ALENA VIETNAM FOOTWEAR LIMITED

ALENA Vietnam Footwear: Growth at Risk Amid Declining Sales and Profitability

ALENA VIETNAM FOOTWEAR LIMITED (CÔNG TY TNHH GIẦY ALENA VIỆT NAM) is a foreign-invested enterprise located in Yen Dinh District, Thanh Hoa Province, operating in Vietnam’s robust export-oriented footwear industry. Founded on October 17, 2014, and owned entirely by UNITEDWELL TRADING LIMITED (Hong Kong), the company has grown into a major employer with over 12,000 workers, specializing in the production of casual shoes for export.

While ALENA once enjoyed steady expansion, its 2023 financial performance marked a turning point—with visible signs of revenue contraction and operational stress. The company posted sales of USD 66.1 million, a sharp 17.72% decline from the previous year. This drop breaks a two-year streak of relatively stable revenues and suggests that the company may be facing significant headwinds in global orders, competitive pricing pressure, or shifting supply chain dynamics.

Even more concerning is the company’s profitability, which turned negative in 2023. ALENA reported a net loss of USD 26,994, a dramatic reversal from profits of over USD 1.5 million in 2022. This marks a 101.77% year-over-year declinein earnings, and although the loss is not massive in absolute terms, it signals underlying operational inefficiencies or margin erosion that could deepen if not addressed.

ALENA’s total assets stood at USD 103.9 million, reflecting a 5.9% increase from 2022, which may indicate continued capital investment or revaluation of existing assets. However, owner’s equity decreased slightly by 0.06%, stagnating at USD 42.1 million. This could be a sign of diminished retained earnings or insufficient reinvestment from shareholders.

One of the most alarming figures is ALENA’s negative working capital, which reached USD -29.43 million. This signals that the company’s short-term liabilities significantly exceed its short-term assets, raising concerns over liquidity, operational sustainability, and supplier repayment timelines. While large manufacturers often operate with tight working capital, this figure, combined with declining revenue and a net loss, points to potential cash flow constraints.

The company is headed by Mr. CHANG, YU-WEI, a Taiwanese executive who also holds the position of Chairman and General Director. ALENA's registered business activities span beyond just footwear, including property trading, plastic product manufacturing, and other miscellaneous sectors, though its core competency remains in shoe processing for overseas markets.

Despite recent setbacks, ALENA still retains some financial strengths, including a stable asset base and long-standing international ownership. However, it faces an uphill battle to regain profitability and restore revenue momentum. Strategic adjustments—such as tightening cost structures, reevaluating customer contracts, and potentially diversifying its product offerings—may be needed to stabilize operations.

In conclusion, ALENA VIETNAM FOOTWEAR LIMITED remains a notable contributor to Vietnam’s footwear export landscape but currently operates under increasing financial pressure. How the company navigates 2024 and beyond will be critical in determining whether it reclaims growth or continues to slide into operational difficulty.