Thanh Thanh Ceramic Tile Company (HNX: TTC) will cease production on July 1, 2025, due to declining business results over the years. From 2020 to 2024, profits dropped from 15 billion VND to only 3.04 billion, with a 20% decline in revenue in the first half of 2025. Company leadership adjusted the plan from a profit of 4 billion to an expected loss of 7.9 billion for 2025. The company seeks to recover capital by divesting its entire holding of 1.7 million shares in Vitaly Joint Stock Company, but this deal remains uncertain. Thanh Thanh was once a leading brand but has been declining since reaching peak profit of 22 billion in 2015 due to fierce competition in the tile market and pressure from reinvestment costs. The restructuring plan includes liquidating current assets valued at an estimated 20 billion and handling over 100 billion in inventory. 178 of the 215 employees will be laid off with a total compensation cost of around 13.8 billion. Parent company FICO is also facing difficulties, forecasting a 13% drop in revenue for 2025.
Leave a Reply