: VIRAC, GSO

-

1.00

2.00

3.00

4.00

5.00

6.00

-40%

-20%

0%

20%

40%

60%

80%

100%

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

0

100

200

300

400

500

600


74


4. Raw materials


75


4. Raw materials

Coal demand for Vnsteel’s steel production, 2017 - 2020

Coal type 2017 2018 2019 2020

Source: VIRAC


• In 2019, Vietnam’s iron and steel scrap imports decreased slightly compared to the same period in 2018; the import volume reached X thousand tons

(down X%).

69


4. Raw materials

Source: VIRAC, GDVC

Source: VIRAC, GDVC

Iron and steel scrap imports, 2011 - 2019EF furnace

Steel scrap imports by country, 2019



4. Raw materials

70

Billet production output and import volume, 2011 – 2016

Source: VIRAC, GSO, GDVC


Currently, steel billet and scrap products for domestic steel production are mostly imported.


4. Raw materials

71

Source: VIRAC, VSA

Steel scrap and billet import price movements, 2016 – 6/2019


Semi-finished steel products: Hot rolled coil (HRC) and cod rolled coil (CRC).


4. Raw materials

79

Source: VIRAC

Source: VIRAC, FPTS, VSA

HRC import volume, 2015 - 2017



4. Raw materials

80

Source: VIRAC, Bloomberg

HRC prices by month, 7/2017-2018

In the first half of 2019, Formosa Ha Tinh produced X million tons of HRC, an increase of X% over the same period; exported about X% of the output.

Source: VIRAC, VSA

Estimated HRC production 2017 – 2022f


• As of the end of 2018, the whole country has about X enterprises

operating in steel production,

73


5. Scale

Source: VIRAC, GSO

Source: VIRAC, GSO

Enterprises and Labors in the steel production industry, 2014 - 2018

Number of enterprises by region 2018



5. Scale

74

Vietnam’s crude steel production, 2013 – 2019

Source: VIRAC, WSA

In 2019, Vietnam’s crude steel production reached X thousand tons, increasing approximately by X% compared to last year

Source: VIRAC, WSA

Crude steel production in regional countries, 2019


Currently-invested steel projects

75


5. Scale

Source: VIRAC

EnterpriseAdded capacity

Product Location Time(Ton/Year)


Consumption

75


5. Scale

Steel products consumption, 2019

• Total steel consumption in 2019 reached X million tons,

increasing by X% compared to the same period last year.

Source: VIRAC, WSA

Source: VIRAC, WSA

Steel products consumption, 2013 – 2019



6. Construction steel

74

Source: VIRAC, VSA

Construction steel production, 2013 – 2019Construction steel

According to the latest update of VIRAC, Hoa Phat’s market share in

construction steel has increased by over X% thanks to the rise in the South’s

demand and export volume.

Source: VIRAC, VSA

Self-defense tariff on construction steel, 2017 - 2021 Construction steel consumption, 2011 – 9M/2019




74

Source: VIRAC, VSA

No. Exempted enterprise No. of exemption decision

Exempted product Exempted quantity in 2019 (tons)


Construction steel market share in South and Central Vietnam 2018, 2019

• In 2019, Hoa Phat improved their market share in long steel,

78

Source: VIRAC, VSA



Construction steel market share, 2019

Source: VIRAC, VSA


Construction steel price

• In the first 6 months of 2019, steel price increased sharply on the

market

91



Source: VIRAC, VCBS

Rebar price movements 2019


Steel pipe

Regarding market share, in 2019, Hoa Phat maintained their leading

position in the steel pipe production market (accounting for X%);

80


7. Steel pipe

Steel pipe production and consumption 2013 – 2019

Source: VIRAC, VSA

Source: VIRAC, VSA

Steel pipe market share 2019

Content is deleted for demo purposeSource: VIRAC, VSA

In 2019, galvanized steel consumption

reached X thousand tons, decreasing by 22% compared to the same

period. Reasons:

79


8. Galvanized steel

Source: VIRAC, VSA

Galvanized steel production and consumption, 2013 – 2019

Galvanized steel market share 2018 - 2019


Source: VIRAC, GDVC

In 2019, iron and steel imports reached X million tons,

• China is still the largest steel supplier for Vietnam.

