Characteristics of the Business Sector of Mai Linh Central Joint Stock Company

Number of preferred shares and treasury shares: None

Operating market: The company's taxi operating market spans the Central provinces from Quang Binh to Binh Dinh.

Mai Linh Central Joint Stock Company is the parent company of 7 member companies in the Central region (from Quang Ngai to Binh Dinh).

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100% equity of Mai Linh Quang Ngai One Member Co., Ltd. 100% equity of Mai Linh Tam Ky One Member Co., Ltd. 100% equity of Mai Linh Hoi An One Member Co., Ltd. 100% equity of Mai Linh Hue One Member Co., Ltd.

100% equity of Mai Linh Quang Tri One Member Co., Ltd. 100% equity of Mai Linh Binh Dinh One Member Co., Ltd.

The company's taxi market share accounts for 50 to 60% in major cities such as Da Nang, Hue, Hoi An, Quang Ngai. In addition, the company is operating in a monopoly position in some markets such as Tam Ky, Nui Thanh, Dung Quat, etc.

- Development process

+ February 30, 2000 Mai Linh Central Joint Stock Company, formerly Mai Linh Da Nang Joint Stock Company.

+ On January 18, 2001, the company officially started operating in Da Nang city and some neighboring areas. In 2001, the company increased its charter capital to 11.7 billion.

+ In 2007, the company increased its charter capital to 52.6 billion after issuing common shares and preferred shares to employees and existing shareholders.

+ In 2008, the company increased its charter capital to 70.1 billion VND after distributing bonus shares from surplus shares to existing shareholders.

+ In March 2009, the company started construction of Mai Linh Lao Bao - Quang Binh rest stop. Including an operator's house, parking lot, restaurant, BDSC workshop, gas station and other items.

+ In 2009, the company increased the number of taxis to 300 in Da Nang City, bringing the high-end Mai Linh Limousine brand to the Hue and Hoi An markets. Successfully implemented the Mai Linh Bus project in Quang Ngai. Applied and put into operation the taxi switchboard management software at Mai Linh Da Nang, Mai Linh Hue, Mai Linh Quang Ngai.

+ On December 16, 2010, the Company officially listed 7,017,130 shares on the HNX, with the stock code MNC.

+ On April 1, 2013, the company successfully applied GPS positioning technology into management.

taxi driver

Vision and mission of Mai Linh Central Joint Stock Company

Vision

“To be the best service provider wherever we are”

“ To be the best service provider where we are present”

Mission

“Provider better satisfaction for better life!”

“Bringing satisfaction to everyone for a better life”

2.1.2. Characteristics of the business sector of Mai Linh Central Joint Stock Company

Licensed occupations include:

- Passenger transport by taxi, passenger transport by contract and passenger transport on fixed routes by high-quality Express vehicles, domestic and international travel, tourist services, advertising services.

- Domestic and international airline ticket agent, repair and construction of water and land transport vehicles... Train, hydrofoil, water taxi ticket agent. Car, auto parts and other means of transport agent.

- Short-term vocational training.

- Quality management consulting according to international standards.

- Car rental service.

2.1.3. Commercial fields in which Mai Linh Central Joint Stock Company is operating

The company's current main business is mainly transportation - passenger transportation services by taxi. This is a type of passenger transportation business by car with schedules and itineraries according to customer requirements, fares are calculated by meter (for passengers).

- Service delivery method: Driver directly provides service to customers.

- Equipment includes: Types of cars used for taxi service business:

+ 4-seater car: Kia, Toyota, Vios.

+ 7-seat car: Toyota Inova, Jolie, Zace

2.1.4. Organizational structure of Mai Linh Central Joint Stock Company

2.1.4.1. Organizational chart

BOARD OF DIRECTORS

DEPARTMENTS AND DIRECT MANAGEMENT UNITS

SUBSIDIARIES

MAI LINH QUANG NGAI ONE MEMBER CO., LTD

MAI LINH TAM KY ONE MEMBER CO., LTD

MAI LINH HOI AN ONE MEMBER CO., LTD

MAI LINH HUE ONE MEMBER CO., LTD

MAI LINH QUANG TRI ONE MEMBER CO., LTD

MAI LINH QUANG BINH ONE MEMBER CO., LTD

MAI LINH BINH DINH ONE MEMBER CO., LTD

Mai Linh Central Joint Stock Company is a subsidiary of Mai Linh Group Joint Stock Company. The company is organized and operates in the form of a Joint Stock Company model according to the provisions of the Enterprise Law, with a General Meeting of Shareholders, a Board of Directors, a Board of Supervisors and a Board of General Directors. Below is the organizational structure chart of the company:

