ANNUAL2024
REPORT
BREAKTHROUGH TO NEW HORIZONS
584 | 584 |
NHA TRANG | |
NHA TRANG |
ANNUAL REPORT 2024
ANNUAL REPORT 2024
Marking a pivotal transition from foundation-building to accelerated growth, 2024 stands out as a breakthrough year for The PAN Group - one of transformation and momentum, reinforcing its position as a leading agri-food business and further solidifying its brand presence on the global stage.
Under the theme "Breakthrough to New Horizons", The PAN Group's 2024 Annual Report offers not only a comprehensive overview of its operational and business achievements but also conveys the Group's long-termvision and unwavering aspiration to elevate Vietnam's agriculture and food industry.
The breakthrough is reflected not only in outstanding growth figures but also in the Group's innovation- driven expansion of product portfolios, market access strategies,valuechainoptimization,andtheintegration of cutting-edge technologies into production.
With a foundation of modern governance and a forward-thinking, innovation-led mindset, PAN continues to pursue its ambition of going beyond - evolving from Vietnam's leading agri-business into a regional powerhouse, proudly elevating Vietnamese brands on the world map.
The "Breakthrough to New Horizons" Annual Report 2024 vividly encapsulates the dynamic production and business activities of the Group while reflecting the spirit of a new generatio n of resilient, pioneering agricultural and food business - a journey that PAN is proudly pursuing.
2 | THE PAN GROUP | 3 |
ANNUAL REPORT 2024
TABLE OF CONTENTS
MESSAGE OF THE CHAIRMAN | 06 |
OF THE BOARD OF DIRECTORS |
GENERAL INFORMATION
OF THE PAN GROUP
2024 BUSINESS RESULTS
REPORTS AND ASSESSEMENTS OF BOARD OF MANAGEMENT
ABBREVIATION 08
The PAN Group Overview | 12 |
Business areas and distribution channels | 26 |
Corporate Structure and | 34 |
Management Structure | |
The Group's development orientation | 40 |
Risk management | 44 |
2024 business results | 62 |
Organizational structure and | 70 |
Human resources | |
Investment and project implementation | 84 |
Financial position | 86 |
Shareholder structure and changes | 88 |
in equity | |
Environmental & social | 90 |
responsibility report | |
Report of Board of Management on | 96 |
2024 business performance | |
Asset performance | 100 |
Improvement on organizational structure, | 102 |
polices and management system | |
Board of Management's assessments on | 104 |
social and environmental responsibilities |
ASSESSEMENTS OF THE BOARD OF DIRECTORS ON BUSINESS OPERATIONS
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
CONTACT INFORMATION
Assessment by the Board of Directors | 110 |
on the company's operational aspects | |
Supervision report of the Board of | 114 |
Directors to the Board of Management | |
2025 Board of Directors' plan | 116 |
and orientation | |
The Board of Directors | 122 |
Internal Audit Committee | 130 |
Transactions and Remuneration | 138 |
Implementation of corporate | 140 |
governance regulations | |
Report of CEO | 154 |
Independent auditors' report | 156 |
Consolidated balance sheet | 158 |
Consolidated income statement | 162 |
Consolidated cash flow statement | 164 |
Notes to the consolidated financial | 166 |
statements |
4 | THE PAN GROUP | 5 |
ANNUAL REPORT 2024
MESSAGE FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS
MESSAGE FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS
Not only have our financial targets been met, but they have also been surpassed by impressive margins. This achievement reflects the effectiveness of our management, the soundness of our strategy to optimize the agricultural-food value chain, and our agility in capitalizing on market opportunities.
Dear Valued Shareholders,
2024 closed against a backdrop of continued global volatility, marked by complex economic and geopolitical shifts. Inflation in major economies remained high, global trade showed sluggish recovery, and new barriers continued to emerge. Amid these global challenges, Vietnam's economy stood out, with a GDP growth rate of 7.09%, inflation contained at 3.63%, and record- breaking agricultural, forestry, and fishery exports reaching USD 62.4 billion-highlighting the sector's pivotal role in the national economy.
