KET NONG IMPORT AND EXPORT COMPANY LIMITED

Concerns Rise Over Financial Health of KET NONG IMPORT AND EXPORT COMPANY LIMITED (CÔNG TY TNHH XUẤT NHẬP KHẨU KẾT NÔNG)

KET NONG IMPORT AND EXPORT COMPANY LIMITED (CÔNG TY TNHH XUẤT NHẬP KHẨU KẾT NÔNG), commonly referred to as KET NONG IMPORT AND EXPORT CO., LTD, is a limited liability company headquartered at No. 119/83 Nguyen Thi Tan Street, Ward 2, District 8, Ho Chi Minh City, Vietnam. Founded on April 23, 2018, the company has remained operational for over six years and holds Business ID and Tax Code number 0315006943.

Specializing in the trade of fertilizers and other specialized wholesale activities, KET NONG IMPORT AND EXPORT COMPANY LIMITED has seen noticeable growth in operational scale but now faces troubling financial signals that raise questions about its long-term sustainability.

Leadership and Ownership Structure

The company is privately held and led by Ms. Hoang Thi Hong Nhung, who serves as Director and also holds a controlling 70% ownership stake. Her contact information is publicly listed, showing transparency in governance. Supporting shareholders include Ms. Ton Tuyet My (20%) and Ms. Ton Tuyet Mai (10%). Despite experienced leadership, the firm’s financial trajectory reflects operational risks that cannot be overlooked.

Alarming Financial Imbalance

While KET NONG IMPORT AND EXPORT COMPANY LIMITED has shown substantial top-line growth, with 2023 revenue reaching USD 63.65 million, up 46.98% year-over-year, the company's bottom line paints a more troubling picture. In the same year, the firm reported a net loss of USD 514,202, and more critically, an owner’s equity of negative USD 1.49 million, indicating that the company’s liabilities far exceed its assets.

Despite the increase in total assets from USD 27.89 million in 2021 to USD 56.27 million in 2023, the persistent losses have eroded the company's equity to dangerous levels. KET NONG IMPORT AND EXPORT COMPANY LIMITED's profit performance, while marginally improved compared to 2022, still remained in the red for a second consecutive year. Its working capital, though reported at a healthy USD 22.8 million, may not be sufficient to shield against the sustained equity deficit.

These figures reflect a paradox: a growing company with strong sales momentum that nevertheless suffers from chronic profitability issues and financial imbalance. While growth is usually a positive indicator, when unaccompanied by profits or positive equity, it can signal overleveraging, poor cost management, or operational inefficiencies.

Legal and Structural Details

As a limited liability company, KET NONG IMPORT AND EXPORT COMPANY LIMITED is legally distinct from its owners. The company's charter capital is noted at USD 1.23 million, but its paid-up capital is substantially lower at USD 205,415, raising questions about its capitalization structure. With only 15 employees, it operates with a relatively lean workforce for a business managing over USD 63 million in annual sales.

Final Thoughts

KET NONG IMPORT AND EXPORT COMPANY LIMITED presents a classic case of a rapidly expanding company grappling with fundamental financial vulnerabilities. While revenue growth is a bright spot, the persistent negative equity and back-to-back annual losses highlight urgent concerns. Stakeholders—especially partners, creditors, and prospective investors—should exercise caution and seek further clarity on the company’s strategy to restore equity and achieve profitability.

Unless significant structural or financial reforms are undertaken, the current trajectory may undermine the company’s long-term viability.