DAI LOI KON TUM RUBBER COMPANY LIMITED

DAI LOI KON TUM RUBBER COMPANY LIMITED operates as a small scale industrial manufacturer in Vietnam’s rubber processing sector, and since its establishment in 2017 DAI LOI KON TUM RUBBER COMPANY LIMITED has grown rapidly in revenue while remaining structurally thin in capital strength. Today, DAI LOI KON TUM RUBBER COMPANY LIMITED reports sales exceeding $74 million from a narrow asset base of just over $4.2 million, a financial profile that immediately signals elevated balance sheet leverage risk.

Ownership Concentration and Control Risk

The company is controlled entirely by 2 individual shareholders. President Dinh K. T. holds 51 percent of equity and Dinh K. T. H. holds the remaining 49 percent. Charter capital stands at only $201,306, fully paid, yet the company operates at a revenue level more than 368 times its legal capital. This extreme mismatch between operating scale and equity capitalization materially heightens governance risk, creditor exposure and personal dependency on owner decision discipline. Any disruption at shareholder level would immediately translate into enterprise level instability.

Position in Vietnam’s Rubber Manufacturing Supply Chain

The company’s core business is the manufacture of other rubber products and the wholesale of agricultural raw materials and scrap. It also operates freight transport by road. This hybrid structure reflects a production and trading blend rather than a vertically integrated industrial platform. The business does not control upstream plantations or downstream consumer brands, leaving it exposed to raw material price volatility, buyer concentration risk and margin compression that dominate subcontract rubber manufacturing.

Profitability Growth Masking Capital Fragility

Net profit reached $204,381, up 37.29 percent year over year. However, this profit represents only 0.28 percent of total revenue, an extremely thin operating margin for an industrial manufacturer. Any minor shock in raw material pricing, logistics disruption or buyer payment delay would be sufficient to erase earnings entirely. Profit growth here reflects short term efficiency rather than pricing power or structural margin strength.

Working Capital Illusion and Liquidity Exposure

Working capital increased to $6,139, up more than 101 percent year over year. Yet this absolute figure is functionally negligible relative to the company’s transaction scale. This means the company operates in an almost entirely externally financed operating cycle dependent on supplier credit and rapid receivables turnover. From a VC and credit risk perspective, this is a highly unstable financial structure that leaves no buffer for shocks, delayed payments or regulatory disruption.

Why This Company Represents Elevated Counterparty Risk

DAI LOI KON TUM RUBBER COMPANY LIMITED exhibits the classic profile of a high revenue ultra thin capital enterprise. While its sales volume appears impressive, the absence of capital depth, the asset contraction, the ownership concentration and the razor thin profit margin collectively indicate systemic fragility beneath top line performance. This is not a scale ready enterprise. It is a volume driven operator vulnerable to a single adverse pricing cycle, logistics disruption or client default.

VNBIS Risk Intelligence for Lenders Buyers and Investors

VNBIS identifies DAI LOI KON TUM RUBBER COMPANY LIMITED as a high volume high leverage operating entity with limited capital protection. The VNBIS Company Comprehensive Report delivers a deeper view of liquidity stress points, shareholder exposure, contract risk and solvency behavior. For lenders, raw material suppliers and international buyers requiring verified counterparty risk intelligence before extending trade credit or long term contracts, GET THE FULL AND CUSTOMIZED REPORT AT www.vnbis.com