Leveraging favorable macroeconomic conditions and strong internal preparation, The PAN Group has delivered impressive business results over the past year. Consolidated revenue reached VND 16,182 billion, a 22.5% increase year-over-year, while after-tax profit soared to VND 1,167 billion - the highest in the Group's history, marking a 43% increase compared to 2023.
Not only have our financial targets been met, but they have also been surpassed by impressive margins. This achievement reflects the effectiveness of our management, the soundness of our strategy to optimize the agricultural-food value chain, and our agility in capitalizing on market opportunities.
Beyond financial performance, 2024 marked a significant transformation in aligning our corporate governance with international standards, enhancing technological capabilities, and fostering innovation.
PAN's key product lines continued to be recognized as National Brands while successfully expanding into new markets including Australia, Canada, China, and Taiwan-complementing our strong presence in Japan, Europe, and the United States.
Our successful entry into major global retail chains such as Costco, Walmart, Tesco, Amazon, and Aeon is a clear testament
Our reputation in the capital market has also been reinforced during a turbulent year. While foreign investors withdrew from many emerging markets, PAN continued to attract high- quality capital from both domestic and international financial institutions, boosting our market capitalization by nearly 25% from the start of the year and earning us a place in the Southeast Asia Fortune 500 rankings.
As we step into 2025, The PAN Group enters a new chapter of growth-one that carries both greater confidence and greater responsibility. In an increasingly unpredictable world where climate change is exerting more visible impacts on agriculture, we remain committed to sustainable development as our core foundation, innovation as our driving force, and collaboration as our path forward to achieving even greater goals.
We will continue expanding export markets, promoting value-added processed products, investing in R&D and biotechnology, digitizing the value chain, adopting ESG practices comprehensively, and optimizing capital to maximize shareholder value.
We firmly believe that success is never the result of individual effort or a single moment. It is the culmination of tireless dedication, strong alignment across generations of leadership and employees, and the enduring trust and support of our valued shareholders, partners, and customers.
On behalf of the Board of Directors, I would like to extend my sincere gratitude to all of you for accompanying PAN through a year filled with remarkable achievements. With a strong foundation, a spirit of humility, and an unwavering aspiration to reach new heights, I am confident that PAN will continue to grow stronger, more sustainably, and further elevate Vietnamese agriculture on the global stage.
to the elevated status of Vietnamese agricultural products and PAN's growing global competitiveness.
Sincerely,
Chairman of the Board of Directors
6
Nguyen Duy Hung
THE PAN GROUP | 7 |
ANNUAL REPORT 2024 | ABBREVIATION |
ABBREVIATION
584 Nha Trang | 584 NHA TRANG SEAFOOD JSC |
Aquatex Bentre | BENTRE AQUAPRODUCTS IMPORT AND |
EXPORT JSC | |
FS | FINANCIAL STATEMENTS |
BOM | BOARD OF MANAGEMENT |
BOS | BOARD OF SUPERVISORS |
Bibica | BIBICA JOINT STOCK COMPANY |
