Cloud And Dragon Company Limited (Vietnam)

Established in 1999 in Hai Phong City, the subject specializes in manufacturing and trading plastic products, including bottles, plastic parts for electronics products, plastic covers for car and motorbike batteries, PET, PP, PE, cans, etc, which are mostly supplied to FDI companies in the domestic market. Its initial factory is located at the head office. The second factory is located in Trang Due IP which put into production in early 2021, also manufactures plastic products and technical plastic components and belongs to its subsidiaries VAN LONG TECHNICAL PLASTIC JOINT STOCK COMPANY. The total area of the two factories is about 20,000 m2. However,  the two companies have different customer groups, said by the chief accountant. Besides, in Oct 2020, precision mold manufacturing and repairing factory was put into production (belongs to VAN PHONG PRECISION MOLD JOINT STOCK COMPANY - the subject's subsidiary). The subject will coordinate with this subsidiary in completing the molds according to its customer requirements. Its customer will buy these molds and hand them over to the subject to produce products as required. However, the subject only publishes separate financial reports for each company and there is no consolidated financial statement.For the subject's operation, according to the subject's chief accountant, LG and LG's vendors are the biggest customers which bring about 45% total revenue to the subject. The subject usually processes plastic components of washing machines, vacuum cleaners and it just started processing refrigerator plastic components for this group of customers in several years. With the product line of lubricant bottles, its major customers are Idemitsu, JX Nippon, Chevon which brings about 30% of total revenue to the subject. The rest of 35% belongs to other customer groups.Due to the decrease of orders from customer group related to LG, net sales decreased slightly by 2.53% to stand at VND 481.3 billion last year. The post-epidemic economic recession also had certain negative effects on this operation in 2023. As revealed, in the first 2 - 3 months of 2023, the subject's business results met the set plan. However, in the second quarter of the year, business activities slowed down and the most obvious negative impact was in Jun and Jul 2023. Orders only reached about 85-90% due to reduced demand. However, this situation has been resolved. The number of orders from refrigerator plastic components of LG has increased clearly in the last 3 months. The labor force has also increased from 420 people in Aug 2023 to 450 currently. The subject also generated VND 411 billion of sales for the first 10 months of 2023 and profit took about 6.3% or 6.4% of revenue. Expected revenue for the whole of 2023 might increase by 3% compared to the previous year.