VIETNAM WOOD INDUSTRY REPORT, Q3/2019...• The global wood processing market has increased from x billion USD in 2012 to x billion USD in 2016 with an annual growth rate (CAGR) of

Content is deleted for Demo purpose

1

VIETNAM WOOD INDUSTRY REPORT, Q3/2019


Abbreviation 3 3.3 Production 30

Executive summary 4 3.4 Consumption 39

1. Business environment 6 3.5 Import export 43

1.1 Macroeconomic situation 7 3.6 Industry development planning 61

1.2 Legal framework 9 3.7 Outlook 62

2.World wood market

Market overview21 4 Enterprise analysis 64

2.1 Production 24 4.1 Enterprise introduction 65

3 Vietnam wood market 27 4.2 Financial analysis 67

3.1 History of foundation and development 28 3.10 Appendix 76

3.2 Value chain 29

Content

2


3

Content

GSO General Statistics Office of Vietnam CO., LTD Company Limited

GDVC General Department of Vietnam Customs IZ Industrial Zone

EUTR EU Timber Regulation SBV State Bank of Vietnam

CSIL Center for Industrial Studies IMEX Import Export

JSC Joint Stock Company VA Value Added

EVFTA EU – Vietnam Free Trade Agreement


4

Executive summary

WORLD MARKET

PRODUCTION

• The global wood processing market has increased from x billion USD

in 2012 to x billion USD in 2016 with an annual growth rate (CAGR) of

x%.

TRADE

• China, Canada and Germany are the largest exporters of industrial

wood, while the US is the leading import market.


5

Executive summary

VIETNAM MARKET

DOMESTIC MATERIALS

• Generally, in 6M/2019, the area of concentrated forestation in the

whole country is estimated at x thousand hectares, down by x%

compared to the same period last year

MATERIAL IMPORT

PRODUCTION

CONSUMPTION

TRADE

OUTLOOK

Content is deleted for Demo purpose1. Business environment


7

1. Business environment

1.1 Macroeconomic situation

Source: VIRAC, GSO

• The gross domestic product (GDP) in the second quarter of 2019 is

estimated to increase by x% over the same period last year, lower than

the growth rate of the second quarter of 2018 but higher than the

growth of the second quarter of 2016 and 2017.

Source: VIRAC, GSO

%

USD

billion

Source: VIRAC, GDVC

Export turnover of Vietnam, 2011 - 6M/2019

GDP structure at current prices, 6M/2019GDP growth rate by quarter, 2016 - 2019


8

The VND/USD exchange rate in the first 6 months of 2019 continued the

slight upward trend. At the end of June 2019, the central rate was at

VND x/USD, higher than the VND x - x level for the same period of 2018

and VND x at the end of 2017.


1.1 Macroeconomic situation

Source: VIRAC, World Bank

USD/barrel

Source: VIRAC, SBV

World crude oil prices, 2011 - 6/2019

VND/USD exchange rate, 1/2013 – 6/2019


9

Domestic policy

General management policy

• Land Law (2003); Law on environmental protection (2005); Forestry Law (2017)

• Circular 35/2011/TT-BNNPTNT issued by the Ministry of Agriculture and Rural Development on May 20, 2011

• Circular 01/2012/TT-BNNPTNT issued by the Ministry of Agriculture and Rural Development on January 4, 2012 and Circular No. 42/2012/TT-BNNPTNT

• Circular No. 11/2017/TT-BNNPTNT

Policy of planning and industry development.

• Decision No. 57/QD-TTg

• Decision No. 2728/QD-BNN-CB issued by the Ministry of Agriculture and Rural Development on October 31,

• Decision No. 957/QD-BNN-TCLN issued by the Ministry of Agriculture and Rural Development on May 8, 2014, approving the action plan for developing

timber and timber products market in the period of 2014 - 2020.


1.2. Legal framework


10

• Circular No. 15/2014/TT-BXD dated September 15, 2014

• Circular No. 21/2016/TT-BNNPTNT

• Circular 4/2017, February 24, 2017

• The Forest Law passed on November 15, 2017 at the 4th session of the XIV National Assembly, taking effect from January 1, 2019.




11

Tax policy

• VAT:

• Export tax: According to Circular 182/2015/TT-BTC issued by the Ministry of Finance on import and export tariffs in 2016,

Import tax policy

• Decree No. 187/2013/ND-CP issued by the Government on November 20, 2013

• Circular No. 37/2014/TT-BCT issued by the Ministry of Industry and Trade on October 24, 2014




12

International policy

The Lacey Act

Some acts that violate the Lacey Act




13

Legal timber regulations of Europe

Accountability includes the following main contents:




14

Australian Illegal Logging Prohibition Act

On October 5, 2017, the Australian Government announced that it will revise its Illegal Logging Prohibition Regulation 2012.




