THANG HOA JOINT STOCK COMPANY

Company Overview

THANG HOA JOINT STOCK COMPANY (CÔNG TY CỔ PHẦN THĂNG HOA) is a privately held joint-stock company, registered under tax code 3600999639, and headquartered in Bien Hoa City, Dong Nai Province, Vietnam. The company primarily operates in the trading of raw materials for feed manufacturing, along with construction, livestock farming, and manufacturing of packaging and apparel.

Founded in 2008, THANG HOA JOINT STOCK COMPANY has been in business for over 16 years, navigating various economic cycles and market challenges.

Financial Performance and Unusual Trends

One of the most noticeable financial irregularities is the company’s extremely low profit margin relative to its total revenue. In 2023, profit increased by an extraordinary 1055.87%, yet the absolute figure remained only $74,640, which is insignificant compared to its $519.67 million in total sales. This suggests very high operational costs, low profitability, or issues in cost management.

Additionally, while total assets grew significantly by 36.2%, working capital remains negative at -$17.54 million, indicating potential liquidity issues or high short-term obligations.

For those interested in detailed financial figures, including debt levels, cash flow analysis, and operational risks, VANGUARD BUSINESS INFORMATION LLC (VBI) provides a comprehensive report with in-depth financial insights.

Business Operations and Diversification

The company’s core focus remains on trading raw materials for feed production, but its business activities are highly diversified, including:

• Wholesale of agricultural raw materials
• Livestock farming (pigs and poultry)
• Manufacturing of animal feed
• Construction of buildings and infrastructure
• Manufacturing of packaging materials and footwear

While diversification can reduce business risk, the company’s expansion across multiple industries raises concerns about operational focus and efficiency. Businesses spanning construction, agriculture, and manufacturing require different expertise and capital structures, making it challenging to maintain profitability across all sectors.

Management and Ownership

The company is led by Chairman cum Director Vu Tuan Anh, who holds a significant stake in the business. However, for those looking for a detailed shareholder breakdown, governance structure, and key management personnel, VBI's credit report provides exclusive insights into the company's ownership and leadership decisions.

Future Outlook and Risks

• Despite strong revenue, profitability remains alarmingly low, raising questions about cost structure and financial sustainability.
• Negative working capital suggests potential short-term liquidity risks, which could impact daily operations and financial flexibility.
• Highly diversified business model increases exposure to multiple market risks, making efficiency and cost control crucial for long-term stability.

For a detailed financial risk assessment, shareholder insights, and operational breakdown, purchasing the VBI credit report on THANG HOA JOINT STOCK COMPANY is recommended.