BOARD OF SUPERVISION

BOARD OF DIRECTORS

GENERAL MEETING OF SHAREHOLDERS

ROOM

ADMINISTRATIVE ORGANIZATION

ROOM

FINANCE ACCOUNTING

ROOM

BUSINESS DEVELOPMENT

ROOM

MATERIALS TECHNICAL

INTERNAL CONTROL DEPARTMENT

TAXI OPERATIONS DEPARTMENT

SAFE ROOM

WORKSHOP

MAINTENANCE AND REPAIR

MAI LINH NAM CENTRAL & CENTRAL HIGHLANDS JOINT STOCK COMPANY

AFFILIATES

V

Figure 2.2. Organizational structure chart of Mai Linh Central Joint Stock Company Note: Normal online relationship

Advisory relationship

The management organization of Mai Linh Central Joint Stock Company is built in an online advisory style.

2.1.4.2. Functions and tasks of each department

General meeting of shareholders

- Including all shareholders with voting rights, is the highest decision-making body of the company including all shareholders with voting rights, meets at least once a year. Has the task of deciding on the direction and development orientation of the company and making annual business plans.

- The General Meeting of Shareholders decides on matters stipulated by the Law and the Company's Charter. The General Meeting of Shareholders approves the Company's annual financial reports and the following year's financial reports, elects and dismisses members of the Board of Directors and members of the Company's Supervisory Board...

Board of Directors

- The Board of Directors is elected by the General Meeting of Shareholders and is the highest management body of the Company, with full authority on behalf of the Company to decide on all matters related to the Company's interests, except for matters under the authority of the General Meeting of Shareholders. The Board of Directors plays a role in guiding the annual production and business plan strategy, directing and supervising the Company's activities through the Company's Executive Board.

- The term of the Board of Directors is 5 years and Board members can be re-elected for an unlimited number of terms. The current number of Board members is 5.

Board of Directors

- The Company's Board of Directors is appointed by the Board of Directors and is responsible for organizing, operating and managing all daily production and business activities of the Company according to the strategies and plans approved by the Board of Directors and the General Meeting of Shareholders.

- The Board of Directors consists of 02 members, including 01 Director and 01 Deputy Director.

Human Resources Department

- Advise and assist the Director on organization and personnel work, labor work, salary, emulation and rewards, inspection, national security and defense, and legal affairs.

build organizational model, staff standards.

- Develop human resource development plans in line with strategic plans, build functional and task structures of departments and units in Mai Linh.

- Organize and implement staff planning; evaluate management staff according to term; carry out appointment and reappointment procedures in Mai Linh.

- Manage training, fostering and developing staff and professional employees, act as a focal point for building standards and evaluating staff and employees.

- Carry out procedures to send cadres, employees and workers to study, work and visit domestically and internationally, extend study and work periods, and receive cadres returning home from abroad.

- Carry out procedures to resolve allowances, retirement and other policies for officers, employees and workers.

Finance and accounting department

- Manage, inspect, guide and implement accounting and statistics regime; Manage finance and assets according to State Law, Charter and financial regulations of the Company;

- Meet financial needs for all production and business activities of the Company according to plan; Preserve and develop capital of the Company and shareholders.

- Assist the Director in accounting and statistics, economic information, and activities related to financial management.

- Organize accounting and statistics, accurately and fully reflect data and the circulation of capital in the Company's production and business.

- Check and provide professional guidance to accounting departments at affiliated units, check the settlement of economic contracts, and debt collection of the Company.

- Balance the Company's financial plan, regulate all types of capital in the Company, liaise with the Corporation, banks and finance, as well as shareholders who are legal entities to create capital sources to promptly serve production and business when needed.

- Take charge of periodically performing financial reporting, inventory, and asset evaluation in the Company, recommending the liquidation of remaining, poor quality, and unused assets and materials.

