Danang Rubber (DRC) was fined 3 times in just 1 month, profit decreased by 50%

Danang Rubber (DRC) received 3 fines with a total amount of 102.4 million VND

Recently, Danang Rubber Joint Stock Company (HoSE Code: DRC) has consecutively received 3 decisions on administrative penalties for tax violations from tax and customs authorities.

Specifically, the first time was on August 18, 2023, the Da Nang City Tax Department issued a Decision to fine DRC for false declaration leading to an increase in the amount of value added tax requested for refund but not yet refunded in November and December 2022. The total fine is 13.65 million VND for this false declaration.

DRC multi-functional rubber was released 3 times in just 1 month, returned 6 months later, lost nearly 50 pounds, picture 1 — Danang Rubber Corporation (DRC) was fined 3 times in a row, profit in the first 6 months of the year decreased by nearly 50% (Photo TL)

On August 21, 2023, the Da Nang City Customs Department - Hoa Khanh - Lien Chieu Industrial Park Customs Branch issued a decision to fine Da Nang Rubber Joint Stock Company for falsely declaring the name of goods, commodity codes, and import tax rates, leading to a shortage of tax payable. The penalty for the above false declaration is 49.03 million VND.

Also on August 21, 2023, the Da Nang City Customs Department - Hoa Khanh - Lien Chieu Industrial Park Customs Branch also issued a decision to fine DRC an additional VND 39.78 million for violations of false declaration of goods names, commodity codes, and import tax rates, leading to a lack of tax payable.

Thus, with the total of 3 fine decisions above, in August alone, Danang Rubber was fined a total of 102.4 million VND by both the Tax Department and Customs.

Semi-annual profit drops nearly 50% due to decline in domestic market consumption

The fine against Da Nang Rubber comes as the company is experiencing a decline in its business results in the first half of 2023. Specifically, in the second quarter of 2023, Da Nang Rubber achieved revenue of VND 1,161.6 billion, up 1.2% over the same period. Profit after tax reached VND 50.9 billion, down 39.2%.

Accumulated revenue in the first 6 months of 2023 reached VND 2,274.3 billion, down about 6.5% compared to the first half of 2022. Profit after tax reached only VND 76.32 billion, down 48.9% over the same period last year.

The business plan set at the beginning of the year by Da Nang Rubber was to achieve a revenue target of VND5,060 billion and a profit after tax target of VND264 billion. Thus, by the end of the second quarter, Da Nang Rubber had only completed 45% of the revenue plan and 28.9% of the annual profit plan.

Explaining the decline in semi-annual business results, Danang Rubber said the reason was that the domestic economic situation had not yet recovered. This led to a decrease in product consumption in the domestic market. At the same time, fierce competition in the export market reduced production and business efficiency compared to the same period.

Source