TRƯỜNG ĐẠI HỌC KINH TẾ QUỐC DÂN

-------***-------

FINANCIAL MANAGEMENT

ANALYSES OF VIETNAM PHARMACEUTICAL

JOINT STOCK CORPORATION (DVN) 2021 - 2023

Group 1:
Nguyễn Quang Đức – 11221384
Nguyễn Thúy Hường – 11222745
Hà Bảo Minh - 11224178
Lưu Quang Phong - 11225100
Trần Hải Yến - 11227087

Class: AUD - CFAB 64

Lecturer: Trần Tất Thành
 HÀ NỘI, NĂM 2024

TABLE OF CONTENTS

INTRODUCTION.................................................................................................................................
CHAPTER 1: COMPANY OVERVIEW...........................................................................................
1.1. Fundamental information:.......................................................................................................
1.2. Formation and development....................................................................................................
1.3. Areas of business.......................................................................................................................
1.4. Member companies...................................................................................................................
1.5. Shares of Vietnam Pharmaceutical Corporation...................................................................
1.6. Company Position.....................................................................................................................
1.7. Direct competitors.....................................................................................................................
CHAPTER 2: ANALYSIS OF SOURCE AND USES OF CASH....................................................
2.1. Sources and uses of cash between 2021 and 2022...................................................................
2.2. Sources and uses of cash between 2022 and 2023...................................................................
CHAPTER 3: ANALYSIS OF STANDARDIZED FINANCIAL STATEMENT..........................
3.1. Analysis of Asset Structure between 2021-2023.....................................................................
3.2. Analysis of Liabilities and Equity Structure between 2021-2023.........................................
3.3. Analysis of business efficiency between 2021 - 2023..............................................................
CHAPTER 4: FINANCIAL RATIOS.................................................................................................
4.1. Profitability ratios.....................................................................................................................
4.1.1. Fluctuations analysis........................................................................................................
4.1.2. Comparison with DHG and the whole industry............................................................
4.2. Asset management ratios..........................................................................................................
4.2.1. Fluctuations analysis........................................................................................................
4.2.2. Comparison with DHG and the whole industry............................................................
4.3. Liquidity ratios..........................................................................................................................
4.3.1. Fluctuations analysis........................................................................................................
4.3.2. Comparison with DHG and the whole industry............................................................
4.4. Financial leverage ratios...........................................................................................................
4.4.1. Fluctuations analysis.......................................................................................................
4.4.2. Comparison with DHG and the whole industry............................................................

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 4.5. Market value ratios...................................................................................................................
4.5.1. Fluctuations analysis........................................................................................................
4.5.2. Comparison with DHG and the whole industry............................................................
CHAPTER 5: DISCUSSION AND RECOMMENDATIONS..........................................................
5.1. Strengths....................................................................................................................................
5.2. Weaknesses................................................................................................................................
5.3. Recommendation.......................................................................................................................
CONCLUSION......................................................................................................................................
REFERENCE........................................................................................................................................
APPENDIX............................................................................................................................................
APPENDIX 1: DVN’s STATEMENT OF FINANCIAL POSITION IN 2021,
2022, 2023..........................................................................................................................................
APPENDIX 2: DVN’s STATEMENT OF PROFIT & LOSS IN 2021, 2022,
2023....................................................................................................................................................
APPENDIX 3: DHG’s STATEMENT OF FINANCIAL POSITION IN 2023
............................................................................................................................................................
APPENDIX 4: DHG’s STATEMENT OF PROFIT & LOSS IN 2023.......................................

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 LIST OF TABLES AND FIGURES

Figure 1.1: Information on DVN’s shares...............................................................................................

Table 2.1. Source and uses of cash between 2021 and 2022..................................................................
Table 2.2. Source and uses of cash between 2022 and 2023..................................................................
Table 3.1. Asset Structure in Financial Statement 2021-2023................................................................
Table 3.2. Asset Structure in Financial Statement 2022-2023................................................................
Table 3.3. Liabilities and Equity Structure in Financial Statement 2021-2022......................................
Table 3.4. Liabilities and Equity Structure in Financial Statement 2022-2023......................................
Table 3.5. Income Statement between 2021-2022..................................................................................
Table 3.6. Income Statement between 2022-2023..................................................................................
Table 4.1. Profitability ratios formula.....................................................................................................
Table 4.2. Profitability ratios calculation................................................................................................
Table 4.3. Comparison ROE between DVN and DHG...........................................................................
Table 4.4. Asset management ratios formula..........................................................................................
Table 4.5. Asset management ratios calculation.....................................................................................
Table 4.6. Liquidity ratios formula.........................................................................................................
Table 4.7. Liquidity ratios calculation....................................................................................................
Table 4.8. Financial leverage ratios formula..........................................................................................
Table 4.9. Financial leverage ratios calculation......................................................................................
Table 4.10. Market value ratios formula.................................................................................................
Table 4.11. Market value ratios calculation............................................................................................

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 LIST OF ABBREVIATIONS

APEA Asia Pacific Enterprise Awards

DHG Hau Giang Pharmaceutical Joint Stock Company

DSO Days sales outstanding

DVN Vietnam Pharmaceutical Joint Stock Corporation

EPS Earnings per share

ROA Return on Assets
ROE Return on Equity
ROS Return on sales

VND Vietnam Dong

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 INTRODUCTION
In the landscape of pharmaceuticals, where innovation, regulatory compliance,
and market dynamics intersect, understanding the financial intricacies of companies is
crucial for stakeholders to make informed decisions. This report undertakes a
comprehensive analysis of the Vietnam Pharmaceutical Joint Stock Corporation
(DVN), focusing on key financial aspects including sources and uses of cash,
standardized financial statements, financial ratios, and DuPont analysis.
The analysis of DVN's financial aspects begins with an exploration of its
sources and uses of cash. Understanding where cash is generated and how it is utilized
unveils critical insights into the company's liquidity position, investment strategies,
and operational efficiency.
Subsequently, a detailed examination of DVN's standardized financial
statements offers a structured view of its financial structure. By scrutinizing income
statements, balance sheets, and cash flow statements, stakeholders gain clarity on
revenue streams, asset utilization, debt obligations, and overall profitability.
Furthermore, the report delves into the evaluation of DVN's financial ratios,
comparing them against industry averages and competitors. This comparative analysis
sheds light on the company's relative strengths and weaknesses, facilitating
benchmarking and strategic decision-making.
Lastly, employing the DuPont analysis allows for a granular dissection of
DVN's return on equity (ROE) into its constituent components: profitability,
efficiency, and leverage. This comprehensive examination provides insights into the
factors driving ROE, enabling stakeholders to identify areas for improvement and
formulate targeted strategies for sustainable growth.
Through this comprehensive analysis, stakeholders will gain valuable insights
into the financial performance and strategic positioning of Vietnam Pharmaceutical
Corporation, empowering them to make informed decisions and navigate the
complexities of the pharmaceutical industry effectively.

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 CHAPTER 1: COMPANY OVERVIEW

1.1. Fundamental information:

- Vietnamese name: Tổng Công ty Dược Việt Nam - CTCP
- International name: Vietnam Pharmaceutical Joint Stock Corporation
- Trading name: Vinapharm
- Stock symbol: DVN
- Industry: Pharmaceuticals, Manufacturing, Distribution
- Headquarters: 12 Ngo Tat To, VND Da District, Hanoi, Vietnam.
- Tel number: (84.24) 3844 3151 - 3844 3149
- Fax: (84.24) 3844 3665
- Website: http://vinapharm.com.vn

1.2. Formation and development

1971 - 1982 - On April 1, 1971, the Ministry of Health decided to establish

the General Pharmaceutical Corporation.
- Established during the war, its main role was ensuring a
steady supply of medicines for both the battlefield and civilian
healthcare.
- Following Vietnamese reunification, the General
Pharmaceutical Corporation's focus shifted towards
consolidating and expanding the national pharmaceutical
industry.

1982 - 1996 - On May 4, 1982, the Union of Vietnam Pharmaceutical

Enterprises was established directly under the Ministry of
Health.
- During the 1980s and 1990s, Vietnam decided to adopt an
open economy, leading to significant demand for medicines.
- Therefore, in this period, the corporation concentrated on
researching, developing, producing, and distributing

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 pharmaceutical products.

