VN “King of pangasius” suffers heavy loss

Hung Vuong Joint Stock Company (HVG)’s consolidated audit statement for the fiscal year 2016-2017 has reported a negative after-tax profit of VND705 billion ($31 million) instead of the VND63 billion ($2.8 million) self-reported profit figure.  HVG’s audited financial statement shows a far different picture from the unaudited version HVG’s revenue was VND15.514 trillion ($683.4 million), a 13 per cent reduction compared to 2016, including VND14.435 trillion ($636 million) of total expenses and VND1.079 trillion ($47.5 million) of profit. Revenue from processed fisheries and acquaculture products hit VND7.311 trillion ($322 million), accounting for 47 per cent of the total revenue. Revenue from financial activities was nearly VND100 billion ($4.4 million), up VND11 billion ($0.5 million) on-year, while expenses were over VND478 billion ($21 million), reducing VND35 billion ($1.54 million) on-year. In 2017, the company also spent over VND756 billion ($33.3 million) on enterprise management costs, 2.8 times as much as in 2016, as the company allocated reserves of over VND566 billion ($25 million) for bad debts. Up to the end of September 2017, the total payable amount was VND11.38 trillion ($501.2 million) including VND10.678 trillion of short-term debts, exceeding the short-term assets of VND9.868 trillion ($434.7 million). Based on ineffective financial indicators, the auditing agency is very doubtful about HVG’s operations. Responding to the audit statement, HVG has announced that the parent company’s after-tax profit was negative VND580.8 billion ($25.6 million) after the audit due to gross profit adjustment and increasing expenses. Gross profit decreased by VND63.6 billion ($2.8 million) because… [Read full story]


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