The Great Wall of Wood: Profits Plummet in Post-Audit Wipeout

After a review, HoSE-listed Truong Thanh Wood Industry Corporation (TTF) reported a net loss of VND5.5 billion in the first half of 2024, a turnaround from its previously stated unaudited profit of VND4.5 billion. Despite this loss, the company's performance represents a significant improvement compared to the corresponding period in 2023, when it recorded a net loss of over VND36 billion.

0
44

Gỗ Trường Thành attributes the fluctuation to additional provisions for doubtful accounts. Specifically, as of June 30, 2024, TTF’s allowance for doubtful accounts was adjusted from over VND 33 billion in the self-prepared report to nearly VND 48 billion after the review. This figure has increased by over VND 7 billion compared to the same period last year.

In summary, at the end of Q2 2024, Gỗ Trường Thành recorded a net amount of nearly VND 514 billion in accounts receivable, of which the amount receivable from Vinhomes Joint Stock Company (HOSE: VHM) accounted for nearly VND 172 billion.

This is not the first time that TTF’s profit has shown significant volatility compared to self-prepared reports. Most recently, after the 2023 audit, the company incurred a net loss of VND 134 billion, while the self-prepared report showed a profit of VND 11 billion, due to additional tax penalties and losses from account write-offs and liquidation.

As of June 30, 2024, Gỗ Trường Thành’s accumulated loss exceeded VND 3.2 trillion, leaving only VND 264 billion in equity. Due to the accumulated losses, TTF’s stock remains on the warning list.

In the stock market, TTF shares are currently trading around VND 3,500 per share, a 30% decrease from its peak of VND 5,000 per share in early March 2024.

TTF Share Price Movement since the Beginning of 2024

Thế Mạnh

You may also like

Optimizing the Lottery Company: A Strategic Revamp for Financial Success

The Ha Tinh Lottery Company has been placed under special financial supervision, and if its financial situation does not improve, it may face a change of ownership or restructuring. This development underscores the importance of financial prudence and stability, especially in the lottery industry, where the stakes are high and the potential for financial pitfalls is ever-present.

The Financial Woes of the Hanoi Lottery Company: An Interview with the Director.

The leadership of the Hanoi Lottery Company attributed the losses to accumulated deficits from previous years, the prevalence of illegal gambling, and an unusually high number of jackpot winners in the past year.

Over 2 Million Shares of Da Nang Plastic JSC (DPC) to Be Delisted

2,237,280 shares of DPC will be delisted from May 14th due to DPC’s accumulated loss exceeding its contributed capital as of December 31st, 2023.

First budget airline of Vietnam faces bitter defeat as rescue attempt fails

With over 30 years of development, Pacific Airlines – Vietnam’s first low-cost airline – has faced multiple restructuring and transformation challenges, often teetering on the brink of bankruptcy with no aircraft in sight.