Many subsidiaries of KTV lose money, special financial supervision

Profits decrease

According to the report, the total revenue of the whole group in the first 6 months of 2021 reached VND 54,617 billion. Total revenue of parent company TKV reached 51,442 billion VND. The group’s pre-tax profit reached VND 1,875 billion, equaling 62.5% of the year plan. Production and business profit of parent company TKV reached 1,022 billion VND.

The ratio of profit after tax on equity of parent company TKV is 2.67%; the whole group is 3.98%. The ratio of profit after tax to total assets of the parent company is 1.19%; the whole group is 1.27%.

The short-term solvency ratio as of June 30, 2021, the parent company is 1.11 times (in 2020 it is 1.09), the whole group is 0.91. The ratio of liabilities to equity at the parent company is 1.09 times; the whole group is 1.82 times.

Many subsidiaries of KTV lose money, special financial supervision

The balance of bad debts of the parent company as of January 1, 2020 is 199 billion VND, the amount that has been made provision for bad debts is 187 billion VND. Overdue debt balance as of December 31, 2020 is VND 193.7 billion, provision is VND 129 billion.

As of December 31, 2020, the total long-term financial investment capital of the parent company – TKV is nearly VND 16,305 billion. In which, invested in 37 subsidiaries with a capital of over 16,054 billion dong. The number of associates and joint ventures is 11, with a capital of VND 186,754 billion. TKV also invested and contributed capital in two other units with a capital of VND 63,826 billion.

According to the Ministry of Finance, although TKV is capable of repaying short-term and long-term loans. However, according to the statement of cash flows, net cash flow from business activities is negative VND 1,972 billion, instant and quick payment ratios are low, TKV needs to strengthen solutions to improve production and business efficiency. business, reduce inventory to improve solvency indicators.

Many subsidiaries lose money

In 2020, some subsidiaries have production results business losses. For example, Thanh Hoa Cromit Co Dinh Joint Stock Company with charter capital of 400 billion dong, in 2020 the loss is 30.8 billion dong, the accumulated loss is 252 billion dong, equal to 63% of charter capital.

Thach Khe Iron Joint Stock Company accumulated a loss of 21 billion dong. Dong Ta Phoi Joint Stock Company with charter capital of 458.3 billion dong, 2020 loss of 203.4 billion dong, accumulated loss is 230.5 billion dong, equaling 50.3% of charter capital.

In particular, some units show signs of financial insecurity and must be put into special financial supervision. In which, Ha Lam Coal Joint Stock Company has a debt-to-equity ratio for two consecutive years (10.08 times in 2019 and 10.21 times in 2020) higher than the prescribed level (no more than 3 times). .

The units with the debt solvency ratio less than 0.5 are Thach Khe Iron Joint Stock Company. The ratio of liabilities is more than 3 times and gross profit decreased for 2 consecutive years as Environment Company Limited, Nui Beo Coal Joint Stock Company,… Liabilities to equity ratio is more than 3 times like Coal Joint Stock Company Mong Duong, Vang Danh Coal Joint Stock Company, Coal Coc Joint Stock Company 6.

Some units that have invested capital for many years now have to suspend operations because they have not been granted a mining license (or re-licensed), which will risk not recovering enough TKV capital.

Chromite Co Dinh Thanh Hoa Joint Stock Company, charter capital is 400 billion dong, of which TKV contributes 94.8% of charter capital, equivalent to 379.1 billion dong. The actual contributed capital of TKV is 402.8 billion VND, the difference compared to the capital contribution ratio is 23.6 billion VND. The accumulated loss as of December 31, 2020 is VND 252 billion, equal to 65.7% of charter capital.

Faced with the above situation, the Ministry of Finance proposed the State Capital Management Committee to direct Vinacomin to make a plan, rearrange the house and land facilities, and handle existing financial problems to have a shareholding plan. parent company – TKV to ensure the feasibility, complete the restructuring project of TKV for the period of 2021-2025.

Regarding investment in subsidiaries, the Ministry of Finance believes that some subsidiaries of TKV jointly invest capital in other companies in the grouping group is not in accordance with regulations. Therefore, the subsidiaries need to divest to ensure the restructuring of TKV.

Make setting up and handling provisions for devaluation of inventories, loss of investments, bad debts and warranty of products, goods, services and construction works at the enterprise in accordance with the provisions of law. regulation.

Told him