Thuan An Wood (GTA) only achieved 36% of the yearly plan after 6 months

Thuan An Wood Processing JSC (GTA) is expected not to complete its revenue target for the first 6 months of the year.

Thuan An Wood Processing JSC (Code GTA) has just announced Resolution No. 4 of the Board of Directors with notable content being the business results for the first 6 months of 2023.

Specifically, GTA's revenue in the first 6 months of the year reached 119.8 billion VND, reaching 36.1% of the plan set at the beginning of the year. However, expenses during the period also accounted for 114.5 billion VND. Pre-tax profit after deducting all remaining expenses was 5.4 billion VND, equivalent to 50% of the plan set for the whole year.

The slow progress of using 194 hectares of land in Thuan An GTA continues to lag behind the annual revenue plan in picture 1. — Thuan An Wood (GTA) is behind on its 2023 revenue target (Photo TL)

Thus, it can be seen that in the second quarter, Thuan An Wood is expected to be behind schedule in revenue and annual profit will only just meet the target.

At the same time, the company also set a target for the third quarter of 2023 with total revenue reaching 55 billion VND, total expenses accounting for 52.8 billion VND. Pre-tax profit is expected to be 2.2 billion VND.

Asset size decreased sharply, business cash flow was negative 15 billion

At the end of the first quarter of 2023, Thuan An Wood's balance sheet recorded a sharp decline in total assets, down from VND 376.1 billion to only VND 296.9 billion, equivalent to a decrease of about 21%.

Notably, short-term assets accounted for a very large proportion, accounting for VND259.9 billion. The ratio of short-term assets accounted for 69.1% of the company's total assets. Cash and cash equivalents accounted for VND14.2 billion, down 59.4% compared to the beginning of the year. The company's short-term financial investments also decreased from VND227.8 billion to only VND182.9 billion.

Looking at GTA's capital structure, it can be seen that the decrease in assets in the first quarter mainly came from liabilities. GTA's debt accounted for VND132.1 billion, most of which was short-term debt. The size of short-term debt decreased from VND156.7 billion to only VND103.4 billion, a decrease of about 34%.

Owner's equity did not fluctuate much, accounting for 164.9 billion VND with owner's contributed capital reaching 104 billion VND. Share capital surplus accounted for 42 billion VND, the company's undistributed profit after tax accounted for 12.4 billion VND.

In the first quarter of 2023, GTA's cash flow from operating activities was negative VND16 billion. Of which, the company recorded a decrease in interest expenses from VND2.7 billion in the same period to only VND1.9 billion. However, revenue from operating activities decreased by half, causing the company's cash flow to be negative VND15 billion. This figure is nearly 3 times larger than the expected profit in the first 6 months of the year.

Slow progress in using land to build factory, Thuan An Wood was reminded by Binh Phuoc Provincial People's Committee

Recently, the People's Committee of Binh Phuoc province issued Official Dispatch 1411/UBND-KT on cases of not putting land into use or delaying land use progress, in which the name of Thuan An Wood was mentioned.

Specifically, this is a project to build a wood processing factory, located in Minh Hung commune, Chon Thanh district, Binh Phuoc province, approved under Decision No. 105/QD-UBND dated January 15, 2009 with an area of 194,173.3 m2.

The issue of slow implementation of the wood processing factory project in Binh Phuoc was also mentioned in the Board Resolution of Thuan An Wood. In which, the Board of Directors of GTA assigned the executive board to continue working with the authorities to make recommendations, explain and request a reduction in land rent.

Source