“The first priority of AAA in the coming year are increasing the company’s marginal profit and improving the financial health, for the purpose of delivering the most beneficial outcome to its stakeholders”, according to Mr. Pham Anh Duong, Chairman of An Phat Bioplastics (AAA)
– Mr. Pham Anh Duong, as I knew that you have just been on a business trip to USA to expand investment in this market in accordance with the new announced business strategy of AAA, could you please share something about this trip?
In early 2019, we officially announced the investment plan into USA market, providing hi-tech and environmentally friendly products.
According to statistics, USA consumes the largest amount of plastic products globally, accounting for 20% of the world in total, bigger than the total amount of Europe, as well as Japan. Besides, USA also consumes some products like knifes – spoons – forks with great amount, around 600 mil USD/year, equivalent to 60% of the world’s total demand. With such a potential market, but AAA has just exported about 10% of its products to USA. We, therefore, see that this market is really attractive.
The world in general, USA in particular, will gradually transit to the use of compostable products within the next five years. In the meantime, AAA is globally one of the few enterprises which owns high technology and patent for this line of products. Furthermore, USA government has the preferential policies for environmentally friendly products, which are better than other countries. That is the reason why we greatly want to focus on this market.
As the importance of making investment in USA market, I was assigned by the Chairman of AAA, the responsibility to directly manage and operate the company’s business activities into USA market.
– Sir, you are the Chairman of both AAA and APH, please tell us the difference between these position?
Beside AAA’s traditional plastic bag products, An Phat Holdings is the primary business unit carrying out Research and Development activities, developing new projects and products.
On the one hand, as the Chairman of APH, I have to concentrate on the corporation’s expansion projects such as compostable material projects, projects for supporting industries, etc.
On the other hand, as the Chairman of AAA, I keep focusing on the development of plastic bag products. Although these two BoDs have the shared members, An Phat Holdings does not produce internal revenues with AAA. So the two companies have relatively independent business activities.
I make sure that whatever position I hold, I will always make great effort to guarantee the benefits of the stakeholders.
– Mentioning AAA in particular, how do you evaluate the company’s business performance results in the year 2019?
In 2019, the revenue reaches over 9,300 billion VND, and the profit before Tax is estimated 600 billion VND, doubled in comparison with the year 2018.
In 2019, we focused on expanding our market to maximize the factories’ capacity, along with exploiting maximally An Phat Complex to attract new investment. Under the pressure of quick growth in 2019, finance, debt management and cash flows did not meet the requirements of BoD.
– So, you and AAA will have big plans for the year 2020?
Our first priority in the coming year are increasing the company’s marginal profit and improving the financial health, for the purpose of delivering the most beneficial outcome to its stakeholders. To do this, we do not focus on increasing the revenues, but primarily put all efforts to bring out the most beneficial sources.
Regarding business activities, AAA will enhance the productivities, as well as changing the transiting structures of the products and markets. We will concentrate on the products with higher marginal profits such as compostable products and expand our priced-competitive market to Japan and USA.
With regards to trading field: We will reduce the trading size, focusing on the customers with good financial health, as well as the suppliers with competitive prices. AAA will try to increase the marginal profit amount of this sector by 2% in the year 2020.
About Industrial Zone industry, we will try to hand over and reach the leasing rate of 100% at An Phat Complex in the year 2020.
In general, we plan to increase revenue and profit by over 10% in 2020, in which the production and business growth is over 20%.
Especially, besides the objective of revenue – profit, we set the purpose of improving the cash flows and reducing debt from 2020.
(According to CafeF.vn)