Dear Our Valued Shareholders and Investors,

As 2018 comes to a close, first and foremost, we would like to send best wishes and our sincere thanks to you, our valued shareholders and investors who have been greatly supporting AAA for the past year.

The year of 2018 saw numerous changes in the global politics and economy with countries increasing protectionism, the China – US trade dispute, and the unpredictable fluctuations of oil prices resulting in significant difficulties to companies in plastic industry. Meanwhile the Board of Management and our employees did make substantial progress in reaching the business plan set by General Meeting of Shareholders, which were:

– The consolidated revenue for 2018 is expected to reach VND 7,000 billion, exceeding the plan by 17%. Specifically, the revenue of packaging segment has risen by 40% compared to 2017’s due to Factory No. 6 and 7 operating at nearly full capacity. Our market share in the European and Japanese market has remained stable while exports to the USA is on the increase.

– Net profit for 2018 is expected to reach VND 200 billion, accounting for 60.6% of our business plan. The earnings results fell behind our plan because: 1) to ramp up utilization rate of Factory 6 and 7 that just came into operation in 2H17, we maintained stable selling price despite fluctuations in raw material prices; 2) the resin offtake contract with domestic producers was behind schedule.

2019 is likely to create both opportunities and challenges for us. The unpredictable movements in oil prices require us to seek for strategic suppliers to secure competitive raw material prices and to adjust sales policies in favor of short-term orders to mitigate the input price risk. On the other hand, the current global trade tension, specifically the China – US trade dispute, has enabled us to increase exports to the US market. Also FDI companies moving their manufacturing from China to Vietnam has fostered extensive opportunities for An Phat High Technology Industrial Park’s increasing occupancy rate.

In 2019, we expect to reach VND 7,900 billion of consolidated revenue and VND 510 billion of net profit (up 155% y-o-y), enabling the earnings per share (EPS) of VND 2,550 and the expected dividend rate of 10-15% for shareholders. The strong earnings growth will come from our great efforts to improve profit margins by optimizing product portfolio in packaging segment; the increasing occupancy rate of the industrial zone An Phat Complex; the higher profit margins in trading segment thanks to resin offtake contract as well as the profits contributed by recently launched the industrial packaging project, An Vinh, and the injection molding engineering plastic project, An Trung.

We hold the strong belief that backed by your trust, the significant steps we have made towards the strategic goals and the tireless efforts of our executives and employees, AAA will continue to strengthen the position in the plastic industry and improve shareholder returns in 2019 and the years to come. Once again, we would like to thank you all for your support and trust in us!

Sincerely,

                                                                                                                                                         Chairman of the Board

(Signed)

                                                                                                                                                                Pham Anh Duong

For many years, the care and nurturing of Vietnamese Heroic Mothers has always been of special attention to all sectors, businesses, unions and people of Nam Sach district, Hai Duong province. It is the responsibility, showing deep gratitude for Heroie Mothers’ great sacrifice and dedication to the national revolution and liberation. Demonstrating the tradition that when you drink water, think of its source, expressing gratefulness to the heroic martyrs of Nam Sach people in particular and the entire Vietnamese people in general. As part of traditional ethnic education activities, on the occasion of the 71st anniversary of the War Invalids and Martyrs’ Day (July 27, 1947 – July 27, 2018), the Youth Union of An Phat Plastic cooperated with Trade Union Executive Committee paying visits and giving gifts to 4 Vietnamese Heroic Mothers in Nam Sach district, who are monthly reported by the company.
Mr. Duong Xuan Ty – Secretary of the Party Committee, representative of An Phat lit incense on the remains of heroic martyrs, commemorating the selfless sacrifices of the father’s generation. At the same time, the delegation cared about their health, encouraged their spirit, expressed gratitude to Mothers for the noble sacrifices. The representative also kindly encouraged mothers to live happily and healthily, being good examples for young generations to follow. This is a very practical job, an activity to express gratitude to those families, showing the spirit of “eating fruit and remembering planters”, sending care and responsibility of An Phat’s employees to the relatives of the heroes who sacrificed to defend their country.

