JINYU (VIET NAM) TIRE CO., LTD: Strong Growth, But Zero Profit in 2023 Raises Questions

JINYU (VIET NAM) TIRE CO., LTD (CÔNG TY TNHH JINYU (VIỆT NAM) TIRE), a 100% foreign-invested enterprise owned by SHANDONG JINYU TIRE CO., LTD (China), is based in Tay Ninh Province and has quickly become a major player in Vietnam's rubber tire manufacturing industry. Registered under Business ID and Tax Code: 3901294745, the company has been operational since 2020 and now employs 1,500 workers at its Phuoc Dong Industrial Park facility.

In 2023, JINYU (VIET NAM) TIRE CO., LTD reported USD 286.36 million in revenue, an 82.67% increase compared to 2022. Total assets also rose by 15.31% to USD 294.93 million, while equity surged by 71.78%, reaching nearly USD 170 million. Working capital climbed to USD 14.92 million, suggesting improved liquidity.

Despite these impressive gains, the company reported zero profit in 2023, following a USD 19.7 million profit in 2022. The sharp reversal—a 100% drop in net profit—raises serious questions about cost structure, pricing strategies, or possible reinvestment cycles. It's also notable that in 2021, the company posted a significant loss of USD 5.17 million, indicating that profitability has been unstable since inception.

According to credit analysts at VANGUARD BUSINESS INFORMATION LLC (VBI), this kind of profit volatility—even in the face of growing sales and capital—may be a warning signal for credit insurers, procurement officers, and strategic partners. When reviewing companies like JINYU (VIET NAM) TIRE CO., LTD, a deep dive into operational efficiency, raw material costs, and internal transfer pricing practices is recommended.

The company, under the direction of Mr. Chang Xianxu, also holds a high charter capital of over USD 137 million, but only USD 85.78 million is currently paid-up, which may indicate capital injection delays or an incomplete funding timeline from the parent company in China.

JINYU (VIET NAM) TIRE CO., LTD is engaged primarily in manufacturing Truck and Bus Radial (TBR) tires, along with other rubber products. It is also registered for operations in synthetic rubber, plastics, automotive parts, and even textile manufacturing—showing ambitions for broad industrial diversification. However, diversification without profitability is not necessarily a sign of health.

In conclusion, while JINYU (VIET NAM) TIRE CO., LTD demonstrates impressive top-line growth and balance sheet expansion, its zero profit performance in 2023 calls for closer scrutiny. Business intelligence services like those provided by VBI help reveal the full financial picture, supporting smarter decisions in trade, investment, and risk management.