TCG TRADING SERVICES CORPORATION (CÔNG TY CỔ PHẦN THƯƠNG MẠI DỊCH VỤ TCG): A Financially Volatile Business

Overview

TCG TRADING SERVICES CORPORATION (CÔNG TY CỔ PHẦN THƯƠNG MẠI DỊCH VỤ TCG) is a joint-stock company, registered under tax code 2700793446, operating from Gian Khau Industrial Park, Ninh Binh Province, Vietnam. Established in 2017, the company has been involved in the wholesale of motor vehicles and other business support services.

Despite its relatively short operating history, TCG TRADING SERVICES CORPORATION has experienced significant financial fluctuations in recent years, particularly in 2023, when both revenue and profit dropped sharply.

Financial Performance

While the company maintains a net worth of $102.42 million, its total sales declined by 58.48% in 2023, and profit fell by 55.74%. This sharp decline raises concerns about the company's ability to sustain growth and maintain financial stability.

Key Financial Metrics (2023):

• Total Assets: $187.1 million (-55.08% YoY)
• Owner’s Equity: $102.42 million (+12.63% YoY)
• Total Sales: $521.46 million (-58.48% YoY)
• Net Profit: $11.57 million (-55.74% YoY)
• Working Capital: $102.42 million (+12.64% YoY)

The company’s drastic revenue and asset decline, coupled with a significant drop in profitability, suggests potential operational challenges or changes in business strategy that need closer examination.

Business Operations and Market Position

TCG TRADING SERVICES CORPORATION operates in:

• Wholesale of motor vehicles and related businesses
• Other business support service activities

The company's reliance on the motor vehicle wholesale market makes it vulnerable to economic shifts, supply chain disruptions, and consumer demand fluctuations. The sharp drop in revenue and profit in 2023 may indicate a decline in demand, supply chain issues, or increased competition in the sector.

Leadership and Ownership

The company is led by General Director Le Nhu Hoa, who holds 83% of the company’s shares. Other notable shareholders include:

• Nguyen Toan Thang (9%)
• Le Ngoc Duc (8%)

This highly concentrated ownership structure means strategic decisions are controlled by a small group of individuals, which could impact governance and long-term stability.

Challenges and Future Outlook

• Severe Revenue Decline: A 58.48% drop in sales suggests major instability, either due to market conditions or internal factors.
• Declining Profitability: The company's profit shrank by over 55%, raising concerns about its cost structure and revenue sources.
• High Dependence on a Single Market: The company’s motor vehicle wholesale focus leaves it exposed to fluctuations in consumer demand and economic downturns.
• Asset Reduction: Losing over 55% of total assets in one year indicates potential capital withdrawal or declining operational efficiency.

According to VANGUARD BUSINESS INFORMATION LLC (VBI), TCG TRADING SERVICES CORPORATION faces uncertain financial prospects. While the company still holds a strong net worth, its revenue instability and declining profitability pose risks. Without a clear strategy to reverse this trend, the company's long-term viability remains uncertain.