15

According to the Vietnam Trade Office in Australia, from 11 September 2018 there have been changes in the requirements of dealing with sulfuryl

fluoride compounds for wood and wood products, including packaging and objects. Material for dunnage made of wood imported into Australia.




16

Japanese Clean Wood Act

Korean Clean Wood Act




17

Changes in China's forestry policy

Effects on Vietnam




18

Other regulations when exporting wood to the European market:

Tax regulations

•

Non-tax regulations

Environmental requirements




19

Impact of Brexit on Vietnam's wood export

• In the short term, Brexit has not had a strong impact on Vietnam's wood export activities but in the long run, this impact will be stronger and more clear.




20

Impact of US-China trade war

➔ Vietnam's wood industry is heavily influenced by the US-China trade war, because United States and China are the main export countries of Vietnam in

the industry.




21

2. WORLD MARKET


22

• The timber processing industry in the pre-processing stage includes establishments producing sawn timber, planks, beams, wood, piles, joints,

shingles, paving, siding, and logs from roundwood.

2. World market

2.1 Production - Wood processing


23

Top five industrial timber producers, China, the US, the Russian

Federation, Germany and Canada, account for 69% of global production

in 2017, a sharp increase compared to 2012 (63%).

Million

m³

Source: VIRAC, FAO

Source: VIRAC, FAO

2. World market

2.1 Production - Industrial wood

Industrial wood production and consumption, 2011-2030f

Structure of industrial wood production by country, 2017


24

Particle board and melamine board clipboard is mainly

used in furniture production in most countries.

Source: VIRAC, FAO

2. World market

2.1 Production - Industrial wood

Structure of industrial wood production by product type, 2017


25

• The furniture industry in the world has historically been a labor-

intensive and natural resource-based industry.

2. World market

2.1 Production - Furniture


26

Source: VIRAC, FredSource: VIRAC, Fred

Source: VIRAC, Fred Source: VIRAC, Fred

2. World market

2.1 Production - Furniture

Price index of wooden furniture production for children, 2004-2018 Price index of office furniture production, 1965-2018

Price index of furniture and kitchen furniture

production, 1967-2018Price index of office furniture manufacturing, 1998-2018


27

3. VIETNAM MARKET


28

History of wood processing industry in Vietnam

• Carpentry in Vietnam has been established since ancient times. Many ethnic groups in the northwest mountainous region - Viet Bac have long been in small stilt

houses with wooden and bamboo.

3. Vietnam market

3.1 History of foundation and development of the industry


29

Domestic

distribution

Export

Value chain of Vietnam's wood processing industry

3. Vietnam market

3.2 Vietnam wood industry value chain


30

• The number of wood enterprises (exploiting and processing wood)

has increased continuously over the years, of which x% of enterprises

are privately owned, x% of enterprises are state-owned.

Source: VIRAC, GSO

Source: VIRAC, GSO

3. Vietnam market

3.3 Production

Number of enterprises and workers in wood industry, 2010 - 2017

Distribution of wood processing enterprises by region, 2017e


31

Investment capital, the wood industry has fixed assets and annual long-

term investments continuously grow over the years due to the

development potential of the industry from increasing demand and

benefits from FTAs.

Source: VIRAC, GSO

Source: VIRAC, GSOSource: VIRAC, GSO

Scale of wood industry enterprises by investment capital and labor, 2016

3. Vietnam market

3.3 Production

Investment capital and fixed assets of wood industry, 2010 - 2017e

Revenue and profit of wood industry, 2010 - 2017e


32

Recent 15-year period has witnessed the spectacular growth of FDI

enterprises.

Source: VIRAC, VASEP

The number of FDI enterprises operating by active models and by

countries of wood industry, 2018e

3. Vietnam market

3.3 Production


33

• The wood industry in 2018 is generally positive with many FTAs signed and gradually going into effect.

• Japanese and Korean markets are also in the process of expanding and increasing the demand for wood products.

Source: VIRAC, GSO

Billion VND

3. Vietnam market

3.3 Production – Wood processing

Production value of wood processing industry, 2008 - 2018e


34

Woodchip is the raw material of the pulp and artificial board industry.

Source: VIRAC, GSO

Million tons

3. Vietnam market

3.3 Production – Woodchips

Production of woodchips in Vietnam, 2010 – 6M/2019


35

Artificial board manufacturing of the wood furniture industry has

developed strongly in recent years, leading to the development of a

number of related industries including the manufacturing of artificial

boards (industrial wood).

