CFO's message:
With the motto "Financial transparency, effective investment", we always act for the sustainable development of the Company, increase the interests of shareholders and balance the benefits of employees, customers. suppliers, partners, and related parties.


Mrs Nguyen Thi Thanh Huong _ CFO

FINANCIAL HEALTH

 

Along with the return of the Vietnamese economy growth, company has a significant growth in both total assets and net sales , specifically: 

 

Contract sales in 2016 reached 1,532 billions VND, reaching 90.11% of the plan, equivalent to 137.21% over the last year.

Revenue in 2016 reached 1,316 billions VND, reaching 94.03% of the plan, equivalent to 126% over the last year.

2016 was a year to mark great growth in contract sales and realized revenue which created momentum for the implementation of the five-year plan.

KEY FINANCIAL CRITERIA

On short-term solvency

On short-term solvency

With the growth rate of current liabilities higher than the growth rate of current assets, the payment ratios in 2016 had a slight downwards tendency as compared to 2015 but still higher than 1 ;therefore, it remained at a safe level. The Company always maintained a reasonable amount of cash to ensure its ability to pay due debts.

Operation capability

Operation capability

Compared to the results achieved in 2015, the targets reflected the operation capability of Searefico in 2016 have improved, especially the inventory turnover with an increase of more than 30% (From 5 rounds to 6.53 rounds). This was the result of improved management of operations, reduction of inventory time in the Company’s operating cycle..

Capital structure

Capital structure

While the liabilities /total assets ratio has not changed much over the years, the liabilities/total capital ratio tended to increase sharply in 2016 as compared to the same period last year with an increase of 165, 4% to 198.1%. In fact, the Company is using short-term liabilities to finance short-term assets rather than owners’ equity. However, the level of financial leverage is appropriate and safe.

Operation's effectiveness

Operation's effectiveness

Positive operating results in 2016 expressed through the improvement trend of targets on profitability of Searefico. All targets on profitability in 2016 were higher than last year, if it was only calculated on profit from main business activities. If it was also calculated on uncommon profit, EAT/Net revenue ratio, ROE and ROA respectively 7.31%, 22.33%, 7.91%.

FINANCIAL HEALTH

As of 31/12/2016, total asset value reached 1,335.15 billion VND, 21.5% higher as compared to 2015; the structure of short-term and long-term assets remained at 80.85% and 19.15%. This structure remained much more stable and unchanged as compared to last year.

In short-term assets, the company’s short-term receivables accounted the largest proportion of 50.30%, followed by short-term financial investments, inventories and cash, these items accounted for 21.35%, 17.19% and 9.97%. Receivables increased due to the arising debts at the end of the year which were undue under the terms of contracts.