Source: VIRAC, GDVC

82


9. Import - export

Steel imports, 2013 – 2019

Steel imports by market, 2019


China is still the largest steel supplier for Vietnam. The import volume from this market in 2019 accounted for X% of Vietnam’s total steel import value.

Source: VIRAC, GDVC

83


9. Import - export

Chinese steel import volume and value,, 6/2016 – 12/2019


Source: VIRAC, GDVC

• In 2019, Vietnamese steel exported to foreign markets increased by

X% in volume, decreased by X% in value and X% in price compared

to 2018.

Source: VIRAC, GDVC

84

Iron and steel export volume and value, 2013 – 2019


9. Import - export

Vietnam’s steel export markets, 2019


Hoa Phat’s steel distribution system• Currently, most domestic steel enterprises, enterprises with

100% foreign capital, even private enterprises do not have

direct consumption system, thus sell goods through tier 1

companies,

93


10. Distribution channel


• The competitiveness of enterprises in Vietnam's steel industry is quite low

86


11. Competitive analysis


Closed process - Difference of Hoa Phat Steel

So far, Hoa Phat is the only construction steel enterprise in Vietnam that has been successful with a closed blast furnace technology from iron ore to

finished steel, also known as steel production from upstream.

87




Hoa Sen Group, the leading company in galvanized steel segment, also has its own competing strategies such as developing retail system, building

strong brands, expanding investment quickly with good technology and low cost, building a professional team.

Developing retail system

Building strong brands

Expanding investment quickly with good technology and low cost

88




Building a professional team

89




Polluted environment risks

Policy risks

97

Part IV. Risk analysis

1. Risks


Competitive risks

Consumption market risks

98


1. Risks


Strengths Weaknesses

Opportunities Threats

101


2. SWOT analysis


• The Prime Minister issued Decision No. 145/2007/QD-TTg on 04/09/2007

No. Content Planned location Start – complete time

Investment capital (million

USD)

Product (1000 tons)

Cast iron Billet Rolled steel

103

Part V. Planning and forecasts

1. Planning


• World steel demand growth continues to increase in 2018

106


2. Global market forecasts

Source: VIRAC, Worldsteel

Forecasts of world steel demand, 2019f - 2020f

Content is deleted for demo purposeForecasts of HRC and iron ore prices 2016 – 2020f

• Steel prices in the world tend to go down

Source: VIRAC,

Bloomberg

106


2. Global market forecasts


• In 2019, Vietnam Steel Association forecasts that total steel consumption will continue to grow. However, the growth rate will not be as high as in

2016 and 2017,

0

5

10

15

20

25

30

-20%

-10%

0%

10%

20%

30%

40%

Forecasts of steel consumption demand in Vietnam until 2020

Source: VIRAC, VSA

108


3. Vietnam market forecasts


ENTERPRISE ANALYSIS


Enterprise Logo Total assets

Revenue General information

123

Part VI. Enterprise analysis

1. Enterprise introduction


Enterprise Logo Total

assets

Revenu

e

General information

124






125






126




128


2. Financial analysis

Net revenue and growth rate, 2017 - 2018

Source: VIRAC, Enterprises' financial

statements

0

10,000

20,000

30,000

40,000

50,000

60,000

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%


129




In 2018, steel enterprises had declining marginal gross profit compared to the previous year. This was due to volatile price movement of input raw

materials.

Source: VIRAC, Enterprises' financial

statements

130



Gross profit and gross profit rate, 2017-2018

(2,000)

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%


131




132



Selling expenses/net revenue, 2017-2018

Source: VIRAC, Enterprises' financial statements


133




134



G&A expenses/net revenue, 2017-2018

• Like the ratio of selling expenses / net revenue, the ratio of enterprise management expenses of steel enterprises is also differentiated, in the range

of X-X%.


