FORMOSA INDUSTRIES CORPORATION, registered under the Business ID (TIN) 3600517557, is located at Nhon Trach III Industrial Park, Hiep Phuoc Town, Nhon Trach District, Dong Nai Province, Vietnam. The company commenced operations on 26 Dec 2001, marking its official entry into the business sector. With a charter capital of VND 12,289,200,000,000, FORMOSA INDUSTRIES CORPORATION is financially equipped to support its business activities. The company specializes in spinning of textile fibres, providing a diverse range of products and services. The strategic decisions of FORMOSA INDUSTRIES CORPORATION are overseen by HONG, F.Y and HUNG, C.H, who plays a critical role in guiding the company's direction.
Established in 2001 and started operation in 2004, Formosa Industries Corporation specializes in manufacturing short fiber, polyester cotton, polyester granules, polyester yarn, processed yarn, nylon granules, nylon yarn, BOPP film, PVC, plastic fabric, transparent plastic fabric, electricity, steam extraction, etc. Its factory is built on a total area of 299 hectares. Of which, 157 hectares are used to build factories such as spinning, artificial fibers, nylon, plastic, and power plants, the remaining 142 hectares are used for rent. Besides the domestic market, Formosa Industries Corporation exports a considerable number of products to many international markets.
On the financial side, revenue in 2021 recovered from a decline in 2020. A year later, this indicator dropped slightly to VND 20,452 billion. COGS exceeded net sales, causing all profit margins to be negative in 2022. Thus, return on net sales and return on investment were not optimistic when compared with other companies in the same field. Accompanied by a large shortage in operating cash flow, the subject raised more debts to serve investing needs, repaying debts and distributing dividends.
Total assets narrowed to VND 22,281 billion as of 31 Dec 2022 which focused on a large production capacity (44.71%) and inventories (23.29%). Regarding funding sources, a huge business loss in 2022 caused this company to be more dependent on debts to finance its operations. Accordingly, debts accounted for 45.19% of 2022 total capital, further higher than the industry average of 33.01%. This put a heavy burden on interest and principal payments in the upcoming fiscal years, especially when profit margins and operating cash flow were negative. In the short term, the subject maintained positive working capital for many consecutive years. However, quick ratio and cash ratio were in decline which could negatively affect the subject's ability to cover fast payments for obligations.
The basic company report from Vietnam Business Information covers fundamental aspects and highlights the core competencies and operational focus of FORMOSA INDUSTRIES CORPORATION. Additionally, the comprehensive company report provides an in-depth analysis and valuable opinions from Vietnam Business Information’s professional analysts.