The auto market still faces many difficulties - Photo: Thaco
According to information from the Hanoi Stock Exchange (HNX), Truong Hai Group Joint Stock Company (Thaco) has submitted a report on its financial situation for the first 6 months of this year.
The report shows that Thaco's after-tax profit in the first half of this year reached VND1,011 billion, down 6% over the same period last year.
Return on equity (ROE) also decreased from 2.1% in the same period last year to 1.9% this year.
Looking at Thaco's business results data in recent years, it can be seen that the group's profits began to decline from 2023 when the auto market was difficult. Previously, 2022 marked a year of great profits for the group when it achieved a net profit of more than 7,420 billion VND.
By 2023, most businesses in the auto industry will have a "headache" about revenue, along with fierce competition in terms of selling prices and promotions.
However, the Government has just officially reduced by 50% the initial registration fee for cars, trailers or semi-trailers and similar vehicles manufactured and assembled domestically from September 1 to November 30 this year.
It is expected that this policy will boost demand for domestically assembled cars, thereby improving sales and removing difficulties for businesses in this industry.
The report also shows that at the end of June 2024, Thaco's equity reached VND54,260 billion, an increase of 8% over the same period last year. In addition, the debt-to-equity ratio also increased from 2.29 times to 2.45 times.
Converted into value, Thaco's debt is nearly 133,000 billion VND. Of which, the company's outstanding bonds account for more than 14,000 billion VND.
On the website, Truong Hai Group Corporation is introduced as a multi-industry enterprise, its predecessor being Truong Hai Auto Corporation (Thaco), established in 1997 in Dong Nai.
Thaco founder is Mr. Tran Ba Duong, currently the chairman of the board of directors. Mr. Tran Ba Duong is also one of the 6 USD billionaires in Vietnam, according to Forbes magazine.
As a large enterprise in Quang Nam, when Truong Hai automobile revenue decreased sharply, the provincial budget also faced difficulties.
According to the leader of the Quang Nam Province Department of Finance, revenue from Truong Hai Automobile accounts for 54.8% of the estimated domestic revenue of Quang Nam Province. Therefore, fluctuations in this revenue will greatly affect the ability to balance the local budget.
In 2023, the province's budget revenue is estimated at VND 23,951 billion, equal to 71.6% of the same period in 2022 and a deficit of more than VND 2,700 billion compared to the estimate. Meanwhile, in 2022, the total budget revenue of Quang Nam province reached VND 31,781 billion.
Source: https://tuoitre.vn/thaco-cua-ong-tran-ba-duong-kinh-doanh-ra-sao-2024090114585138.htm
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