Ms. Dang Thi Hoang Yen is no longer the legal representative at Tan Tao (ITA)

Chairwoman Dang Thi Hoang Yen is no longer the legal representative of Tan Tao (ITA)

Tan Tao Investment and Industry Corporation (Code: ITA) has just announced information about changes in its business registration certificate. Notably, Ms. Dang Thi Hoang Yen, Chairwoman of Tan Tao's Board of Directors, is no longer the company's legal representative from June 10, 2023.

For 2 consecutive years, losing hundreds of billions of dong, Hoang Yen is no longer the legal representative of Tan Tao Ita, picture 1. — According to an announcement from Tan Tao (ITA), Ms. Dang Thi Hoang Yen is no longer the legal representative of the company from June 10, 2023 (Photo TL).

The fact that Chairwoman Dang Thi Hoang Yen is no longer the company's representative comes right after Ms. Yen's younger brother, Mr. Dang Quang Hanh, who holds the position of General Director of Tan Tao, also resigned in April 2023.

The person appointed to replace Mr. Dang Quang Hanh is Mr. Nguyen Thanh Phong, born in 1976, who held the position of Deputy General Director at Tan Tao for 4 years.

Tan Tao has lost hundreds of billions of dong for two consecutive years, only recording a "thin" profit in the first quarter.

The change in business registration and removal of the legal representative name, Chairwoman Dang Thi Hoang Yen, took place in the context of Tan Tao ITA's business situation facing many uncertainties.

Specifically, in the fourth quarter of 2022, Tan Tao had to record negative revenue of up to VND 2,033 billion. As a result, gross profit in the quarter also recorded a loss of VND 423 billion, and the company's after-tax profit was negative VND 330 billion.

The reason why Tan Tao has a negative revenue of more than 2,033 billion VND is because the company was forced to liquidate the long-term land lease contract used to build Kien Luong Power Center No. 2804/HDKT-10 dated April 28, 2010 and Contract Appendix No. 2804/PLHDKT-12 dated July 17, 2012. These two documents were signed between Tan Tao Industrial Investment Joint Stock Company (ITACO) and Tan Tao Energy Development Joint Stock Company (TEDC).

The early liquidation of this contract resulted in a reduction of VND 2,142 billion in the company's revenue, creating a negative revenue situation and a huge loss of VND 330 billion in the fourth quarter of 2022.

In fact, if not counting this revenue deduction, in 2022, Tan Tao will only achieve 577 billion VND in revenue, down about 38.1% compared to 2021. This means that if it does not have to liquidate the contract early, Tan Tao will still be operating less effectively than the previous year.

Entering the first quarter of 2023, Tan Tao recorded net revenue of VND62 billion, a slight decrease compared to the same period. The unit's after-tax profit was only VND15 billion, a relatively low level compared to the company's previous profitable quarters.

Tan Tao's 2,119 billion VND assets are only on paper, waiting to be collected from related companies in the ecosystem.

Faced with a loss of hundreds of billions of VND in the fourth quarter of 2022, Tan Tao lost 258 billion VND. Previously in 2021, this enterprise also lost up to 404 billion VND. However, recently, the company still set a relatively ambitious target for 2023.

Specifically, the company expects to make a profit in 2023 with revenue of VND 774 billion and net profit of VND 257 billion. The company plans to invest in the Tan Tao - Long An Industrial Park project with a scale of about 414.7 hectares located in Duc Hue district, Long An province.

As of the end of the first quarter of 2023, Tan Tao ITA's total assets reached VND 12,313 billion, a slight decrease compared to the beginning of the year. It is worth noting that long-term receivables increased sharply, from just over VND 8 billion at the end of 2022 to VND 2,119 billion at the end of the first quarter of 2023.

Meanwhile, short-term receivables decreased sharply from VND 3,687 billion to only VND 1,644 billion. According to note 21 on Tan Tao's financial statements, the source of other receivables of more than VND 2,119 billion mainly comes from subsidiaries of which Tan Tao is a co-managing member.

Specifically, Tan Tao recorded a receivable of VND1,253 billion from Tan Tao Energy Development JSC; VND677 billion from Tan Tao University JSC; VND231 billion from ITA - RICE Fragrant Rice Research & Export Investment JSC; and VND177 billion from Phuong Nam Informatics Investment & Construction Consulting JSC.

Thus, it can be seen that more than VND 2,119 billion of Tan Tao's long-term assets are only on paper and are all receivables from related parties of the same company that Tan Tao is a co-managing member.

Source