TOGETHER IN BELIEF – LEADING INNOVATION On the journey to ever greater heights, the An Cuong team moves forward, bound by an unshakable belief. Innovation is the beacon that illuminates the path beyond all limits. To us, pioneering is not merely the first step; it is the fire that fuels ambition, bringing visionary ideas to life. Each individual, every bold innovation, converges to craft a story of inspiration—laying a solid foundation for An Cuong's legacy.
E P
E P
BELIEF
TOGETHER IN
INNOVATION
LEADING IN
On the journey to ever greater heights, An Cuong team moves forward, bound by an unshakable belief—innovation is the beacon that illuminates the path beyond all limits. To us, pioneering is not merely the first step; it is the fire that fuels ambition, bringing visionary ideas to life. Each individual, every bold innovation, converges to craft a story of inspiration—laying solid foundation for An Cuong’s legacy.
ANNUAL REPORT 2024
TOGETHER IN BELIEF, LEADING IN INNOVATION
002
003
Abbreviations
Explanation
Explanation
Abbreviation
Abbreviation
5S AGM AN CUONG/ THE COMPANY ASEAN
IIP IR KPI
Lean management process initiated by Toyota Annual General Meeting of Shareholders An Cuong Wood Working JSC Association of Southeast Asian Nations Board of Directors Board of Management Compounded average growth rate Earnings before Interest, Tax, Depreciation and Amortisation Extraordinary General Meeting of Shareholders Earnings Per Share Financial Statements Gross Domestic Product General Meeting of Shareholders
Index of Industrial Production Investor Relations Key Performance Indicator Medium Density Fiberboard Melamine Faced Chipboard Research and Development
MDF MFC R&D ROA ROE RPTS
BOD BOM CAGR EBITDA EGM EPS FS
Return on Assets Return on Equity Related Party Transactions Social Accountability Supervisory Board Special Purpose Entity/ Special Purpose Vehicle State Securities Commission Vietnam Chamber of Commerce and Industry Year-on-Year
SA SB SPE/SPV SSC VCCI YOY
GDP GMS GRI HOSE IFC
Global Reporting Initiative Ho Chi Minh Stock Exchange International Finance Corporation
ANNUAL REPORT 2024
TOGETHER IN BELIEF, LEADING IN INNOVATION
004
005
Table of Contents
008 – 009
2024 Highlights
006 – 011
Message from Chairmain of the Board of Directors
012 – 013
Financial Summary 2020 - 2024
General Information
Business Performance
Corporate Governance
Sustainable Development
Consolidated Financial Statements
Appendix
ASEAN Corporate Governance Scorecard Certificates & Quality Certifications List of distributors,
Vietnam Business Landscape in 2024 Report on 2024 Performance Business Plan & Strategy For 2025
Report of The Board of Directors Report of Independent Members of the BOD Report of The supervisory board Remuneration and Benefits of the BOD and Key Executives Risk Management Stock Information & Investor Relations Activities
Corporate information Vision - Mission - Core Values Corporate milestone Distribution Network & Products Subsidiaries and Associates Organizational Apparatus Introducing the BOD, SB, and BOM Journey of the year 2024 2024 Awards
2024 Outstanding Achievements in Sustainable Development 2024 Sustainable Development Report 2024 ESG Data CSR activities in 2024 GRI Index
partner showrooms & franchised showrooms
ANNUAL REPORT 2024
TOGETHER IN BELIEF, LEADING IN INNOVATION
~ 140,000 PARTNERS & CUSTOMERS
TOTAL ASSETS 5,640 VND bn
006
007
2.1 %
Yoy
NUMBER OF EMPLOYEES 2,465 employees
EQUITY
4,176
VND bn
2.4 %
Yoy
BUSINESS LOCATIONS as end of December 2024
Yoy 5.8 % 3,981 VND bn NET REVENUE
144
TOTAL REMUNERATION EXPENSES ~ 609 VND bn
PROFIT AFTER TAX
420
VND bn
2.1 %
Yoy
SHARES ISSUED AS STOCK DIVIDEND
GROSS MARGIN 31.4 %
240
VND bn
ANNUAL REPORT 2024
TOGETHER IN BELIEF, LEADING IN INNOVATION
008
009
Message from Chairman of the Board of Directors
CHAIRMAN OF THE BOARD
VALUE
OF CREATING
Nghia
Le
CONQUERING THE
FUTURE The year 2024 marks a remarkable 30-year journey of relentless dedication by An Cuong—a journey driven by an steadfast ambition to rise higher, built upon core values nurtured across generations. Inspired by the image of Mount Everest, An Cuong celebrates the resilience, inner strength, and the relentless pursuit of new challenges embraced by our entire team. Today's success is the culmination of trust from customers, the devoted commitment of partners, and the tireless contributions of every employee. This journey will continue, expanding and shining even brighter. As we step into a new chapter, we pledge to continuously scale up, enhance our competitive edge, and drive sustainable growth. With resolute determination and the unity of all our employees, I believe An Cuong will continue to leave a brilliant mark, leading industry trends and spreading positive values throughout the community and society.
ANNUAL REPORT 2024
TOGETHER IN BELIEF, LEADING IN INNOVATION
010
011
Dear valued shareholders, In 2024, supported by favorable policies enacted by the Government and other authorities, the business environment experienced substantial improvements, leading to marked economic recovery. This progress was evidenced by key indicators, including GDP growth rates and the total value of import and export activities…
The year 2024 marked a significant milestone for An Cuong as we celebrated the 30-year anniversary of our establishment. While 30 years may seem brief compared to the legacies of global corporations spanning centuries, it represented an extraordinary chapter of dedication, resilience, and ambition. The journey reflected the unwavering commitment of the founders and countless employees who devoted the prime years of their lives to the Company, overcame challenges together, and turned visions into reality. Their shared determination and passion have shaped An Cuong into the strong, dynamic, and innovative enterprise it has become. On this special occasion, I wish to express my deep appreciation and pride in having the opportunity to work alongside such a kind-hearted and professional team. It is this kindness—toward our work, colleagues, the Company, and our customers - that has guided our team to achieve excellence in every project and product delivered. Also, I would like to extend my heartfelt gratitude to all of my employees for unwaveringly maintaining their trust in the Company. This shared trust across our entire team has been instrumental in shaping An Cuong’s extraordinary journey over the past 30 years. As An Cuong embarks on a new phase of growth, I am confident that we will continue to nurture this trust as we innovate, create, and achieve new milestones together, forging a sustainable and enduring future. I would also like to take this opportunity to honor the unwavering dedication and invaluable contributions of the members of the Board of Directors. Equally significant, on behalf of the Board of Directors and the entire An Cuong team, I extend deepest respect and heartfelt acknowledgment to our esteemed customers and business partners. Your trust has served as the foundation of An Cuong’s 30-year journey and remains a source of inspiration, driving us to strive for even greater achievements in the future. Wishing you enduring health and success in all your pursuits.