Source: VIRAC, GSO

Million m³

3. Vietnam market

3.3 Production – Industry wood

Production of artificial boards, 2010 – 6M/2019


36

➢ In August 2018, Kim Tin Group inaugurated the modern MDF - FSC Vietnam board factory in the world top 10 with an annual capacity of x m³ in

Nam Dong Phu and Tan Lap Industrial Zones, Dong Phu District, Binh Phuoc Province.

3. Vietnam market

3.3 Production – Industrial wood


37

Enterprises producing interior and exterior wood products are mainly

private enterprises, of which about x% are concentrated in the North

(Hanoi, Phu Tho, Bac Ninh ...) and x% of enterprises are concentrated in

South Central Coast and Southeast (Binh Dinh, Binh Duong, Dong Nai ...).

3. Vietnam market

3.3 Production – Wood products

Classifying enterprises by capital origin, 2015


38

Source: VIRAC, GSO

• In the first 6 months of 2019, the production output of wooden furniture is estimated at x million units, of which chairs and tables are still the largest

products corresponding to x% and x%.

1000 units

Source: VIRAC, GSO

3. Vietnam market

3.3 Production – Wood products

Structure of wooden furniture production by product type, 6M/2019e Production of wooden furniture products, 2010 - 6M/2019e


39

• Therefore, some Vietnamese furniture enterprises want to join the domestic market and choose high-class segment by bidding for four- and five-star

resorts, hotels.

Source: VIRAC, Vietnam Timber and Forest Product

Association

Million USD

3. Vietnam market

3.4 Consumption

Consumption value of Vietnamese furniture in the domestic market, 2006 - 2018e


40

•

• Among the top wood processing enterprises in

Vietnam in 2018, 8 out of 9 companies are FDI

enterprises showing the weakness of domestic

wood enterprises.

Source: VIRAC

Billion VND

3. Vietnam market

3.4 Consumption


41

The value of woodchip consumption decreased in 2016 and 2017 due to

reduced consumption and woodchip prices also decreased when China

pressed prices.

Source: VIRAC, GSO

Source: VIRAC, GSO

Billion

VND

Billion

VND

3. Vietnam market

3.4 Consumption

Woodchip consumption value, 2010 – 6M/2019e

Consumption value of artificial board group, 2010 – 6M/2019e


42

Consumption value of wood furniture products is constantly increasing in the period of 2010 - 2015 and then slightly decreases in the period of 2016 -

2017. The main consumption market of this product group is still exported and has a great contribution from FDI enterprises

Source: VIRAC, GSO

Billion

VND

3. Vietnam market

3.4 Consumption

Consumption value of wood furniture, 2010 - 6M / 2019e


43

In the first 6 months of 2019, the export value of wood and wood

products reached x USD billion, an increase of x% compared to the same

period of 2018.

USD billion

Source: VIRAC, GDVC

Source: VIRAC, GDVC

3. Vietnam market

3.5 Import Export - Export

Wood and wood product export market structure, 6M/2019

Export turnover of wood and wood products of Vietnam, 2011 - 6M/2019


44

The proportion of wood export of domestic enterprises has improved

significantly from 2017 to the end of Q2/2019, from x% to x%.Source: VIRAC, GDVC

Source: VIRAC, GDVC

Million

USD

3. Vietnam market


Export of wood and wood products by month, 2016 - 6M/2019

Structure contributing to the export of wood and wood products in Vietnam,

2013 - 6M/2019


45

2018 is a successful year of Vietnam's export wood processing industry,

expressed in many aspects including a sharp increase in export turnover,

in addition, Vietnam is also gradually aiming to use wood of legal origin.

Source: VIRAC, GDVC, Vietnam Timber and Forest

Product Association

Million USD

Source: VIRAC, GDVC

3. Vietnam market


Export structure of furniture products, 6M/2019

Export turnover of some wooden products, 6M/2019


46

• Vietnam's wood and wood products are mostly exported to the US,

accounting for x% of the total export volume of this group of the

country, reaching USD billion in 6M/2019, up x% compared to

6M/2018.

Source: VIRAC, GDVC

Million

USD

3. Vietnam market


Source: VIRAC, MOIT

Million

USD

Import value of US wooden furniture, 5T/2019

Exporting wood and wood products to the US market, 2011 - 6M/2019


47

Source: VIRAC, GDVC

woodchips are Vietnam's largest and most important export item to China

in terms of turnover.

Million

USD

3. Vietnam market


Export turnover of wood and wood products to China, 2011

- 6M/2019


48

Source: VIRAC, GDVC

Product 2015 2016 2017 2018 2018 coompared to 2017 (%)

The value of Vietnam's wood products exported to China, 2015 - 2018

Unit: million USD

3. Vietnam market



49

• In the EU, Britain is the leading country in import turnover of wood

and wood products from Vietnam in 6M/2019 with x%.

