Dec
Dear Our Valued Shareholders and Investors,
As 2018 comes to a close, first and foremost, we would like to send best wishes and our sincere thanks to you, our valued shareholders and investors who have been greatly supporting AAA for the past year.
The year of 2018 saw numerous changes in the global politics and economy with countries increasing protectionism, the China – US trade dispute, and the unpredictable fluctuations of oil prices resulting in significant difficulties to companies in plastic industry. Meanwhile the Board of Management and our employees did make substantial progress in reaching the business plan set by General Meeting of Shareholders, which were:
– The consolidated revenue for 2018 is expected to reach VND 7,000 billion, exceeding the plan by 17%. Specifically, the revenue of packaging segment has risen by 40% compared to 2017’s due to Factory No. 6 and 7 operating at nearly full capacity. Our market share in the European and Japanese market has remained stable while exports to the USA is on the increase.
– Net profit for 2018 is expected to reach VND 200 billion, accounting for 60.6% of our business plan. The earnings results fell behind our plan because: 1) to ramp up utilization rate of Factory 6 and 7 that just came into operation in 2H17, we maintained stable selling price despite fluctuations in raw material prices; 2) the resin offtake contract with domestic producers was behind schedule.
2019 is likely to create both opportunities and challenges for us. The unpredictable movements in oil prices require us to seek for strategic suppliers to secure competitive raw material prices and to adjust sales policies in favor of short-term orders to mitigate the input price risk. On the other hand, the current global trade tension, specifically the China – US trade dispute, has enabled us to increase exports to the US market. Also FDI companies moving their manufacturing from China to Vietnam has fostered extensive opportunities for An Phat High Technology Industrial Park’s increasing occupancy rate.
In 2019, we expect to reach VND 7,900 billion of consolidated revenue and VND 510 billion of net profit (up 155% y-o-y), enabling the earnings per share (EPS) of VND 2,550 and the expected dividend rate of 10-15% for shareholders. The strong earnings growth will come from our great efforts to improve profit margins by optimizing product portfolio in packaging segment; the increasing occupancy rate of the industrial zone An Phat Complex; the higher profit margins in trading segment thanks to resin offtake contract as well as the profits contributed by recently launched the industrial packaging project, An Vinh, and the injection molding engineering plastic project, An Trung.
We hold the strong belief that backed by your trust, the significant steps we have made towards the strategic goals and the tireless efforts of our executives and employees, AAA will continue to strengthen the position in the plastic industry and improve shareholder returns in 2019 and the years to come. Once again, we would like to thank you all for your support and trust in us!
Sincerely,
Chairman of the Board
(Signed)
Pham Anh Duong
Dear Shareholders and Investors!
2019 is coming, we would like to send our best wishes and sincere thanks to our shareholders and investors who have supported and accompanied AAA in recent years.
In 2018, the global economy and politics was unstable, with an increase in trade protectionism, the US-China trade war kept happening, the oil prices frequently fluctuated causing many difficulties for plastic producers. In this context, Board of Directors, Board of Management and the total employees of AAA have made every effort to achieve the goals set by the General Meeting of Shareholders, specifically:
– Consolidated revenue in 2018 was expected to reach VND 7,000 billion, exceeding 17% of the plan. In particular, revenue from packaging increased by 40% compared to 2017 thanks to the operation and increased capacity of factories 6 and 7. Export market share in Europe and Japan remained stable, along with increasing exports to the US market.
– Profit after tax was estimated at 200 billion VND, equivalent to 60.6% of the plan. Due to the policy of stabilizing the selling price to accelerate the operation capacity of new factories for packaging, and owing to a number of delayed contracts to early 2019, the profit did not meet the proposed plan.
– Profit after tax was estimated at 200 billion VND, equivalent to 60.6% of the plan. Due to the policy of stabilizing the selling price to accelerate the operation capacity of new factories for packaging, and owing to a number of delayed contracts to early 2019, the profit did not meet the proposed plan.
In 2019, it is expected that there will be a lot of opportunities as well as challenges for AAA, when the oil price oil is unpredictable, requiring AAA to expand the supplier network to get the competitive material sources, and continue applying the policy of signing short-term orders to minimize the risk of fluctuations in raw material prices. However, the world trade tensions, particularly the US-China trade war, also create opportunities for AAA to boost exports to the US market and the shift of FDI enterprises from China to Vietnam also brings potential opportunities to take advantage of An Phat Complex High-Tech Industrial Park.
In 2019, we expect a revenue of 7,900 billion and profit after tax of 510 billion (an increase of 155% over the same period, equivalent to 310 billion). This profit growth ensures the earnings per share (EPS) of VND 2,550 and the expected dividend of 10-15% in 2019. Strong growth in profit after tax comes from the improvement of profit margin and restructure the product portfolio of AAA, accelerate the exploitation of An Phat Complex Industrial Park, improve the net profit margin of An Thanh Biscol’s raw material trading activities and profit from An Vinh industrial packaging project and An Trung engineering plastic project.
AAA’s Board of Directors and Management believe that based on the positive foundations that it has built with the appropriate business strategy, competence, will and responsibility of the management team and employees, AAA will continue to consolidate and enhance the position in the plastic industry and strive to create higher value for shareholders in 2019 and the following years.
Sincerely yours,
An Phat Plastic and Green Environment JSC (AAA) is Southeast Asia’s number one enterprise in manufacturing thin-film plastic packaging with a total capacity of 8,000 tons of products / month. Not only exported to Japan and Europe, recently AAA has provided compostable AnEco bags to Vinmart supermarkets. With a growth business, AAA has maintained a strong breakthrough for many years. Recently, Mr. Nguyen Le Trung – General Director of AAA has shared with us about the business results of 2018 as well as the business plan of the next year.