Through the measures implemented to address the challenges of the previous year, we are grateful for the progress made in 2024. An Cuong recorded Net Revenue of VND 3,980.9 billion and NPAT of VND 420.0 billion , reflecting growth rates of 5.8% and 2.1% respectively compared to 2023. The annual gross profit margin reached 31.4%, the highest level in the past five years. These outcomes are a testament to the collective trust, collaboration, and unwavering commitment of nearly 2,500 An Cuong employees who united to overcome challenges and achieve meaningful progress. Training programs were organized with greater frequency to enhance staff and worker awareness of occupational safety, fire prevention and firefighting, as well as environmental protection. Throughout the year, An Cuong demonstrated a steadfast commitment to advancing initiatives aimed at carbon neutrality. Key efforts included the implementation of rooftop solar energy solutions, the gradual deployment of electric vehicles to replace fossil fuel-powered ones, and collaborative partnerships to organize reforestation activities, such as tree-planting projects in degraded areas… Shareholders can readily recognize the strategic transformation An Cuong has undertook in customer engagement throughout last year. This included the establishment of Creative Hub by An Cuong in major cities and the introduction of an Online Catalogue on the website. Additionally, Make Your Space application - a platform that empowers customers to design interior spaces effortlessly using intuitive actions on their smartphones or personal computers. At the manufacturing facilities, advanced automation technologies were integrated, and production processes were restructured to achieve significant improvements in operational efficiency and productivity. Furthermore, initiatives focused on minimizing material waste were implemented, leading to enhanced cost optimization in production activities. While the broader landscape revealed certain positive developments, it would be challenging to describe 2024 as a year of favorable conditions. Domestic consumers maintained a cautious approach to spending, and the real estate sector continued to face enduring challenges. These dynamics collectively presented significant headwinds to An Cuong’s business operations. In this context, An Cuong implemented a series of strategic solutions to adapt to evolving market conditions, while proactively redefining our approaches to business development and manufacturing processes.
Yours respectfully,
CHAIRMAN OF THE BOARD
(Signed)
LE DUC NGHIA
ANNUAL REPORT 2024
TOGETHER IN BELIEF, LEADING IN INNOVATION
012
013
Net Revenue & EBITDA (VND bn)
Source: An Cuong
Financial Summary 2020 - 2024
4,475
3,981
3,754
3,762
3,294
704
891
678
686
672
Item
Unit
2020 2021
2022 2023*
2024
2020
2021
2022
2023
2024
Net Revenue
EBITDA
VND bn
Net Revenue
3,753.6
3,293.5
4,475.5
3,762.1
3,980.9
Gross Profit
VND bn
1,018.0
895.9
1.,337.8
1,107.6
1,251.4
Total Assets & Equity (VND bn)
Source: An Cuong
VND bn
Profit after tax
492.0
451.3
615.6
411.2
420.0
VND bn
EBITDA
686.2
678.1
890.9
671.9
703.3
5,640
5,522
5,467
VND
EPS
5,633.0
4,513.0
3,757.0
2,470.0
2,786.0
4,983
4,453
4,076
4,176
3,912
3,777
3,517
Total Assets
VND bn
4,453.1
4,982.9
5,467.2
5,522.1
5,639.6
VND bn
Equity
3,516.7
3,776.8
3,912.2
4,076.5
4,176.0
VND bn
876,6
876.5
1,358.5
1,507.9
1,507.9
Share Capital
2020
2021
2022
2023
2024
VND bn
Total Debts
307.9
567.0
813.7
706.6
728.0
Equity
Total Assets
times
Equity-to-Asset ratio
0.8
0.8
0.7
0.7
0.7
Profit Margin
Source: An Cuong
Debt-to-Asset ratio
times
0.1
0.1
0.1
0.1
0.1
31.4%
29.9%
%
14.3%
12.4%
16.0%
10.1%
10.1%
29.4%
ROE
27.2%
27.1%
ROA
%
11.4%
9.6%
11.8%
7.4%
7.4%
13.8%
13.7%
13.1%
(*) Presented according to the 2024 audited consolidated financial statements
11.6%
10.5%
2020
2021
2022
2023
2024
Net profit margin %
Gross profit margin %
30years OF A SHARED VISION
For three decades, An Cuong has paved an extraordinary path, where every individual is a vital link in a journey of brilliance and meaning. From the challenges of our early days to the remarkable milestones we celebrate today, we have stood united—shoulder to shoulder—driven by an unstoppable ambition to turn aspirations into achievements. Our steadfast belief in the mission to elevate industry standards, safeguard our core values, and overcome every challenge to reach new heights is more than just a guiding light—it is the bond that unites every member of An Cuong team.
