Image: TTF
|
On May 16, Truong Thanh Wood received a decision from the Binh Duong Tax Department on the enforcement of administrative decisions on tax management by forcibly deducting nearly VND 23 billion from the Company’s accounts.
Mr. Tran Ngoc Giap, who was authorized to disclose information about TTF, said that the above debt relates to tax arrears arising from the recognition of debt obligations from merged member companies and tax inspection conclusions for the period from 2011 to 2022, totaling VND 141 billion.
The Company used a tax refund of about VND 119 billion to offset the debt, with the remaining amount to be paid being nearly VND 23 billion.
“This was a huge effort by the new management in 2023, using newly generated surpluses to completely resolve the issues left by the old management, in order to fulfill all obligations to the state budget and be able to receive tax refunds as normal,” Mr. Giap emphasized.
According to TTF‘s representative, the Company has sent a letter to the Tax Department regarding its plan to pay the remaining amount of 23 billion VND, based on working capital and export tax refund plans.
Currently, the Company’s business production remains stable and maintains the goal presented at the AGM, in order to have the resources to completely resolve the old issues from 2011.
In terms of business results, in the first quarter of 2024, TTF‘s net revenue decreased by 2% over the same period to VND 323 billion. Net profit, however, increased by 63% to over VND 4 billion. The Company attributed the profit increase to the fact that the Vietnam Development Bank (VDB) – Buon Ma Thuot Branch wrote off interest related to unpaid late payment interest, allowing the Company to reverse financial expenses.
| TTF’s quarterly net profit in 2022-2024 |
In 2024, Truong Thanh Wood plans to increase its revenue by 28% compared to the previous year to VND 2,012 billion and turn losses into a net profit of VND 57 billion. As of the first quarter, the Company has achieved 16% of its revenue target and 7% of its profit target for the year.
Although the Company made a slight profit in the first quarter, as of March 31, 2024, TTF still recorded accumulated losses of over VND 3,226 billion, equivalent to more than 78% of its charter capital. This has caused TTF shares on the stock exchange to remain on the warning list and trade sideways at around VND 4,000/share in the past month, down 20% from its short-term peak in early March 2024.
| TTF share price movement since the beginning of 2024 |
At the annual general meeting of shareholders held at the end of April, Truong Thanh Wood approved the cancellation of the plan to issue more than 41 million private placement shares, which was approved at the 2022 AGM.
The reason for the cancellation was that, after working with management agencies, the Company assessed that the unfavorable market conditions would affect the offering and shareholders’ interests, and it also re-evaluated its capital usage plan and business plan.
