On February 14, 2020, an article was posted on the website https://baodautu.vn with the title “Thuan An Wood sets a lower revenue target for 2020”. According to the article, “the Board of Directors of Thuan An Wood Processing Joint Stock Company approved a revenue target of VND647.5 billion for 2020, lower than the business plan for 2019 (VND660.2 billion) and the actual revenue in 2019 (nearly VND685 billion). Besides, the profit before tax target for 2020 is VND22.9 billion, approximately equal to 2019.  

The owner’s equity of Thuan An Wood Processing Joint Stock Company on 12/31/2019 was VND168.5 billion, but its liabilities is twice more than the amount at the same time by VND382.4 billion. Of which, the entire liabilities of the Company are short-term, especially loans and financial leasing reach VND256 billion. Thuan An Wood Processing Joint Stock Company will use its assets to ensure the loans at Vietcombank – Binh Duong Branch.”

However, to get an overview for readers and shareholders on the current financial situation, Thuan An Wood Processing Joint Stock Company would like to disclose further information as follows:

-    For the business plan for 2020 with the revenue target of 94.53% compared to 2019 and profit before tax of VND22.9 billion, equal to the profit in 2019, the Company set a target for researching and restructuring products, did not put the emphasis on the revenue growth target, focused instead on the investment and production of product lines with better competitive and profit margin.

-    Based on the audited financial statements in 2019, at the item “liquidity risk management”, the net liquidity difference of the Company is +VND97.7 billion. All of short-term liabilities are ensured by short-term deposits at commercial banks, with the short-term deposit balance at commercial banks at 12/31/2019 of VND342.9 billion. Therefore, the information on “its liabilities is twice more than the amount at the same time by VND382.4 billion” willnot affect the capital liquidity at Thuan An Wood Processing Joint Stock Company.