General Information
Corporate information Vision - Mission - Core Values Corporate milestone Distribution Network & Products Subsidiaries and Associates Organizational Apparatus Introducing the BOD, SB, and BOM Journey of the year 2024 2024 Awards
018 _019 020_021 022_023 024_027 058_059 060_061 062_069 070_071 072_073
ANNUAL REPORT 2024 BÁO CÁ O THƯỜNG NIÊN 20 24
TOGETHER IN BELIEF, LEADING IN INNOVATION
018
018
019
Corporate information Thông tin doanh nghi ệ p
Business Name Tên giao dịch
AN CUONG WOOD - WORKING JOINT STOCK COMPANY AN CUONG WOOD - WORKING JSC CÔNG T Y CỔ PHẦN GỖ AN CƯỜNG AN CUONG WOOD - WORKING JOINT STOCK COMPANY AN CUONG WOOD - WORKING JSC
Company Name Abbreviation
Logo
General information Thông tin chung
Land lot no.681, map sheet no.05, street no. ĐT 747B, Phuoc Hai quarter, Thai Hoa ward, Tan Uyen City, Binh Duong Province Th ử a đấ t s ố 681, T ờ b ản đồ s ố 05, Đường Đ T 74 7B, Khu phố Phước Hả i, Ph ường Thái H ò a, Thành phố Tân Uy ên, Tỉnh Bình Dương, Việ t Nam
Headquarters
(0274) 362 6282 - (0274) 362 6283 (0274) 362 6282 - (0274) 362 6283
Telephone
Điện thoại
(0274) 362 6284
Fax
(0274) 362 6284
www.ancuong.com ACG
www.ancuong.com ACG
Website Stock code Business Registration number Website
3700748131
3700748131
ERNST & YOUNG VIETNAM LIMITED (EY VIETNAM) CÔNG TY TNHH ERNST & YOUNG VIỆT NA M
Auditor Đơn vị kiểm toán độc lập
VND 1,507,879,460,000 1.507.879.460.000 đồng
Charter Capital Vốn điều lệ
(tại ngày 31/12/2024)
(as at 31/12/2024)
M ột nghìn năm t r ăm linh b ả y t ỷ, tám tr ăm b ả y m ươi chín tr iệu, b ốn t r ăm sáu m ươi nghìn đồng
Bằng chữ
Primary business activities Ngành nghề kinh doanh
Manufacturing and trading of wooden household products and industrial wood, industrial panels, interior decoration items, kitchen equipment, and other wood-based products; Providing installation services. Sản xu ấ t và buôn bán hàng g ỗ gia dụng, g ỗ công nghiệp; Ván công nghiệp, hàng trang trí nội th ấ t, thi ế t bị nhà b ếp và các s ản phẩm khác từ g ỗ; Các dịch vụ gia công lắp đặ t…
ANNUAL REPORT 2024
TOGETHER IN BELIEF, LEADING IN INNOVATION
020
021
VISION MISSION CORE VALUES
Core values
01
Placing people at the core of all corporate activities, we recognize their pivotal role in driving sustainable growth for both the organization and society. Employees are regarded as the company’s key asset. The company establishes proper policies to attract talent and fosters a supportive work environment where individuals can thrive, collaborate, and grow professionally within a cohesive and dynamic team. Human resource Continuously pursuing improvements to achieve perfection. This commitment not only minimizes stagnation but also plays a critical role in driving growth, achieving breakthrough successes, and ensuring the company’s sustainable development. Innovation Employees are carefully recruited, trained, and assigned tasks based on the principle of "the right person for the right job," fostering creativity and dedication. This practice ensures the delivery of exceptional products and services to our customers, establishing the foundation for the Company’s value and reputation. Excellence Integrity stands as one of the four fundamental virtues that every individual and all businesses must uphold. Serving as a cornerstone of business ethics, it embodies transparency and trust. As a guiding principle, integrity drives all An Cuong’s activities, reaffirming our dedication to ethical practices and sustainable growth. Integrity
Becoming the leading manufacturer and supplier of materials, solutions, and furniture made from industrial wood in Southeast Asia, while expanding its influence across Asia. Vision
02
Mission
Delivering comprehensive solutions utilizing industrial wood for interior design, addressing diverse needs while enhancing the functionality and aesthetic appeal of living spaces.
03
04
ANNUAL REPORT 2024
TOGETHER IN BELIEF, LEADING IN INNOVATION
022
023
Corporate milestone
Successfully completed the nationwide distribution network expansion plan. Executed a series of strategic digital transformation initiatives, including establishing a digital office environment, upgrading to the SAP S4/HANA system, and developing an advanced data warehouse. 2022 STRENGTHENING CAPABILITIES AND EMBRACING DIGITAL TRANSFORMATION
2014
RESTRUCTURING AND ACCELERATING GROWTH
Transitioned to a joint-stock company model with charter capital reaching VND 240 billion. Expanded the production area to 70,000m² and offered a collection of 800 wood colors. Achieved CQ and Green Label certifications. During this year, revenue increased by 1.5 times, while net profit grew nearly fourfold. 2015 BREAKING THROUGH THE TRILLION-VND REVENUE MILESTONE 2016 Secured strategic investments from Whitlam Holding Pte. Ltd. and Sumitomo Forestry Singapore Ltd., Achieved revenue exceeding VND 1,000 billion, with net profit increasing by over 62%. STRATEGIC INVESTMENT
Over three decades, An Cuong has embodied relentless dedication, groundbreaking innovation, and an unyielding aspiration to conquer new milestones. From the pioneering beginnings, we have forged a proud legacy that continues to elevate Vietnam’s industrial wood industry to remarkable heights. Founded with VND 220 million, the Company specialized in trading industrial wood materials, including MFC, plastic edging, and adhesives. STARTING UP 1994 2006 Years AN CUONG’S 0 FOGRING THE PATH LEADING WITH EXCELLENCE
Strategic Vision Building upon its legacy, An Cuong strives for perfection, continuously enhancing its global presence while contributing to the sustainable development of the industrial wood sector, communities, and society.
2024 30 YEARS OF DRIVING IMPACT AND INNOVATION
Recognized as the leading manufacturer of industrial wood in Vietnam and Southeast Asia, with annual revenue exceeding $200 million. Ranked among the Top 100 Private Enterprises with the Highest Tax Contributions in Vietnam. Honored with numerous prestigious awards, including National Brand, CSI 100, VNR Top 50 Vietnam The Best, Top 10 Leading Building Materials Companies in Vietnam, HR Asia Best Companies to Work for in Asia.... Operated a comprehensive distribution network, featuring 25 flagship showrooms and over 100 dealer showrooms nationwide.
