Last year, Mai Linh Group's after-tax profit was one billion VND, lower than the previously set target of 38 billion VND, but still enough to cut a four-year losing streak.
The consolidated financial report for 2022 just announced by Mai Linh Group recorded revenue of approximately VND 1,650 billion, an increase of VND 600 billion over the same period, thanks to the strong recovery of transportation activities after the pandemic. Gross profit reached VND 416 billion, equivalent to a profit margin of 25%, while in the same period it was less than 9%.
The sharp fluctuations in expenses resulted in after-tax profit reaching only VND1 billion. However, this result was a significant improvement compared to the loss of more than VND270 billion in 2021.
In a letter to partners at the beginning of the year, Mr. Ho Huy, Chairman of Mai Linh Group, said that the most difficult period had passed and the company had regained momentum, boosting all business activities, but the results showed that it was not enough. The company has not yet erased the accumulated loss of 1,390 billion VND from the previous 4 years.
"We have only maintained and stabilized, but have not yet made the expected profit," Mr. Huy wrote, adding that the company's big goal this year is to relieve inertia so that each member unit can operate profitably.
Mai Linh currently has total assets of VND4,135 billion. In the company's capital structure, liabilities account for an overwhelming proportion of nearly 98%. The debt-to-equity ratio - one of the indicators measuring the financial strength of a business - is up to 43 times.
In the previous fiscal year, with a similar ratio, the board of directors admitted that the company was financially unbalanced due to the inevitable impacts of the economic downturn, unstable employee income, rising unemployment and tightening consumer spending.
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