Since 2017, with the approval of the Department of Labor, Invalids and Social Affairs of Nam Sach district, the support of the Fatherland Front Committee of Nam Sach district, An Phat monthly has provided monthly aid to heroic mothers in the area. With love, care, responsibility, and the morality that “when you drink water, think of its source”, the mothers’ lifelong support not only carries a humane meaning but also shows our respect for the father’s generation’s sacrifice for the national independence and freedom. This is of a meaningful action, which not only helps improve the quality of life of Vietnamese Heroic Mothers, but also expresses the responsibility and deep gratitude of An Phat for its continuous effort to create value for community and society.

An Phat Plastic and Green Environment Joint Stock Company (Ticker: AAA) has just announced the results of exercising the right to buy additional shares in AAA’ share offering in April. The investors have registered and paid to buy 82 million shares issued, equivalent to 98.2% of the shares offered. AAA’s BOD also announced plans to distribute shares not yet fully sold. Thus, AAA has successfully raised VND1,170 billion in stock market for expanding business activities in coming periods.

Thanks to this share offering, AAA has raised its market capitalization to nearly VND3,300 billion (equivalent to nearly USD150 million), which enables AAA to meet the requirements to be in the portfolio of stocks that foreign ETF funds invest in Vietnam. Recently, there have been numerous foreign investors who are interested in AAA and have increased their ownership in AAA. The current room for foreign ownership in AAA is estimated at over 25%, which surely is a factor attracting investment flows from outside Vietnam and interested in AAA.

Due to its core business of exporting of mono layer packaging for large suppliers in Europe, Japan, US,…AAA has not had much opportunity to promote its image to the global financial market. In order to enhance AAA’s position as the largest mono-layer packaging manufacturer in Southeast Asia and introduce the opportunity to invest in AAA to foreign investors, recently AAA has attended various investor forums for emerging and frontier markets in Dubai, Bangkok and the latest in Colombo, Sri Lanka. In Colombo, AAA participated in private meeting with 12 investment funds from EU, UK and Japan… namely FundSmith (EUR 14 billion), Lazard Asset Management (USD 226.1 billion), Nordea (EUR 216.5 billion) ), Sumitomo Mitsui Asset Management ($ 102 billion), … to help investors better understand AAA’s business strategy as well as growth potential.

Not only does AAA seek for new potential foreign investors, it also takes into account the benefits of existing shareholders by maintaining favorable cash dividend policy. Despite continuous increase in capital expenditure for business expansion (operating the No.6 Factory in 2016, the No.7 Factory in 2017 and No.8 and No.9 Factory later), AAA has strived to maintain a cash dividend of VND2,000 per share and produce an attractive dividend yield of over 10% per share.

Targeting maximizing shareholders’ benefits, the company has accomplished its every ambitious plan since listed. In 2018, AAA aims to reach consolidated sales of VND6,000 billion and consolidated net profit of VND330 billion. AAA’s  General Director, Mr. Nguyen Le Trung, was confident in AAA’s ability to complete the business plan in 2018 and ensure the cash dividend payment as planned by the 2018 General Meeting of Shareholders. The core business of mono-layer packaging for AAA continued to show strong growth in the first quarter of 2018, with sales up 40% yoy and stable gross profit margin.

Starting as a VND500 million company, after only 15 years under the leadership of three founders namely Mr. Pham Anh Duong, Mr. Nguyen Le Trung and Mr. Pham Hoang Viet, AAA has made impressive growth with total assets of nearly VND5,000 billion for the time being. Also, AAA is one of the few private enterprises that contribute significantly to Vietnam’s export activities, provide foreign exchange inflow, generate stable employment for more than 2,000 employees and provide income for the local government. Not to be overwhelmed by its achievements, AAA has set an ambitious goal of $1 billion of sales by 2025 through expanding business activities to higher value-added and environmentally friendly products, making AAA the largest eco-friendly plastic manufacturer in Vietnam and the region.