Trantech (Vietnam)

The subject specializes in manufacturing and processing electric wiring harnesses for automobiles and tractors. Currently, its output products are exported overseas to Japan (mainly), China and Thailand. It serves brands of SUBARU and MAZDA. The company has imported single electrical wires for its production from Japan and China.The subject's annual revenue increased impressively and hit VND 1,028 billion in 2020. After suffering a revenue depression of 12.9% due to the negative effects of the Covid Pandemic in 2021, its sales recovered clearly last year. Continuously having high total assets turnover, its profits after tax went down rapidly in the last two years due to recording thinner gross profit margin ratios. Then, according to the chief accountant, the subject's production is still in normality now.Regarding the financial leverage, thanks to efficient business results and reinvestment policy, the subject's ratio of Liabilities by total assets went down and it just stood at 31.22% as of 31 Dec 2022, being clearly lower than the industry average. Meanwhile, it did not depend on interest-bearing debts. Thus, its capital structure was safe.