LEOCH BATTERY (VIET NAM) COMPANY LIMITED

LEOCH BATTERY (VIET NAM) COMPANY LIMITED (Vietnamese name: CÔNG TY TNHH LEOCH BATTERY (VIỆT NAM)) is a foreign-invested manufacturing enterprise specializing in automotive batteries and accumulators. The company was established on 29 September 2017 and is registered with the Dong Nai Province Department of Finance under Business ID / Tax Identification Number: 3801157209.

The company operates its manufacturing facility at Lot B8A, Becamex – Binh Phuoc Industrial Park, Chon Thanh Ward, Dong Nai Province, Vietnam, a location aligned with heavy industrial production and export logistics. With approximately 800 employees, LEOCH BATTERY (VIET NAM) represents a large-scale manufacturing operation within Vietnam’s battery and electrical equipment sector.

Ownership and Corporate Structure

LEOCH BATTERY (VIET NAM) is structured as a one-member limited liability company with FDI ownership status. The company is 100% owned by LEOCH INTERNATIONAL HOLDING PTE. LTD, a Singapore-based holding entity within the global Leoch battery group.

Its charter capital stands at approximately USD 6.60 million, while paid-up capital reached USD 6.84 million as of the end of 2024, indicating full capital contribution and continued shareholder support. This ownership backing is a key stabilizing factor given the company’s aggressive expansion trajectory.

Management and Operations

The company is led by LIU X., a Chinese national, who serves as General Director and oversees production, investment, and group coordination. Operationally, LEOCH BATTERY (VIET NAM) focuses on the manufacture of batteries for automobiles, while also registering ancillary activities such as manufacturing of other electrical equipment and leasing of machinery.

The company’s business model is capital-intensive, requiring continuous investment in production lines, technology upgrades, and environmental compliance.

Financial Performance and Structural Concerns

Financial data reveals a high-growth but structurally stressed profile. Total assets expanded sharply to approximately USD 64.84 million, more than doubling year-on-year, while sales surged to USD 130.08 million, reflecting rapid capacity ramp-up and market penetration.

Profitability turned positive, with net profit of approximately USD 3.45 million, a significant reversal after consecutive years of heavy losses. This improvement suggests better utilization of production capacity and scale efficiencies.

However, several critical warning signals remain. Owner’s equity is deeply negative at approximately USD –12.6 million, despite year-on-year improvement, indicating accumulated losses that continue to weigh on the balance sheet. Even more concerning is negative working capital of USD –33.91 million, pointing to strong reliance on short-term liabilities, supplier credit, or parent-company funding to sustain operations.

This combination of rapid asset growth, negative equity, and strained liquidity highlights elevated financial leverage risk, particularly if market demand softens or input costs rise.

Risk Perspective

From a business intelligence and risk-assessment standpoint, LEOCH BATTERY (VIET NAM) exhibits high operational momentum but elevated financial risk. Strengths include strong revenue growth, improving profitability, large production scale, and backing from an international battery group. Conversely, negative equity, persistent liquidity pressure, and capital-intensive operations significantly increase sensitivity to demand fluctuations, financing conditions, and execution risk.

For lenders, suppliers, and counterparties, the company’s creditworthiness depends heavily on continued shareholder support and sustained volume growth rather than internal balance-sheet strength alone.

A comprehensive and up-to-date company report from VNBIS.COM provides deeper insight into LEOCH BATTERY (VIET NAM)’s financial structure, ownership backing, and risk exposure to support informed commercial and credit decisions.