Cash Flow Analysis

For the years ended December 31st, 2018, 2019 and 2020

Overview the last three years 2018, 2019 and 2020

*) Operating cash flow

As we can see from the chart, Bibica's net cash from operating activities increased slightly in the first 2
years but then fell sharply. Comparing 2018 and 2019, there is a slight increase between these two
years. In fact, both long-term debt and sales revenue of Bibica in these 2 years are not too much
difference, more than 1%. A special feature here is that the cash flow from business activities decreased
deeply from 2019 to 2020 and reached a negative level. This represents a deficit business year for Bibica.
In the financial statements of 2020, both receivables and payables during this period are negative,
namely receivables (-189,032,036,858) and payables (-274,690,628,252). Due to the influence of these
two sources, cash flow from operating activities dropped to negative level.

*) Investing cash flow

Refers to the cash flow received from investment activities. In all 3 years, 2018, 2019 and 2020
witnessed a heavy stagnation in Bibica's investment activities when every year the index stopped at a
negative level. This is an alarming thing when for a long time, Bibica has received losses in investment
activities. But found that in recent years, the amount of money that Bibica spent on fixed assets
increased sharply in 2018 and 2019. This proves that Bibica has focused on asset trading activities in
recent years but has stopped. in 2020.

*) Financing Cash Flow

As for the cash source from the company's financial activities, we see a sharp increase from 2018 to
2020. The special point here is that in 2019, Bibica did not record any revenue from this source. But in
2020 it skyrocketed to nearly 200 billion VND (182,458,869,605 VND). The reason for this is that Bibica
realized that buying dividends was not favorable, so it stopped this in 2018, instead borrowed a bank
loan to increase working capital, thereby pulling cash flow from financial activities increased strongly.

*) Cash, ending of a year

2018 2019 2020

299,811,739,215 403,522,192,255 112,811,737,101

As for Bibica's cash flow over the past 3 years, we see an erratic change in this amount. From 2018 to
2019, the amount of cash held by Bibica nearly doubled while falling sharply in 2020. In the transparency
section of its report, we see a decrease in cash equivalents at Bibica's banks. This shows that in the
whole year of 2020, Bibica's activities did not suffer a heavy loss, causing Bibica to use the company's
cash to maintain.

Analyse based on ratios

*) Current Maturities of Long-Term Debt and Current Notes Payable

The relationshiop between Cash Flow and the Current Maturities of Long-Term Debt, Current Notes
Payable is as follow:

In the last three years, this index of Bibica and Huu Nghi has changed as shown in the table below:

Bibica Huu Nghi

2018 0.42 -0.06
2019 0.54 0.06
2020 -1.11 0.05

From the above data, we can see that Bibica's debt repayment ability is very limited. Especially in 2020,
Bibica's operating cash flow is very negative (-486,892,019,533 vnd). This proves that Bibica's ability to
pay short-term debts is not available. The low cash flow from business activities plus the ability to pay
for nothing is a reasonable reason for Bibica to take a loan from BIDV in 2020 to maintain the company.
In fact, in the full year report for 2020, Bibica borrowed a total of more than 382 billion VND from BIDV.
Comparing this with Huu Nghi company, we find that in 2018, Huu Nghi's operating cash flow was also
negative, meaning that Huu Nghi also had difficulty in paying short-term debts in 2018. However, this
source of money has been significantly improved by Huu Nghi in the following 2 years. However, when
putting in the relationship between Bibica and Huu Nghi, it can be seen that Bibica, despite facing
declining indexes, still has a more stable short-term debt repayment capacity than Huu Nghi.