BioSpring | SPRING BIOTECHNOLOGY CO., LTD |
CAGR | COMPOUND ANNUAL GROWTH RATE |
26TH CONFERENCE OF THE | |
COP26 | PARTIES TO THE UNITED NATIONS |
FRAMEWORK CONVENTION ON | |
CLIMATE CHANGE | |
28TH CONFERENCE OF THE | |
COP28 | PARTIES TO THE UNITED NATIONS |
FRAMEWORK CONVENTION ON | |
CLIMATE CHANGE | |
CPI | CONSUMER PRICE INDEX |
JSC | JOINT STOCK COMPANY |
AGM | ANNUAL GENERAL MEETING OF |
SHAREHOLDERS | |
EBIT | EARNINGS BEFORE INTEREST AND |
TAXES | |
EBITDA | EARNINGS BEFORE INTEREST, TAXES, |
DEPRECIATION AND AMORTIZATION | |
EU | EUROPEAN UNION |
EVFTA | EU-VIETNAM FREE TRADE |
AGREEMENT | |
Fimex VN | SAO TA FOODS JSC |
FMCG | FAST-MOVING CONSUMER GOODS |
GDP | GROSS DOMESTIC PRODUCT |
BOD | BOARD OF DIRECTORS |
HOSE | HO CHI MINH CITY STOCK EXCHANGE |
IFC | INTERNATIONAL FINANCE |
CORPORATION (WORLD BANK GROUP) | |
IMF | INTERNATIONAL MONETARY FUND |
Lafooco | LONG AN FOOD PROCESSING |
EXPORT JSC | |
M&A | MERGERS AND ACQUISITIONS |
P/E | PRICE-TO-EARNINGS RATIO |
PHJ | PAN-HULIC JSC |
PAN CG | PAN CONSUMER GOODS |
DISTRIBUTION JSC | |
PAN Farm | PAN FARM JSC |
PAN Food | PAN FOOD JSC |
ESG | ENVIRONMENT - SOCIAL - |
GOVERNANCE | |
R&D | RESEARCH & DEVELOPMENT |
ROA | RETURN ON ASSETS |
ROE | RETURN ON EQUITY |
SDGs | UNITED NATIONS SUSTAINABLE |
DEVELOPMENT GOALS | |
CEO | CHIEF EXECUTIVE OFFICER |
VFC | VIETNAM FUMIGATION JSC |
Vinaseed | VIETNAM NATIONAL SEED GROUP JSC |
8 | THE PAN GROUP | 9 |
ANNUAL REPORT 2024 | CHAPTER 1 | GENERAL INFORMATION OF THE PAN GROUP |
GENERAL INFORMATION
OF THE PAN GROUP
THE PAN GROUP OVERVIEW | 12 |
BUSINESS AREAS AND DISTRIBUTION CHANNELS | 26 |
CORPORATE STRUCTURE | 34 |
AND MANAGEMENT STRUCTURE
40
THE GROUP'S DEVELOPMENT ORIENTATION RISK MANAGEMENT
44
10 | THE PAN GROUP | 11 |
ANNUAL REPORT 2024
THE PAN GROUP OVERVIEW
CHAPTER 1 | GENERAL INFORMATION OF THE PAN GROUP |
GUIDING
PRINCIPLES
We appreciate that the presence of a world- class agriculture and food product company increases the food security of Vietnam and the region.
We appreciate that agriculture, as well as aquaculture, lies at the core of our country's economy, traditions, and rhythms of daily life.
We strive to continually raise the bar on the quality and value of our offerings.
We believe that improving the quality of farming inputs improves farmers' livelihoods.
COMPANY PROFILE
Company name | The PAN Group Joint Stock Company |
Abbreviation | The PAN Group |
Securities Symbol | PAN |
(Hochiminh Stock Exchange - HOSE) | |
Business | 0301472704 |
registration code | |
Charter capital | 2,162,945,800,000 VND |
(as at 31/12/2021) | |
Owner's Equity | 8,859,450,516,042 VND |
(as at 31/12/2021) | |
Lot A1-9, VL3 Street, Vinh Loc 2 | |
Head office | Industrial Zone, Long Hiep Ward, Ben |
Luc District, Long An Province, Vietnam | |
Hanoi branch | 15th Floor, ICON4 Tower, 243A De La |
Thanh, Dong Da District, Hanoi, Vietnam | |
VISION
A pioneering agriculture and food Group offering trusted products and innovative solutions within an integrated value chain from Vietnam, for the world - Farm, Food, Family.
12
MISSION
Every day, with a passion to nurture the world, we set out to provide food security, food safety, and nutrition, creating sustainable values on behalf of farmers, families and society.
We promote business practices supporting Vietnam's sustainability.
We offer a fair, professional, inspiring work environment, with opportunities that benefit our people and their families.
