GREENWORKS (VIET NAM) COMPANY LIMITED: Rapid Asset Growth, But Profit Slips Despite Higher Revenue

GREENWORKS (VIET NAM) COMPANY LIMITED (Vietnamese: CÔNG TY TNHH GREENWORKS (VIỆT NAM)), a wholly foreign-owned subsidiary of GREENWORKS (JIANGSU) CO., LTD from China, has rapidly scaled its operations in Vietnam since its registration on December 26, 2018. Operating under Business ID and Tax Code 0201920293, the company is headquartered in Trang Due Industrial Park, Hai Phong City, with multiple production facilities in the Dinh Vu-Cat Hai Economic Zone and Nam Dinh Vu Industrial Park.

The company specializes in manufacturing general-purpose gardening machinery, including pressure washers, lawn mowers, leaf blowers, and saws, primarily for export. With a workforce of 1,500 employees, GREENWORKS (VIET NAM) has expanded aggressively in both asset base and operational capacity.

Financial Performance: FY 2023

• Total Assets surged to USD 438.3 million, representing a 47.5% increase year-over-year. This marks a near-doubling of assets in just two years (from USD 228.5 million in 2021), signaling substantial capital investment.

• Owner’s Equity rose to USD 92.88 million, up 29.07%, indicating retained earnings and further capital infusion from the parent entity.

• Revenue increased modestly by 2.11% to USD 230.41 million, compared to double-digit growth in 2021 and 2022. This suggests that the company may be approaching capacity limits or facing plateauing demand.

• Net Profit fell by 18.05% to USD 18.62 million, reflecting margin compression. This is a key concern, given that sales rose but profits declined—a red flag for cost control or pricing pressure.

Analytical Observations

The most significant development in 2023 was the disconnect between asset growth and profit performance. While total assets expanded by nearly USD 141 million, profitability shrank. This implies that new capital deployed has not yet yielded proportional returns or that rising operating expenses are eroding gains. Over the three-year span (2021–2023), profits actually peaked in 2022 and fell afterward, despite steady growth in revenue and equity.

The company’s working capital of USD 22.61 million remains sufficient for current obligations, though lower than might be expected for a business of this size and complexity. It may indicate higher levels of capital being tied in fixed assets or inventories.

Ownership by a single foreign shareholder (100% owned by GREENWORKS (JIANGSU) CO., LTD) offers centralized control and funding assurance, but it may also reduce local transparency and governance flexibility.

Risk Assessment and Monitoring

From a financial risk management standpoint, GREENWORKS (VIET NAM) COMPANY LIMITED shows strong capital backing and a high-growth asset trajectory. However, the declining net profit despite capital and revenue expansion is a concern that requires monitoring. Analysts and partners should track return on assets (ROA), gross margin, and cost ratios over the next fiscal year to assess whether the current investment wave is efficiently deployed.

VANGUARD BUSINESS INFORMATION LLC (VBI) recommends a quarterly monitoring plan, including cash flow analysis, margin trend reviews, and production efficiency audits for stakeholders with exposure to this firm. For suppliers, financiers, and partners, profit sustainability—not just asset size—must guide decisions.