General Overview of Hai Phong Service Trading Company.

CHAPTER II: FINANCIAL ANALYSIS AT HAI PHONG SERVICE TRADING JSC

2.1 General overview of Hai Phong Service and Tourism Company.

2.1.1 Introduction to Hai Phong Tourism Service Joint Stock Company.

Business name

HAI TOURISM SERVICE JOINT STOCK COMPANY

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Trading name

HAI PHONG TOURISM SERVICE JOINT STOCK COMPANY

Abbreviation

HAIPHONG TOSERCO

Business Registration CertificateSales

0201431176

International travel business license

31-003/2015/TCDL-GP LHQT

Tax code

0200.131.176

Address

40 TRAN QUANG KHAI – HONG BANG – HAI PHONG

Phone

(84) 031.3745.258

(84) 031.3745.415

Fax: (84).31.3745977 / 3745415

E-mail

haiphongtoserco@vnn.vn

trungtamhuongdan@vnn.vn

Website

www.haiphongtoserco.com.vn

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2.1.2. The process of formation, development and business characteristics of the enterprise

Company Tourism Service Joint Stock Company was established in 1977. The Company's functions are specializing in tourism, hotel, trade and transportation services... Currently, the Company has more than 30 employees with official contracts and collaborators.

Hai Phong Tourism and Service Joint Stock Company always strictly implements the regulations on salary distribution, rewards, and contract regulations. In addition, investing in human resource development is also one of the important policies of the Company. With many methods, the Company has recruited highly qualified and professional employees from many different places. Along with that is strengthening internal solidarity, expanding cooperation, creating relationships with domestic and foreign businesses and travel companies. This is also the premise for the Company to develop and expand its business operations.

Hai Phong Tourism and Services Joint Stock Company fully performs its travel business functions. Before 2013, the company mainly operated partial tourism services: selling train tickets, freight transport services, hotel reservations, airline tickets... it had not developed package tours, or focused on exploiting tourists. In response to the development trend of service industries, especially tourism services, the Company recruited highly qualified staff, invested in organizing package tours, independent economic accounting, strongly exploited tourism business, and allocated personnel. This is considered the initial period of tourism development of Hai Phong Tourism and Services Joint Stock Company.

Since its establishment, the Company has experienced many economic fluctuations in the country as well as the impact of the economic crisis in the region. Up to now, the Company is one of the prestigious units operating in domestic and international travel business.

2.1.3 Functions, duties and powers of the company

The company's main business activities

+ Market research

+ Build and sell travel programs

+ Directly deal and sign contracts with foreign travel agencies regarding tourists.

+ Tour program management

+ Travel guide.

+ Tourist transportation

+ Hotel and tourism business.

+ Advertising services, tourism information.

+ Souvenir sales.

+ Visa services for entry and exit, visa extension for tourists.

+ General commercial services.

+ Other additional services to meet the needs of all types of tourists.

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2.1.4 Organizational structure.

 The Company's charter capital is: 27,000,000,000 Written in words: Twenty seven billion VND. The charter capital is used for the following activities:

- Purchase fixed assets and equipment necessary for the Company's operations.

- Provide working capital for the Company's business operations

- Contribute capital to joint ventures and associations with other economic units

- Buying shares, stocks, bonds of other economic units

 Shares

The total initial charter capital is divided into 2,700,000 shares, with a par value of 10,000 VND per share.

In which: The State no longer holds shares in the company, shareholders hold 100% of shares.

ORGANIZATION

Hai Phong Tourism and Service Joint Stock Company

General meeting of shareholders

Board of Directors

Board of Control

Board of Directors

Administrative Department

Finance and accounting department

General planning department

Sales Department

PHONG LAN HOTEL

PEACE

HONG BANG

TOUR GUIDE

HANOI

QUANG NINH BRANCH

LANG SON BRANCH

HO CHI MINH CITY BRANCH

The company's main facilities include:

- Phong Lan Hotel, Hoa Binh Hotel, Hong Bang Hotel

- Means of transport: vehicle teams.

- Company headquarters and 4 branches in Hanoi, Quang Ninh, Lang Son, Ho Chi Minh City. Fully equipped with working equipment to meet the Company's operational requirements.

The leader and manager of the company in all aspects, is responsible to the General Director of the General Department of Tourism and to current laws for all activities of the company.

