NHAT TRAN TRADING SERVICE JOINT STOCK COMPANY (Công Ty Cổ Phần Thương Mại Dịch Vụ Nhất Trân), established on January 10, 2014, and based in Tan Binh District, Ho Chi Minh City, presents an unusual financial profile that raises critical questions from a risk management perspective. Despite reporting robust revenue figures, its underlying financial structure reveals signs of imbalance and potential instability that stakeholders should carefully assess.

Financial Red Flags and Risk Indicators:

1. Revenue vs. Profitability Gap
   In 2023, the company posted a substantial USD 170.7 million in sales, marking a year-over-year increase of over 24%. However, its net profit was a mere USD 8,768—representing a net margin of just 0.005%. This razor-thin margin is unsustainable for a firm handling such high revenue volume and may indicate poor pricing strategy, excessive overhead, or operational inefficiencies.

2. Declining Asset Base
   Total assets declined by 18.25% in 2023 to USD 10.67 million, a worrying trend when revenue is rising. This erosion suggests possible asset liquidation, underinvestment in infrastructure, or impaired assets—each of which signals growing risk.

3. Weak Equity and Capitalization
   Despite a slight increase in equity to USD 894,483, this amount is strikingly low given the size of the company’s reported revenue. Equity growth of less than 1% is not keeping pace with the scale of operations. Moreover, the company’s net worth dropped 26.57%, reflecting deteriorating retained earnings and overall financial resilience.

4. Limited Transparency
   The company reports only five employees—raising questions about how a telecommunications service provider with USD 170 million in revenue operates with such a minimal workforce. Additionally, shareholder information is outdated and unverified, undermining governance transparency.

5. Overdiversification of Business Lines
   NHAT TRAN registers in industries ranging from telecom services to pig breeding, quarrying, construction, and auction brokerage. Such extreme diversification, especially with limited staff, may suggest overstretching of resources or paper-only registrations used for tax, compliance, or investment reasons.

Risk Manager's Recommendation:

Given the severe mismatch between revenue and profitability, shrinking asset base, weak capitalization, and questionable transparency, NHAT TRAN poses significant financial and operational risk. These concerns are compounded by the lack of clarity regarding its current ownership structure and staffing.

To mitigate exposure, Vanguard Business Information LLC (VBI) strongly advises clients to request a comprehensive in-depth credit report before engaging in any financial, commercial, or contractual commitments with this entity. VBI's full report will include:

• Detailed cash flow analysis

• Verification of actual workforce and operational activity

• Risk scoring and red flag alerts

• Litigation, tax, and banking history

• Ownership cross-checks and hidden affiliations

In short, NHAT TRAN’s headline sales numbers mask deeper structural weaknesses. Proceeding without due diligence would expose any partner or investor to disproportionate financial and reputational risk.