2008
Expanded to 35,000m², the factory incorporated advanced machinery from Germany and Italy, enhancing production capacity and advancing research into interior solutions for the industrial wood sector. SCALING UP OPERATIONS 2009 EXPANDING AND DEVELOPING NEW PRODUCTS Increased charter capital to VND 90 billion, secured exclusive distribution rights for Formica® Laminate, and developed the Melamine board product portfolio, Expanded Melamine and Laminate collections, invested $3 million in state-of-the-art German machinery for high-gloss Acrylic production and edge banding, and commenced exports to Australia, Japan, Singapore, and Malaysia. ELEVATING QUALITY, EXPANDING MARKET PRESENCE 2012
strengthening corporate governance. Net profit margin reached nearly 18%.
2019
EXPANSION & EXPERIENCE INNOVATION
Operated the second factory, increasing the total production and warehouse area to 240,000m². Simultaneously, launched An Cuong One-Stop Shopping Center, the largest showroom in Southeast Asia, laying the foundation for a nationwide distribution expansion plan.
TRANSITIONING TO MANUFACTURING
Established in Binh Duong, the first factory marked a pivotal step, positioning the Company as a leading producer of high-quality MFC boards.
ANNUAL REPORT 2024
TOGETHER IN BELIEF, LEADING IN INNOVATION
024
025
AN CUONG’S An Cuong’s showrooms Distribution Network & Products
AN CUONG SHOW GALLERY AND DESIGN CENTER Block A-Happy Valley - 816 Nguyen Van Linh, Tan Phu Ward, District 7, HCMC
HEAD OFFICE 702/1K Su Van Hanh, Ward 12, District 10, HCMC
SHOWROOMS
HANOI
HO CHI MINH ONE-STOP
SHOPPING CENTER 279 Nguyen Van Troi, Ward 10, Phu Nhuan District, HCMC
DA NANG SHOWROOMS
HO CHI MINH ONE-STOP SHOPPING CENTER
MANUFACTURING FACILITIES CENTRAL WAREHOUSE SHOWROOM
39 Nguyen Co Thach, An Loi Dong Ward, District 2, HCMC.
BINH DUONG
HO CHI MINH SHOWROOMS
AN CUONG SHOW GALLERY AND DESIGN CENTER 702/3F Su Van Hanh, Ward 12, District 10, HCMC.
ANNUAL REPORT 2024
TOGETHER IN BELIEF, LEADING IN INNOVATION
026
027
AN CUONG SHOW GALLERY AND DESIGN CENTER
SHOW GALLERY AND DESIGN CENTER
201 Binh Duong Boulevard, Phu Tho Ward, Thu Dau Mot City, Binh Duong
Villa C4-N08-B, Dich Vong New Urban Area, Cau Giay District, Hanoi
AN CUONG SHOW GALLERY AND DESIGN CENTER
ONE-STOP SHOPPING CENTER 10 Chuong Duong Do, Chuong DuongWard, Hoan Kiem District, Hanoi
Street no. DT 747B, Phuoc Hai Quarter, Thai Hoa Ward, Tan Uyen City, Binh Duong
AN CUONG SHOW GALLERY AND DESIGN CENTER
DA NANG ONE-STOP SHOPPING CENTER 451 Dien Bien Phu, Hoa Khe Ward, Thanh Khe District,Da Nang City
Lot A17,Dat Cuoc Industrial Park Area B, Dat Cuoc Commune, Bac Tan Uyen District, Binh Duong Province
AN CUONG SHOW GALLERY AND DESIGN CENTER S503.01S04 VinhomesGrand Park, Nguyen Xien, Long Thanh My Ward, Thu Duc City, HCMC
AN CUONG SHOW GALLERY AND DESIGN CENTER Street no. DT 747B, Phuoc Hai Quarter, Thai Hoa Ward, Tan Uyen City, Binh Duong
ANNUAL REPORT 2024
TOGETHER IN BELIEF, LEADING IN INNOVATION
028
029
International market
REPRESENTATIVE IN US
REPRESENTATIVE IN CANADA
REPRESENTATIVE IN LAOS
3457 Collins Ave, Unit 4A, Richmond, CA 94806 Mail: tranglnd2@ancuong.com
30 Prennan Avenue, Etobicoke, Ontario Canada M9B 4B8 Phone: +1 437 346 6068 Mail: tuanaccsaigon@gmail.com
Kamphaengmueang Road, Thatluangkang Village, Saysettha District, Vientiane Capital Phone: +8652091886868 Mail: phamthithuhien.hld@gmail.com
SHOWROOM AND REPRESENTATIVE IN MALAYSIA
SHOWROOM AND REPRESENTATIVE IN CAMBODIA
REPRESENTATIVE IN AUSTRALIA
REPRESENTATIVE IN JAPAN
Sumitomo Forestry Australia PTY LTD Suite7, 395 Ferntree Gully Road, Mount Waverley, VIC 3149, Australia Phone: +61 395745500 Mail: kataoka@sfcau.com
No.5, Jln SL17/14, Goodview Bdr Sg Long, 43000 Kajang, Selangor
# 98, Commercial Borey Chip Mong Land mark 271, Prek Ta Kong Village, Sangkat Chak Angre Leu, Khan Meanchey, Phnom Penh Phone: +855 0712 683 683 Mail: hanhacc@ancuong.com
Timb er & Building M aterials Division Business Planning Department, Keidanren Kaikan, 1-3-2 Otemachi, Chiyoda-Ku, Tokyo 100-8270, Japan Phone: +81 70 4459 7027 Mail: OOTANI_yuuya@star.sfc.co.jp
Phone: +6012 8613218 Mail: teoacc@ancuong.com
ANNUAL REPORT 2024
TOGETHER IN BELIEF, LEADING IN INNOVATION
058
059
Subsidiaries and Associates
An Cuong Wood – Working Manufacturing Co., Ltd.
Malloca Vietnam Co., Ltd
An Cuong Wood – Working Manufacturing Co., Ltd. operates in the same sector to that of the Parent company and makes a significant contribution to the overall ecosystem. Established and operating within an industrial park, the company benefits from a range of investment promotion incentives provided under applicable legal regulations.
Malloca Vietnam Co., Ltd. is a kitchen appliance brand registered under copyright in Spain. With over 20 years of development in Vietnam, Malloca has established a nationwide distribution network. In 2024, the company continued to maintain a strong financial position, operating profitably without any short-term or long-term borrowings.