Source: VIRAC, GDVC

Source: VIRAC, GDVC

Million USD

Proportion of exports of timber and timber products to EU by country, 6M/2019e

3. Vietnam market


Export turnover of wood and wood products to Europe, 2009 - 6M/2019e


50

• By the end of 2018, White Feathers International Co., Ltd is the largest

exporter of wood and wood products to the EU market.

Source: VIRAC, GDVC

3. Vietnam market


Top enterprises exporting wood and wood products to EU, 2018e


51

According to statistics from Eurostats, in the first 2 months of 2019, EU reduced imports from the domestic market and increased the import of wooden

furniture from outside markets.

Main market supplying wooden furniture to the EU market, 2M/2018

Source: VIRAC, EuroStats

2M/2019 Compared to 2M/2018 (%)

Market Volume (Million tons) Value (Billion Eur) Value (Million USD) Volume Value

3. Vietnam market



52

Strengths Weeknesses

3. Vietnam market



53

Opportunities Challenges

3. Vietnam market



54

China, Japan and South Korea are the three largest importers of

woodchips of Vietnam, with the amount of imported chips in these

markets accounting for x% of the total value and x% of the exported

chips in 4T/2019.


Product Association

Million USDMillion tons


Product Association

Importer 2015 2016 2017 2018 4M/2019

China

Japan

Korea

Volume of woodchips exported to major markets (million tons), 2015-

4M/2019


Product Association

3. Vietnam market


Woodchips export of Vietnam, 2010 – 4M/2019e

Market structure of woodchip export by value, 4M/2019


55

In 2018, there were x woodchip exporters with turnover of over USD x

million. In particular, Hao Hung Co., Ltd has achieved outstanding

turnover with x million USD.

Source: VIRAC, GDVC

USD

3. Vietnam market


Top exporters of woodchips 2018


56

• In recent years, boards have become an important export item of

Vietnam,


Product Association


Product Association

Million

USD

Export value of all types of planks in Vietnam, 2011 -

2018

3. Vietnam market


Export of planks of Vietnam, 2013 – 5M/2019e


57

• In the structure of wood and wood products, wood furniture accounts

for the highest proportion with x% of the total value of wood and

wood products exports in 5M/2019, estimated at USD x million, up x%

over the same period of 2018.

Source: VIRAC, GDVC, Vietnam Timber and Forest Product Association


Product Association

Million

USD

3. Vietnam market


Quantity and value of exported wood products, 2013 - 6M/2019

Export value of wooden furniture products, 2010 - 6M/2019


58

• In general, export of wooden furniture has a lot of growth potential, especially

bedroom furniture, due to the large market demand.

3. Vietnam market



59

• According to the statistics of the General Department of Customs,

the import turnover of Vietnam's wood and wood products in the

first 6 months of 2019 is estimated at USD x million, an increase of

x% compared to 6M/2018.

Source: VIRAC, GDVC

Source: VIRAC, GDVC

Million

USD

Importing wood and wood products from Vietnam, 2010 - 6M/2019

3. Vietnam market

3.5 Import Export - Import

Market structure of Vietnam's wood and wood products import, 6M/2019


60

Source: VIRAC

Major imported wood and wood products of Vietnam, 2018

Produuct

Import turnover from 2015 to 2017 (Million USD) 2018

Major supplying

countries

Main imported

items2015 2016 2017

Import

turnover

(million USD)

Import volume

(Million m³)

3. Vietnam market

3.5 Import Export - Import


61

• Prime Minister's Decision 57/QD-TTg dated January 9, 2012 approving the forest protection and development plan for the period 2011-2020.

• On May 5, 2014, the Minister of Agriculture and Rural Development issued Decision No. 919/QD-BNN-TCLN on "Action Plan - Improving the added value of wood

products through processing in the period of 2014 - 2020".

• On May 8, 2014, the Minister of Agriculture and Rural Development signed Decision No. 957/QD-BNN-TCLN Approving the "Action Plan for market development

of timber and timber products in the period of 2014 - 2020".

3. Vietnam market

3.6 Industry planning


62

Development prospects of Vietnam's wood industry

In terms of domestic market

3. Vietnam market

3.7 Prospects


63

USA: wood and wood products export to the US market are forecast to grow in the coming time

China: In the coming time, Vietnam's wood and wood products exports to China continue to be supported by factors such as:

3. Vietnam market

3.7 Prospects


64

4. ENTERPRISE ANALYSIS


65

Company

Total assets

(billions

dong)

Revenue

(billions

dong)

General information

Wanek furniture Co., LTD

Nitori Vietnam Processing

Enterprise

An Cuong Wood JSC

Shing Mark Vina Co., Ltd.

