Reviewing Conference for 2019 and Deploying The Plan for 2020

Closing in 2019, 2020 is a full of challenging and opportunities year that requires highly solidarity and determination of the company leadership, the managers and every employees. This will be a new development phase of Traphaco, when the main task of Traphaco will continue to be implemented with 5 major solutions of the corporate governance year in 2019 and communication to build new period Traphaco culture.

2019 is a difficult and challenging year, but Traphaco has completed most of the important tasks set by the Board of Directors and the Executive Board from the beginning of the year.

Regarding the general situation of Vietnam Pharmaceutical Market in 2019, according to the IMS report (Third Quarter / 2019), when the Pharmacy distribution channel market does not grow while this is the channel accounting for 92% of Traphaco's revenue. The drug procurement circular was delayed in release compared to the first plan so the company could not take advantage of the advantages at ETC. Besides, the key products are fiercely competing with counterfeit and fake products.

In 2019, with the orientation of the Board of Directors, the Executive Board of the company has implemented 05 key solutions:

1. The company's strategic goal in 2019 is transformed into KPIs that creates a quickly pace to implement the target at the beginning of the year. The implementation indicated that KPI is an effective tool in the implementation of strategic goals when Traphaco has completed 1,134 targets of 1,206 targets that reached 94%.

2. Applying KPI results associated with 3Ps salary to the contracted salary system: In addition to focus on revenue, the Business Division also focuses on customer targets, coverage, SKUs, creating a premise for sustainable business development.

3. Innovating marketing activities, enhancing communication activities at point of sale and product promotion programs: Accumulated Point deployment is well appreciated by Customers, increasing the opportunity to deploy and promote the development of non-products. the media. The deployment of Posters hanging has been changing at this point and creates brand spillover. In addition, brand & product communication is resonated through activities that show creativity, capturing Digital 4.0 trend.

4. Assigning the optimal cost limit for all work segments: In the first quarter of 2019, the company issued expense limit for each leader, thereby strictly controlling corporate costs, ensuring maximum cost advantages for each segment.

5. Orientations for promoting hospital sales: On January 2^nd, 2019, Traphaco established a Hospital Sales Department and on October 1^st, 2019 appointed the Deputy General Director in charge of ETC, showing its determination to promote and focus on ETC hospital sales channel.

With the solutions that implemented in 2019, Traphaco has achieved the consolidated profit after tax target compared to the initial plan, ensuring stable income for all employees. The important results that pave the way for sustainable development for the upcoming years. Thus, Traphaco stablizes prices through developing policies and programs aimed at personalizing customers and assessing customers' capabilities. Negotiating with suppliers to reduce input materials prices. Manage the expenses through limits. Promote sales of hospital channels. Negotiate with many companies to prepare quality imported products to be deployed in Traphaco's distribution channel. Successfully carry out technology transfer Phase 1 with Daewoong partner in Traphaco Hung Yen.

At the Reviewing Conference of the year 2019, the Chairman of the Board of Directors - Mrs. Vu Thi Thuan on behalf of the Board of Directors praised the results of the continuous efforts of the Board of Directors and the employees of Traphaco in 2019 and giving directions to the plan targets in 2020. In which:

- Consolidated revenue (without VAT): VND 2,000 billion in which:

• Manufactured and processed products: VND 1,630 billion
• Exclusive imported products: VND 70 billion
• Milk: VND 50 billion
• Total revenue from subsidiaries: VND 250 billion

- Consolidated profit after tax: VND 180 billion

- Profit after tax of the parent company: 132 billion VND

Closing in 2019, opening 2020 is challenging and opportunities require the determination of the company leadership, the solidarity and determination of the management levels and each employee. This will be a new development phase of Traphaco, when the main task of Traphaco will continue to implement 5 major solutions of the year of corporate governance in 2019 and communication to build Traphaco culture in the new period. In 2020, General Director Mr. Tran Tuc Ma gave the message of the year: "DEVELOPING TRAPHACO CULTURE NEW STAGE" with the media slogan "Honest and brave - Proactively connecting - Innovating responsibly. - Innovation is successful”.

Some award titles in 2019

• National Quality Gold Award

• Certificate of Science and Technology Enterprise for Traphaco Hung Yen Co., Ltd.

• First-Class Labor Medal for Company Unions

• Traphaco achieved the certificate of Global Gender Equality EDGE

• Enterprise For workers

• Top 10 Best Annual Reports

• Top 5 Best Sustainable Development Reports

• Top 5 best Corporate Governance companies

• CSI Sustainable Business Award

• Top 50 leading Vietnamese brands