TKV affirms its position as one of the three pillars of national energy

During the 30 years of formation and development, the Group has had a remarkable, stable and sustainable growth process in both breadth and depth.

TKV's journey of continuous innovation to make a breakthrough is recognized with new advances in technology infrastructure and exploitation level, responsibility to the locality in economic growth and social security, and the goal of building a green business model and sustainable development.

Outstanding, stable growth

According to TKV's report, TKV's total assets have grown continuously from 1,700 billion VND in 1994, by the end of 2023, total assets reached 114,000 billion VND, an increase of more than 97 times compared to 1994. This shows the remarkable growth in scale of TKV.

The total revenue of the Coal - Mineral Industry Group has grown remarkably, with an average growth rate of 18%/year.

Although some years the revenue decreased compared to the previous year due to objective reasons such as market fluctuations and reduced domestic coal demand, in general, during the entire operation process since its establishment, the Group's total revenue has grown steadily with an average growth rate of 18%/year.

Specifically, if in 1994, the first year of establishment, the total revenue of the Group under the name of Vietnam Coal Corporation was only a modest figure of 1,845 billion VND, by 2023 it had reached 168,100 billion VND, more than 91 times and an increase of 166,250 billion VND compared to 1994.

TKV's total revenue in the period from 1994 to 2023 reached 1.9 million billion VND, an average of 65,700 billion VND/year. This is a particularly impressive figure, demonstrating TKV's growth in scale in terms of breadth.

In particular, coal and alumina export activities with the highest record in 2010-2011 reaching over 1.5 billion USD/year have brought in a large source of foreign currency revenue, helping TKV proactively pay off foreign currency debts, contributing to the overall growth of the national economy.

Mechanization in coal mining.

However, since 2014, coal export output has decreased due to licensing regulations of the Ministry of Industry and Trade, but alumina export output has increased sharply. From 2014 to 2023, TKV exported an average of 634 million USD/year and 2022 was the highest year with more than 1 billion USD.

The Group's leaders said that despite facing many challenges such as the 1997 Asian financial crisis, the 2008 global economic crisis and the COVID-19 pandemic, TKV still maintained profitable production and business activities, especially in 2022, the Group achieved the highest production and business results since its establishment with pre-tax profit reaching 10,600 billion VND.

As a multi-industry economic group including: Coal, Minerals, Electricity, Industrial explosives, Mechanical manufacturing and other service business, TKV focuses mainly on the main and core production fields of coal, minerals, electricity and industrial explosives.

Over the years, all areas of the Group's operations have been productive and efficient; in which, coal production has always been the area with the highest profit ratio.

In the past 5 years, the profit ratio of some industries such as minerals, explosives... has tended to increase, showing that TKV is moving towards a sustainable development strategy, gradually reducing dependence on coal production and coal trading.

At the same time, promote the development of other environmentally friendly manufacturing industries in accordance with the Prime Minister's commitment at the COP26 Conference on reducing greenhouse gas emissions and moving towards "unabated" coal use cessation.

The mineral sector has made remarkable progress, especially the two alumina projects. Since their commercial operation, the Tan Rai project (October 2013) and the Nhan Co project (July 2017) have brought high economic efficiency, opening up a development direction for a completely new industry in Vietnam.

Increase financial independence

Effective production and business also help increase the contribution to the State budget. In Quang Ninh, TKV's contribution to the State budget has reached 60%, making an important contribution to the economic growth of Quang Ninh.

In particular, in 2023, the Group achieved a record high state budget contribution since its establishment with a value of VND 29,216 billion (more than USD 1.1 billion); of which, TKV's state budget contribution in Quang Ninh accounted for 41% of the province's budget revenue.

Over the years, all areas of operation of the Group have been producing and doing business effectively.

Along with that, state capital at TKV also increased from 778 billion VND in the first year of establishment to 48,300 billion VND in 2023. State capital invested in the Group has always been preserved and developed over the years with a very high growth rate.

Currently, the charter capital of the parent company has reached 35,000 billion VND. TKV is continuing to submit to the Government for approval to increase the charter capital of the parent company from 35,000 billion VND to 42,000 billion VND and is expected to be completed in 2025.

About financial management,   The Group has gradually transformed and improved its financial management through direct payments to mining companies and focused capital arrangements at the parent company; applied digital technology in financial accounting, including electronic invoices and electronic money transfers.

Since 2017, TKV has implemented SWAP currency swaps, helping to minimize exchange rate risks and generate profits of about VND355 billion from USD735 million.

Besides,   TKV focuses on debt management and has fulfilled its payment obligations to the State and partners. The Group has no overdue debt and uses internal debt offset methods to save costs and speed up payment progress. Optimizing debt management has contributed to increasing financial autonomy, improving the financial situation of the whole Group, and has been recognized and highly appreciated by owners and state management agencies.

TKV's financial ratios are maintained within safe limits. The average return on equity (ROE) after tax is 14.6%/year, with the highest level being nearly 19% in 2022. The return on total assets (ROA) is 4.5%/year on average.

The debt payment capacity ratio is often maintained above 1 time, showing good payment ability, highly appreciated by credit sponsors, trusted by partners and customers, and assured and trusted by employees.

The debt-to-equity ratio is lower than the ceiling of 3 as prescribed in Decree 87/2015/ND-CP. In 2023, this ratio will only be 1.24 times, proving that TKV's financial autonomy is increasing.

The divestment according to the Group's restructuring plan is carried out by TKV to ensure the principles of publicity, transparency, preservation of state capital and compliance with current legal regulations.

Currently, TKV is continuing to divest capital from 19 subsidiaries and affiliated companies according to the restructuring project until 2025 approved by the Prime Minister in Decision 1263/QD-TTg dated October 27, 2023 with the goal of focusing resources on key production and business sectors to further improve capital efficiency and asset efficiency, continuing to create momentum for a new growth phase.

The above achievements are the clearest evidence, affirming the Group's continuous growth over the past 30 years.

Under the concentrated and effective leadership of the Party Committee, the Board of Members, the drastic and flexible management of the Executive Board through the periods, all officers and employees in the Group have always strived to overcome many difficulties and challenges to excellently complete the tasks assigned by the Party and the State. TKV is proud to be one of the large and strong economic groups, developing stably and sustainably, making an important contribution to the cause of industrialization and modernization of the country.

Source: https://baodautu.vn/tkv-khang-dinh-vi-the-mot-trong-ba-tru-cot-nang-luong-quoc-gia-d223012.html