The company's current operating and management system has a total of 121 people, of which: 31 people have official labor contracts, the Company's office at 40 Tran Quang Khai - Hai Phong has 20 people divided into 8 departments with labor contracts, the branch located in Quang Ninh has 25 people and the Ho Chi Minh City branch has 40 people, the Hanoi branch has 26 people and the Lang Son branch has 11 people.

The company has 4 departments:

 Finance and accounting department

The finance and accounting department consists of 11 people, 10 of whom have university degrees.

The department has the following functions: Invoicing all domestic services (paying all expenses according to invoices of restaurants, hotels, guides, etc.), monitoring and paying international debts, accounting for revenue and declaring and paying taxes to the state.

 Administrative and organizational department.

The administrative department has 21 people, responsible for human resources, salary, rewards, and discipline for employees in the company. Monitor the work situation of departments, create conditions for technical facilities and stationery for departments and offices in the company to perform their work well.

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The administrative department organizes the recruitment, training and dismissal of employees, advises the leaders on the appropriate transfer from one department to another, ensuring that the Company's organizational apparatus operates with the highest efficiency.

 Business promotion department.

The department consists of 7 people, responsible for promoting and advertising tourism products as well as the Company's image in domestic and international markets.

 General Planning Department.

+ Information about customers, hotels, attractions, and service facilities.

+ Update network information, notify relevant departments of necessary information.

+ Advertise all company products via the internet, newspapers, audio-visual media, and fairs.

+ Monitor and receive information from member organizations (PATA, ASTA, WTO) and customers.

+ Organize information for customer departments via the intranet.

* Other parts.

To facilitate tourist services, since May 1993, the Company has established 4 branches.

The Company's branches function as operating departments with the responsibility of taking care of all customer services such as: room reservations, transportation, and transactions with tourist establishments in the Central and Southern regions.

To proactively serve customers regarding air transport conditions, the Company has opened an airline ticket agency, and this activity has achieved good results over the years.

recently

The organization of welcoming guests is very important, in the conditions of our airport with many difficulties, the order situation is still chaotic, to create conditions as well as create prestige for the Company, convenient for tour guides to welcome guests, Hai Phong Tourism Service Company has opened a representative office at Cat Bi airport, because most tourists entering Vietnam go through Noi Bai (north) and Tan Son Nhat (south) border gates. This office is assigned to the direct tour guide department to take charge on behalf of the Company.

The company's management structure is a functional structure that follows the one-man rule. The director has full authority to decide on all work in the company, and the two deputy directors are responsible for advising and assisting the director in difficult tasks. The departments and divisions in the company have close relationships with each other in their work and directly report their work to the director. Each employee in the company can directly report to the director on issues that need to be supplemented and revised in their work to help the company achieve high business efficiency. This structure has promoted democracy and dynamism.

2.2 Business activities of Hai Phong Tourism Service Joint Stock Company.

Table 2.1: Some business results of Hai Phong Service Trading Company (2015 - 2016)

Unit: thousand dong

Status

Target	2015	2016	Difference 2016/2015
Target	2015	2016	Absolute ( )	Relative (%)
1	Total Revenue	23,003,487	29,085,254	6,081,767	26.44
2	Total cost	18,553,284	23,024,660	4,471,376	24.1
3	TT Profit	4,450,203	6,060,594	1,610,391	36.19
-	Profit from business operations	4,336,073	6,024,881	1,688,808	38.95
-	Other profits	114,130	35,713	-78,417	-68.71
4	Submit budget	1,681,095	2,958,400	1,277,305	75.98
5	Total number of employees	121	121	0	0
6	Total payroll	3,839,106	5,063,227	1,224,121	31.89
7	Average salary	2,644	3,149	505	19.1

Comment: Through the basic economic indicators of the Company's profit and revenue in the period of 2015 - 2016, we can see that the production and business activities of the following year are higher than the previous year. That proves the achievements in the operation and the development of the enterprise. Specifically as follows:

In 2016, total revenue increased by 6,081,767,000 VND compared to 2015. Correspondingly, an increase of 26.44% compared to 2015. Costs increased by 4,471,376,000 VND, but the growth rate of revenue was higher than costs of 6,081,767,000 VND, making the company's production and business activities still good.

Actual profit in 2016 increased by 1,610,391,000 VND compared to 2015, equivalent to an increase of 36.19%. In which, profit from business activities accounted for the majority of total revenue of each year (99%) and increased by 1,688,808,000 VND compared to