VRG Dongwha MDF JSC

4. Enterprise analysis

4.1. Enterprise introduction

Top 10 wood industry enterprises with the largest revenue, 2018


66

Company

TOTAL

ASSETS

(Billion VND)

Revenue

(Billion

VND)

General information

Rochdale Spears Co., Ltd.

San Lim Furniture Vietnam

Co., Ltd

Poh Huat Vietnam JSC

Woodworth Wooden

(Vietnam) Co., Ltd

Timber Industries Co., Ltd.

Top 10 wood industry enterprises with the largest revenue, 2018


4.1. Enterprise introduction


67

• The list of the top 10 enterprises in wood industry in 2018 has almost no change compared to 2017, most of the wood enterprises in the group with

the highest revenue are FDI enterprises from Taiwan, China, Malaysia

Billion

VND

Source: VIRAC


4.2. Financial analysis

Profit, 2017 - 2018


68

• An Cuong Wood Joint Stock Company is the only Vietnamese enterprise in the top of wood enterprises with the highest revenue in 2018, this year, the

company's revenue increased by x% and is the business with the strongest increase in net revenue in the year. 2018, reaching the 3rd position in the

top business.




69

• In general, selling expenses/net revenue of top wood enterprises in 2017 and 2018 did not change and remained at x%.

Source: VIRAC



Selling expenses, 2017 - 2018


70

• The majority of businesses in the group have average administrative expenses/net revenue, except Rochdale Spears, which has the highest ratio of

general and administration expenses (reached x% in 2017 and x% in 2018) however, it has decreased slightly over the years due to the increase in net sales

thanks to a positive export to the UK market.

Source: VIRAC



Administrative expenses, 2017 - 2018


71

• Due to business characteristics, the wood industry has a relatively high average number of inventory days on average of 87 days in 2018. In general, the

average inventory days of the whole wood industry in 2018 increased by about 8 days compared to 2017 Because most businesses expand production capacity,

the value of inventories is high, but still within acceptable levels.

Source: VIRAC

Days



Days in inventory, 2017-2018


72

• Shing Mark Vina is the enterprise with the highest average collection period, reaching x days in 2018

Source: VIRAC

Days



Days of sales outstanding, 2017 - 2018


73

• Most of the companies in the industry have a high self-financing rate because they are FDI enterprises with a healthy and stable financial situation,

except Woodworth Wooden Vietnam and Rochdale Spears, which have two billion companies. lowest self-financing rate.

Source: VIRAC



Self-financing ratio, 2017 - 2018


74

• Current solvency of most enterprises in the group is ensured due to reasonable structure of assets and financing structure of enterprises when

short-term assets are mainly in the form of inventories and receivables and sponsored are mainly from short-term sources (payable to suppliers and short-

term loans).

Source: VIRAC



Solvency, 2017 - 2018


75



• In 2017, Nitori Vietnam is the best performer in the analyzed group with the highest ROA and ROE in 2017 because after-tax profit increased

significantly compared to 2016 (up x%) in when total assets increased by only x% and equity increased by only x%

Source: VIRAC

Profit margin, 2017 - 2018


76

APPENDIX


131

Appendix

Financial statement - Wanek furniture Co., LTD

BALANCE SHEETS

Unit: VND 2017 2018

A. CURRENT ASSETS 3,651,100,748,121 4,378,313,084,993

I. Cash and cash equivalents 795,474,559,524 412,650,186,295

II. Short-term financial investments 1,000,000,000 1,000,000,000

III. Short-term receivables 1,280,417,936,751 1,478,664,998,847

1. Receivables from customers 1,042,117,695,989 1,455,052,546,634

IV. Inventories 1,479,782,666,894 2,176,852,231,885

B. LONG-TERM ASSETS 836,579,966,062 783,664,224,046

I. Long-term receivables 54,855,546,039 11,130,139,070

II. Fixed assets 657,161,904,516 587,346,365,573

TOTAL ASSETS 4,487,680,714,183 5,161,977,309,039

A. LIABILITIES 1,495,650,085,558 3,232,660,919,597

I. Current liabilities 1,495,586,338,043 3,232,597,172,082

1. Borrowings and short-term financial leased

liabilities- -

2. Taxes and other payables to the State budget 296,697,230 35,553,289,595

II. Long-term liabilities 63,747,515 63,747,515

1. Borrowings and long-term financial leased

liabilities- -

2. Provision for long-term payables 63,747,515 63,747,515

B. OWNER’S EQUITY 2,992,030,628,625 1,929,316,389,442

I. Owner's equity 2,992,030,628,625 1,929,316,389,442

II. Other funding sources - -

TOTAL CAPITAL RESOURCES 4,487,680,714,183 5,161,977,309,039

INCOME STATEMENT

Unit: VND 2017 2018

Net revenue of goods sold and services provided 11,625,263,507,443 13,659,407,533,976