We seek sustainable and profitable growth, maximizing value for all key stakeholders.
THE PAN GROUP
Tel | +84-24 3760 6190 |
info@thepangroup.vn | |
Website | www.thepangroup.vn |
13
ANNUAL REPORT 2024
2006
Officially listed on the Hanoi Stock Exchange.
CHAPTER 1 | GENERAL INFORMATION OF THE PAN GROUP |
2013-2014
- Started a business investment strategy in agriculture and food and increased the charter capital to VND 200.5 billion.
- Invested in owning 54.6% of Aquatex Bentre; more than 50% of Vinaseed and turning Lafooco into an affiliate.
Established with charter capital of VND 250 million.
2015
- Changed its name to The PAN Group JSC and changed the brand identity.
- Increased charter capital to approximately VND 1,009 billion.
- Increased its ownership stake in Lafooco, transitioning it into a subsidiary.
2016-2019
- Fully divested from PAN Services & industrial cleaning services accordingly.
- Increased ownership stake and transitioning Bibica, Fimex VN, Golden Beans to Group's subsidiaries.
- Forged a joint venture with HULIC Group (Japan) to establish PAN Hulic JSC.
- PAN Farm JSC successfully raised capital from the IFC.
- Inaugurated modern confectionery plants (PFM, Bibica West) and an agricultural products plant (Vinarice) that meet FSSC22000 standards.
2020-2023
- Increased charter capital to above VND 2,000 billion.
- Increased its ownership stake in 584 Nha Trang, transitioning it into a subsidiary.
- Established Khang An Foods JSC to continuously enhance the ecosystem.
- Invest in expanding the shrimp farming area to over 500 hectares and construct new plants for Fimex VN, Khang An Foods, Lafooco, and 584 Nha Trang.
- Establish strategic partnerships with C.P Vietnam for shrimp development and with Syngenta in the agrochemical business.
- Enhance the rice value chain through collaboration with the Dong Thap Provincial People's Committee and a tripartite partnership among Vinaseed, VFC, and Binh Dien II (2 Phong).
-
The Group's CEO attended COP28 and signed a green
finance agreement with Standard Chartered Bank.
2024
- Six product groups of PAN have been recognized as Vietnam Value (national brands). This is the third consecutive time (2020, 2022, 2024) that many product groups have been acknowledged in this category.
- The Group's consolidated revenue exceeded VND 16,000 billion, and its post-tax profit surpassed VND 1,000 billion for the first time.
- For the first time, the Group made it onto the Fortune Southeast Asia 500 list.
- The PAN Group Innovation Awards were successfully implemented (2020, 2022, 2024).
- The PANSI evaluation program was introduced for the first time for all subsidiaries.
- BioSpring joined the Group.
14
THE PAN GROUP
15
ANNUAL REPORT 2024
MARKET POSITION
CHAPTER 1 | GENERAL INFORMATION OF THE PAN GROUP |
BREAK THROUGH, REACH FAR
No.1
in market share of
CROP PROTECTION MARKET
No.1
IN THE CROP SEEDS SEGMENT IN VIETNAM
with the largest scale and market share in the industry (21.5%)
No.1
in revenue and leading in efficiency in
SHRIMP BUSINESS
TOP 3
in revenue and leading in efficiency in
No.1
TOP 3 SHRIMP BUSINESS
IN THE FUMIGATION
