AsemconnectVietnam - Truong Thanh Wood Industry Group Joint Stock Company (code TTF - HOSE) plans to borrow capital from two foreign banks to supplement working capital for production and business activities.

Truong Thanh Wood has approved the policy of signing a credit limit with a total value of VND50 billion for the purpose of supplementing working capital for production and business activities at Standard Chartered Bank Vietnam Limited.
In addition, Truong Thanh Wood also signed a credit limit contract with the amount of VND67.1 billion, with a term of 1 year from the first disbursement date and renewed annually with Shinhan Bank Vietnam Limited - Bien Hoa Branch. In which, the purpose of the loan is to supplement working capital for production and business activities.
Thus, the total limit at the two banks is VND117.1 billion.
In terms of business activities, in the first half of 2024, Truong Thanh Wood recorded revenue of VND699.24 billion, down 2.4% over the same period, the parent company's after-tax profit continued to lose VND5.45 billion compared to the same period of VND36.44 billion. In which, the gross profit margin increased from 12.9% to 15.2%. During the period, gross profit increased by 15% over the same period, equivalent to an increase of VND13.86 billion to VND106.05 billion; financial revenue increased by 48.5%, equivalent to an increase of VND5.18 billion to VND15.85 billion; financial expenses decreased by VND37.69 billion, to negative VND3.33 billion (the same period recorded positive VND34.36 billion); Sales and administrative expenses increased slightly by 1.8%, equivalent to an increase of VND2.19 billion to VND123.96 billion ...
In terms of core business activities (gross profit - financial expenses - sales expenses - administrative expenses), in the first half of 2024, Truong Thanh Wood continued to lose VND14.58 billion compared to the same period of VND63.94 billion.
Thus, in the first half of 2024, the gross profit generated by Truong Thanh Wood was not enough to cover financial, sales and administrative expenses.
It is known that in 2024, Truong Thanh Wood plans to have revenue of VND2,012 billion, and after-tax profit of the parent company of VND57 billion.
Ending the first half of 2024 with the parent company's after-tax profit losing VND5.45 billion, Truong Thanh Wood is still far from the profit plan of VND57 billion in 2024.
In addition, with the continued loss of VND5.45 billion in the first half of 2024, as of June 30, 2024, Truong Thanh Wood has increased its total accumulated loss to VND3,241.33 billion and equal to 78.8% of charter capital (charter capital of VND4,111.98 billion).
N.Nga
Source: VITIC/Tinnhanhchungkhoan