Furukawa Automotive Parts (Vietnam) Inc (Vietnam)

The subject is a wholly–owned subsidiary of FURUKAWA AUTOMOTIVE SYSTEMS INC. The subject specializes in manufacturing wire harnesses and functional parts for automobiles. Materials and machines are imported from Japan to serve the production. Finished products are 100% exported to its parent company in Japan and some countries in the EU under the requirement of its parent company.Financially, due to recording negative gross profit margin in 2021, the subject suffered a heavy loss that year. After being negatively affected by the Covid Pandemic during the period of 2020-2021, the subject's sales increased well last year. However, having a thin gross profit margin, the company continued reporting a loss in 2022.Regarding the financial leverage, due suffering a big loss, the subject's ratio of liabilities by total assets reached around 94% in the last two years, being much higher than the industry average. Meanwhile, it more depended heavily on interest-bearing debts. Thus, its capital structure was not safe.