Established in 2004, Trong Phuc Trading Service Production Company Limited specializes in manufacturing and trading cattle and poultry feeds. The Company now is distributing to customers within Viet Nam only. However, in order to supply its need in production, the Company purchased 40% of its raw material from local firm and 60% from foreign suppliers, which are from Argentina, India and United State.
The Company occupied one factory in Binh Duong with total area of 17,000 m2. The factory produces all three of the Company’s brands: Toan Cau, Binh Phuoc and Viet Duc.
The Company has been earning small amount of net profit after tax during three observed years. It was due to the large proportion of cost of goods sold which always made up for more than 95% of the sales revenue. It showed the Company’s bad practice in cost management. However, year over year, the Company has been trying to rebalance its capital structure by start borrowing from outside sources to finance its business. It seems that the Company is reallocating resources and avoiding the inefficiency in using its short-term financing facilities