MSH has released its audited finance report for H1 2020, showing problems that may arise as its partner’s parent company has filed for bankruptcy and it will close all of its stores.

The garment company sold products to orders from New York & Company (buyer) through a buyer’s partner – Easy Fashion Macao Offshore Limited (Easy Fashion).

Under the agreement between MSH and the buyer, the payment of debts related to the sale transactions are implemented through Easy Fashion. The payment term for these debts is 90 days.

As of June 30, 2020, the company’s receivable balance from the transactions of selling products to New York & Company had reached VND219 billion, or $9.4 million. Of this, the accounts receivable within the term were VND55.2 billion and the overdue accounts receivable (less than 3 months) were VND163.8 billion.

As of June 30, 2020, the company’s receivable balance from the transactions of selling products to New York & Company had reached VND219 billion, or $9.4 million. Of this, the accounts receivable within the term were VND55.2 billion and the overdue accounts receivable (less than 3 months) were VND163.8 billion.

On July 13, 2020, RTW Retailwinds Inc, the holding firm of New York & Company, filed for bankruptcy after falling into insolvency.

MSH’s board of directors anticipated that the bankruptcy will affect the possibility of recovering these accounts receivable. At the moment when the finance report was made, the company was working with Easy Fashion and lawyers on the debt collection.

MSH reported net revenue of VND962 billion in Q2, a decrease of 17.4 percent compared with the same period last year. Its post-tax profit decreased by 56 percent to VND58 billion. Meanwhile, the H1 profit was VND122 billion, a decrease of 44 percent. Sixty percent of the pre-tax profit plan was implemented after half a year.

Vinatex (VGT, UpCom), another big garment producer, is also facing difficulties. At the 2020 shareholders’ meeting, VGT board of management submitted to the shareholders a plan on obtaining revenue of VND14.64 trillion, a decrease of 27 percent. It’s targeted pre-tax profit is expected to drop by 50 percent to VND381 billion because of the Covid-19 pandemic and divestment from some subsidiaries.

Vinatex reported net revenue of VND7.046 trillion in H1, a decrease of 15 percent compared with the same period last year, pre-tax profit of VND289 billion, a decrease of 22 percent.

Forbes has released the list of 200 outstanding listed small and medium enterprises with revenue of less than $1 billion in Asia Pacific in 2020.

The enterprises in the list must meet the conditions in revenue and profit growth rates, low debt ratio and effective corporate governance.

Six Vietnamese names are found in the list, including Cen Land (HoSE: CRE), Dohaco (HoSE: DHC), Navico (HoSE: ANV), Phat Dat Real Estate (HoSE: PDR), Taseco (HoSE: AST) and Thien Long Group (HoSE: TLG).

FPT Group of Truong Gia Binh has made public the business results for July and the first seven months of the year. The net revenue in July was VND2.347 trillion, up by 4 percent, and pre-tax profit was VND434 billion, up by 9 percent compared with the same period last year.

The revenue was VND15,598 trillion in the first seven months and the post-tax profit of the holding company was VND1.922 trillion. 

V. Ha

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