Cost of goods sold and services provided 10,370,638,541,128 12,174,363,501,200

Gross profit of goods sold and services provided 1,254,624,966,315 1,485,044,032,776

Revenue of financial activities 36,602,001,716 78,203,406,395

Financial expenses 13,239,085,525 31,524,307,000

Interest expenses - -

Selling expenses 329,238,433,982 417,328,699,535

Administrative expenses 159,141,001,196 168,071,157,297

Net profit of business activities 789,608,447,328 946,323,275,339

Total accounting profit before tax 805,937,234,382 954,452,557,357

Current corporate income tax expenses 120,144,049,159 168,691,747,921

Deferred corporate income tax expenses 4,615,314,606 -4,024,951,381

Profit after tax 681,177,870,617 789,785,760,817

CASH FLOW STATEMENT

Unit: VND 2017 2018

I. Cash flow from business activities

Net cash flow from business activities 432,885,806,005 283,229,547,807

II. Cash flow from investing activities

Net cash flow from investing activities -290,986,176,191 175,293,929,274

III. Cash flow from financial activities

Net cash flow from financing activities - -846,580,000,000

Net cash flow of the year 141,899,629,814 -388,056,522,919

Cash and cash equivalents at beginning of the financial

period653,250,156,999 795,474,559,524

Cash and cash equivalents at the end of the financial

period795,474,559,524 412,650,186,295


132

Appendix

Financial statement - Nitori Vietnam Processing Enterprise

BALANCE SHEETS

Unit: VND 2017 2018

A. CURRENT ASSETS 2,248,294,170,494 2,437,228,259,998

I. Cash and cash equivalents 1,141,542,265,904 1,379,432,891,979

II. Short-term financial investments - -

III. Short-term receivables 566,936,801,056 488,516,129,134

1. Receivables from customers 530,242,636,659 479,564,505,325

IV. Inventories 539,815,103,534 569,279,238,885



II. Fixed assets 494,621,969,758 400,213,653,967

TOTAL ASSETS 2,786,471,304,367 2,880,418,019,417

A. LIABILITIES 370,917,382,885 331,660,190,196

I. Current liabilities 370,917,382,885 330,686,706,268


liabilities- -

2. Taxes and other payables to the State budget 28,944,254,091 17,246,455,116

II. Long-term liabilities - 973,483,928


liabilities- -

2. Provision for long-term payables - -

B. OWNER’S EQUITY 2,415,553,921,482 2,548,757,829,221

I. Owner's equity 2,415,553,921,482 2,548,757,829,221



INCOME STATEMENT

Unit: VND 2017 2018



Gross profit of goods sold and services provided 1,187,138,181,477 920,210,069,838



Interest expenses - -






Deferred corporate income tax expenses -3,515,327,195 4,488,811,123

Profit after tax 861,541,752,384 640,695,907,739

CASH FLOW STATEMENT

Unit: VND 2017 2018




Net cash flow from investing activities -60,874,176,219 -24,771,545,773


Net cash flow from financing activities -701,530,000,000 -507,492,000,000

Net cash flow of the year 62,560,339,482 224,316,599,258


period1,085,086,408,587 1,141,542,265,904


period1,141,542,265,904 1,379,432,891,979


134

Financial statement - An Cuong Wood JSC

BALANCE SHEETS

Unit: VND 2017 2018

A. CURRENT ASSETS 2,012,199,435,502 2,267,958,718,466





IV. Inventories 902,346,181,724 1,155,968,166,074

B. LONG-TERM ASSETS 692,775,550,454 1,114,416,883,782

I. Long-term receivables - -

II. Fixed assets 341,461,686,725 334,862,814,566

TOTAL ASSETS 2,704,974,985,956 3,382,375,602,248

A. LIABILITIES 680,931,571,174 902,986,188,664



liabilities95,910,040,002 327,095,813,104


II. Long-term liabilities - -


liabilities- -


B. OWNER’S EQUITY 2,024,043,414,782 2,479,389,413,584

I. Owner's equity 2,024,043,414,782 2,479,389,413,584



INCOME STATEMENT

Unit: VND 2017 2018



Gross profit of goods sold and services provided 942,987,355,771 1,010,599,874,951



Interest expenses 5,630,872,220 12,768,176,277






Deferred corporate income tax expenses - -290,272,008

Profit after tax 479,829,650,286 477,633,776,627

CASH FLOW STATEMENT

Unit: VND 2017 2018






Net cash flow from financing activities 242,294,764,804 244,408,903,102



period8,882,249,164 65,882,672,725


period65,882,672,725 11,916,457,595

Appendix


133

Appendix

Financial statement - Shing Mark Vina Co., Ltd.

