Yfaco, the only company on the stock exchange selling votive paper, had revenue of VND8.6 billion from this item in the first three months of the year, a record low.
This is the data in the financial report of the second quarter of the fiscal year 2023-2024 (equivalent to the first quarter of 2024 in reality) of Yen Bai Forestry and Agricultural Products Food Joint Stock Company (Yfaco - CAP). This period, the company had more than 102 billion VND in revenue and more than 9 billion VND in profit after tax. The above two indicators decreased by 45% and 74% respectively compared to the same period.
In the business segments, only export paper saw revenue growth. The remaining segments, tapioca flour and votive paper, both had deficits compared to the same period.
Revenue from votive paper in the first three months of 2024 reached VND8.6 billion, down 20% compared to the first quarter of 2023. This is also a record low that this business has ever recorded during the peak period of Tet season.
Yfaco's votive paper business has been gloomy since 2023. This segment brought in nearly VND39 billion in revenue, 2.5 times lower than in 2022 and the lowest level in the past 10 years. According to the financial year, the company only produced nearly 4,000 tons of votive paper, down 44% over the same period and completing half of the plan.
Yen Bai Forestry and Foodstuff Joint Stock Company is the only enterprise trading in votive papers that is listed on the stock exchange. Formerly known as Yen Bai Paper Factory, this company specializes in producing and selling cassava starch, base paper and votive papers under the Yfaco brand. Although the "backbone" is the cassava starch segment, CAP still earns tens of billions of VND each year from votive papers. The record revenue of this product is more than 99 billion VND, set in 2022, equivalent to an average of more than 8 billion VND of votive papers sold each month.
In addition to its specialty products, CAP is also known for paying regular cash dividends, with high rates for many years. In fiscal year 2023, thanks to record profits, the company has for the second consecutive time approved a 100% dividend rate, divided in half, including cash and shares. For each share, shareholders receive VND 5,000 and 0.5 new shares.
In the 2024 fiscal year, this enterprise has proposed a business plan to go backwards with revenue of VND560 billion and a minimum after-tax profit of VND70 billion. Compared to the previous year, these two indicators decreased by 8% and 39% respectively. As a result, the dividend rate also decreased to a minimum of 35%.
In the paper paper segment alone, Yfaco plans to produce 6,900 tons, an increase of nearly 75% compared to the previous fiscal year. The management board said it faced many difficulties as the paper raw material area was increasingly depleted. In addition, the consumer market was difficult due to fierce competition with domestic manufacturers, the demand for paper paper products in Taiwan decreased sharply, and China used many measures to cause difficulties and squeeze prices.
Siddhartha
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