Production growth, stable financial indicators

Production growth

In the first 6 months of 2024, the world and regional economic situation continued to have many rapid, complex and unpredictable fluctuations; many new and unprecedented developments had a great impact on economic activities in general, creating great difficulties and challenges for countries and Vietnam was no exception.

The escalating conflicts between Russia and Ukraine and between Israel and Palestine also affected the mineral consumption market while the market prices of supplies, raw materials and fuels increased compared to the beginning of the year, also increasing input costs, affecting the production and business situation of the Vietnam National Coal - Mineral Industries Group (TKV).

Dust suppression misting system of Cua Ong Coal Selection Company

Despite many difficulties, with the Board of Directors' proactive, flexible and decisive actions in handling arising problems and promptly issuing appropriate management and business solutions, the Group and its units have overcome difficulties and challenges, basically completing production and business targets according to the set annual plan, and maintaining stability in the lives of workers.

Specifically, the Group's total revenue in the first half of the year reached VND 87,780 billion, equal to 50.1% of the yearly plan (VND 175,150 billion).

Consumption output of some key products all increased. Of which, the Group's coal consumption output reached 26.0 million tons, equal to 52.01% of the annual plan and 104.8% compared to the same period in 2023. Alumina (converted) consumption output reached 711,000 tons, equal to 54.7% of the annual plan and 102.9% compared to the same period.

The Group's pre-tax profit reached VND 3,610 billion, equal to 82% of the yearly plan (VND 4,380 billion). Of which, the profit of the parent company - TKV reached VND 1,935 billion, equal to 59.9% of the yearly plan (VND 3,230 billion).

The total budget contribution of the whole Group in the first 6 months of 2024 reached 14,316 billion VND, equal to 56.1% of the annual plan (25,500 billion VND) and equal to 80.1% over the same period.

The Group always fully and promptly fulfills its obligations to the State budget, without any late payment or overdue debt.

The average salary of the whole Group in the first 6 months of 2024 reached 16.7 million VND/person/month, equal to 101.6% of the annual plan.

Synchronized mechanized furnace at Nui Beo Coal Joint Stock Company (TKV)

In addition to complying with current regulations of the State, the Group has issued and implemented industry-specific welfare regimes to better care for the health and lives of employees (such as periodic health check-ups; quantitative diets, shift meals, in-kind compensation; organizing tours and vacations; taking workers to work, returning home for Tet;...)

In addition, the Group always pays attention to improving the working environment, regularly measuring and checking harmful factors in the working environment, where workers are directly exposed to toxic environments; paying attention to locations where hazardous factors arise (dust, noise, vibration, toxic gases) to promptly detect and handle them to ensure a clean and safe working environment.

Financial indicators remain stable

With this financial result, the Group's average return on assets (ROA) in the first 6 months of the year reached 2.4%. The Group's average return on equity (ROE) in the first 6 months of the year was 5.8%.

Of which, ROE of TKV's parent company is 4.1%, equal to 64.7% compared to the annual plan assigned by the State Capital Management Committee at enterprises in Decision No. 236/QD-UBQLV dated June 20, 2024 (6.3%).

TKV Cua Ong Coal Selection Company

Thus, the Group's basic financial indicators in the first 6 months of 2024 continue to be maintained at a safe level within the allowable range, demonstrating financial autonomy and ensuring liquidity throughout the Group.

Specifically, the debt to equity ratio of the entire Group as of June 30, 2024 is 1.28 times, an increase of 0.04 times compared to the beginning of 2022. If calculated separately for the Parent Company - TKV, it is 0.89 times, an increase of 0.03 times compared to the beginning of the year.

Thus, TKV's debt ratio is much lower than the maximum regulation of ≤ 3.0 times; proving that TKV's financial autonomy continues to be maintained at a stable high level.

The consolidated short-term solvency ratio of the entire Group as of June 30, 2024 is 1.09 times, an increase of 0.03 times compared to the beginning of the year; if calculated separately for the parent company - TKV, it is 1.20 times, an increase of 0.02 times compared to the beginning of the year. TKV's solvency ratio continues to be at a safe level of over 1.0 times; ensuring liquidity maintenance throughout the Group.

With this financial situation, State capital in the period continues to be preserved and developed.