BUSINESS ADMINISTRATION DEPARTMENT

PRINCIPLES OF ACCOUNTING (ACC101)

GROUP ASSIGNMENT

Area: Accounting
Class: BA1801
Group: 4
Members:
Huynh Huu Tinh - CS180623
Hua Hoai Tho - CS182019
Lam Ky Quan - CS181807
Tu Gia Bao - CS181690
Le Duc Anh - CS181498
Lecturer: Nguyen Ngoc Kim Chi
 Table of Contents

PART A: GENERAL INFORMATION...........................................................................................................

1. Briefly describe the background information of the company? (History, main brands,
missions and objectives, main business activities, strategic planning).......................................................
2. Describe the position and market share of the company in the market. Find its direct
competitors?.................................................................................................................................................
3. Describe shareholders structure and important shareholders of the chosen company?..........................
PART B: FINANCIAL DATA.........................................................................................................................
4. Analyze in detail the changing of financial statements: Income statement; Balance
sheet; Statement of cash flow; Notes for financial statement?....................................................................
5. Which kind of activity brings the largest revenue and profit for the company?....................................
6. Compare to the previous financial year, comment to the effectiveness of the chosen
company in 2022?........................................................................................................................................
7. What are your recommendations for the accounting department of the company?...............................
8. Please noted that (at least) the information should be included in your submission’s
Appendices part are:....................................................................................................................................
REFERENCES..........................................................................................................................................
PART A: GENERAL INFORMATION
1. Briefly describe the background information of the company? (History,
main brands, missions and objectives, main business activities, strategic
planning).
Kido, previously known as Kinh Đô, originated in 1993 as a bakery and
confectionery manufacturing company in Ho Chi Minh City, Vietnam. Initially
founded by brothers Trần Lệ Nguyên and Trần Kim Thành, it started with the
production of bread and pastries. The company strategically ventured into producing
snacks, recognizing the opportunity when the domestic market was flooded with
imported snacks from Thailand.
Over time, Kido expanded its product range to include a variety of items such as
cookies, fresh bread, and cakes. The company gained immense success by
introducing local, cost-effective snack items that appealed to the tastes of the
Vietnamese market. Notably, Kido entered the mooncake market in 1998, achieving a
significant market share, reaching up to 70% at its peak.
Kido further diversified its product line, expanding into edible oils, ice cream, frozen
foods, and more. The company also made strategic moves in the stock market by
going public in 2005.
The company's strategic evolution involved notable mergers and acquisitions, such as
acquiring Wall’s ice cream brand from Unilever and, later, selling a major stake in its
confectionery business to Mondelēz International in 2014. This move marked a shift
in Kido's focus from confectionery to exploring opportunities in other food-related
segments.
Recently, Kido formed a joint venture with Vinamilk to produce fresh soy and corn
milk, leveraging the stable growth trend in the Vietnamese beverage market.
2. Describe the position and market share of the company in the market.
Find its direct competitors?
Kido, formerly Kinh Đô, has been a dominant force in the Vietnamese confectionery
and food industry. Initially renowned for its bakery and confectionery products, Kido
expanded its offerings to include a wider range of food items. Its market position was
strong, especially in the snacks and mooncake segments, where it held a significant
market share domestically. The company's strategic moves into diverse food products
also strengthened its foothold in the market.
In terms of confectionery and ice cream, KIDO company has quite superior revenue
with Orion compared to other competitors in 2021 and 2022.
 Source: https://www.vietdata.vn/post/kido-desire-to-reclaim-the-top-spot-in-the-
vietnamese-confections-market
However, in terms of profit after tax, KIDO is still not performing as well as Orion
when KIDO leads in revenue but ranks 2nd in profit after tax in this industry.

Source: https://www.vietdata.vn/post/kido-desire-to-reclaim-the-top-spot-in-the-
vietnamese-confections-market
Direct competitors of Kido include other food and confectionery companies in
Vietnam, such as Bibica Corporation, Hai Ha Confectionery JSC, and Mondelez
Kinh Đô, which emerged after the sale of Kido's confectionery business to Mondelēz
International. After 6 years of absence, in 2021, KIDO returns to the race in the
confectionery segment, ambitious to return to the throne and surpass names like
Bibica, Mondelez Kinh Do.
About Mondelez Kinh Đô: After five years in Vietnam, Mondelez
continues to maintain its leadership in the market. According to AC Nielsen's latest
retail measurement report, Mondelez Kinh Do is the leading manufacturer in terms of
market share based on both revenue and output in the biscuit industry in the
Vietnamese market from July 2019 to June 2020. Initially, it appeared that there was
a peaceful coexistence between Mondelez Kinh Do and KIDO. However, after the
contract, based on the principle of "staying out of the game" for the confectionery
and snacking business that was signed with Mondelez six years ago, expired, KIDO
made a significant announcement. They stated their intention to release
approximately four million Kingdom brand mooncakes to the market during the 2020
mid-autumn season. This move is seen as a friendly gesture to consumers but is a
rather painful blow to their rival, Mondelez Kinh Do. KIDO is also displaying its
competitive spirit by targeting the average consumer market in Vietnam, which
accounts for about 70% of the market. However, Mondelez still holds a dominant
position in the confectionery segment, and it won't be easy for KIDO to gain a
significant share of this lucrative market. About Bibica:
Certainly, to "trail" Mondelez Kinh Do, the position to surpass is Bibica. Despite
having recently re-entered the confectionery segment after a period of focusing on
developing the cooking oil segment, KIDO's CEO remains steadfast in the
commitment not to produce low-cost products to compete with Bibica. Instead,
KIDO will concentrate on delivering quality and gradually rekindling memories of
the once-revered leader in the confectionery sector for the Vietnamese people.
 Bibica has experienced slow growth since Lotte's investment in 2019-2021, and it has
also been affected by the COVID-19 pandemic. In 2021, when Bibica recorded its
lowest post-tax profit since 2012, it was also the time when KIDO began its
comeback in the confectionery industry. Facing the challenges of COVID-19 and the
strong resurgence of KIDO is no easy task for Bibica.