IN THE CANDY
No.1
IN EXPORT VALUE
OF PANGASIUS
No.1 to Japan market
in sales volume of
PROBIOTICS
and pest control industry
TOP 3
TRADITIONAL FISH SAUCE PRODUCERS
in the country in terms of output
TOP 3
leading business in
CLAM EXPORT
with 12% of total export value
BUSINESS
TOP 3
largest companies in Vietnam
TO PRODUCE AND
DEEPLY PROCESS TOP 5 NUTRITIOUS NUTS
FOR EXPORTS
MARKET SHARE IN
THE CAKE SEGMENT
in Vietnam
16
THE PAN GROUP | 17 |
ANNUAL REPORT 2024
KEY FINANCIAL PERFORMANCE
CHAPTER 1 | GENERAL INFORMATION OF THE PAN GROUP |
OWNERS' EQUITY, TOTAL ASSETS AND NET REVENUE BY YEARS (VND BILLION)
PROFITABILITY RATIOS
Owners' Equity
10,000 | 8,859 | ||
9,000 | 8,343 | ||
7,878 |
Total Assets
30,000 |
23,840 |
25%
20%
5%
Gross margin
Net margin
8,000 | 7,580 | |||||||||||
7,000 | 6,137 | |||||||||||
6,000 | ||||||||||||
5,000 | ||||||||||||
4,000 | ||||||||||||
3,000 | ||||||||||||
2,000 | ||||||||||||
1,000 | ||||||||||||
0 | ||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | ||||||||
25,000 | ||||||||||||||
20,188 | ||||||||||||||
20,000 | ||||||||||||||
15,024 | 16,082 | |||||||||||||
15,000 | 11,336 | |||||||||||||
10,000 | ||||||||||||||
5,000 | ||||||||||||||
0 | ||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | ||||||||||
10%
ROE
5% | ROA | |||||
0% | ROIC | |||||
2020 | 2021 | 2022 | 2023 | 2024 |
Net revenue | |||
18,000 | 16,182 | ||
16,000 | |||
13,655 | |||
14,000 | 13,205 | ||
12,000 | |||
10,000 | 8,329 | 9,249 | |
8,000 | |||
6,000 |
PROFITS BY YEARS (VND BILLION)
1400 | 1,353 |
1200 | 1,167 |
4,000 | ||||
2,000 | ||||
0 | ||||
2020 | 2021 | 2022 | 2023 | 2024 |
1000 | 932 | 956 | ||||||||||||||||||||||||||||||
800 | 794 | 817 | ||||||||||||||||||||||||||||||
600 | 561 | 558 | ||||||||||||||||||||||||||||||
396 | 511 | 374 | 406 | |||||||||||||||||||||||||||||
400 | 333 | |||||||||||||||||||||||||||||||
200 | 188 | 296 | ||||||||||||||||||||||||||||||
0 | ||||||||||||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 |
KEY CONSOLIDATED FINANCIALS (VND BILLION)
Profit before tax
Profit after tax
Net profit to Parent company's shareholders
REVENUE AND PROFIT BEFORE TAX STRUCTURE BY SEGMENT (VND BILLION)
Revenue structure
2024 | 6,003 | 7,496 | |||||||||||||||||||||||||||||||||||||||||||
2.663 | |||||||||||||||||||||||||||||||||||||||||||||
2023 | 5,340 | 5,620 | |||||||||||||||||||||||||||||||||||||||||||
2,245 | |||||||||||||||||||||||||||||||||||||||||||||
0 | 2,000 | 4,000 | 6,000 | 8,000 | 10,000 | 12,000 | 14,000 | 16,000 | 18,000 |
Agriculture
Aquaculture Packaged foods
TOTAL ASSETS | OWNERS' EQUITY | NET REVENUE | |
23,840 | 8,859 | 16,182 | |
PROFIT BEFORE TAX | PROFIT AFTER TAX ATTRIBUTABLE | ||
TO PARENT COMPANY | |||
1,353 | 609 |
Profit before tax structure
2024 | -190 | 722 | 535 | ||||||||||||||||||||||||||||||||||||||
268 | |||||||||||||||||||||||||||||||||||||||||
2023 | -71 | 586 | 317 | ||||||||||||||||||||||||||||||||||||||
125 | |||||||||||||||||||||||||||||||||||||||||
-400 | -200 | 0 | 200 | 400 | 600 | 800 | 1,000 | 1,200 | 1,400 | 1,600 1,800 |
Others
Agriculture
Aquaculture Packaged foods
18
THE PAN GROUP | 19 |