Strong Growth
Kitchen Appliance Brand
1,743 VNDbn
20 years of
Over
in revenue
Over
development
297 VNDbn
In 2024, the company delivered robust growth with revenues exceeding VND 1,743 billion and NPAT of VND 297 billion. The company maintained a solid financial position, demonstrated by its low ratios of total liabilities to total assets (0.39 times) and total borrowings to total assets (0.2 times). AConcept Vietnam Co., Ltd
in net profit after tax
Thang Loi Homes JSC Thang Loi Homes JSC is a real estate developer operating The Win City and Central Park projects in Duc Hoa District, Long An Province. The projects are currently undergoing legal procedures, with no significant business activities recorded last year.
AConcept Vietnam Co., Ltd. offers furniture and decorative accessories, providing unique customer experiences. In 2024, the BOD initiated a strategic restructuring to streamline the company’s product portfolio and explore new business opportunities. AConcept maintained a stable financial structure, with no short-term or long-term borrowings.
Inspired by Experience
30 stores
Over
nationwide
ANNUAL REPORT 2024
TOGETHER IN BELIEF, LEADING IN INNOVATION
060
061
Organizational Apparatus
GENERAL MEETING OF SHAREHOLDERS
Head of Supervisory Board
Board of Directors
CEO
Head of Secretary & Legal
MD
Head of Finance & Supporting Functions
Head of Furniture Factory
Head of Wood Based Panel Factory
Head of Material Planning
Head of Sale & Marketing
Head of Customer Services
Head of Supply Chain
Head of Project & Export
Head of Business
Solutions
Project
Export
Technical Director
USA & Canada
New Products & Prototype Manager
Showrooms, Showdepots & Shops
Costing Manager
Procurement Manager
Finance Accounting Manager
Furniture Factory Managers
Vehicle Manager
Area Sales
Customer Services, Internal Control, Account Receivable
Import & Export Manager
Design Manager
Japan
Warehouse Managers
Material Warehouse Manager
HR Manage
Project Sales
Transport Coordination Manager
Warehouse Systems
Production Coordinating
Australia
Quality Assurance Manager
Wood Based Panel Manager
Admin Manager
Repair & Maintenance Manager
Factory Managers
IT Manager
PR & Marketing
Agents & Distributors
Site Manager
Southeast Asia
Repair & Maintenance Manager
Project Management
Hanoi / Da Nang Branchs
ANNUAL REPORT 2024
TOGETHER IN BELIEF, LEADING IN INNOVATION
062
063
Board of Directiors
MR. LE DUC NGHIA
Chairman of the Board
Mr. Le Duc Nghia, the Founder and Chairman of the Board of Directors at An Cuong, possesses over three decades of expertise in the industrial wood sector, underpinned by his education in Germany. With a proven track record and a deep understanding of market dynamics, Mr. Nghia is recognized as a leading expert in materials and solutions for the industrial wood industry, both in Vietnam and across the region.
In addition to his leadership at An Cuong, Mr. Le Duc Nghia holds several key positions in other organizations, including:
Chairman of An Cuong Wood – Working Manufacturing Co., Ltd.; Chairman of Malloca Vietnam Co., Ltd.; Chairman and General Director of AConcept Vietnam Co., Ltd.; Board Member of Thang Loi Group Real Estate JSC; Board Member of Thang Loi Homes JSC;
Director of NC Vietnam Investment Co., Ltd.; General Director of An Cuong Trading Co., Ltd.; Chairman of the Board of VA Homes Real Estate JSC.
ANNUAL REPORT 2024
TOGETHER IN BELIEF, LEADING IN INNOVATION
064
065
Mr.
Mrs.
Mr.
Mr.
Mr.
Mr.
MASAO KAMIBAYASHIYAMA Vice Chairman of the Board
NGUYEN THI DIEU PHUONG Member of the Board
NGUYEN MINH TUAN Member of the Board
LE THANH PHONG Member of the Board
PHAN QUOC CONG Independent Member of the Board
NGUYEN THANH QUYEN Independent Member of the Board
Mr. Nguyen Thanh Quyen is an accomplished corporate leader and an expert in the real estate sector. In 2022, he was honored with the Red Star Award, ranking 14th among Vietnam's Top 100 Outstanding Young Entrepreneurs. Currently, Mr. Quyen holds key executive positions in other organizations, including: Member of the Board of Directors and CEO of Thang Loi Real Estate Group JSC; Board Member of Thang Loi Homes JSC; Chairman of the Members' Council at Thanh Long NewTown Co., Ltd.; Chairman of the Board of Directors at Thang Loi Central Highlands Real Estate Investment and Business JSC; Board Member of Thang Loi Southern Real Estate Investment and Business JSC; CEO of Thang Loi Land JSC; Owner and CEO of Young Group Co., Ltd. He graduated with a Bachelor's degree in Business Administration from Industrial University of Ho Chi Minh City
Mrs. Nguyen Thi Dieu Phuong serves as Co-head of Vietnam Opportunity Fund, in charge of private equity investment at VinaCapital Fund Management Company. Beyond her role at An Cuong, Mrs. Dieu Phuong is also a board member at other enterprises, including In Holdings JSC, Hung Vuong JSC, Tam Tri Medical JSC, and Khang Dien House Trading and Investment JSC.
Mr. Nguyen Minh Tuan is a co-founder of An Cuong and currently serves as a member of the Members' Council at An Cuong Trading Co., Ltd., Thai Son Bac Electrical Equipment Trading Co., Ltd., and Thai Son Nam Trading Co., Ltd He earned a bachelor's degree in Mechanical Engineering from the Belarusian Technical Institute and a Bachelor of Laws specializing in Economics from Hanoi Law University.
Mr. Le Thanh Phong serves as a Member of the Board of Directors and Deputy General Director at An Cuong, where he is responsible for overseeing the ... sector. With more than 20 years of industry experience, he is widely regarded as one of Vietnam's leading experts in laminate sheets, industrial wood products, and furniture accessories. He earned a Bachelor’s degree in Economics from University of Economics Ho Chi Minh City.