BALANCE SHEETS

Unit: VND 2017 2018

A. CURRENT ASSETS 2,070,619,190,679 2,779,696,780,764


II. Short-term financial investments 600,000,000 256,600,000,000

III. Short-term receivables 842,955,802,659 1,268,660,273,621

1. Receivables from customers 754,161,495,509 1,211,568,558,057

IV. Inventories 1,132,003,199,144 1,199,402,388,340

B. LONG-TERM ASSETS 3,548,069,844,413 3,660,043,612,723


II. Fixed assets 1,205,671,123,452 1,222,634,245,218

TOTAL ASSETS 5,618,689,035,092 6,439,740,393,487

A. LIABILITIES 820,854,045,411 1,034,741,886,299

I. Current liabilities 820,854,045,411 1,034,741,886,299


liabilities129,678,138,295 252,975,000,737




liabilities- -


B. OWNER’S EQUITY 4,797,834,989,681 5,404,998,507,188

I. Owner's equity 4,797,834,989,681 5,404,998,507,188



INCOME STATEMENT

Unit: VND 2017 2018



Gross profit of goods sold and services provided 210,567,273,719 223,482,312,811









Deferred corporate income tax expenses - -

Profit after tax 71,712,591,660 99,205,017,507

CASH FLOW STATEMENT

Unit: VND 2017 2018


Net cash flow from business activities - -122,505,671,792


Net cash flow from investing activities - -526,264,541,533


Net cash flow from financing activities - 631,255,362,442

Net cash flow of the year - -17,514,850,883


period- 41,090,828,774


period- 22,652,732,945


135

Appendix

Financial statement - VRG Dongwha MDF JSC

BALANCE SHEETS

Unit: VND 2017 2018

A. CURRENT ASSETS 774,131,913,849 821,948,887,449





IV. Inventories 337,188,299,470 290,213,918,782

B. LONG-TERM ASSETS 3,097,991,338,949 2,935,779,853,353


II. Fixed assets 2,946,610,617,984 2,787,729,804,203

TOTAL ASSETS 3,872,123,252,798 3,757,728,740,802

A. LIABILITIES 935,767,965,444 706,628,062,565



liabilities212,397,899,904 395,114,000,000


II. Long-term liabilities 371,725,455,523 29,145,000


liabilities371,696,310,523 -

2. Provision for long-term payables 29,145,000 29,145,000

B. OWNER’S EQUITY 2,936,355,287,354 3,051,100,678,237

I. Owner's equity 2,936,355,287,354 3,051,100,678,237



INCOME STATEMENT

Unit: VND 2017 2018













Profit after tax 515,914,699,675 464,745,390,883

CASH FLOW STATEMENT

Unit: VND 2017 2018







Net cash flow of the year -147,868,886,829 -47,057,389,201


period450,545,172,994 299,318,520,117


period299,318,520,117 251,854,350,234


138

Appendix

Financial statement - Rochdale Spears Co., Ltd.

