The Ultimate Turnaround: How 3 Employees Kept a Company Afloat and Shares Soaring.

Minh Khang CTP: A Tumultuous Journey Amidst Leadership Changes and Strategic Shifts

On August 14, shares of Minh Khang Capital Trading Public Joint Stock Company (CTP) plummeted to the floor price of 10,900 VND per share. However, since May 30, the stock has witnessed a staggering nearly 100% increase.

Minh Khang Capital Trading Public has been in the spotlight recently due to the simultaneous resignation of eight members of its Board of Management and Supervisory Board, effective May 30. All cited personal reasons for their departure, leaving their duties unfulfilled.

Among those who stepped down was Mr. Nguyen Tuan Thanh (born in 1979), the company’s Chairman of the Board. Other departing board members included Phan Mai Anh Tai, Khau Minh Quan, Le Minh Tuan, and Nguyen Thi Thao Nhi, leaving the company without any remaining board members.

However, according to a recent governance report, only two Board members, Mr. Phan Mai Anh Tai and Mr. Khau Minh Quan, were relieved of their duties. The other three members who had previously submitted their resignations retained their positions.

Additionally, in recent times, the company’s leaders and major shareholders have continuously announced their plans to divest from the company.

A Brief History of Minh Khang CTP

Minh Khang CTP, formerly known as Thuong Phu Joint Stock Company, was established in 2010 with an initial charter capital of 3 billion VND. The company primarily focused on the production, processing, and trading of various types of coffee. It gained recognition as one of the largest producers of coffee beans in Vietnam and gradually expanded into the export of processed coffee beans.

According to the company’s 2023 Annual Report, before 2020, Minh Khang CTP concentrated on coffee production, processing, and trading. However, after divesting from nearly 97% of the capital of Nansan Vietnam Joint Stock Company (a specialist in producing and exporting Arabica coffee beans) in late 2019, the company shifted its focus to multi-industry development.

Currently, Minh Khang CTP operates mainly in the fields of coffee production, processing, and trading, as well as construction materials and real estate. The company has a charter capital of 121 billion VND, and its Chairman, Mr. Nguyen Tuan Thanh, is the sole major shareholder, holding 12.4% of the capital.

According to the audited financial statements for 2023, Minh Khang CTP has only three employees.

Financial Performance in Recent Years

In recent years, Minh Khang CTP’s business performance has been on a downward trajectory. Before 2020, the company consistently generated hundreds of billions of VND in revenue and tens of billions of VND in profit. However, in recent years, revenue has continuously declined, and profit has dwindled to a mere few hundred million.

For instance, in 2023, CTP recorded 88 billion VND in net revenue and 111 million VND in post-tax profit, a decrease of 25% and 84%, respectively, compared to the previous year. For 2024, the company plans to increase its business revenue by 5-7% compared to the previous year.