Source: https://fireant.vn/bai-viet/thi-truong-banh-keo-viet-cuoc-dua-ngot-ngao-cua-
nhung-nguoi-cu/12281082

3. Describe shareholders structure and important shareholders of the chosen

company?
The specific shareholder structure and significant shareholders of Kido might include
the founding brothers, Trần Lệ Nguyên and Trần Kim Thành. However, due to various
mergers, acquisitions, and strategic shifts, the ownership structure might have evolved
over time.
After selling a major stake in the confectionery business to Mondelēz International, the
ownership landscape might have changed, possibly making Mondelēz a significant
shareholder or even a controlling stakeholder in the confectionery segment. Moreover,
the public listing in 2005 likely diversified the shareholder base, with various
institutional and individual investors holding shares in the company.
 Source: https://www.kdc.vn/bai-viet/tran-kim-thanh-and-tran-le-nguyen-hai-anh-em-
thong-tri-nganh-banh-keo

Regarding the shareholder configuration, in general, the family of two brothers Tran
Kim Thanh and Tran Le Nguyen still holds the majority.

Although listed for nearly 7 years on the stock exchange, Kinh Do still has the
appearance of a family company.

The Board of Directors has 8 people, 5 of whom are relatives, including 3 brothers
Tran Kim Thanh, Tran Le Nguyen, Tran Quoc Nguyen; Mr. Tran Kim Thanh's wife -
Ms. Vuong Buu Linh and Mr. Tran Le Nguyen's wife - Ms. Vuong Ngoc Xiem.

Except for Mr. Thanh, the remaining four people all hold concurrent positions on the
board of directors.

PART B: FINANCIAL DATA

4. Analyze in detail the changing of financial statements: Income statement;
Balance sheet; Statement of cash flow; Notes for financial statement?
 2021 2022
14,072,705,557,933 14,004,792,678,863
1 Total assets ₫ ₫
7,178,062,904,992 6,952,065,052,069
2 Total liabilities ₫ ₫
6,894,642,652,941 7,052,727,626,794
3 Total equity ₫ ₫
Revenue from sales and provision of 10,675,274,452,835 12,787,155,345,809
4 service ₫ ₫
2,051,014,928,567 2,273,606,392,388
5 Gross profit ₫ ₫
6 Net operating profit 688,519,687,662 ₫ 498,509,683,549 ₫
7 Income tax expense 129,604,774,860 ₫ 145,894,259,653 ₫
8 Net profit after tax 653,290,573,518 ₫ 374,655,514,295 ₫
9 Earnings per share 2.482 1.572
1
0 Net cash flows from operating activities (20,755,019,736) ₫ (380,600,587,664) ₫
1
1 Net cash flows from investing activities (1,242,906,167,844) ₫ (299,663,745,464) ₫
1 1,442,996,862,566
2 Net cash flow from financing activities ₫ 499,387,259,307 ₫
1
3 Debt ratio 0.51 0.50
1
4 Current ratio 1.30 1.29
1
5 Equity ratio 0.49 0.50
1
6 Return on assets 0.05 0.03