1996 - 2010 - On March 30, 1996, the Vietnam Minister of Health decided
to establish the Vietnam Pharmaceutical Corporation based on
the Vietnam Union of Pharmaceutical Enterprises.
- In the period of 2000s, Vietnam Pharmaceutical Corporation
had completed the equitization in 10 enterprises.

2010 - 2016 - Under Decree No. 25/2010/ND-CP, Vietnam Pharmaceutical

Corporation had transformed into Vietnam Pharmaceutical
Corporation - a single-member limited liability company,
applying the parent-subsidiary company operation model
according to Decision No. 2335/QD-BYT dated June 30,
2010 of the Minister of Health.
- In this period, the corporation main’s focus was promoting
international corporations and integration.

2016 - 2023 - During this period, Vietnam Pharmaceutical Corporation had

finished the equitization.
- On December 8, 2016, Vietnam Pharmaceutical Corporation
officially operated under the joint stock company model.
- On May 19, 2017, Vietnam Pharmaceutical Corporation
registered to trade shares on the UPCOM platform with the
stock symbol DVN.

2023 - Now - On 2 June 2023, the Ministry of Health and State Capital
Investment Corporation signed the Memorandum of Transfer
of the State Ownership Representative Rights at Vietnam
Pharmaceutical Corporation.

1.3. Areas of business

Vietnam Pharmaceutical Corporation only specializes in 4 main areas:

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 - Financial investment
- Distribution of drugs, vaccines, and medical supplies
- Production of medicines
- Bioquiva-Lence study BE.

1.4. Member companies

Currently, Vietnam Pharmaceutical Corporation has 3 subsidiary companies,
including:
- Central pharmaceutical CPC1 JSC
- Central Pharmaceutical Company No.2-CODUPHA
- Central Pharmaceutical Joint Stock Company N.3

1.5. Shares of Vietnam Pharmaceutical Corporation

On May 19, 2017, Vietnam Pharmaceutical Corporation registered to trade
shares on the UpCOM platform with the stock symbol DVN.
- First trading day: 19/05/2017
- Closing price of the first trading session (Thousand VND): 14.5
- The volume of shares listed for the first time: 237,000,000.
Currently, on April 6, 2024, DVN shares are being traded at 18,500 VNĐ

Figure 1.1: Information on DVN’s shares

(Source: Vietstock.vn)
1.6. Company Position
Vietnam Pharmaceutical Corporation has always been the leading enterprise in
producing medicines and distributing drugs, vaccines, and medical supplies.

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Currently, Vietnam Pharmaceutical Corporation is the second-largest listed
pharmaceutical company in Vietnam.
According to the Consolidated Financial Statements, in 2023, the company
achieved consolidated revenue of 5.609 billion VND, and the consolidated profit after
tax was 390.2 billion VND, roughly 253.44% higher than that profit in 2022.
In 2022, Vietnam Pharmaceutical Corporation was honored to be the Top 2
Vietnam Prestigious Pharmaceutical Company 2022- Category: Medical, distributor,
trading, equipment, and supplies; as well as Top 266 largest enterprises in Vietnam
2022.
In the Asia Pacific Enterprise Awards - APEA 2023, Vietnam Pharmaceutical
Corporation was honored with the Corporate Excellence Award 2023.

1.7. Direct competitors

Vietnam Pharmaceutical Corporation’s competitors mainly come from the
domestic market, some of those are DHG Pharmaceutical Joint Stock Company;
Imexpharm corporation; Traphaco Joint Stock Company; and Ha Tay Pharmaceutical
Joint Stock Company... However, DVN’s biggest competitor by far is DHG
Pharmaceutical Joint Stock Company.

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 CHAPTER 2: ANALYSIS OF SOURCE AND USES OF CASH

2.1. Sources and uses of cash between 2021 and 2022

Table 2.1. Source and uses of cash between 2021 and 2022
SOURCES OF CASH
Decrease in cash and cash equivalent 110,461,275,200

Decrease in short-term financial investment 38,500,000,000

Decrease in other current assets 4,650,629,443
Decrease in non-current receivables 32,806,796
Decrease in fixed asset 11,132,126,890
Decrease in non-property in progress 4,016,105,093

Decrease in non-current financial investment 112,764,618,868

Decrease in other non-current assets 4,063,100,189
Increase in current liability 129,644,199,496
Increase in non-current liability 15,483,410,644

TOTAL SOURCES 430,748,272,619

USES OF CASH
Increase in current receivables 23,207,322,939
Increase in inventories 129,259,129,437
Increase in investment property 49,084,498,688
Decrease in Owner's Equity 229,197,321,555
SOURCES OF CASH 430,748,272,619

In general, DVN’s sources of cash came mainly from the disposal of current
and non-current assets with a reduction of 1,145.45 billion VND, and 82.92 billion
VND respectively. In addition, an increase in liabilities by 145.12 billion VND
(129.64 billion VND and 15.48 billion VND in terms of current and non-current
liabilities respectively) had also contributed to the sources of cash in this period. On
the other hand, there was an enormous reduction in equity, by 229.19 billion VND,
roughly 3.22% compared to the previous period.
Regarding assets, it is apparent that DVN continued to invest in selling medical
supplies and pharmaceutical products as the inventory amount increased by 0.85%
from 1,058.35 to 1,187.61 billion VND, reflecting the company’s strategic focus on

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short-term returns. At the same time, DVN became more conscious about non-current
financial investment due to a noticeable increase in the provision for devaluation of
this asset, leading to a major reduction in non-current assets generally.
In the context that DVN tried to reserve more inventories with a view to the
following year's growth, the decreased equity led the company to rely on external
sources of cash. This might affect the financial independence of the company itself.
2.2. Sources and uses of cash between 2022 and 2023
Table 2.2. Source and uses of cash between 2022 and 2023
SOURCES OF CASH
Decrease in current receivables 48,946,292,753
Decrease in other current assets 3,154,852,586
Decrease in non-current receivables 28,063,395
Decrease in fixed asset 18,766,388,132
Decrease in investment property 1,405,136,139

Decrease in non-current property in progress 1,462,602,697

Increase in Owner's Equity 365,059,951,770
TOTAL SOURCES 438,823,287,472
USES OF CASH

Increase in cash and cash equivalent 20,871,903,071

Increase in short-term financial investment 288,700,000,000

Increase in inventories 55,895,988,101

Increase in non-current financial investment 5,579,779,651

Increase in other non-current assets 2,350,171,224
Decrease in current liabilities 60,273,238,322
Decrease in non-current liabilities 5,152,207,103
TOTAL USES 438,823,287,472

It can be observed that in the year 2023, DVN’s current assets had increased
significantly from 3,766.57 billion to 4,079.93 billion. roughly 313.36 billion; while
there was a slight reduction in non-current assets from 2,011.45 billion to 1,997.71
billion, approximately 13.73 billion during the period. The trend of changes in equity
and liabilities between 2022 and 2023 was opposite to the previous year, with a

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decrease in liability, and an increase in equity of roughly 65.42 billion and 365.05
billion respectively.
In this period, DVN had remarkably concentrated more on short-term financial
investment as the firm decided to spend about 923.25 billion, roughly 288.7 billion
higher than in 2022. Though the proportion of inventories had decreased by 0.09% at
the end of 2023, inventories still increased from 1,187.61 billion to 1,243.51 billion,
roughly 55.89 billion. This means that DVN’s orientation in 2023 was short-term
returns, the same as the previous year.
In terms of equity and liabilities, in contrast to the year 2022 when DVN had
financed cash from external sources, in 2023, the firm chose to rely on internal
sources of cash as the equity proportion had increased by roughly 3.65%. Therefore, it
was apparent that DVN was becoming more conscious about financial independence.

