BRANCH OF VIETNAM NATIONAL COAL AND MINERAL INDUSTRIES HOLDING CORPORATION LIMITED - SILVER STONE LOGISTICS - VINACOMIN COMPANY

BRANCH OF VIETNAM NATIONAL COAL AND MINERAL INDUSTRIES HOLDING CORPORATION LIMITED - SILVER STONE LOGISTICS - VINACOMIN COMPANY (CHI NHÁNH TẬP ĐOÀN CÔNG NGHIỆP THAN - KHOÁNG SẢN VIỆT NAM - CÔNG TY KHO VẬN ĐÁ BẠC - VINACOMIN): A GENERAL ANALYSIS BY VANGUARD BUSINESS INFORMATION (VBI)

BRANCH OF VIETNAM NATIONAL COAL AND MINERAL INDUSTRIES HOLDING CORPORATION LIMITED - SILVER STONE LOGISTICS - VINACOMIN COMPANY is an important entity in Vietnam’s coal mining and logistics industry, operating as a subsidiary of the state-owned Vietnam National Coal and Mineral Industries Holding Corporation (VINACOMIN). Established on September 14, 2007, the company is headquartered in Uong Bi City, Quang Ninh Province, a key region for Vietnam’s coal industry.

Financial Performance and Market Position

As of 2023, the company recorded total assets of USD 149.72 million, reflecting a 3.27% increase compared to 2022. Total revenue stood at USD 956.66 million, slightly declining by 2.7%, indicating market fluctuations. On the other hand, profitability grew significantly by 82.54% to USD 20.83 million, suggesting effective cost management and operational efficiency.

Despite these positive indicators, the company operates with zero equity, and its net worth is reported at USD -148,821, which raises concerns about its financial stability and reliance on external funding. Furthermore, negative working capital of USD -10.14 million suggests potential liquidity challenges that may impact daily operations.

Key Strengths of the Company

• Strong Industry Presence – As part of VINACOMIN, the company benefits from state support and market influence in Vietnam’s coal sector.
• Resilient Profit Growth – The 82.54% increase in profit suggests improved operational efficiency despite a slight revenue decline.
• Strategic Location – The company operates in Quang Ninh Province, Vietnam’s largest coal mining hub, ensuring proximity to key infrastructure and trade routes.
• Stable Demand – Vietnam’s reliance on coal for power generation and industrial use ensures steady demand for the company’s operations.

Challenges and Market Risks

• Lack of Equity – Operating without equity raises concerns about financial sustainability and potential dependency on debt financing.
• Revenue Contraction – A 2.7% decline in sales suggests market adjustments or reduced output.
• Liquidity Issues – Negative working capital of USD -10.14 million could indicate short-term financial strain.
• Environmental Regulations – Global efforts to reduce coal dependency and implement stricter environmental policies may impact long-term operations.

The Role of General Company Reports in Risk Management

A company’s financial and operational transparency is critical for business partners, lenders, and regulatory bodies. Access to detailed reports provides a clearer understanding of an organization’s financial health, risk exposure, and market stability, enabling more informed business and investment decisions.

VBI’s Contribution to Business Information

VANGUARD BUSINESS INFORMATION (VBI) provides general company reports that offer financial insights and industry overviews, helping businesses, suppliers, and stakeholders assess potential risks and opportunities. By analyzing key financial metrics and market performance, VBI supports informed decision-making for those engaging in transactions or collaborations with companies like this.