Tan Thang Cement Joint Stock Company (Vietnam)

Founded in 2009 in Nghe An Province, the subject is engaged in manufacturing cement. As revealed, its factory was equipped with European technology, low energy consumption and meeting environmental standards. It began offering commercial products on 17 Apr 2020. Its design production capacity is 5,000 tons of clanker per day which was equivalent to 1.98 million tons of cement per year. As reported data, net sales increased clearly in the second years of production and had signs of decline last year. Noticeably, the number of losses tended to increase and reached VND 517.2 billion last year. Large accumulated losses in the first years of production reduced its owner's investment capital and capital structure was risky with Liabilities by Total Assets of 91.58% at the end of 2022. Working Capital was in deficit and Liquidity Ratios were humble. As investigated, a small part of the construction contract value of its factory had not been fully paid to the contractors, as of late 2022. Contractor joint venture: VIETNAM MACHINERY INSTALLATION CORPORATION - JSC (LILAMA in short) and VNCN ENGINEERING CONSTRUCTION AND INVESTMENT JOINT STOCK CORPORATION (VNCN E&C CORP in short) sued the subject; requested to pay the total unpaid principal debt and the late payment interest until 14 Sep 2022 of VND 125,026,282,634. Initially, the plaintiffs agreed to deduct a part of the late payment interest. However, later there was a change and they requested full payment. According to the judgment, the subject must pay the late payment interest as requested by the plaintiffs. The authorized representative of the subject in this trial also mentioned that mobilizing capital from shareholders encountered difficulties during that time. In addition, production and business were very difficult. In early 2023, the subject also has two times of increasing charter capital but the increase amount was not much compared to the company's old charter capital. The capital structure and liquidity are not expected to improve. In general, transactions should be monitored strictly.