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 CHAPTER 3: ANALYSIS OF STANDARDIZED FINANCIAL STATEMENT

3.1. Analysis of Asset Structure between 2021-2023

Table 3.1. Asset Structure in Financial Statement 2021-2023
2021 2022 Change in ratio
ASSETS
A. Current assets 3,767,717,622,740 64.3% 3,766,572,170,473 65.2% 0.90%
I. Cash and cash equivalent 193,915,647,600 3.31% 83,454,372,400 1.4% -1.87%
II. Short-term financial
investment 673,050,000,000 11.48% 634,550,000,000 11.0% -0.338%
III. Current receivables 1,803,532,148,236 30.77% 1,826,739,471,175 31.6% 0.85%
IV. Inventories 1,058,357,832,458 18.05% 1,187,616,961,895 20.6% 2.35%
V. Other current assets 38,861,994,446 0.66% 34,211,365,003 0.6% -0.06%
B. Non-current assets 2,094,376,354,920 35.73% 2,011,452,095,772 34.8% -0.93%
I. Non-current receivables 1,740,233,344 0.03% 1,707,426,548 0.03% 0%
II. Fixed assets 331,084,484,398 5.65% 319,952,357,508 5.54% -0.11%
III. Investment property 774,851,903 0.01% 49,859,350,591 0.86% 0.85%
IV. Non-current property in
progress 5,787,707,791 0.10% 1,771,602,698 0.03% -0.07%
V. Non-current financial
investments 1,719,106,111,876 29.33% 1,606,341,493,008 27.80% -4.83%
VI. Other non-current assets 35,882,965,608 0.61% 31,819,865,419 0.55% -0.05%

TOTAL ASSET 5,862,093,977,660 100% 5,778,024,266,245 100% 0%

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 Table 3.2. Asset Structure in Financial Statement 2022-2023
2022 2023 Change in ratio
ASSETS
A. Current assets 3,766,572,170,473 65.2% 4,079,938,916,306 67.1% 1.94%
I. Cash and cash equivalent 83,454,372,400 1.4% 104,326,275,471 1.7% 0.27%
II. Short-term financial
investment 634,550,000,000 11.0% 923,250,000,000 15.2% 4.21%
III. Current receivables 1,826,739,471,175 31.6% 1,777,793,178,422 29.3% -2.36%
IV. Inventories 1,187,616,961,895 20.6% 1,243,512,949,996 20.5% -0.09%
V. Other current assets 34,211,365,003 0.6% 31,056,512,417 0.5% -0.08%
B. Non-current assets 2,011,452,095,772 34.8% 1,997,719,856,284 32.9% -1.94%
I. Non-current receivables 1,707,426,548 0.03% 1,679,363,153 0.03% 0.00%
II. Fixed assets 319,952,357,508 5.54% 301,185,969,376 4.96% -0.58%
III. Investment property 49,859,350,591 0.86% 48,454,214,452 0.80% -0.07%
IV. Non-current property in
progress 1,771,602,698 0.03% 309,000,001 0.01% -0.03%
V. Non-current financial
investments 1,606,341,493,008 27.80% 1,611,921,272,659 26.52% -1.28%
VI. Other non-current assets 31,819,865,419 0.55% 34,170,036,643 0.56% 0.01%

TOTAL ASSET 5,778,024,266,245 100% 6,077,658,772,590 100% 0%

Overview, The total assets of the DVN in 2023 increased compared to 2022
and 2021. Current receivables constitute the largest proportion in the company's asset
structure. The total asset value in 2022 was the lowest at 5,778 billion VND.
Compared to 2021, the total asset value ranked second with 5,862 billion VND.
Moving to 2023, the total assets of DVN increased slightly to a value of 6,077 billion
VND, an increase of 299 billion VND compared to 2022.
The total assets are primarily influenced by current assets. The short-term
assets of the company fluctuated in value over the years but increased in proportion.
Specifically: In 2021, the company's short-term assets were 3,767 billion VND,
accounting for 64.3% of the total assets; compared to 2022, which was 3,766 billion
VND, the short-term assets decreased by 1,145,452,267 VND but the proportion
increased to 65.2%. However, in 2023, short-term assets increased relatively in both

15
value and proportion compared to 2022. Short-term assets in 2023 increased by 313
million VND (equivalent to 1.94%) compared to 2022.
Current receivables constitute the largest proportion in the company's asset
structure and decrease steadily each year. The company's business model is trading-
oriented, so its accounts receivable are significant due to supplying partners with a
buy-now-pay-later scheme. Recently, the proportion of accounts receivable decreased
compared to the decrease in revenue from 2023 to 2022. The decreasing trend of
short-term receivables indicates good capital recovery by the company, but the high
proportion of current receivables in the asset structure may pose risks related to capital
occupation.
Inventory ranks third in the DVN asset structure and has significant
fluctuations between 2021 and 2022. The inventory target in 2022 was 1,187 million
VND, compared to 1,058 million VND in 2021, an increase of 129 millionVND
(equivalent to 2.35%), attributed to the increase in raw material inputs. However, from
2022 to 2023, inventory showed signs of stability with a slight decrease of 0.09%.
The company's long-term assets tend to decrease in both value and proportion.
In 2023, it amounted to 1,997 million VND, compared to 2,011 million VND in 2022,
a decrease of 13 million VND. In 2022, it was 2,094 million VND, a decrease of 96
million VND. The decrease in the proportion of long-term assets is due to the decrease
in fixed assets and long-term financial investments as a percentage of total assets.
Fixed assets of the company decreased from 1.74 million VND in 2021 to
1.707 million VND in 2022, and further down to 1.67 million VND in 2023. This
decrease is due to asset depreciation and the liquidation of some fixed assets.
Cash and cash equivalents: In 2023, the amount of cash and cash equivalents
reached 104 million VND, an increase of 20.87 million VND compared to 2022
(equivalent to 0.27%). However, compared to 2021, the amount of cash in 2023 is
higher, reaching 89.5 million VND.
3.2. Analysis of Liabilities and Equity Structure between 2021-2023
Table 3.3. Liabilities and Equity Structure in Financial Statement 2021-2022
2021 2022 Change in ratio
LIABILITIES AND EQUITY

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 C. LIABILITIES 2,867,374,219,901 48.91% 3,012,501,830,041 52.14% 3.21%
I. Current liabilities 2,816,370,849,290 48.04% 2,946,015,048,786 50.99% 2.95%
II. Non-current liabilities 51,003,370,611 0.87% 66,486,781,255 1.15% 0.38%
D. EQUITY 2,994,719,757,759 51.09% 2,765,522,436,204 47.86% 3.65%
I. Owner's Equity 2,994,719,757,759 51.09% 2,765,522,436,204 47.86% 3.65%

TOTAL EQUITY AND

LIABILITIES 5,862,093,977,660 100% 5,778,024,266,245 100% 0%
Table 3.4. Liabilities and Equity Structure in Financial Statement 2022-2023
2022 2023 Change in ratio
LIABILITIES AND EQUITY
C. LIABILITIES 3,012,501,830,041 52.14% 2,947,076,384,616 48.49% -3.65%
I. Current liabilities 2,946,015,048,786 50.99% 2,885,741,810,464 47.48% -3.51%
II. Non-current liabilities 66,486,781,255 1.15% 61,334,574,152 1.01% -0.14%
D. EQUITY 2,765,522,436,204 47.86% 3,130,582,387,974 51.51% 3.65%
I. Owner's Equity 2,765,522,436,204 47.86% 3,130,582,387,974 51.51% 3.65%

TOTAL EQUITY AND

LIABILITIES 5,778,024,266,245 100% 6,077,658,772,590 100% 0%

Overview, the liabilities and equity structure in 2023 amounted to 6,077 million
Vietnamese VND, compared to 5,778 million VND in 2022, representing an increase
of 299 million VND. However, compared to 2021, the increase was only 215 million
VND. Such significant fluctuations are primarily due to the increase in short-term debt
and partly from the increase in equity capital.
The DVN's payable debt in 2021 was 2,867 million VND, accounting for
48.91% of the total capital structure. By 2022, it increased to 3,012 million VND,
representing 52.14% of the structure but decreased to 2,947 million VND, accounting
for 48.49% is 2023.
In 2021, short-term liabilities was 2,816 million VND, comprising 48.04% of
the total capital structure. By 2022, short-term debt amounted to 2,946 million VND,
representing 50.99% of the structure. In 2023, short-term debt was 2,885 million
VND, accounting for 47.48%. The increase from 2021 was 69.37 million VND,
corresponding to a decrease rate of 0.56%.