“… Currently AAA is going in the right direction and we are using the right investment source. Long-term projects require a certain amount of investment and time to get good results and in the near future, AAA’s profits will grow strongly again. In 2019, we aim for AAA’s consolidated revenue target of VND 7,900 billion and net profit of VND 510 billion. ”
Details please see here
As you know, there are a lot of products on the market now labeled with “bio compostable bags”, but it is still unclear between the concept of decomposition and decay into microplastics.
Below are the most specific concepts about the “bio compostable” standards that the world follows, and you can be assured of the quality when seeing these standards:
• Biogradable Product institute (BPI): The product will safely decompose under the separate industrial composting conditions.
• European Bioplastic: The product will safely decompose under the separate industrial composting conditions.
• Vincotte OK bio based: The product is made from plants, without assuring of decomposition.
• Vincotte OK compost: The product will safely decompose under the separate industrial composting conditions.
• Vincotte OK compost HOME: The product will decompose under home composting.
• Vincotte OK biodegradable SOIL: The product will decompose when buried in the ground.
• Vincotte OK biodegradable WATER: The product will decompose in water (without assuring of decomposition under seawater).
For the final product, as in this case, a bio compostable bag, the input materials must satisfy the standards above, of which the two most widely used types of bio compostable plastics are PLA and PBAT. An Phat’s “bio compostable bags” are made from Ecovio materials of BASF and Mater-Bi – the world’s largest chemical groups from Germany, Novamont respectively.
Ecovio is a compound of both PLA-PBAT, ensuring smooth and softness. Mater-Bi, meanwhile, is primarily a PBAT resin extracted from non-GMO corn starch and vegetable oil, grown in Europe wiht conventional agricultural methods. Most importantly, both of those ingredients are certified with Vincotte OK compost HOME.
With the information above, you are assured of the quality of An Phat’s bio compostable bags, by using these bags, you have make a great contribution to the environmental protection!
Refer:
http://www.okcompost.be/en/home/
https://pure.tue.nl/ws/files/3048453/712662.pdf
http://materbi.com/en/use-of-renewable-resources/
http://www.okcompost.be/data/pdf-document/Doc-09e-a-Requirements-of-norm-EN-13432.pdf
In response to the campaigne “Make the World Cleaner” in 2018, the Ministry of Natural Resources and Environment has hosted “Anti-plastic Waste Program”. Ms. Nguyen Le Hang – Deputy General Director of An Phat Holdings (APH), on behalf of more than 2,500 employees made a commitment to Deputy Minister of Natural Resources and Environment in propagating and disseminating policies to encourage consumers to limit their usage of nilon bags and disposable plastic products.
AnEco bio compostable bags are made from two main materials: biodegradable materials and Eco vio granules. Thanks to features of these two materials, AnEco products, when released to the environment, will decompose by soil microorganisms within 6 months. The final decomposition substance produces water, C02 gas and compost, which is beneficial for plants and people. AnEco bio compostable bags are now exported to European countries with an output of 8000 tons / month. An Phat Holdings hopes that those products can contribute to solving environmental issues in both Vietnam and in the region. In the coming time, besides AnEco bio compostable bags, An Phat Holdings continues to research and produce bio compostable products such as knives, forks, spoons, cups … to replace products made from recycled plastic.
For many years, the care and nurturing of Vietnamese Heroic Mothers has always been of special attention to all sectors, businesses, unions and people of Nam Sach district, Hai Duong province. It is the responsibility, showing deep gratitude for Heroie Mothers’ great sacrifice and dedication to the national revolution and liberation. Demonstrating the tradition that when you drink water, think of its source, expressing gratefulness to the heroic martyrs of Nam Sach people in particular and the entire Vietnamese people in general. As part of traditional ethnic education activities, on the occasion of the 71st anniversary of the War Invalids and Martyrs’ Day (July 27, 1947 – July 27, 2018), the Youth Union of An Phat Plastic cooperated with Trade Union Executive Committee paying visits and giving gifts to 4 Vietnamese Heroic Mothers in Nam Sach district, who are monthly reported by the company.
Mr. Duong Xuan Ty – Secretary of the Party Committee, representative of An Phat lit incense on the remains of heroic martyrs, commemorating the selfless sacrifices of the father’s generation. At the same time, the delegation cared about their health, encouraged their spirit, expressed gratitude to Mothers for the noble sacrifices. The representative also kindly encouraged mothers to live happily and healthily, being good examples for young generations to follow. This is a very practical job, an activity to express gratitude to those families, showing the spirit of “eating fruit and remembering planters”, sending care and responsibility of An Phat’s employees to the relatives of the heroes who sacrificed to defend their country.
Since 2017, with the approval of the Department of Labor, Invalids and Social Affairs of Nam Sach district, the support of the Fatherland Front Committee of Nam Sach district, An Phat monthly has provided monthly aid to heroic mothers in the area. With love, care, responsibility, and the morality that “when you drink water, think of its source”, the mothers’ lifelong support not only carries a humane meaning but also shows our respect for the father’s generation’s sacrifice for the national independence and freedom. This is of a meaningful action, which not only helps improve the quality of life of Vietnamese Heroic Mothers, but also expresses the responsibility and deep gratitude of An Phat for its continuous effort to create value for community and society.