0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%


135



Financial expenses/ net revenue, 2017 -2018

• Many enterprises had higher financial expenses/net revenue rate in 2018 compared to 2017.


0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%


• Due to characteristic production, steel producing enterprises with different products and technology will have different asset structure.

136



Asset structure, 2018


-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0


• The level of using financial leverage of enterprises in the industry is quite diversified depending on the risk appetite of each enterprise.

137



Debt structure, 2018


-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

0.00

1.00

2.00

3.00

4.00

5.00

6.00


138




Average inventory turnover of steel enterprises is about x-x round per year.

139



Inventory turnover, 2018


-

2.00

4.00

6.00

8.00

10.00

12.00

14.00


Long steel (Construction steel) enterprises often have higher number of receivable days.

140



Receivable days, 2017 - 2018


0

10

20

30

40

50

60

70

80

90

100


Steel enterprises with relatively fast liquidity ratios, current industry average index only reached X and there is a large gap between these two indexes.

141



Enterprises’ liquidity, 2018


0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00


142




Probability ratio/asset and equity, 2018

Profit after tax, 2017 - 2018


Profit after tax of steel enterprises fell sharply compared to the previous year

except

(2,000)

-

2,000

4,000

6,000

8,000

10,000

-10%

-5%

0%

5%

10%

15%

20%


Part VII. Appendix of financial statements

111


BALANCE SHEET

Unit: Billion VND 2017 2018

A. CURRENT ASSETS

I. Cash and cash equivalents

II. Short-term financial investments

III. Short-term receivables

IV. Inventories

B. LONG-TERM ASSETS

I. Fixed assets

TOTAL ASSETS

A. LIABILITIES

I. Current liabilities

II. Long-term liabilities

B. OWNER’S EQUITY

TOTAL CAPITAL RESOURCES

INCOME STATEMENT


Net revenue of goods sold and services

provided

Cost of goods sold and services provided

Gross profit of goods sold and services

provided

Revenue of financial activities

Financial expenses

Cost of sales

Administrative expenses

Net profit of business activities

Total accounting profit before taxProfit after tax

CASH FLOW STATEMENT

2017 2018

I. Cash flow from business activities

Net cash flow from business activities

II. Cash flow from investing activities

Net cash flow from investing activities

III. Cash flow from financial activities

Net cash flow from financial activities

Net cash flows during the fiscal yearCash and cash equivalents at the beginning of the fiscal yearCash and cash equivalents at the end of the fiscal year

