2010 is regarded as a "key" milestone for Kinh Do Group's development. For Vinabico alone – a member of Kinh Do Group, the year 2010 is implied with many special meanings, marking the important turning point when the Company was succeeded in overcoming the difficult stage and gradually obtaining the encouraged achievements in the production and business, putting a positive signal for a more bright development in the future.

IMPRESSIVE OUTCOMES AFTER THE FIRST 6 MONTHS OF THE YEAR

MR. BUI THANH TUNG – General Director of Vinabico cum Vice General Director, Chairman of Trade Union of Kinh Do Company unveiled that, after successfully finishing 06 early months of the year, Vinabico's net revenue increased 34% compared with the same period of 2009. The pre-tax profit was 4 billion VND, 148% increase compared with the same period of last year, obtaining 56% of the set plan. In the context that economics was still unstable and bakery market were increasingly cut-throat competition, the above business outcomes were extremely impressive, acting as a turning-point and celebrating the successful footprint of Vinabico after nearly 4 consecutive years of ineffective production and business.

Achieving the impressive success as above was thanks to the logical business strategy, determination, solidarity and ceaselessly effort of the new Management Board and employees in nearly past 2 years after Kinh Do acquired Vinabico with a liability of 11.4 billion VND before-tax at the end of 2008.

By the early of 2009 being supported by Kinh Do Group, leaders of Vinabico launched the comprehensive reformation strategy in the whole organization.

Regarding production: Thanks to the strategy on comprehensive price management via Kinh Do's support in buying raw materials, renovating plants and equipment, Vinabico reduced its input costs, improved productivity and output, and reduced production loss. Besides, SKU was screened in combination with the product quality improvement strategy. Its key products was restored, planned and continuously upgraded to create the competitive advantage to rearrange the organization structure in a more compact and effective manner. Some potential officials were assigned to be trained in Kinh Do Training Center to make application into practice. Moreover, Vinabico's distribution channels were conducted in various directions, focusing on key products with competitive advantages in great markets such as Japan, Korea and Australia. Thanks to that, a satisfactory signal was available, bringing about many great orders to Vinabico in the first 6 months of the year.

Regarding financial investment: In the past time, the Company's Management Board restructured the portfolio to focus on the production and business activities. Thanks to important adjustments in the business strategy, the Company successfully recovered the liability of 11.4 billion VND before tax forwarded from 2008 and the Company was profitable as at the date of finishing 06 early months in 2009. Especially, in the first 06 months of 20100, the highest profit was outperformed by Vinabico after nearly 4 years of consecutive loss. With determination and consent of the Management Board and employees, in the first 06 months of the year, Vinabico outperformed and successfully fulfilled the Company's objectives in 2010.

OPTIMISTIC ABOUT THE FUTURE DEVELOPMENT ORIENTATION

By sharing the Company's future orientation and long-term strategy, Mr. Bui Thanh Tung revealed that Vinabico would combine production and distribution activities with Kinh Do. Concretely, some key products were selected to connect with Kinh Do trademark to launch. Initial success was achieved in improving segments and product price such as Finery, Minity and so forth. The full-moon festival this year, in addition to products well-known by customers mainly the agency and enterprise block, the luxury cake series were introduced by Vinabico. Moreover, Kinh Do distribution channels were cooperated to launch and develop the segments differentiated with KDC. For Tet festival, the Company oriented to maintain the traditional items and strengthen the market expansion by jam cake and Pia cake group.

Although the market is unstable, the optimistic operation results of the Company in the first 06 months and outperformance of set strategy in 2010, the Management Board strongly believes to fulfill pre-tax profit of 7.2 billion VND and commits to distribute dividend to shareholders available in 2010.

IMPRESSIVE OPERATION RESULTS OF VINABICO IN THE FIRST 06 MONTHS OF 2010:

  • Net revenue: Increase 34% compared with the same period of 2009.
  • Pre-tax profit: 4 billion VND, increase 148% compared with the same period, obtained 56% against the plan
  • Export: Increase 200% compared with the same period of 2009

MS. LE THI PHUONG PHUONG – VICE GENERAL DIRECTOR OF PRODUCTION UNDER Vinabico:

“In the past time, with Kinh Do's support and determination of the Company's Management Board, especially the consent and great effort of all employees, Vinabico was characterized by positive changes, bringing about the satisfactory production and business performance. I strongly believe that with the prestigious trademark which has been closely related to consumers for more than 30 years and the available background and prospect, Vinabico will have more chance to develop its revenue and profit, making Vinabico trademark brighter and reaching a new height. Regarding production field, with accumulated experience and competence, I and my colleagues will make great effort to the overall development of the Company. It is assumed to concentrate on reducing losses of raw materials, increasing labor productivity, effectively using plants and equipment, arranging the proper production, etc, to lower the product price and improve the Company's profit”.

MS. NGUYEN THI THUY LOAN – Vice General Director cum Chief Accountant of Vinabico:

“To be on spar with the general improvement of the Company, application of new technology for accounting such as Solomon software facilitates the accurate- fast- compact accounting operations, data provision for analyzing in the administration accounting. Furthermore, the cash flow management process releases a more effective management of cash flow employment and closer payment supervision. With a desire to make more contribution for the Company's development, I and my colleagues actively learn to improve the knowledge and update information to further perfect the internal control regulations of the Company, train the successors in the management sector. With the Company's positive improvement and impressive operation results, we are confident that with determination of the new management board as well as the optimistic, consent and great effort of people, Vinabico's future will be increasingly better”.

MS. PHAM THI KIM PHUONG – Manager of R&D, Quality Control Department

“Along with Vinabico for 12 years from graduating, I am happy and proud of the positive changes and development of the Company now. What makes me happy is that all employees strive with the highest sense of responsibility and spirit of unified team, solidarity and determination to fulfill the assigned tasks to contribute to the Company's development”.