Vinacomin affirmed its self-control over finances

It can be seen that 2023 was the year when the world and regional context continuously had many rapid, complex, and unpredictable changes; many new and unprecedented developments have had great impacts on economies, creating great difficulties and challenges for countries, including the Vietnamese market.

With the attention and direction of the Party Central Committee, the Government and all levels, ministries, agencies and the consensus of localities, Vinacomin had been proactive, flexible and drastic in handling arising problems, promptly issuing appropriate solutions for the management and operation of production and business. The units in the Group had strengthened close coordination, took advantage of favorable weather, focused on production, and increased coal output, thanks to which the main targets were completed and exceeded the business coordination plan.

The total turnover of the entire Vinacomin in 2023 reached over 170 trillion VND, equal to 101.2% of the year's plan, of which the coal sale in 2023 of the Group reached 47.916 million tons, equal to 103.05% of the year's plan and 100.31% compared to the same period in 2022. Profit before tax of the whole Group in 2023 is expected to be about 7,800 billion VND, equal to 156% of the year plan, equivalent to 5,000 billion VND.

The financial statements of Vinacomin clearly showed that the ratio of profit after tax/average total assets (ROA) in 2023 of the whole Group reached 5.22% and that of the parent company Vinacomin in 2023 was 4.86%. The average profit after tax/equity ratio (ROE) in 2023 for the entire Group was expected to be 12.86%. In particular, the ROE of Vinacomin Parent Company was 10.10%, 2.20% higher than the plan assigned by the Committee for Management of State Capital at Enterprises in Decision No. 283/QD-UBQLV dated 15 June 2023 (7.90%).

The Group's financial coefficients continuously to be maintained within the allowable safe range. Specifically, the consolidated debt-to-equity ratio of the entire Group in 2023 is 1.20 times, down 0.27 times compared to 2022 (corresponding to a decrease of 1.47 times). Vinacomin Parent company was expected to be 0.87, down 0.21 times compared to 2022 (corresponding to a decrease of 1.08 times). Thus, Vinacomin's debt ratio was much lower than the maximum regulation of ≤ 3.0 times. In addition, the consolidated solvency ratio of the entire Group in 2023 was 1.14 times, an increase of 0.02 times compared to 2022. Vinacomin's solvency ratio is continuously to be maintained at a safe level ≥1.0 times. The capital preservation coefficient in 2023 of The Vinacomin Parent Company was 1.03 times, the state capital during the period was preserved and developed. Thus, it can be seen that, despite many difficulties, the production and business situations of Vinacomin have grown and achieved high results, and the Group's financial ratios remain within the allowable safe range.

Along with that, Vinacomin Group always fully and promptly fulfilled its obligations to the state budget. The total budget contribution of the entire Group in 2023 was 29,118 billion VND, equal to 114.19% of the year plan and 134.72% of the total budget for the same period in 2022. For many consecutive years, the Group had not allowed late payments or overdue debt to occur.

The above-mentioned numbers once again affirm the Vinacomin brand with the increased ability to self-control finances, the liquidity of the entire system is maintained at a high level, and state capital is preserved and developed.

This is an important step for Vinacomin continuously to well implement the 2024 production and business plan, fulfilling the mission of one of the "pillars" contributing to ensuring the role of energy supply for key manufacturing industries, restoring effective service for the cause of industrialization and modernization of the country.