17
 Throughout the years 2021-2023, the DVN's long-term liabilities had a very
low proportion in the total capital structure, ranging from 0.87% to 1.15%.
→ The business requires short-term funding to quickly circulate capital,

serving short-term production needs. Short-term debts demand the company to

fulfill obligations within a short period. Failure to do so may lead to the inability

to pay debts, causing pressure on the production and business process.

→ The enterprise needs proactive measures to enhance short-term payment

capabilities while seeking conditional and timely long-term debts.

In terms of proportions, the total equity capital within the total capital structure
is relatively stable or slightly fluctuates compared to the total payable debt (51.09% in
2021, 47.86% in 2022, 51.51% in 2023). This indicates that the company effectively
utilizes capital and can be financially independent from creditors, reducing the risk of
default. The company needs to ensure a reasonable level of debt to mitigate risks in
paying off debts in the future.

3.3. Analysis of business efficiency between 2021 - 2023

Table 3.5. Income Statement between 2021-2022
2021 2022 Change in ratio
Revenues 4,941,307,627,748 100% 5,584,964,753,725 100%
Cost of goods sold 4,433,827,644,346 89.7% 4,996,581,338,275 89.5% -0.26%
Expenses 375,396,731,163 7.6% 422,341,023,119 7.6% -0.04%
Other Income
(Expenses)
Financial income 114,152,360,682 2.3% 130,152,998,894 2.3% 0.02%
Financial expense 34,622,985,941 0.7% 202,368,532,992 3.6% 2.92%
Share in profits of
associates 90,499,106,352 1.8% 82,304,183,594 1.5% -0.36%
Other income 1,821,454,438 0.04% 966,772,817 0.02% -0.02%
Other expenses 1,757,013,250 0.04% 813,858,651 0.01% -0.02%
EBIT 302,176,174,520 6.1% 131,900,016,046 2.4% -3.75%
Taxes 17,094,497,845 0.3% 21,531,408,892 0.4% 0.04%
Net Income 285,081,676,675 5.8% 132,713,874,697 2.4% -3.39%

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 An examination of profitability reveals that the company's net profit margin in
2021 stood at 6.1%, signifying a profit of 6.1 VND for every 100 VND of revenue
generated. However, this margin exhibited a decline of 3.75 VND in 2022. This
decrease might appear counterintuitive considering the substantial revenue growth of
113% compared to 2021.
A closer inspection unveils a slight rise in costs: 0.26 VND for goods sold and
0.04 VND for operating expenses. While these cost increases are minimal, they could
be a contributing factor to the margin decline.
Despite the decrease in net profit margin, the financial picture is not entirely
negative. A positive development is observed in the form of a slight decrease in
financial expenses (0.02 VND). However, the most significant positive aspect is the
substantial increase in financial income (2.92%). This suggests that the company
might be making more strategic investments or managing its debt more effectively.
Furthermore, it is noteworthy that there were minor reductions in other income
(0.36%) and expenses (0.02%). Although these changes are small, they could indicate
the company is streamlining its operations and identifying efficiencies in other areas.
Table 3.6. Income Statement between 2022-2023
Change in
2022 2023 ratio
Revenues 5,584,964,753,725 100% 5,609,381,373,967 100%
Cost of goods sold 4,996,581,338,275 89.5% 4,985,381,240,726 88.9% -0.59%
Expenses 422,341,023,119 7.6% 406,856,969,856 7.3% -0.31%
Other Income (Expenses)
Financial income 130,152,998,894 2.3% 283,935,508,426 5.1% 2.73%
Financial expense 202,368,532,992 3.6% 151,669,291,975 2.7% -0.92%
Share in profits of
associates 82,304,183,594 1.5% 104,041,438,698 1.9% 0.38%
Other income 966,772,817 0.017% 1,067,601,572 0.019% 0.002%
Other expenses 813,858,651 0.01% 3,326,520,296 0.1% 0.04%
EBIT 131,900,016,046 2.4% 425,029,943,059 7.6% 5.22%
Taxes 21,531,408,892 0.4% 34,759,078,430 0.6% 0.23%
Net Income 132,713,874,697 2.4% 463,115,541,785 8.3% 5.88%

19
 The period witnessed a positive development with a 13% increase in revenue to
over 5.6 billion VND in 2023. The COGS increase of 12.6%, while exhibiting a slight
moderation compared to the revenue growth, suggests potential improvements in
either operational efficiency or supplier negotiations.
Despite the encouraging revenue growth, a concerning 3.39% decrease in net
income during the period has emerged. This phenomenon indicates that expenses are
outpacing revenue growth, leading to a decline in profitability.
Financial income for 2023 jumped by 2.73%, while financial expenses went
down slightly by 0.92%.

20
 CHAPTER 4: FINANCIAL RATIOS

4.1. Profitability ratios

Profitability ratios are a class of financial metrics that are used to assess a
business's ability to generate earnings relative to its revenue, operating costs, balance
sheet assets, or shareholders' equity over time, using data from a specific point in time.
Table 4.1. Profitability ratios formula

Ratios Formula Meaning

Profit Margin Net Income Measure of the degree to which a company or
Sales a particular business activity makes money
ROA Net income Indicates how profitable a company is in
Total Assets relation to its total assets
ROE Net income Measure of financial performance calculated
Total Equity by dividing net income by shareholders'
equity

Table 4.2. Profitability ratios calculation

DVN's 2021 DVN's 2022 DVN's 2023 DHG Ind.
Profit Margin 4.43% 1.98% 6.96% 18.22% 19.40%
Return on
Assets (ROA) 3.71% 1.91% 6.42% 17.19% 8.43%
Return on
Equity (ROE) 7.26% 3.99% 12.47% 21.65% 11.88%

4.1.1. Fluctuations analysis

In general, from 2021 to 2023, the Profit Margin fluctuated significantly. In
2022, the Profit Margin witnessed a deep decrease with 102.5 billion VND (49%)
compared with 2021 and 280 billion VND (253%) compared with 2023. The reasons
are:
- Financial Expenses increased by 167 billion VND (480%) compared to 2021
and decreased in 2023, along with a sharp increase in Financial Income with
154 billion VND (118%) in 2023 compared to 2022. This led to a sharp
decrease in net profit in 2022 compared to 2021 and 2023.

21
 - Selling Expenses were at peak in 2022 (31 billion VND higher than in 2021
and 23 billion VND higher than in 2023), which was also the reason for the
lowest net profit compared to the remaining 2 years.
Although the company's revenue suddenly increased during Covid-19 19 with
677 billion VND higher than in 2021 (nearly 14%), costs increased faster and were
more difficult to control than in other years.
Overall, from 2021 to 2023, ROE and ROA experienced the same trend. To be
more specific, ROA and ROE in 2023 tripled and in 2021 nearly doubled compared to
2022. In 2022, total assets were lower than in 2021 and 2023, 1.4% and 5.2%
respectively, and total equity was also lower than in 2021 and 2023, 7.6% and 13.2%
respectively. However, in 2022, DVN's net profit in 2022 will decrease sharply (cause
mentioned in the above-mentioned analysis), causing ROA and ROE to decrease
sharply.
4.1.2. Comparison with DHG and the whole industry
Table 4.3. Comparison ROE between DVN and DHG

DVN’s DVN’s DVN’s DHG’s Ind.

2021 2022 2023 2024
ROE 7.26% 3.99% 12.47% 21.65% 11.07%

In 2023, DHG's profit margin was 2.6 times higher than DVN's, with more than
1000 billion VND profit after tax, while net income had no significant difference. This
led to DHG's ROE being much higher than DVN's.
To maintain high ROE, both DVN and DHG use equity multiplier. However,
DHG only used a low level of equity multiplier in 2023 (1.26). Therefore, DHG's
ROE in 2023 will increase sharply mainly due to a profit margin of 18.22%.
Meanwhile, DVN always uses equity multiplier at a moderate level (around 2 times)
in all 3 years from 2021-2023. Therefore, DHG's ROE index is about 1.7 times higher
than DVN's in 2023.
Using low financial leverage helps both companies have the ability to manage
contingent liability, as well as help investors accurately assess the profitability of their
business activities based on the ROE index.

