KEY FINANCIAL METRICS COMPARISON

Summary of Financial Results

 

 Summary of Assets and Liabilities

 INDUSTRY AND MACROECONOMIC OVERVIEW

Vietnam's GDP growth was steady at approximately 5.7% in Q1 2024, supporting industrial development. Domestic consumption recovery lagged expectations, but inflation was controlled at around 3.5%, and stable interest rates facilitated business borrowing costs. Trade relations with major partners such as the US, China, South Korea, and Japan remained stable, benefiting steel exporters. However, real estate issues in China and Vietnam, along with geopolitical conflicts, continued to impact the global steel market. 

CONSOLIDATED BUSINESS RESULTS – Q1 2024

1. Sales Volume:
Sales volume decreased by 2.9% Q/Q due to seasonal factors and the Tet holiday but increased by 12.2% Y/Y, indicating improved market demand and sales performance, particularly in export markets.

2. Revenue:
Net revenue decreased by 11.3% Q/Q due to lower sales prices and volumes but increased by 4.1% Y/Y, driven by the recovery in export activities.

3. Gross Profit:
Gross profit increased by 12.3% Q/Q and 18.0% Y/Y, with the gross margin improving to 8.47%, reflecting enhanced sales efficiency and cost management. Strong export activity and inventory management supported margin improvement.

4. EBIT and EBITDA:

• EBIT increased significantly by 112.3% Q/Q and 1.2% Y/Y due to stringent cost control.
• EBITDA increased by 52.4% Q/Q and 1.6% Y/Y thanks to dilligentproduction and business management efficiency .

5. Operating Profit and Profit Before Tax:
Both operating profit and profit before tax increased substantially Q/Q and Y/Y, driven by improved business performance and cost optimization.

6. Net Profit:

• Profit before tax rose by 400.0% Q/Q and 37.9% Y/Y.
• Net profit increased by 375.0% Q/Q and 15.9% Y/Y, reflecting stable business strategy execution and effective cost management.

7. Assets and Capital Structure:

• Total assets increased by 13.9% Q/Q and 16.6% Y/Y, primarily driven by increased inventories and short-term financial investments.
• Current assets grew by 19.0% Q/Q and 21.8% Y/Y, indicating anticipation for market demand and inventory accumulation.
• Cash and equivalents decreased by 24.2% Q/Q but increased significantly Y/Y, demonstrating strong cash management and liquidity.
• Short-term financial investments increased by 30.3% Q/Q and 44.9% Y/Y, optimizing short-term cash flow.
• Receivables decreased Q/Q and Y/Y due to effective debt recovery and tighter credit management.
• Inventories increased Q/Q and Y/Y, preparing for anticipated market demand.
• Short-term liabilities increased by 18.7% Q/Q due to short-term borrowings at favorable interest rates to support operations.
• Total liabilities grew by 19.4% Q/Q and 22.1% Y/Y, reflecting increased short-term and long-term debt for working capital.
• Net short-term borrowings rose by 11.2% Q/Q but decreased by 26.2% Y/Y, reflecting reduced reliance on short-term debt.
• The net debt-to-equity ratio increased slightly 0.06x Q/Q but decreased significantly 0.31x Y/Y,  indicating improved capital structure and reduced financial risk.
• Shareholders' equity increased by 1.9% Q/Q and 4.5% Y/Y, driven by retained earnings. 

Ton Dong A Corporation continues to demonstrate robust sales and financial performance despite the slow recovery of the global and Vietnamese steel industries amid complex macroeconomic and geopolitical challenges. The strategic management of costs, efficient production, and sales optimization have demonstrated a strong ability to improveprofitability metricsover the years.

Thank you for your continued interest and support.

Disclaimer: This report contains forward-looking statements based on the company's expectations and projections. Actual results may vary due to inherent risks and uncertainties. Readers should not consider these forward-looking statements as guarantees of future performance.