Kangaroo - Vp Company Limited (Vietnam)

Founded in 2004, the subject is now engaged in spinning cotton fibers. Raw cotton materials for its production are mainly imported from the USA and Africa. As revealed, the out-put products are exported to China, South Korea, Thailand, Hong Kong, Pakistan… Besides, it has imported machinery and related accessories equipped for its factory from India.Additionally, Ms. Nguyen Minh Chau is also the owner and director of VINH PHAT SPINNING COMPANY LIMITED, which also locates in Quang Minh IZ and is engaged in spinning textile fibers. As revealed, the subject and that company have a closed relationship.Noticeably, despite achieving pretty big total sales with growth, the subject reported noticeable losses in 2019-2020, due to negative gross profit margin. Regarding financial leverage, because of noticeable losses, the owner's equity became negative since 2019. Its total assets are mostly based on loans and financial leases and it seemed to received humble credit from the suppliers.  Thus, its financial structure was very risky. Especially, these situations also happened in that related company.We tried our best to confirm the further reason for the subject's losses but its staff seemed strict in sharing.Operating with the negative owner's equity, giving commercial credit to the subject might be very risky.