VHG: Explanation for business result in Q4/2010

Viet-Han Corporation (HOSE: VHG) explained the decrease in business result of Quarter 4/2010 compared to Quarter 4/2009 as follows:

Profit after tax in Quarter 4/2010 increased more than VND507 million (Or -91.83%) compared to the same period of the prior year because of the following reasons:

In 2010, prices of input materials increased highly, the exchange rate changed strongly, and main materials such as color metals, plastic…were up, but the selling price could not follow prices of materials. Therefore, gross profit ratio in Quarter 4/2009 was 19% while gross profit ratio in Quarter 4/2010 was just 11.5%.

Loan interest in 2010 increased because the Corporation raised the short-term loan rate to finance business operations, and transferred the owner’s capital to the Corporation’s projects: rubber, D’Evelyn real estate, Que Viet, etc.  

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