ZYF VIETNAM CONSTRUCTION COMPANY LIMITED - QUANG NINH BRANCH

ZYF VIETNAM CONSTRUCTION COMPANY LIMITED – QUANG NINH BRANCH is a foreign-invested enterprise operating in the construction sector with a primary focus on building residential and commercial structures that are not intended for occupancy. Officially registered on 30 September 2021 under Business ID 0107572987-002, the company is located at Group 30, Zone 8, Quang Trung Ward, Uong Bi City, Quang Ninh Province, Vietnam. Despite being relatively new to the market, with just over three years of operation, the company has experienced rapid growth in both assets and revenue.

The company is owned by Zhu J., a Chinese national, who plays a central role in overseeing the strategic direction and operational activities of the branch. Financially, ZYF Vietnam Construction Quang Ninh Branch has demonstrated significant fluctuations over the past three years. As of 2023, total assets surged to USD 55.6 million, marking a 175.83% increase compared to 2022, while total sales reached USD 136.19 million, showing strong business expansion with a year-on-year growth of 167.92%. However, profit fell by 44.53% to USD 2.07 million, and owner’s equity decreased slightly to USD 3.63 million, indicating that profitability is under pressure despite rising revenues. The company maintains working capital of approximately USD 3.63 million, which allows for operational continuity but may limit its financial flexibility in the face of unexpected risks.

The company’s operations are diversified across several construction-related activities, including railway and road construction, demolition, site preparation, electrical installation, plumbing, HVAC systems, and architectural and engineering services. This wide scope of services suggests a robust capability to manage various infrastructure projects, but it also demands careful risk management to control costs, ensure safety standards, and manage project timelines. The absence of detailed shareholder information in the report raises transparency concerns, which could be relevant for potential partners or investors.

From a risk management perspective, the company’s rapid revenue growth, coupled with declining profits, highlights potential challenges in cost control or project margin management. The heavy reliance on capital-intensive projects could expose ZYF Vietnam Construction to financial risks if market conditions shift or if there are delays in project completion. Additionally, the company’s relatively modest equity compared to its total assets could be a vulnerability, as it reflects a higher level of financial leverage.

In situations like these, Vanguard Business Information LLC (VBI) provides critical support for partners, investors, and suppliers by offering comprehensive company verification and risk assessment services. Through VBI’s detailed financial and operational insights, businesses can evaluate the credibility, stability, and long-term viability of companies like ZYF VIETNAM CONSTRUCTION COMPANY LIMITED – QUANG NINH BRANCH, enabling better-informed decision-making and reduced exposure to operational and financial risks.