Mr. Kamibayashiyama serves as the Vice Chairman of the Board of Directors, with strategic responsibility for driving the expansion of international business operations at An Cuong. Masao Additionally, he holds the position of General Director at Sumitomo Forestry Vietnam. Mr. Masao Kamibayashiyama earned his bachelor's degree from Seijyo University in Japan,
He earned a Bachelor's degree from Ho Chi Minh City University of Technology in 1993, followed by a Master's degree in Business Administration from Ho Chi Minh City Open University. He later achieved a Doctorate in Business Administration from Southern California University.
ANNUAL REPORT 2024
TOGETHER IN BELIEF, LEADING IN INNOVATION
066
067
Supervisory Board
Mrs.
Mrs.
Mrs.
TRAN THI NGOC TUE Head of Supervisory Board
MAI THI PHUONG THAO Member of Supervisory Board
NGUYEN THI THUY TRANG Member of Supervisory Board
Mrs. Nguyen Thi Thuy Trang has 10 years of experience in corporate legal consulting. She earned a bachelor's degree in Accounting and graduated from Law University of HCMC.
Mrs. Mai Thi Phuong Thao is a seasoned expert in private equity investments. She currently serves as the Senior Investment Manager at VinaCapital Fund Management Company, managing private equity investments. She graduated with a Bachelor’s degree from Foreign Trade University - Ho Chi Minh City, and earned an MBA from the University of Hawaii.
Mrs. Tran Thi Ngoc Tue has over 20 years of extensive experience in the fields of finance and accounting. She graduated from the Auditing Faculty of University of Economics Ho Chi Minh City, and also earned a bachelor's degree from Banking University of Ho Chi Minh City.
ANNUAL REPORT 2024
TOGETHER IN BELIEF, LEADING IN INNOVATION
068
069
Board of Management
Mrs.
Mrs.
Mrs.
Mrs.
Mr.
Mr.
VO THI NGOC ANH General Director
LE THANH PHONG Deputy General Director
NGUYEN THI DUYEN Deputy General Director
NGO TAN TRI Deputy General Director
NGUYEN THI KIM THOA Deputy General Director
THIEU THI NGOC DIEM Chief Accountant cum Head of the Finance and Accounting Division Possessing more than 20 years of expertise in finance and accounting, Mrs. Thieu Thi Ngoc Diem has played a key role in projects focused on developing ERP systems, financial control frameworks.
Mrs. Nguyen Thi Duyen possesses nearly 20 years of experience in the industrial wood sector. She is highly specialized in the production of industrial wood surfaces and has undergone advanced professional training in South Korea.
Mr. Le Thanh Phong is one of Vietnam's leading experts in laminate sheets, industrial wood products, and furniture accessories. With over 20 years of extensive industry experience, he has established a strong reputation for his expertise.
Mrs. Vo Thi Ngoc Anh has over 25 years of experience in the industrial wood sector. She is a consulting expert specializing in furniture materials and industrial wood cores, bringing extensive knowledge and expertise to the field.
With over 20 years of experience, Mrs. Nguyen Thi Kim Thoa has extensive experience in building and developing supply chains within the industrial wood manufacturing sector.
Mr. Ngo Tan Tri has nearly 20 years of expertise in industrial wood furniture manufacturing, with advanced training from German and Italian experts.
ANNUAL REPORT 2024
TOGETHER IN BELIEF, LEADING IN INNOVATION
070
041
Journey of the year 2024 An Cuong’s activities in 2024 continued to reinforce its pioneering position in Vietnam’s industrial wood sector. Driven by a commitment to innovation and sustainable development, the Company achieved remarkable progress and groundbreaking milestones over the past year. These achievements not only solidified the brand’s reputation but also set new standards, contributing to the creation of lasting value for the industry and the community.
Accelerated Digital Transformation and Elevated Customer Experience
In the second quarter, An Cuong officially launched our Creative Hub by An Cuong in three major cities: Ho Chi Minh City, Hanoi, and Da Nang. This innovative space goes beyond merely showcasing An Cuong’s products—it has created an inspiring environment where partners, designers, and customers can freely unleash their creativity and craft unique living spaces.
images. Notably, its integrated 3D visualization feature has allowed customers to effortlessly select and envision how products fit into their spaces, no matter where they are. In addition to enhancing customer experiences, An Cuong has adopted comprehensive digital solutions in its operations. These included implementing Smart Factory management system and Data Warehouse, which systematically manage various data and information. These advancements helped streamline decision-making processes and improve overall production and business efficiency.
On the journey to solidify the pioneering position, An Cuong has consistently made bold investments in applications designed to deliver optimal and modern experiences for customers. With this vision, the Company introduced our two latest applications, Make Your Space and Catalogue Online , to partners and customers. Featuring an intuitive interface and high interactivity, Make Your Space has empowered users to select materials, colors, and product layouts tailored to their specific needs, turning interior designs into vivid and interactive visuals. Meanwhile, the Catalogue Online platform has offered a comprehensive product search experience with detailed information and sharp
ANNUAL REPORT 2024
TOGETHER IN BELIEF, LEADING IN INNOVATION
072
073
Promoted Responsible Manufacturing and Business Practices for the Environment and Community
In recognition of unwavering dedication and achievements of An Cuong and the team, the Company was once again honored over the past year with numerous prestigious awards across various categories.
An Cuong, in collaboration with our business partners and the Gaia Nature Conservation organization, planted 2,000 ironwood trees at Ben En National Park, Thanh Hoa. This initiative represented a collective effort to restore native forests and contribute to reforestation. In April 2024, An Cuong became the first wood enterprise to conduct a greenhouse gas emission inventory in compliance with ISO 14064-1:2018 standard. This foundational action has demonstrated the Company's commitment to supporting the Government's goal of achieving carbon neutrality by 2050. Simultaneously, the Company has intensified its energy transition efforts by increasing the use of solar energy in production processes as a substitute for grid electricity. Additionally, it has progressively replaced equipment and vehicles that rely on fossil fuels, further contributing to a sustainable and eco-friendly operational model. Reviewing and reorganizing production processes has been actively pursued, yielding positive outcomes in reducing material waste and surplus by-products. These efforts have significantly minimized the volume of generated waste, contributing to greater efficiency and sustainability.
