AsemconnectVietnam - Truong Thanh Furniture Industries Corp., JSC (code TTF - HoSE) recorded a decrease of 2.4% in revenue and a loss of VND1.19 billion in profit in the fourth quarter of 2022, accumulating a profit of VND6.02 billion for the whole year and completed 8.3% of the profit plan.

Losses in the fourth quarter of 2022 increased by VND1.19 billion
In the fourth quarter of 2022, the company recorded a revenue of VND502.31 billion, down 2.4% over the same period and profit after tax recorded a loss of VND1.19 billion compared to the same period with a loss of VND8.54 billion.
During the period, gross profit increased by 22.2% over the same period, correspondingly increased by VND15.31 billion to VND84.33 billion; financial revenue decreased by 61.8%, equivalent to VND28.02 billion to VND17.32 billion; financial expenses increased by 15.9%, corresponding to an increase of VND4.45 billion to VND32.35 billion; selling and administrative expenses decreased by 31.9%, corresponding to a decrease of VND34.45 billion to VND73.41 billion; other profit decreased by 77.3%, equivalent to VND9.81 billion to VND2.88 billion and other activities did not change significantly.
In terms of core business activities (gross profit - financial expenses - selling & administrative expenses), in the fourth quarter, the Company recorded a loss of VND21.43 billion over the same period of VND66, 74 billion.
Thus, due to negative core profit, although financial revenue and other profits decreased sharply over the same period, it still helped the Company reduce losses, ending the fourth quarter with a loss of only VND1.19 billion.
In addition, in the fourth quarter, the Company only reversed the provision of 0.14 billion dong over the same period of 54.41 billion dong, accumulated for the whole year, the provision reversed was 83.97 billion dong over the same period of 203.2 billion dong. Thus, in 2022, Truong Thanh Furniture Industries Corp., JSC has a shortfall in provisioning, which also affects the Company's business results.
In 2022, only 8.3% of the profit plan will be completed
Accumulated in 2022, Truong Thanh Furniture Industries Corp., JSC recorded a revenue of VND2,018.54 billion, up 25.6% over the same period and a profit after tax of VND6.02 billion, up 139.8% over the same period last year.
In 2022, Truong Thanh Furniture Industries Corp., JSC plans to achieve total revenue of VND2,268.85 billion and profit after tax of VND72.76 billion. Thus, at the end of 2022 with a profit of only VND6.02 billion, the Company did not complete the plan assigned by the General Meeting of Shareholders to the Executive Board, the completion rate was only 8.3% of the profit plan.
It is known that at the 2022 Annual General Meeting of Shareholders, Mr. Mai Huu Tin, Chairman of the Board of Directors of Truong Thanh Wood, gave a bright scenario when he said that the Company had passed the break-even point, from now on it is the Wood phase. Truong Thanh grows. Had it not been affected by the Covid-19 epidemic in 2021, the Company's business results would have been much better. The term 2022-2027 will be the accelerated term of Truong Thanh Furniture Industries Corp., JSC.
Although recording a slight profit in 2022, as of December 31, 2002, the Company still recorded an accumulated loss of up to VND3,041.8 billion and equal to 73.97% of charter capital.
As of December 31, 2022, the total assets of Truong Thanh Furniture Industries Corp., JSC increased by 7.3% compared to the beginning of the year, corresponding to an increase of VND207.9 billion, to VND3,046.2 billion. In which, the main assets are short-term receivables recorded at VND712.5 billion, accounting for 23.4% of total assets; inventories recorded at VND673.1 billion, accounting for 22.1% of total assets; Other short-term assets recorded VND380.5 billion, accounting for 12.5% of total assets; fixed assets recorded VND369 billion, accounting for 12.1% of total assets; long-term financial investment recorded VND358.6 billion, accounting for 11.8% of total assets.
During the year, the strong fluctuations were mainly long-term financial investment, which increased by 390.6% compared to the beginning of the year, corresponding to an increase of VND285.5 billion to VND358.6 billion; short-term receivables increased by 29.9% compared to the beginning of the year, equivalent to an increase of VND164 billion to VND712.5 billion. On the contrary, the decrease in volatility mainly decreased by 27.9% compared to the beginning of the year, equivalent to a decrease of VND260.5 billion to VND673.1 billion.
The company notes its long-term financial investment because in the year the Company first recorded an investment of VND170.7 billion in Tekcom Joint Stock Company, invested VND122.6 billion in Natuzzi Singapore Pte., Ltd.
In terms of capital, in 2022, the main fluctuations at the end of the year were that buyers made long-term prepayments of VND1,032.3 billion compared to the beginning of the year. In contrast, short-term prepayments decreased by 68.8% compared to the beginning of the year, corresponding to a decrease of VND811.1 billion to VND367.7 billion.
It is known that according to the agreement in principle on May 15, 2017, Vingroup designated Truong Thanh Furniture Industries Corp., JSC as a strategic supplier of finished wood products serving with an expected value of VND16,000 billion. In which, Vingroup signed a deposit agreement with Truong Thanh Furniture Industries Corp., JSC with the amount of VND70.4 billion and VND1,032.3 billion, respectively.
During the reporting period, the Company extended the agreement period to May 15, 2027, so it changed the section of prepayers from short-term to long-term.
N.Nga
Source: VITIC/Tinnhanhchungkhoan