22
4.2. Asset management ratios
In simpler terms, Asset management ratios are like scorecards that show how
well a company uses its resources to make money. These ratios look at how fast a
company collects payments from customers and manages its stockpiles of goods. They
basically tell you if the company is good at turning its assets into cash.
Table 4.4. Asset management ratios formula

Ratios Formula Meaning

Inventory Cost of goods sold Depicts the frequency at which an entity
Turnover Inventory cycles through its stock or inventory
Days' Sales in 365 Calculates the number of days an inventory
Inventory turn is held by a company before being sold.
Inventory ¿ ¿

Receivable Sales Measures the number of times a company

turnover Account Receivables collects its average accounts receivable
balance
Days' Sales in 365 Measures the average number of days that it
receivable Receivables turnover takes a company to collect payment for a
sale
Total assets Sales Measures the efficiency with which a
turnover Total Assets company uses its assets to produce sales
NWC turnover Sales Measures how efficiently a company is
NWC using its working capital to support sales
and growth
Fixed assets Sales Indicates how well or efficiently a business
assets ¿
turnover Net ¿ uses fixed assets to generate sales

Table 4.5. Asset management ratios calculation

DVN's 2021 DVN's 2022 DVN's 2023 DHG Ind.
Inventory
Turnover 4.19 4.21 4.01 1.74 4.44
Days' Sales in
Inventory 87.00 87.00 91.00 210.00 82.29
Receivable
Turnover 2.29 3.24 3.44 10.22 9.69

23
Days' Sales in
Receivables 125.00 113.00 106.00 36.00 37.68
Total Assets
Turnover 0.84 0.97 0.92 0.94 1.03
NWC
Turnover 5.16 6.81 4.70 1.67 -
Fixed Asset
Turnover 14.82 17.46 18.62 7.07 6.45

4.2.1. Fluctuations analysis

- Because of being in the pharmaceutical field, DVN's revenue increased sharply
in 2022 with nearly 680 billion VND due to the impact of Covid 19. That
helped the company have good Asset Management ratios in 2022. However,
during the year 2023, the company's revenue will only increase slightly
compared to 2022, leading to a downward trend.
- In the period of 3 years from 2021 to 2023, DVN's revenue increased
significantly and the inventory rose gradually to ensure that the company
always had goods to sell. As a result, inventory turnover decreased. In 2022,
the company's net sales have increased sharply, leading to COGS also
increasing rapidly compared to ending inventory. This causes inventory
turnover to increase slightly compared to 2021. However, in 2023, the
company's net sales only increased slightly, along with a slight decrease in
COGS, while the amount of inventory still increased steadily, causing
inventory turnover to increase slightly. The company's inventory decreased
compared to 2022.
- DVN had better business partners, a more optimal sales policy (shorter time to
receive money from customers), and good debt collection ability from
customers; as a result, receivables turnover increased.
- In 2023, held-to-maturity investments of DVN increased significantly by 288b
(45%) together with a small change of other items of current assets. Therefore,
the current assets of DVN increased by more than 300b compared with 2022,
while the current liability decreased by 60b. It made the net working capital of
DVN increase by nearly 375b. In 2023, DVN's revenue will only increase
insignificantly by 24 billion (0.4%) compared to 2022. This caused net working
capital turnover to decrease sharply in 2023.
4.2.2. Comparison with DHG and the whole industry
- From the above-mentioned analysis, compared with the industry average (4.44
times) in 2023, we can see that DVN is doing well in controlling inventory,
avoiding the risk of inventory being damaged or no longer usable.

24
 - Although receivables turnover increased when compared with DHG's
receivable turnover (10.22 times) or the industry average (9.69 times), we can
see that DVN's receivable turnover is quite low. This may cause the risk of not
being able to recover bad debts, affecting the company's ability to do business.
- In 2023, the company is generating less revenue per dollar of assets compared
with 2022. In this period, the company's total assets increased significantly,
while net revenue increased slightly, causing total assets turnover to decrease in
2023. Compared with the industry average of 1.03, it also indicates that DVN
didn't use the assets and production resources much effectively.

4.3. Liquidity ratios

A liquidity ratio is a financial metric used to assess a company's ability to meet
its short-term obligations (debts due within a year) with its most accessible assets. In
simpler terms, it shows how easily and quickly a company can turn its assets into cash
to pay its bills. There are different types of liquidity ratios, but three common ones are
the current ratio, quick ratio, and cash ratio.
Table 4.6. Liquidity ratios formula

Ratios Formula Meaning

Current ratio Current Assets Measures a company’s ability to pay short-

Current liabilities term obligations or those due within one
year
Quick ratio Current assets−Inventory Measures a company's capacity to pay its
Current liabilities current liabilities without needing to sell its
inventory or obtain additional financing.
Cash ratio Cash Measure of the liquidity of a firm, namely
Current liabilities the ratio of the total assets and cash
equivalents of a firm to its current liabilities

Table 4.7. Liquidity ratios calculation

DVN's DVN's DVN's DHG's
2021 2022 2023 2023 Ind.
Current ratio 1.34 1.28 1.41 3.90 2.75
Quick ratio 0.96 0.88 0.98 2.61 1.45
Cash ratio 0.07 0.03 0.04 0.08 0.32

25
4.3.1. Fluctuations analysis
- Over the past 3 years, liquidity ratios have been going up and down, but
reached their highest points in 2023. In 2022, all three indexes will decrease
sharply compared to the remaining two years due to a significant decrease in
the company's net profit. Meanwhile, 2023 recorded strong growth for the
company despite a slight increase in revenue.
- The current Ratio never dipped below 1, indicating a strong ability to pay
short-term debts.
- Putting the pieces together, it seems DVN's business boomed in 2023. This is
likely due to their high net profit (up 224% from 2022) and a significant
amount of cash generated from their core operations.
- Cash Ratios reached the highest in 2021. The reason is that the fluctuation
trend of Cash and Cash equivalent items is the same as the fluctuation trend of
net profit over the years; however, there is a sharp decrease in 2022 (110
billion VND) and 2023 (90 billion VND) compared to 2021.
4.3.2. Comparison with DHG and the whole industry
- With similar business sizes, DHG prioritizes using less short-term debt, less
than 1700b (40% compared to DVN), leading to DHG's liquidity indexes being
much better than DVN. DVN's Current Ratio is greater than 1 from 2021 to
2023 and Quick Ratio is also close to 1. However, we can see that liquidity of
DVN is quite low compared to the industry in general and to competitors DHG.
Besides, most of DVN's debts are current liabilities (nearly 98% of total
liabilities of the company), causing the risk of short-term loss of liquidity of the
company to occur at any time. Besides, in 2023, the two items accounting for
the largest proportion of short-term assets are Current receivable (43.57%) and
Inventory (30.5%) with the ability to convert into cash for quite a long time
(Receivable turnover = 3.44 times and Inventory). turnover = 4.01 times),
while Cash and Cash Equivalent accounts for only a small proportion (2.5%)
compared to total current assets, making the company's ability to pay short-
term debts more difficult.

26
4.4. Financial leverage ratios
Solvency ratios also known as leverage ratios determine an entity’s ability to
service its debt. So these ratios calculate if the company can meet its long-term debt. It
is important since investors would like to know about the solvency of the firm to meet
their interest payments and to ensure that their investments are safe. Hence solvency
ratios compare the levels of debt with equity, fixed assets, earnings of the company,
etc.
Table 4.8. Financial leverage ratios formula

Ratios Formula Meaning

Total Debt Total liabilities Refers to a financial ratio that measures the extent of
Total Assets a company’s leverage
Debt-to-Equity Total liabilities Measure of the degree to which a company is
Ratio Total Equity financing its operations with debt rather than its own
resources
Equity Total Assets Measures a company's financial leverage by
Multiplier Total Equity comparing its total assets to its common stock equity
Long-term debt Long−term liabilities Provides a general measure of the long-term financial
ratio Total Assets position of a company, including its ability to meet its
financial obligations for outstanding loans.