VIETNAM VALUE VIETNAM NATIONAL BRAND
EXCELLENT SUSTAINABLE BUSINESS MARKETING AWARDS 2024
For eight consecutive years, An Cuong has proudly been honored with this prestigious award organized by the Government and the Ministry of Industry and Trade. This achievement not only underscores the exceptional quality of our products but also solidifies the prominence of An Cuong as a key player on the national economic landscape.
Excellent Sustainable Business Marketing - Kotler Global Awards 2024: This prestigious recognition celebrated An Cuong’s exceptional achievements in sustainable business marketing strategies, further affirming the stature of a Vietnamese brand on the international stage.
HR ASIA BEST COMPANIES TO WORK FOR IN ASIA 2024
PRIVATE 100 VIETNAM LARGEST TAXPAYERS LIST
HR Asia Best Companies to Work for in Asia 2024: This accolade recognized An Cuong’s dedication to fostering a professional and humane work environment while promoting the holistic development of its employees.
An Cuong was honored in PRIVATE 100 - Vietnam Largest Taxpayers list, compiled by CafeF, identified the 100 largest tax-contributing private enterprises in Vietnam in 2024.
TOP 100 CSI
TOP 10 CSA
TOP 50 VNR
Top 100 Sustainable Companies CSI 100
Top 50 Corporate Sustainability Awards CSA
VNR Top 50 Vietnam The Best
DEFINED BY BELIEF DRIVEN BY
STRATEGY A strong belief and steadfast unity form the foundation that enables An Cuong to build and execute its strategic vision throughout our development journey, shaping each step and paving the way for sustainable success. From pioneering product innovation and technological advancements to establishing a sustainable business model, every decision An Cuong makes is based on a deep understanding of the market and customer needs.
Business Performance
078_081 082_085 096_099
Vietnam Business Landscape in 2024 Report on 2024 Performance Business Plan & Strategy For 2025
ANNUAL REPORT 2024
TOGETHER IN BELIEF, LEADING IN INNOVATION
078
079
Following prolonged economic challenges in 2023, Vietnam's economy demonstrated a robust recovery, driven by timely government support policies and the dedicated efforts of various economic sectors. According to data from the GSO, GDP growth rate in 2024 reached 7.09%, surpassing the projected target range of 6-6.5%. Vietnam Business Landscape in 2024
Industry sector
The year 2024 also witnessed a robust recovery in the industrial and service sectors, with growth rates of 8.24% and 7.38%, respectively, making significant contributions to the total value added to the economy. In the industrial and construction sectors, last year performance continued to face substantial challenges from declining global demand. However, thanks to decisive measures to address these difficulties, the added value of the entire industrial sector recorded a growth of 4.15%, an improvement compared to the low growth rate of 2023. Notably, the manufacturing and processing industries grew by 4.75%, signaling positive recovery despite ongoing pressures. Commercial and service activities remained a highlight of the economy in 2024, with vibrant growth across multiple sectors. The added value of the service sector recorded a 7.25% increase, surpassing the 6.82% growth achieved in 2023. The total retail sales of goods and consumer service revenue at current prices were estimated at VND 6,800.5 trillion, an 11.2% increase compared to the previous year. In the final months of 2024, Vietnam's export turnover showed a marked recovery after facing challenges during the first half of the year. The total export turnover for 2024 is estimated at USD 730 billion, reflecting a 6.9% growth compared to the previous year. This improvement was driven by the effective utilization of FTAs and diversification of export markets. These positive signs highlight Vietnam's swift adaptability in the context of ongoing global economic fluctuations. With an estimated USD 42.3 billion in registered FDI for 2024, which represented a 15.6% increase compared to 2023, Vietnam solidified its position as a safe and attractive destination for international investors. This surge in investment reflected the strong confidence of foreign investors in Vietnam's business environment, particularly due to the effective implementation of government policies aimed at streamlining administrative procedures and enhancing investment incentives.
GDP Growth(%)
Source: GSO
8.02
7.09
Trade and services sector
5.05
2.91
2.58
2020
2021
2022
2023
2024
Export sector
Agro-forestry and fishery sector
Agriculture, forestry, and fisheries played a crucial role in maintaining economic stability. This sector recorded a growth rate of 3.27%, contributing 5.37% to the total value added to the economy. Agricultural export turnover sustained stable growth, while livestock farming and aquaculture developed further through the adoption of advanced technological models, yielding significant economic efficiency.
Foreign Direct Investment (FDI)
ANNUAL REPORT 2024
TOGETHER IN BELIEF, LEADING IN INNOVATION
080
081
The wooden furniture industry in 2024
Over the past year, while the macroeconomic situation showed overall improvement, demand for furniture products in general, and industrial wood products in particular, did not fully recovered.
The U.S. remained the most critical market for Vietnam's wood industry, accounting for 55.6% of the total export turnover of wood and wooden products in 2024.
Consumers remained cautious in spending on furniture, as income levels were impacted by the prolonged economic downturn in recent years.
According to expers, the recovery of the U.S. housing market is expected to play a key role in sustaining the export growth momentum of the industry in 2025. Additionally, the cooling of transportation costs and increasing demand are projected to improve order volumes for exporters of wood and wooden products.
Additionally, in 2024, Vietnam's real estate market gradually showed positive signs of recovery, supported by significant advancements in improving the legal framework, with increasingly transparent and clear information for all participants. However, 2024 remained a transitional year, serving as a foundation to drive the real estate market's growth in the upcoming period. Real estate corporations still need time to restore their financial health and restart projects after a period of stagnation. While the domestic market remained sluggish, the export market was considered a stabilizing factor for the wooden furniture industry in 2024. According to estimates from the General Department of Customs for 2024, the export value of wood and wooden products reached approximately USD 16.3 billion, reflecting a 20.3% increase compared to 2023, indicating a partial recovery of the industry after a challenging year. Among these, the export turnover of wooden products was estimated at USD 11.2 billion, marking a 21.9% increase and highlighting positive signals driven by market diversification strategies and improved product quality.