*) Total Debt

The formula for Operating Cash Flow and Total Debt is

For Bibica and Huu Nghi three last years, we have

Bibica Huu Nghi

2018 0.40 -0.04
2019 0.53 0.04
2020 -1.09 0.03

In financial statements, ratios represent a company's ability to pay all of its liabilities in a year. As
analyzed in the above index, for Bibica, most of the debts are short-term debts, long-term debts account
for a negligible amount. Therefore, this ratio for Bibica does not have much of a difference from the
ratio calculated above, and for Bibica, the two ratios carry the same meaning on the same report.
Compared with Friendship, it can be seen that the total liabilities are much higher than current
maturities long-term debt and current debt. That's why in Huu Nghi, the indicators in this total debt are
even lower than the above. This proves that Huu Nghi is completely unable to pay short-term debts, as
well as the amount of cash on hand is too low, unable to cover current liabilities, not to mention total
debt. In conclusion, for this index, Bibica is completely safer than Huu Nghi because Bibica's cash
balance is higher and more stable than Huu Nghi's.

*) Operating Cash Flow per Share

The formula for this ratio is

In 3 years of Bibica and Huu Nghi, we have

Bibica Huu Nghi

2018 8761.74 -1548.50
2019 19369.75 1978.69
2020 -31573.76 1548.51

Regarding the ratio of Operating cash flow per share, we find that in 2018, this index of Bibica was 8761,
while this number nearly doubled in 2019, is 19369. This ratio in the short term. It is used to measure
capital expenditure, determine whether capital expenditures and dividend payments are efficient. This
ratio, when related to earnings per share, is higher, indicating the company's ability to pay dividends.
For Bibica, in 2018 and 2019, this value is greater than earnings per share, especially in 2019, this ratio is
much higher. This proves that, for Bibica, the cash and cash equivalents that Bibica is currently holding
are very high. In fact, Bibica's financial statements clearly show this, cash and cash equivalents in 2019
are 135% higher than in 2018, while 2020 are 38% compared to 2018. Proved in 2019, Bibica hold a lot
of cash, cash equipvalent. But in 2020, this ratio is negative, signaling this is a bad signal for the ability to
pay dividends for Bibica in 2020.

For Huu Nghi, cash and cash equivalents increased steadily from 2018 to 2020. However, Huu Nghi's
operating cash flow in 2018 was negative, resulting in all ratios this year being negative. From here, it
can be seen that 2018 for Huu Nghi was a year in which the company had complete difficulties in
meeting short-term debts as well as total debt. But with this operating cash flow per share metric, we
see that Huu Nghi should have had a difficult year for cash dividends, but in fact, Huu Nghi has paid this
amount. Therefore, although operating cash flow in 2018 was not good, Huu Nghi has improved revenue
from sales and revenue to pay cash dividends.

For 6 months ended June 30th, 2019, 2020 and 2021

Bibica 2019 2020 2021

Current maturities of -0.90 -1.06 0.53
long-term debt and
current notes payable
Total Debt -0.82 -1.01 0.50
Operating Cash Flow -11,090 -25126.63 9668.42
per share
In the first 6 months of the year, Bibica did very badly, due to the impact of the epidemic. Although the
indexes all stopped at negative levels, in 2019, Bibica still has a more stable business than 2020, in 2021,
the company's situation has improved a little. All indexes are negative, especially operating cash flow in
2019 and 2020 is negative at -171,027,820,996 and -387,472,321,871. By 2021, thanks to the land
transfer, in the first 6 months of 2021, Bibica's money has been recovered, helping the business stable.
However, the indexes on the table are not too far apart, showing that the company has prospered in the
first 6 months but not too much.

Huu Nghi 2018 2019 2020

Current maturities of 0.02 - 0.29 0.02
long-term debt and
current notes payable
Total Debt 0.01 - 0.15 0.01
Operating Cash Flow 534.06 - 7780.87 491.25
per share

For Huu Nghi, the first 2 scores in the first 6 months of 2019 and 2020 are still bad compared to the
whole year, even somewhat worse. The repayment capacity is very poor, while the company operates
on debt from other sponsors. Besides, Huu Nghi's debt-to-capital ratio is also quite high, leading to a
danger for the company when it has to operate in a situation where the epidemic affects production
scale. However, although Huu Nghi's indexes are low, they are still uniform, showing that the company is
still doing very well, so the money collected is still available to pay its debts.