Table 4.9. Financial leverage ratios calculation

DVN's 2021 DVN's 2022 DVN's 2023 DHG Ind.
Total Debt ratio 48.91% 52.14% 48.49% 20.58% 29.25
Debt / Equity 0.96 1.09 0.94 0.26 0.31
Equity Multiplier 1.96 2.09 1.94 1.26 -
Long-term debt
ratio 1.67% 2.35% 1.92% 93.37% -

4.4.1. Fluctuations analysis

- Total debt ratio: DVN's total debt ratio consistently falls between 0.48 and
0.52. This means more than half of their assets are financed by their equity
rather than debt. In other words, DVN relies less on borrowing, making them a

27
 financially stable company. This lower debt level translates to a lower risk of
bankruptcy.
- Debt-to-Equity Ratio:
+ In the case of DVN, the debt to equity ratio is lower than 1, except for in
2022, when the net revenue is significantly increased and DVN needs to
borrow more money to purchase inventory in order to have enough
goods for the demand of the market. It shows that DVN has enough
equity to control and pay its borrowing. Besides, the equity of DVN
decreased by 230b (7.6%) compared with 2021 because of the deduction
in undistributed profit after tax.
+ However, we also need to note that the majority of DVN's debt is
current liabilities (98% of total liabilities). In comparison, highly liquid
short-term assets such as Cash and Cash equivalents or Short-term
investments only account for about 25% of current assets, the company
may have problems with its ability to pay debts, leading to risks in the
company's liquidity.
- Long-term debt ratio: DVN's non-current liabilities only account for a small
proportion (2% of total liabilities) and (1.9% of total equity) in 2023, leading to
DVN's Long-term debt ratio being quite low. It shows that DVN will be able to
control and pay its long-term borrowing.
4.4.2. Comparison with DHG and the whole industry
Although the company's financial structure is safe (Total Debt Ratio is lower
than 0.5 in 2023), when compared with its competitor DHG and the entire industry,
we can see that Total Debt Ratio and Debt to Equity Ratio of DVN is much higher.
This shows that compared to the field in which DVN is operating, the financial
structure still has a lot of liquidity risks in both the short and long term, Significantly,
the Long-term Debt Ratio is only 0.02, much lower than DHG (0.93) and the industry
average (0.62), showing that the company has too many short-term ratios.

28
4.5. Market value ratios
Market value ratios are financial metrics that measure and analyze stock prices
and compare market prices with those of competitors and against other facts and
figures. These ratios track the financial performance of public companies to
understand their position in the market.
Table 4.10. Market value ratios formula

Ratios Formula Meaning

P/E Price per share Measures a company's share price relative
Earning per share to its earnings per share (EPS)
P/B Market value per share Compare a firm's market capitalization to
Book value per share its book value and locate undervalued
companies

Table 4.11. Market value ratios calculation

DVN's 2021 DVN's 2022 DVN's 2023 DHG Ind.
EPS 824.27 354.95 1459.92 8035.9 8000
P/E Ratio 30.94 53.25 12.40 15.30 14.5
P/B ratio 02.02 1.62 1.37 3.29 1.63

4.5.1. Fluctuations analysis

Looking at the P/E and P/B ratio, although the EPS were high in 2023, the
amount of money that investors are willing to pay for 1 unit of profit was the lowest in
the three years. This may explain why the stock value is being undervalued and
investors have low expectations for growth in the near future. In contrast, in 2022,
although the EPS were low, the P/E ratio was the highest in recent years. The reason is
in 2022, the revenue of the company was significantly increased, so the stock value
was expected to be high and was overestimated by the investor.

4.5.2. Comparison with DHG and the whole industry

The EPS of the DVN is much lower than that of DHG and the whole industry.
However, the P/E and P/B ratio are not different in 2023. It shows that the stock of the
DVN also overvalued by the investors

29
 CHAPTER 5: DISCUSSION AND RECOMMENDATIONS

5.1. Strengths
Firstly, regarding the financial structure, the company has a relatively good
financial structure. There is a shift in asset structure towards increasing the proportion
of short-term assets and decreasing the proportion of long-term assets, especially with
the increasing trend in accounts receivable and inventory - two factors currently
holding a large share in the asset structure. With a higher proportion of short-term
assets compared to long-term assets, the company's short-term payment ability is
better ensured, maintaining a strong ability to meet short-term obligations.
The capital structure of the company is becoming increasingly rational, shifting
in a favorable direction. Capital is increasing due to both equity financing and notably
from borrowed capital, particularly short-term debt. This is also the capital source for
short-term asset investments, thereby improving the company's short-term payment
capability.
The company's long-term liabilities account for a small proportion, as the focus
during this period is on production and business activities, making long-term debts
less of a priority. The increasing value of assets and capital each year demonstrates the
growing scale and expansion of the company's business operations.
Second, regarding the liquidity ratio, the company maintains a moderate level
of short-term payment capability. Although the ratios reflecting the company's
payment ability have decreased compared to previous years, the company still ensures
the ability to pay debts, and financial security remains guaranteed. The company does
not encounter difficulties with payment
Thirdly, regarding the liquidity of assets, the company's accounts receivable
gradually increased from 2021 to 2022. In 2023, the company successfully recovered
some difficult-to-collect accounts receivable, resulting in a decrease in accounts
receivable from customers compared to 2022.
Through the analysis of the accounts receivable turnover ratio and the days
sales outstanding (DSO), the turnover rate of accounts receivable from customers has
steadily increased yearly. The accounts receivable turnover has increased, and the

30
days sales outstanding have decreased. Therefore, the company's ability to collect
receivables has improved progressively each year
Fourthly, regarding business efficiency, the company's business operations are
showing signs of recovery following COVID-19, with most indicators of revenue and
profit increasing. This demonstrates that the efficiency of the company's business
operations in 2016 was higher than in 2015, despite a slight decrease in revenue and
profit in 2022.
Key profitability indicators such as return on sales (ROS), return on assets
(ROA), and return on equity (ROE) decreased in 2022. However, by 2023, they
experienced a significant increase, indicating that the business operations continued to
be efficient.

5.2. Weaknesses
Firstly, the financial structure analysis reveals a couple of concerns. Firstly, the
company's inventory grew significantly over time, representing a large portion of their
total assets. Secondly, cash and cash equivalents fluctuated erratically, suggesting a
lack of proper cash flow management and planning for reasonable cash reserves.
The capital structure also raised a red flag. A significant weakness lies in
DVN's high debt level. The substantial disparity between total liabilities and total
equity indicated a heavy reliance on debt financing. This dependence restricted
financial flexibility in several ways. DVN might face challenges in securing new loans
or lines of credit during economic downturns when interest rates typically rise.
Additionally, refinancing existing debt could become more expensive, impacting
profitability.
Second, the company's provisions have increased significantly over the past
three years. The most immediate impact of increased provisions is a decrease in
reported profits. Since provisions were recorded as expenses, higher provisions
directly translate to lower net income. This affected short-term financial metrics like
earnings per share (EPS). Furthermore, the funds allocated for provisions might not be
readily available for other business purposes like investments, dividends, or debt

31
repayment. This could tighten DVN's cash flow and limit its ability to pursue growth
opportunities.
Thirdly, regarding the liquidity ratio, the company's short-term solvency ratios
although all increasing over the years were still at a very low level, especially the
quick ratio and the current ratio.
Fourthly, the company's business performance was good, however, the
company's cost indicators such as financial costs, selling costs, and business
management costs also increased. This was also a cause for concern in the company's
management process. The performance measurement indicators such as ROA and
ROE were increasing yearly but remained at a low level.

5.3. Recommendation
Considering the aforementioned strengths and weaknesses, our group suggests
several ways to improve DVN’s financial management.
To commence with, to improve the drawbacks of DVN’s financial structure,
the firm itself may optimize cash and inventory management. DVN should implement
stricter inventory management procedures, and analyze citizens’ need to reduce the
excess stock at the end of each period. In addition, it is highly recommended that the
company should maintain higher cash reserves for some emergencies. These may help
the liquidity ratios of the firm improve noticeably. Furthermore, DVN should also find
alternative financing options such as equity financing or asset sales to decrease
dependence on debt and improve financial flexibility. Prioritize debt repayment to
optimize capital structure.
Secondly, in terms of provisions, DVN should analyze carefully the necessity
of provisions as well as develop strategies to minimize future provisions. Moreover,
the company should also consider introducing policies about collecting receivables,
and regulations to reduce the possibility of bad debt, which all helps to mitigate the
adverse effects on net income.
Last but not least, DVN should concentrate more on cost control by analyzing
cost drivers and identifying areas for optimization to reduce the selling price of their
products, leading to higher profitability.