Export value of wood and wooden products over the years
Source: General Department of Customs
20.3%
19.7%
16.2%
16.30
16.01
14.80
13.40
12.37
Nevertheless, the wood industry faces significant challenges, including increasingly stringent demands from major partners such as the U.S. and EU regarding design, quality, and compliance with regulations on sustainable forest management and carbon emission reductions. Exporting businesses are required to adhere to new standards, such as anti-deforestation regulations, accountability measures, and the Carbon Border Adjustment Mechanism (CBAM) introduced by the European Commission. Moreover, U.S. tariff policies are expected to present potential challenges for export activities in general, as well as for the export of wood and wooden products specifically to this market. This scenario underscores the need for businesses to diversify their markets while intensifying investment in technology and sustainable production processes to meet new standards, optimize costs, and enhance competitiveness on the global stage.
8.1%
-16.2%
2020
2021
2022
2023
2024
Export value (USDbn)
Growth rate (%)
ANNUAL REPORT 2024
TOGETHER IN BELIEF, LEADING IN INNOVATION
082
083
Report on 2024 Performance
Business Results in 2024
real estate developers initiating or restarting projects remained limited. In response, and under the strategic guidance of the BOD, the BOM implemented a series of key initiatives aimed at countering these challenges. These included the restructuring of business operations, an in-depth review and optimization of production processes, and the execution of digital transformation projects across the organization. By adopting advanced technologies and leveraging innovative strategies, the Company achieved significant enhancements in operational efficiency, cost reduction, and profit margin improvements. Moreover, these initiatives elevated customer experience standards, ensured employment and income stability for employees, as well as delivered long-term sustainable value to shareholders and stakeholders.
The year 2024 offered a balanced narrative of challenges and progress, with positive developments steadily gaining momentum. The domestic economy demonstrated significant recovery, highlighted by notable growth across key macroeconomic indicators. Supportive government policies targeting issues across diverse economic sectors contributed to a favorable environment for business activities, benefitting both enterprises and individuals alike. While these initiatives have yielded early signs of improvement, their potential to deliver lasting transformative effects remains a key focus for future evaluation. In 2024, domestic market demand for An Cuong's products remained constrained, as consumers exercised caution with discretionary spending on items such as furniture. Furthermore, the number of
Consolidated Results in 2024
Source: An Cuong
Items
FY2023
FY2024
Year-on-year change
Total Assets
2.1%
5,639.6
5,522.1
Owners’ Equity
2.4%
4,176.0
4,076.5
Net Revenue
5.8%
3,980.9
3,762.1
Operating Profit
8.7%
574.7
528.9
PBT
-0.9%
523.7
528.5
NPAT
2.1%
420.0
411.2
In VNDbn
Net Revenue
The real estate sector, along with the financial stability of key real estate clients of An Cuong, faced persistent liquidity constraints in 2024, directly impacting the Company's sales performance and receivables management. During the year, An Cuong recognized provisions exceeding VND 200 billion, primarily tied to receivables from entities such as Novareal and Hung Thinh Group. Excluding the impact of extraordinary items, An Cuong's consolidated NPAT reached VND 591.4 billion, reflecting a robust growth of 35.4% year-over-year and surpassing the financial targets set by the GMS. With the gradual recovery of the real estate market, the Company remains optimistic about the possibility of recovering these receivables, which could lead to a reversal of the provisions, thereby enhancing future financial performance.
3,980.9 VNDbn
1,251.4 Gross Profit VNDbn 2,786 EPS VND
420.0 NPAT VNDbn 591.4 Adjusted-NPAT(*) VNDbn
35.4
Increased % yoy
(*) excluding extraordinary provisions
Page 1 Page 2-3 Page 4-5 Page 6-7 Page 8-9 Page 10-11 Page 12-13 Page 14-15 Page 16-17 Page 18-19 Page 20-21 Page 22-23 Page 24-25 Page 26-27 Page 28-29 Page 30-31 Page 32-33 Page 34-35 Page 36-37 Page 38-39 Page 40-41 Page 42-43 Page 44-45 Page 46-47 Page 48-49 Page 50-51 Page 52-53 Page 54-55 Page 56-57 Page 58-59 Page 60-61 Page 62-63 Page 64-65 Page 66-67 Page 68-69 Page 70-71 Page 72-73 Page 74-75 Page 76-77 Page 78-79 Page 80-81 Page 82-83 Page 84-85 Page 86-87 Page 88-89 Page 90-91 Page 92-93 Page 94-95 Page 96-97 Page 98-99 Page 100-101 Page 102-103 Page 104-105 Page 106-107 Page 108-109 Page 110-111 Page 112-113 Page 114-115 Page 116-117 Page 118-119 Page 120-121 Page 122-123 Page 124-125 Page 126-127 Page 128-129 Page 130-131 Page 132-133 Page 134-135 Page 136-137 Page 138-139 Page 140-141 Page 142-143 Page 144-145 Page 146-147 Page 148-149 Page 150-151 Page 152-153 Page 154-155 Page 156-157 Page 158-159 Page 160-161 Page 162-163 Page 164-165 Page 166-167 Page 168-169 Page 170-171 Page 172-173 Page 174-175 Page 176-177 Page 178-179 Page 180-181 Page 182-183 Page 184-185 Page 186-187 Page 188-189 Page 190-191 Page 192-193 Page 194-195 Page 196-197 Page 198-199 Page 200-201 Page 202-203 Page 204-205 Page 206-207 Page 208-209 Page 210-211 Page 212-213 Page 214-215 Page 216-217 Page 218-219 Page 220-221 Page 222-223 Page 224-225 Page 226-227 Page 228-229 Page 230-231 Page 232-233 Page 234-235 Page 236-237 Page 238-239 Page 240-241 Page 242-243 Page 244-245 Page 246-247 Page 248-249 Page 250-251 Page 252-253 Page 254-255 Page 256-257 Page 258-259 Page 260-261 Page 262-263 Page 264-265 Page 266-267 Page 268-269 Page 270-271 Page 272-273 Page 274-275 Page 276-277 Page 278-279 Page 280-281 Page 282-283 Page 284Powered by FlippingBook