Truong Thanh Wood (TTF) business is losing money, bank account is frozen

Profits "blown away" after audit

According to the audited consolidated financial report for the mid-year, Truong Thanh Wood recorded revenue of VND699.2 billion, down 2.4%. Thanks to cost reduction, the company increased gross profit from VND92.2 billion to VND106 billion.

Financial revenue increased by nearly one and a half times, reaching 15.9 billion VND. However, financial expenses during the period increased, to 3.3 billion VND, with all of it being interest expenses.

Truong Thanh Wood (TTF) profits were "blown away" after the audit, the company's account was also frozen due to civil disputes (Photo TL)

Notably, the cost of sales in the first half of the year increased by nearly VND5 billion, accounting for VND65.4 billion. The increase in cost of sales while revenue decreased shows the issue that Truong Thanh Wood needs to pay attention to. In return, the cost of business management only accounted for VND58.6 billion, a decrease of VND2 billion compared to the same period.

At the end of the first half of the year, the company recorded a profit after tax of 121 million VND while in the same period it was still losing 39.7 billion VND. The parent company reported a loss after tax of 5.5 billion VND.

Looking at this, we can see that Truong Thanh Wood's business results have changed positively compared to the same period last year. In fact, in the previous semi-annual financial statement, Truong Thanh Wood reported a profit of 7.6 billion VND.

This profit was "blown away" after re-examination, remaining at only 121 million VND. In addition, the parent company was also forced to report a loss of 5.5 billion VND. The reason was that the company recorded the effects of the provision for receivables from customers on its separate financial statements and similar expenses at subsidiaries in the group.

Truong Thanh Wood's bank account is frozen

Recently, Truong Thanh Wood announced that the company received Decision No. 06/2024/QD-BPKCTT dated September 12, 2024 of Tan Uyen City People's Court on freezing the company's account with a balance of 3 billion VND due to a dispute over a goods sale contract.

In addition, also in the information announcement dated October 1, Truong Thanh Wood announced Resolution No. 12/2024/NQ-HDQT of the Board of Directors approving the capital use plan of Thien Thanh Ceramics Company Limited.

Currently, Truong Thanh Wood owns 100% of the charter capital at Thien Thanh Porcelain. Thien Thanh Porcelain's loan is about 27 billion VND at a bank branch in Binh Duong province.

According to the explanation from Truong Thanh Wood, the above amount will be used by Thien Thanh Porcelain to supplement working capital, serving the production and business of sanitary ceramic products; the maximum loan term is 8 months, secured by the company's assets located in Binh Duong.

Source: https://www.congluan.vn/go-truong-thanh-ttf-kinh-doanh-thua-lo-bi-ngan-hang-phong-toa-tai-khoan-post314913.html