5. Which kind of activity brings the largest revenue and profit for the
company?
Net cash flow from financing activities is 1,442,996,862,566 VND in 2021 and
499,387,259,307 VND in 2022, so we can see that activities from Net cash flow from
financing activities bring the largest revenue and profit for KIDO company. Looking
back from Net cash flows from operating activities is - 20,755,019,736 VND in 2021
and -380,600,587,664 VND in 2022;
Net cash flows from investing activities is -1,242,906,167,844 VND in 2021 and
- 299,663,745,464 VND in 2022, we can see that these 2 activities are not as effective
as activities from financing activities when these 2 activities are in 2 consecutive years
yields negative numbers. And according to many sources of information, KIDO's
financial activities always bring great efficiency and pull KIDO's profits from bottom
to top.
 6. Compare to the previous financial year, comment to the effectiveness of
the chosen company in 2022?
KIDO's revenue from sales and provision of service has increased quite a lot, from
10,675,274,452,835 VND in 2021 to 12,787,155,345,809 VND in 2022, an
outstanding growth when it increased to more than 2 trillion VND (20%), this shows
that I see that people quite like this business segment of KIDO. Some of KIDO's
typical products are Tuong An cooking oil, Merino ice cream, Celano ice cream as
these are the products that help KIDO excel and achieve a national brand. It's easier to
understand when KIDO's revenue in 2022 increases dramatically because 2021 is the
year of the COVID pandemic, people have less consumption of goods, less
consumption of items like ice cream because it is difficult to buy. And by 2022, when
everything stabilizes, the country's economy will also grow, not excluding KIDO.
7. What are your recommendations for the accounting department of the
company?
KIDO company has quite stable debt, current, equity and return on asset ratios, when
2021 and 2022 are small different. This shows that KIDO's total business activities
from sales, from asset management, debt management to cash flow are very stable
through 2021 and 2022. But equity ratio and asset ratio are slight increase, showing
that in 2022 KIDO managed equity and return on assets better than in 2021 and needs
to be further promoted. In addition, KIDO can add advanced equipment to its
company to import and export the accounting process so that the numbers can be more
transparent. Investing from within the company is always essential for companies that
want to increase productivity as well as the business they do. KIDO can pay more
attention to its investment activities as well as operating activities, because these are
two indicators where KIDO has negative values in both 2021 and 2022, showing that
net cash flow from these two activities is currently at not too effective.
8. Please noted that (at least) the information should be included in your
submission’s Appendices part are:

Appendix 1: KIDO COMPANY – BALANCE SHEET, INCOME

STATEMENTS AND CASHFLOW STATEMENT IN 2021 AND 2022

In particular, the first number of the year is for 2021, the last number is for 2022
Appendix 2: Calculation of question 4, Part B
14,072,705,557,933+14,004,792,678,863
Average Total Assets = = 14,038,749,118,398
2

Indicators Calculate

2021
Debt Ratio = Total Liabilities / Total 7,178,062,904,992
= 0.51
Assets 14,072,705,557,933

Current Ratio = Current Assets / Current 7,013,592,235,348

= 1.30
Liabilities 5,397,243,052,107

Equity ratio = Total equity / Total assets 6,894,642,652,941

= 0.49
14,072,705,557,933

Return on assets = (Net Income/ Average 653,290,573,518

= 0.05
total assets) 14,038,749,118,398

2022
Debt Ratio = Total Liabilities / Total 6,952,065,052,069
= 0.50
Assets 14,004,792,678,863

Current Ratio = Current Assets / Current 6,980,387,823,046

=1.29
Liabilities 5,427,179,815,958

Equity ratio = Total equity / Total assets 7,052,727,626,794

= 0.50
14,004,792,678,863
Return on assets = (Net Income / Average 374,655,514,295
= 0.03
total assets) 14,038,749,118,398

REFERENCES
Giới thiệu. (n.d.). TẬP ĐOÀN KIDO. https://www.kdc.vn/gioi-thieu
Kido: Hành trình từ nhà máy bánh ngọt đến ông vua thực phẩm. (n.d.). Entrade X by DNSE.
https://www.dnse.com.vn/hoc/kido-hanh-trinh-tu-nha-may-banh-ngot-den-ong-vuathuc-pham
Kido Company (2023), Báo cáo tài chính,
https://static2.vietstock.vn/data/HOSE/2022/BCTC/VN/NAM/KDC_Baocaotaichinh_
2022_Kiemtoan_Hopnhat.pdf
Hoa A. (2020, September 14). Cuộc đối đầu thú vị giữa Mondelez Kinh Đô và
KIDO. tinnhanhchungkhoan.vn. https://www.tinnhanhchungkhoan.vn/cuoc-doi-dau-thu-vi-
giua-mondelez-kinh-do-va-kido-post250223.html
Kiên K. (2022, August 7). KIDO tham vọng trở lại “ngôi vương” ngành bánh kẹo. Báo Kinh Tế Đô
Thị - Đọc Tin Tức Thời Sự Kinh Tế 24h Mới Nhất. https://kinhtedothi.vn/kido-tham-vong-tro-
lai-ngoi-vuong-nganh-banh-keo.html
Đỗ P. (n.d.). Câu chuyện Kinh Đô “bán mình” cho Mondelez để nuôi giấc mơ lớn và hành trình quay
trở lại để cạnh tranh với chính mình. https://mobiwork.vn/cau-chuyen-kinh-do-ban-minh-cho-
mondelez-de-nuoi-giac-mo-lon-va-hanh-trinh-quay-tro-lai-de-canh-tranh-voi-chinh-minh

Thị trường bánh kẹo Việt: cuộc đua ‘ngọt ngào’ của những người cũ. (n.d.). fireant.vn.
https://fireant.vn/bai-viet/thi-truong-banh-keo-viet-cuoc-dua-ngot-ngao-cua-nhung-nguoi-cu/
12281082
Trần Kim Thành & Trần Lệ Nguyên: Hai anh em thống trị ngành bánh kẹo. (n.d.). TẬP
ĐOÀN KIDO. https://www.kdc.vn/bai-viet/tran-kim-thanh-and-tran-le-nguyen-hai-anh-em-
thong-tri-nganh-banh-keo