32
 CONCLUSION
Financial statement analysis is indeed a crucial activity for all businesses to
gain a proper understanding of their operational and financial status. Moreover, for
external stakeholders interested in a company's business operations, financial
statement analysis provides them with the necessary information to consider before
making decisions.
Through theoretical research on financial statement analysis and practical
analysis of Vietnam Pharmaceutical Corporation's financial statements, a theoretical
foundation for analyzing corporate financial statements has been established.
Additionally, it has provided a comprehensive overview of the company's financial
situation, allowing for observations on the current state and proposals for enhancing
the financial capacity of the corporation in the future.
After a period of studying and conducting financial statement analysis activities
at Vietnam Pharmaceutical Corporation, the author hopes that this serves as a
foundation for not only the corporation but also other companies in the pharmaceutical
industry to improve management practices and enhance financial capabilities to
achieve their respective development goals, as well as align with industry trends and
economic integration.
Given limitations in space, time, and personal capacity, despite considerable
efforts, the topic of "Financial Statement Analysis of Vietnam Pharmaceutical
Corporation" inevitably carries some shortcomings. The author looks forward to
receiving valuable feedback and suggestions from esteemed professors, colleagues,
and friends to further refine and improve the topic.

33
 REFERENCE
CTCP Dược Hậu Giang (2023). Báo cáo tài chính hợp nhất sau kiểm toán
2023. https://www.dhgpharma.com.vn/images/2024/BCTC/DHG---Audited-FS---
2023---VN.pdf
DVN: Tổng công ty Dược Việt Nam - CTCP - Vinapharm (UPCOM) (n.d.).
https://s.cafef.vn/upcom/dvn-tong-cong-ty-duoc-viet-nam-ctcp.chn
https://s.cafef.vn/upcom/ctcp.chn
Tổng công ty Dược VN (2021). Báo cáo tài chính hợp nhất sau kiểm toán
2021. http://vinapharm.com.vn/media/QHCD/73711-
DVN_BCTC_Hop_nhat_nam_2021_da_kiem_toan.pdf
Tổng công ty Dược VN (2022). Báo cáo tài chính hợp nhất sau kiểm toán
2022. http://vinapharm.com.vn/media/QHCD/4201-
Bao_cao_tai_chinh_HN_da_kiem_toan_nam_2022.pdf
Tổng công ty Dược VN (2023). Báo cáo tài chính hợp nhất sau kiểm toán
2023. http://vinapharm.com.vn/media/QHCD_BCTC/29032024/Vinapharm%20-
%20BCTCHN.pdf?fbclid=IwAR1lwcdb8GmNA-f8xkprSB-
hyh0CE55YAOt4AURNAzUBRaBmaRjjLc2Qy1M
VietstockFinance (n.d.) DVN: Tổng Công ty Dược Việt Nam - CTCP -
VINAPHARM | VietstockFinance. https://finance.vietstock.vn/DVN-tong-cong-ty-
duoc-viet-nam-ctcp.htm
VietstockFinance (n.d.) DHG: CTCP Dược Hậu Giang - DHG Pharma |
VietStockFinance. https://finance.vietstock.vn/DHG-ctcp-duoc-hau-giang.htm.
VietstockFinance (n.d.) VietstockFinance – Dữ liệu tài chính doanh nghiệp.
https://finance.vietstock.vn/truy-xuat-du-lieu/chi-so-tai-chinh-nganh.htm
Vinapharm - TỔNG CÔNG TY DƯỢC VIỆT NAM (n.d.).
http://vinapharm.com.vn/vn/ve-vinapharm

APPENDIX

34
APPENDIX 1: DVN’s STATEMENT OF FINANCIAL POSITION IN 2021,
2022, 2023
2021 2022 2023
ASSETS
A. Current assets 3,767,717,622,740 3,766,572,170,473 4,079,938,916,306
I. Cash and cash equivalent 193,915,647,600 83,454,372,400 104,326,275,471
1. Cash 128,415,647,600 83,454,372,400 104,326,275,471
2. Cash equivalents 65,500,000,000 - -

II. Short-term financial investment 673,050,000,000 634,550,000,000 923,250,000,000

1. Held for trading Securities 50,000,000 50,000,000 50,000,000
2. Held-to-maturity investments 673,000,000,000 634,500,000,000 923,200,000,000

III. Current receivables 1,803,532,148,236 1,826,739,471,175 1,777,793,178,422

1. Current trade receivables 1,679,810,136,308 1,723,321,284,952 1,630,044,132,614
2. Current advanced payments to suppliers 18,530,465,674 39,460,787,301 79,705,856,532
3. Other current receivables 123,858,458,473 88,087,780,602 98,024,330,200
4. Provision for current irrecoverable debts (18,705,056,681) (24,130,381,680) (29,981,140,924)
5. Shortage of assets awaiting solution 38,144,462 - -

IV. Inventories 1,058,357,832,458 1,187,616,961,895 1,243,512,949,996

1. Inventories 1,080,657,502,313 1,216,251,891,154 1,298,843,270,167
2. Provision for devaluation of inventories (22,299,669,855) (28,634,929,259) (55,330,320,171)

V. Other current assets 38,861,994,446 34,211,365,003 31,056,512,417

1. Current prepaid expenses 5,066,875,775 1,298,963,163 4,062,106,436
2. Deductible VAT 31,334,653,711 31,575,113,998 25,199,128,016
3. Tax and other receivables from the State 2,460,464,960 1,337,287,842 1,795,277,965

B. Non-current assets 2,094,376,354,920 2,011,452,095,772 1,997,719,856,284

I. Non-current receivables 1,740,233,344 1,707,426,548 1,679,363,153
1. Other non-current receivables 1,740,233,344 1,707,426,548 1,679,363,153

II. Fixed assets 331,084,484,398 319,952,357,508 301,185,969,376

1. Tangible fixed assets 217,640,697,264 208,082,960,093 191,517,889,557
Cost 523,397,176,194 526,569,912,792 531,716,246,559
Accumulated depreciation (305,756,478,930) (318,486,952,699) (340,198,357,002)
2. Intangible fixed asset 113,443,787,134 111,869,397,415 109,668,079,819
Cost 128,507,702,143 129,440,943,119 129,525,067,295

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Accumulated depreciation (15,063,915,009) (17,571,545,704) (19,856,987,476)

III. Investment property 774,851,903 49,859,350,591 48,454,214,452

1. Cost 3,985,959,391 56,105,443,119 54,127,793,109
2. Accumulated depreciation (3,211,107,488) (6,246,092,528) (5,673,578,657)

IV. Non-current property in progress 5,787,707,791 1,771,602,698 309,000,001

1. Construction in progress 5,787,707,791 1,771,602,698 309,000,001

V. Non-current financial investments 1,719,106,111,876 1,606,341,493,008 1,611,921,272,659

1. Investments in associates and joint-
ventures 889,748,857,260 840,488,029,454 864,584,333,252
2. Investments in equity of other entities 833,526,199,493 862,750,455,837 870,823,455,837
3. Provision for devaluation of non-current
financial investments (4,168,944,877) (96,896,992,283) (123,486,516,430)

VI. Other non-current assets 35,882,965,608 31,819,865,419 34,170,036,643

1. Non-current prepaid expenses 35,882,965,608 31,819,865,419 34,170,036,643

TOTAL ASSETS 5,862,093,977,660 5,778,024,266,245 6,077,658,772,590

EQUITY AND LIABILITIES
C. LIABILITIES 2,867,374,219,901 3,012,501,830,041 2,947,076,384,616
I. Current liabilities 2,816,370,849,290 2,946,015,048,786 2,885,741,810,464
1. Current trade payables 1,476,008,546,518 1,840,388,342,833 1,612,714,150,516
2. Current deferred revenue 58,159,638,047 46,320,297,267 36,185,896,078
3. Tax and payables to the State 6,016,485,533 5,961,202,442 14,910,959,603
4. Payables to employees 18,982,509,075 22,244,404,148 26,051,170,476
5. Current payable expense 8,714,546,415 8,541,957,555 8,072,477,815
6. Current unrealized revenue 199,690,909 2,694,530,410 2,833,299,954
7. Other current payables 55,106,474,414 20,917,925,654 38,835,340,150
8. Current loans and finance lease
liabilities 1,181,905,575,747 988,493,349,986 1,136,785,114,278
9. Bonus, welfare fund 11,277,382,632 10,453,038,491 9,353,401,594

