The equitisation process to become a joint-stock company is a milestone for Xuan Hoa, especially when the company was listed on the stock market at the end of 2016 – a transformation from a state-owned to a public company.
After one year as a joint-stock company, its growth rate reached 10.5% compared to 3% in previous years. Xuan Hoa’s profit last year increased 10 times, staff salary rose by 10% and shareholders’ dividends rose by 3%, higher than the targets set before the equitisation process.
Those impressive business results came from the application of modern production technology, which raised production by 20%, reduced inventory by 70% and the ratio of faulty products to less than 10%.
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Xuan Hoa has invested strongly to expand its distribution network. The company’s retail network has been increased to 1,500 outlets, compared to a mere 300 in the past.
The equitisation process also helps the company attract more financial resources for production investment. In 2016, Xuan Hoa spent 30 billion dong (1.3 million US dollars) for production machines and technology from Italy and Japan, which helped the company increase production capacity to 3,000 steel office cabinets per year.
“We will continue to focus on two core strategies in the next five years, which will include the optimization of the production process as well as building a professional marketing and sales network,” said the company’s general director Le Duy Anh.
“Our efforts will help us to go deeper in the local market while expanding our share in the global market,” he added.
Although having being a supplier for IKEA, a world’s leading furniture maker, for 20 years, the company’s cooperation with the Swedish company did not always go smoothly as IKEA has strict requirements on quality and pricing.
“ Before equitisation, we could not win a steel cabinet supply contract with IKEA because we would not have been able to meet its requirement of pricing. As we restructured the production process to cut costs, we sold 1.2 million steel cabinets to IKEA in 2016. This year, we have secured a contract to supply 100,000 steel cabinet per month to IKEA,” Le Duy Anh said.
Xuan Hoa also became the supplier for other furniture firms, such as Sankin from Japan and Habitat from France.
In addition, the company has exported its products to other markets that have high-quality requirements such as Japan, the EU and are preparing to go into the US and Middle Eastern countries.
After one year as a joint-stock company, its growth rate reached 10.5% compared to 3% in previous years. Xuan Hoa’s profit last year increased 10 times, staff salary rose by 10% and shareholders’ dividends rose by 3%, higher than the targets set before the equitisation process.
Those impressive business results came from the application of modern production technology, which raised production by 20%, reduced inventory by 70% and the ratio of faulty products to less than 10%.
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 A CNC piercing machine from Japan’s AMADA for the production of steel cabinets – the company’s flagship product.  A Salvagnini pressing machine from Italy helps increase production capacity.  A single sheet pressing machine from AMADA helps increase production quality.  An auto welding machine from Japan’s Panasonic ensures precision.  Chair cover sewing process.  Producing a chair.  Checking chair quality after the painting process. Final touches.  Packaging process.  Xuan Hoa is a supplier for furniture makers such as IKEA (Sweden), Sankin (Japan) and Habitat (France).  Xuan Hoa marketing team at a professional training class with a Japanese lecturer. |
Xuan Hoa has invested strongly to expand its distribution network. The company’s retail network has been increased to 1,500 outlets, compared to a mere 300 in the past.
The equitisation process also helps the company attract more financial resources for production investment. In 2016, Xuan Hoa spent 30 billion dong (1.3 million US dollars) for production machines and technology from Italy and Japan, which helped the company increase production capacity to 3,000 steel office cabinets per year.
“We will continue to focus on two core strategies in the next five years, which will include the optimization of the production process as well as building a professional marketing and sales network,” said the company’s general director Le Duy Anh.
“Our efforts will help us to go deeper in the local market while expanding our share in the global market,” he added.
Although having being a supplier for IKEA, a world’s leading furniture maker, for 20 years, the company’s cooperation with the Swedish company did not always go smoothly as IKEA has strict requirements on quality and pricing.
“ Before equitisation, we could not win a steel cabinet supply contract with IKEA because we would not have been able to meet its requirement of pricing. As we restructured the production process to cut costs, we sold 1.2 million steel cabinets to IKEA in 2016. This year, we have secured a contract to supply 100,000 steel cabinet per month to IKEA,” Le Duy Anh said.
       Xuan Hoa’s best-selling products. |
Xuan Hoa also became the supplier for other furniture firms, such as Sankin from Japan and Habitat from France.
In addition, the company has exported its products to other markets that have high-quality requirements such as Japan, the EU and are preparing to go into the US and Middle Eastern countries.
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Milestone development |
Story: Thuc Hien - Photos: Tat Son & Files