Business Development Department

- Market research, search for customer sources to expand business and investment.

- Plan, organize, implement, and monitor the implementation of business plans throughout the company.

- Exploit domestic market, develop specific business plans to submit to director.

- Draft economic contracts and organize implementation once the contract has been signed.

- Advise the director in the process of organizing and managing the Company's business activities, approaching the market, advertising and promoting to attract customers to sign sales contracts... Develop business strategies.

- Organize marketing, advertising and sales to ensure quick capital recovery and maximize profits;

- Make periodic and ad hoc reports as required by the Company Director.

Material engineering department

- Propose purchasing materials to meet market needs.

- Check, monitor, urge and advise the Board of Directors on the management and use of machinery, equipment and materials throughout the company.

- Take charge of planning materials and equipment for the operation and maintenance of assets (taxi, machinery, etc.) in the company.

- Consulting on building quality control procedures. Testing raw materials and supplies.

Internal control department

- Control the entire financial system and the implementation of the company's regulations: Check the reasonableness, legality, honesty and level of prudence in the management and operation of business activities, in the organization of accounting, statistics and financial reporting. Appraise the company's periodic business situation reports and financial reports, and report on the Board of Directors' management assessment to the General Meeting of Shareholders at the annual meeting.

- Extraordinary inspection: Upon request of a shareholder or group of shareholders, the Board of Supervisors shall conduct an inspection within seven working days from the date of receipt of the request. Within fifteen days from the date of completion of the inspection, the Board of Supervisors shall

Report and explain the issues requested for inspection to the Board of Directors and the shareholders and groups of shareholders who have requested it.

- Intervene in company operations when necessary: ​​Propose to the Board of Directors or the General Meeting of Shareholders measures to amend, supplement, and improve the organizational structure, management, and operation of the company's business operations.

Maintenance and repair workshop

- Organize taxi maintenance and repair.

- Repairing vehicle parts.

- Ensure safety and adequate equipment to serve the process of providing taxi services to customers.

- Monitor, supervise techniques, and quickly repair taxis when they have problems.

- Provide drawings, technical requirements for new vehicle equipment and interior equipment to meet customer needs.

- Repair, maintain and manage all company vehicles.

- Synthesize needs, plan, and place orders for purchasing specialized materials and equipment for vehicles.

2.2. Analysis of the company's business performance from 2012-2014

2.2.1. Analysis of assets and capital situation

2.2.1.1. Company's asset situation

Below is a chart showing the Assets indicator in the balance sheet of Mai Linh Central Joint Stock Company during the period from 2012-2014 ( Source: Compiled from consolidated reports of Mai Linh Central Joint Stock Company from 2012-2014)

Figure 2.3. Chart showing asset indicators of Mai Linh Central Joint Stock Company from 2012 to 2014

The total assets of Mai Linh Central Joint Stock Company have increased steadily over the past 3 years with an average growth rate of 4.7%. This shows that the company has a strategy to develop, expand its business, and increase investment in assets. In the company's asset structure, the ratio of long-term assets is more than double that of short-term assets and this ratio tends to increase. The growth rate of long-term assets is 40.5%, while the average growth rate of short-term assets is only 5.7%, due to the company's investment decisions to best serve customer needs.... Due to the company's main business line being mainly operating passengers by taxi, the investment in equipment such as taxis, equipment in the car, facilities in the company... This is suitable for the company's field of operation, which is transportation-taxi, requiring many means, equipment and fixed assets.

2.2.1.2. Company's capital situation

Below is a chart showing the capital structure of Mai Linh Central Joint Stock Company during the period from 2012-2014 ( Source: Compiled from consolidated reports of Mai Linh Central Joint Stock Company from 2012-2014)

Figure 2.4. Capital structure of Mai Linh Central Joint Stock Company from 2012 to 2014

In the company's capital structure, equity accounts for a smaller proportion than liabilities (Debts accounted for 57% in 2012 and increased to 76% in 2014). The debt ratio is approximately double the equity ratio, and is on the rise. In 2013, Mai Linh Central Joint Stock Company listed its shares on the Hanoi Stock Exchange. However, in 2014, due to unfavorable financial market conditions, the company has not been able to increase its equity by issuing shares to existing shareholders.