World Joint Stock Corporation (Vietnam)

The subject specializes in manufacturing ceramic tiles. Materials and equipment for production are imported from China. Its products are only supplied for the domestic market. Its business performance was improved clearly in two years 2020, 2021 but reduced in 2022 under the negative effects of the fluctuation in material price.We contacted the chief accountant and learned that after the subject was suspended from operating spray drying tower 1 (that is the first tower operating since 2008) of the ceramic tile factory for 112 days in Mar 2022, the subject stopped running this tower. Instead, it renovated spray drying tower No. 2, which was invested in 2016, increasing capacity to accommodate enough raw materials for both of its production lines. Currently, Vietnam's real estate market has been slowing down, even "freezing" in many segments and regions, causing businesses in the construction and construction material supply industries to "suffer". The output of ceramic tile businesses in recent times has mainly served construction, repair and renovation activities of people's houses. The industry's production and consumption output decreased significantly. Chief accountant of the subject revealed that in the first months of 2023, the subject closed a production line and just ran a production line. Workers must take turns taking breaks. Sales per month were thin, about VND 19-20 billion, by half as compared to the previous period. At present, the subject's inventories are very large while sales volume is low. The subject will stop the whole production lines in the next month to maintain. The maintenance period is expected to be shorter or longer than March 2024 depending on the market situation.In general, with current difficulties, strict monitoring of transactions with the subject is necessary.