Part VII. Financial Statements Appendix

Financial statements - Hoa Phat Joint Stock Company

144


BALANCE SHEET


A. CURRENT ASSETS




Hàng tồn kho

B. LONG-TERM ASSETS

I. Fixed assets

TOTAL ASSETS

A. LIABILITIES



B. OWNER’S EQUITY


INCOME STATEMENT



provided



provided


Financial expenses

Cost of sales




CASH FLOW STATEMENT









145


Financial statement– TISCO


BALANCE SHEET


A. CURRENT ASSETS




Hàng tồn kho

B. LONG-TERM ASSETS

I. Fixed assets

TOTAL ASSETS

A. LIABILITIES



B. OWNER’S EQUITY


INCOME STATEMENT



provided



provided


Financial expenses

Cost of sales




CASH FLOW STATEMENT








Net cash flows during the fiscal year

Cash and cash equivalents at the beginning of the fiscal year

Cash and cash equivalents at the end of the fiscal year

146


Financial statement- POM


BALANCE SHEET


A. CURRENT ASSETS




Hàng tồn kho

B. LONG-TERM ASSETS

I. Fixed assets

TOTAL ASSETS

A. LIABILITIES



B. OWNER’S EQUITY


INCOME STATEMENT



provided



provided


Financial expenses

Cost of sales




CASH FLOW STATEMENT








Net cash flows during the fiscal year

Cash and cash equivalents at the beginning of the fiscal year


147


Financial statement- VISCO


BALANCE SHEET


A. CURRENT ASSETS




Hàng tồn kho

B. LONG-TERM ASSETS

I. Fixed assets

TOTAL ASSETS

A. LIABILITIES



B. OWNER’S EQUITY


INCOME STATEMENT



provided



provided


Financial expenses

Cost of sales




CASH FLOW STATEMENT









148


Financial statement- DNY


BALANCE SHEET


A. CURRENT ASSETS




Hàng tồn kho

B. LONG-TERM ASSETS

I. Fixed assets

TOTAL ASSETS

A. LIABILITIES



B. OWNER’S EQUITY


INCOME STATEMENT



provided



provided


Financial expenses

Cost of sales




CASH FLOW STATEMENT









149


Financial statement- HSG


BALANCE SHEET


A. CURRENT ASSETS




Hàng tồn kho

B. LONG-TERM ASSETS

I. Fixed assets

TOTAL ASSETS

A. LIABILITIES



B. OWNER’S EQUITY


INCOME STATEMENT



provided



provided


Financial expenses

Cost of sales




CASH FLOW STATEMENT









150


Financial statement- NAKISCO


BALANCE SHEET


A. CURRENT ASSETS




Hàng tồn kho

B. LONG-TERM ASSETS

I. Fixed assets

TOTAL ASSETS

A. LIABILITIES



B. OWNER’S EQUITY


INCOME STATEMENT



provided



provided


Financial expenses

Cost of sales




CASH FLOW STATEMENT









151


Financial statement- VGS


BALANCE SHEET


A. CURRENT ASSETS




Hàng tồn kho

B. LONG-TERM ASSETS

I. Fixed assets

TOTAL ASSETS

A. LIABILITIES



B. OWNER’S EQUITY


INCOME STATEMENT



provided



provided


Financial expenses

Cost of sales




CASH FLOW STATEMENT









152


Financial statement- DTL


BALANCE SHEET


A. CURRENT ASSETS




Hàng tồn kho

B. LONG-TERM ASSETS

I. Fixed assets

TOTAL ASSETS

A. LIABILITIES



B. OWNER’S EQUITY


INCOME STATEMENT



provided



provided


Financial expenses

Cost of sales




CASH FLOW STATEMENT









153


Financial statement- SMC


BALANCE SHEET


A. CURRENT ASSETS




Hàng tồn kho

B. LONG-TERM ASSETS

I. Fixed assets

TOTAL ASSETS

A. LIABILITIES



B. OWNER’S EQUITY


INCOME STATEMENT



provided



provided


Financial expenses

Cost of sales




CASH FLOW STATEMENT








Net cash flows during the fiscal yearCash and cash equivalents at the beginning of the fiscal year


154


Financial statement- TLH


123

Recommendation

Recommended uses

This report is made Vietnam Industry Research and Consultancy (VIRAC), providing only the industry overview and business analysis. All information, statements

and projections are based on reliable sources with ultimate prudence as of the time of writing. However, due to subjective and objective reasons in terms of

published formation sources, VIRAC does not guarantee or bear any responsibility for information accuracy and no liability for damages on using this report partly

or wholly. All viewpoints and statements in this report are subjected to changes without notice. This publication is protected by copyright owned by Vietnam

Industry Research and Consultancy (VIRAC). Copying, modifying and printing without permission are strictly prohibited.

Please contact us for more details:VIETNAM INDUSTRY RESEARCH AND CONSULTANCY

Floor 6, Anh Minh Building, 36 Hoang Cau Street, O Cho Dua Ward, Dong Da District, Hanoi

Website: http://virac.com.vn/

Email: [email protected] | Phone: +84 463289520

http://virac.com.vn/

mailto:[email protected]

mailto:[email protected]

Content is deleted for demo purposeThank you !

Documents

Content is deleted for demo purpose