An Phat Bioplastics (HoSE: AAA) has just announced the consolidated financial statements of the second quarter with revenue increasing by 80% to VND 3,265 billion (~$ 139 million), cost of goods sold increased lower, therefore gross profit up 93% to VND 355 billion (~$ 15 million).
According to AAA, packaging revenue growth thanks to the increase in the price of plastic resins and contribution from the industrial packaging segment of An Vinh Packaging, which AAA acquired since quarter III/2020. Along with that, the plastic resin additive production and plastic resin trade improved efficiency, revenue from industrial real estate also recovered, An Phat Complex Industrial Park’s occupancy rate also increased to 95%.
Gross profit margin in the second quarter reached 10.9%, increased slightly compares to the 10.1% in the same period last year. Gross profit margin in the first half of the year remained at 10.7%. In which, the gross profit margin from selling additives increased from 19.3% to 27% and the gross profit margin of plastic resin trade increased from 3.8% to 5.5%. Financial revenue was similar to the same period last year and financial expenses decreased by 18% to VND 55 billion (~$ 2.3 million). However, sales expenses and administrative expenses increased sharply.
Accordingly, the company’s net profit from business activities reached VND 126 billion (~$ 5.3 million), up 69%; profit before tax reached VND 117 billion (~$ 4.9 million), up 54%, and profit after tax reached VND 93 billion (~$ 3.9 million), up 25% over the same period last year. In the first half of the year, AAA’s revenue increased 64% to VND 5,548 billion (~$ 236 million); profit after tax reached VND 182 billion (~$ 7.7 million), up 33%.
AAA’s good business results were significantly contributed by its subsidiary – An Tien Industries (HoSE: HII) with the development of plastic resins and additives segment. In the second quarter, HII reported revenue of VND 2,179 billion (~$ 92.7 million), up 101%, and profit after tax of VND 34 billion (~$ 1.4 million), up 140%. In the first 6 months of 2021, HII’s consolidated revenue reached VND 3,461 billion (~$ 147 million), profit after tax was VND 63.5 billion (~$ 2.7 million), up 84% and 191% respectively over the same period. HII completed 87% of the revenue plan and 91% of the year profit plan.
At the end of quarter II, AAA’s total assets increased by VND 1,073 billion (~$ 45 million) to VND 9,642 billion (~$ 410 million). In which, cash and cash equivalents reached VND 2,214 billion (~$ 94 million), 2.3 times higher than at the beginning of the year; receivables are VND 1,919 billion (~$ 81 million), up 14% and inventory is VND 1,132 billion (~$ 48 million), up 19%. On the contrary, the company reduced short-term liabilities from VND 2,943 billion (~$ 125 million) to VND 2,791 billion (~$ 118 million) and long-term borrowings decreased from VND 617 billion (~$ 26.2 million) to VND 614 billion (~$ 26.1 million).
The reason is that in the first 6 months of 2021, AAA successfully issued 75 million shares to increase charter capital from VND 2,218 billion (~$ 94 million) to VND 2,968 billion (~$ 126 million). The proceeds will be used to repay loans and supplement working capital according to the share issuance plan according to the Resolution of the General Shareholders’ Meeting. This is also the reason behind AAA’s cash and cash equivalents increased sharply while AAA’s liabilities decreased.