II. Non-current liabilities 51,003,370,611 66,486,781,255 61,334,574,152

1. Non-current trade payables 12,000,000,000 30,000,000,000 30,000,000,000
2. Other non-current payables 168,648,611 528,448,611 248,219,692
3. Non-current loans and finance lease
liabilities 38,834,722,000 - 492,000,000

36
4. Non-current deferred revenue - 297,863,572 -
5. Non-current loans and borrowings - 35,660,469,072 30,594,354,460

D. EQUITY 2,994,719,757,759 2,765,522,436,204 3,130,582,387,974

I. Owner's Equity 2,994,719,757,759 2,765,522,436,204 3,130,582,387,974
1. Share capital 2,370,000,000,000 2,370,000,000,000 2,370,000,000,000
- Voting shares 2,370,000,000,000 2,370,000,000,000 2,370,000,000,000
2. Owners' other capital 57,739,257,171 57,739,257,171 57,739,257,171
3. Differences upon asset revaluation (523,045,149,504) (433,099,848,386.00) (388,400,444,386)
4. Exchange rate differences (1,435,462,388) (5,257,508,885.00) (5,896,797,638)
5. Development investment fund 243,640,718,349 333,037,718,899 349,450,358,079
6. Other equity fund 982,699,119 982,699,119 982,699,119
7. Undistributed profit after tax 676,392,720,771 270,174,626,925 546,786,554,260
- Undistributed profit after tax brought
forward 492,915,938,873 193,900,562,131 207,306,931,232
- Undistributed profit after tax for the
current period 183,476,781,898 76,274,064,794 339,479,623,028
8. Non-controlling shareholder interests 170,444,974,241 171,945,491,361 199,920,761,369

TOTAL EQUITY AND LIABILITIES 5,862,093,977,660 5,778,024,266,245 6,077,658,772,590

APPENDIX 2: DVN’s STATEMENT OF PROFIT & LOSS IN 2021, 2022, 2023

2021 2022 2023
1. Sales 4,907,442,171,786 5,584,964,753,725 5,609,381,373,967
2. Deductions (33,865,455,962) (44,383,939,947) (26,161,956,751)
3. Net sales 4,941,307,627,748 5,540,580,813,778 5,583,219,417,216
4. Cost of goods sold (4,433,827,644,346) (4,996,581,338,275) (4,985,381,240,726)
5. Gross profit 507,479,983,402 543,999,475,503 597,838,176,490
6. Financial income 114,152,360,682 130,152,998,894 283,935,508,426
7. Financial expense (34,622,985,941) (202,368,532,992) (151,669,291,975)
In which: Loan interest expenses (59,454,036,669) (63,969,314,208) (73,591,520,970)

8. Share in profits of associates 90,499,106,352 82,304,183,594 104,041,438,698

9. Selling expenses (255,588,685,903) (286,645,337,344) (263,496,627,110)
10. Administrative expenses (119,808,045,260) (135,695,685,775) (143,360,342,746)
11. Net profit 302,111,733,332 131,747,101,880 427,288,861,783
12. Other income 1,821,454,438 966,772,817 1,067,601,572
13. Other expenses (1,757,013,250) (813,858,651) (3,326,520,296)
14. Other profit 64,441,188 152,914,166 (2,258,918,724)

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15. Profit before tax 302,176,174,520 131,900,016,046 425,029,943,059
16. Current corporate income
tax charge (17,094,497,845) (21,531,408,892) (38,638,244,383)
17. Deffered corporate income
tax charge - - 3,879,165,953
18. Profit after tax 285,081,676,675 110,368,607,154 390,270,864,629
19. Profit after tax of the
parent 195,351,573,558 84,122,329,744 345,999,863,813
20. Equity holders of NCI 26,250,277,410 21,999,191,193 44,271,000,816
21. Basic earnings per share 768 322 1,391
22. Diluted EPS 768 322 1,391

APPENDIX 3: DHG’s STATEMENT OF FINANCIAL POSITION IN 2023

ASSETS
A. Current assets 4,642,192,911,354
I. Cash and cash equivalent 94,134,026,358
1. Cash 94,134,026,358

II. Short-term financial investment 2,230,000,000,000

1. Held to maturity investments 2,230,000,000,000

III. Current receivables 720,853,339,751

1. Current trade receivables 564,316,568,263
2. Current advanced payments to suppliers 97,870,766,106
3. Current loans receivable 257,622,204
4. Other current receivables 93,865,682,771
5. Provision for current doubt debts (35,457,299,593)

IV. Inventories 1,534,636,614,655

1. Inventories 1,538,803,304,478
2. Provision for devaluation of inventories (4,166,989,823)

V. Other current assets 62,569,230,590

1. Current prepaid expenses 10,348,451,125
2. Deductible VAT 38,299,117,713
3. Tax and other receivables from the State 13,921,661,752

B. Non-current assets 1,468,281,309,218

I. Non-current receivables 205,000,000

38
1. Other non-current receivables 205,000,000

II. Fixed assets 816,151,349,895

1. Tangible fixed assets 634,290,806,084
Cost 1,605,054,855,405
Accumulated depreciation (970,764,049,321)
2. Intangible fixed asset 181,860,543,811
Cost 234,288,626,721
Accumulated depreciation (52,428,082,910)

III. Investment property 31,481,004,375

1. Cost 44,826,611,143
2. Accumulated depreciation (13,345,606,768)

IV. Non-current property in progress 553,593,578,887

1. Construction in progress 553,593,573,887

V. Non-current financial investments 4,175,000,000

1. Investments in equity of other entities 24,108,379,507
2. Provision for devaluation of non-current financial
investments (19,993,379,057)

VI. Other non-current assets 62,675,376,061

1. Non-current prepaid expenses 45,803,166,017
2. Deferred income tax 16,872,210,044

TOTAL ASSETS 6,110,474,220,572

EQUITY AND LIABILITIES
C. LIABILITIES 1,257,539,546,302
I. Current liabilities 1,189,241,981,081
1. Current trade payables 217,976,497,330
2. Current deferred revenue 17,052,802,354
3. Deferred tax liabilities 39,328,182,255
4. Payables to employees 200,602,151,395
5. Current payable expenses 64,723,116,636
6. Current unrealized revenue 43,702,028,314
7. Other short-term payables 2,155,779,020
8. Current loans and borrowings 572,164,547,560
9. Bonus, welfare fund 31,536,876,217

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 II. Non-current liabilities 68,297,934,674,270
1. Non-current payables 64,317,626,290
2. Science and technology development fund 31,536,876,217

D. EQUITY 4,852,934,674,270
I. Owner's Equity 4,852,934,674,270
1. Share capital 1,307,460,710,000
- Voting shares 1,307,460,710,000
2. Capital surplus 6,778,948,000
3. Development investment fund 2,458,122,657,972
4. Undistributed profit after tax 1,080,572,358,298
- Undistributed profit after tax brought forward 29,909,699,603

- Undistributed profit after tax for the current period 1,050,662,658,695

TOTAL EQUITY AND LIABILITIES 6,110,474,220,572

APPENDIX 4: DHG’s STATEMENT OF PROFIT & LOSS IN 2023

1. Sales 5,767,734,511,921
2. Deductions 752,339,471,200
3. Net sales 5,015,395,040,721
4. Cost of goods sold 2,671,849,997,386
5. Gross profit 2,343,545,043,335
6. Financial income 217,890,286,468
7. Financial expense 90,909,165,233
In which: Loan interest expenses 29,529,505,062
8. Selling expenses 978,424,470,755
9. Administrative expenses 312,839,173,012
10. Net profit 1,179,262,520,803
11. Other income 5,105,942,083
12. Other expenses 25,194,077,802
13. Other loss (20,088,135,719)
14. Profit before tax 1,159,174,385,084
15. Current corporate income tax charge 109,539,123,098
16. Deffered corporate income tax charge (1,027,396,709)
17. Profit after tax 1,050,662,658,695
18. Basic earnings per share 7,780

40