VEGETABLE AND FRUIT EXPORT IMPORT JOINT STOCK COMPANY I

The subject was established in 1973 as a State unit, it has been privatized completely since Oct 2017. VEGETEXCO I is currently engaged in importing and trading agricultural products such as corn, soybean meal, wheat, etc that are used as materials for animal feed production. In addition, it leases working office, warehouse and workshop. It has stopped processing vegetable and fruit for a time. It imports agricultural products from China, EU, Canada, etc then supplies for domestic manufacturing companies. 

Due to the impact of the Covid-19 pandemic, the subject's revenue has plummeted in the last 2 years and reached nearly VND 5,000 million in 2021. Reported profit was limited and not commensurate with the scale of total sales. Receivable from customers accounted for 65.07%, always being the key item in the asset structure. It could be seen that its payment policy to customers was quite easy. Considering resources of assets, more than 90% of them were funded by liabilities. Besides taking advantage of "payable to supplier", the subject has mobilized large number of interest bearing debts. The loan interest expenses were extremely high. Generally, its capital structure was risky.