BALANCE SHEETS

Unit: VND 2017 2018

A. CURRENT ASSETS 910,787,987,485 994,004,379,327





IV. Inventories 459,313,471,534 513,967,747,751



II. Fixed assets 175,915,224,098 153,241,633,755

TOTAL ASSETS 1,176,432,403,266 1,236,980,258,517

A. LIABILITIES 788,339,575,296 799,118,081,887



liabilities342,074,868,025 340,905,813,187

2. Taxes and other payables to the State budget 13,054,170,960 -4,501,219,554

II. Long-term liabilities 30,565,200,000 21,688,026,677


liabilities30,565,200,000 21,688,026,677


B. OWNER’S EQUITY 388,092,827,970 437,862,176,630

I. Owner's equity 388,092,827,970 437,862,176,630



INCOME STATEMENT

Unit: VND 2017 2018












Deferred corporate income tax expenses - -9,337,097,222

Profit after tax 23,039,385,483 49,769,348,660

CASH FLOW STATEMENT

Unit: VND 2017 2018


Net cash flow from business activities 109,654,692,827 -6,991,877,935




Net cash flow from financing activities 16,233,838,069 -9,645,798,854



period11,297,082,634 88,996,748,687


period88,996,748,687 60,692,453,663


136

Appendix

Financial statement - San Lim Furniture Vietnam Co., Ltd

BALANCE SHEETS

Unit: VND 2017 2018

A. CURRENT ASSETS 665,562,130,241 672,232,887,174





IV. Inventories 359,051,103,922 393,476,126,830


I. Long-term receivables 474,314,905 474,314,905

II. Fixed assets 780,633,252,225 748,668,265,318

TOTAL ASSETS 1,502,784,425,639 1,659,971,331,389

A. LIABILITIES 540,450,102,413 624,701,497,885



liabilities210,916,077,546 292,600,366,664

2. Taxes and other payables to the State budget 208,081,522 262,536,476



liabilities138,933,226,125 90,450,475,912


B. OWNER’S EQUITY 962,334,323,226 1,035,269,833,504

I. Owner's equity 962,334,323,226 1,035,269,833,504



INCOME STATEMENT

Unit: VND 2017 2018












Deferred corporate income tax expenses -77,671,949 158,328,560

Profit after tax 274,780,815,638 72,935,510,278

CASH FLOW STATEMENT

Unit: VND 2017 2018






Net cash flow from financing activities -114,297,736,714 31,076,296,874



period98,145,365,837 115,520,996,386


period115,520,996,386 40,265,745,192


139

Appendix

Financial statement - Poh Huat Vietnam JSC

BALANCE SHEETS

Unit: VND 2017 2018

A. CURRENT ASSETS 782,559,297,769 827,403,937,515





IV. Inventories 317,681,002,201 375,312,166,462


I. Long-term receivables 120,000,000 120,000,000

II. Fixed assets 318,373,212,472 336,471,573,652

TOTAL ASSETS 1,135,768,989,534 1,192,089,375,337

A. LIABILITIES 539,330,390,093 466,081,779,329



liabilities188,392,242,956 101,650,332,001




liabilities- -


B. OWNER’S EQUITY 596,438,599,441 726,007,596,008

I. Owner's equity 596,438,599,441 726,007,596,008



INCOME STATEMENT

Unit: VND 2017 2018












Deferred corporate income tax expenses 177,405,139 -181,163,220

Profit after tax 132,935,633,364 129,568,996,566

CASH FLOW STATEMENT

Unit: VND 2017 2018









period214,014,793,193 250,665,320,982


period250,665,320,981 184,436,866,484


137

Appendix

Financial statement - Woodworth Wooden (Vietnam) Co., Ltd

BALANCE SHEETS

Unit: VND 2017 2018

A. CURRENT ASSETS 636,544,492,495 834,872,929,209





IV. Inventories 497,878,477,136 550,182,709,664



II. Fixed assets 247,924,444,597 225,242,895,555

TOTAL ASSETS 888,374,610,587 1,072,760,409,998

A. LIABILITIES 602,920,554,837 748,779,907,286



liabilities22,745,000,000 23,240,000,000




liabilities90,980,000,000 69,720,000,000


B. OWNER’S EQUITY 285,454,055,750 323,980,502,712

I. Owner's equity 285,454,055,750 323,980,502,712


TOTAL CAPITAL RESOURCES 888,374,610,587 1,072,760,409,998

INCOME STATEMENT

Unit: VND 2017 2018












Deferred corporate income tax expenses -12,078,569 -165,148,066

Profit after tax 40,454,313,949 38,526,446,962

CASH FLOW STATEMENT

Unit: VND 2017 2018







Net cash flow of the year 14,233,919,956 76,278,884,063


period25,903,888,181 40,128,032,647


period40,128,032,647 116,175,705,584


140

Appendix

Financial statement - Timber Industries Co., Ltd.

BALANCE SHEETS

Unit: VND 2017 2018

A. CURRENT ASSETS 416,391,615,170 440,485,884,569





IV. Inventories 258,550,268,726 294,646,433,004



II. Fixed assets 226,465,567,067 213,653,939,961

TOTAL ASSETS 642,857,182,237 654,139,824,530

A. LIABILITIES 263,792,082,954 255,391,027,375



liabilities39,547,151,411 34,649,191,500




liabilities- -


B. OWNER’S EQUITY 379,065,099,283 398,748,797,155

I. Owner's equity 379,065,099,283 398,748,797,155


TOTAL CAPITAL RESOURCES 642,857,182,237 654,139,824,530

INCOME STATEMENT

Unit: VND 2017 2018






Interest expenses 842,792,370 986,006,956







Profit after tax 56,761,143,768 12,266,939,629

CASH FLOW STATEMENT

Unit: VND 2017 2018




Net cash flow from investing activities -14,875,993,678 18,140,867,865



Net cash flow of the year -77,046,107,722 15,040,955,342


period104,962,283,764 27,902,676,255


period27,902,676,254 42,935,559,672


87

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