In the document of the newly announced 2022 Annual General Meeting of Shareholders of Crystal Plastics Technology Joint Stock Company (Code: PLP), the company said that in 2021, due to the unapproved capital increase, the investment in the plant and development of operations Production and business activities are financed mainly from loans, especially short-term loans to finance working capital.In fact, on the audited financial statements for 2021 of Pha Le Plastics, the company borrowed a total of VND 1,362 billion as of December 31 from banks, of which more than VND 1,222 billion is short-term debt. , almost double the first day of the year.These loans account for more than 50% of the company's total capital of VND 2,616 billion.Last year, the business had to pay nearly 79 billion VND in interest expenses.Borrowing source of Crystal Plastic usually accounts for over 50% of the company's total capital.(Source: Synthesized from the audited financial statements of Crystal Plastic).As in the AGM documents, enterprises use loans of over trillion dong mainly to finance working capital for production and business activities.However, the company still spends a part of its capital to invest in stocks in 2021 with the original price of approximately VND 120 billion.These shares were recorded at a fair value of over 153 billion dong at the end of the year, equivalent to a profit of about 27.5% during the excitement of the stock market.Source: Notes to PLP's 2021 audited financial statements.The stock portfolio of Crystal Plastics is mostly stocks of financial companies, including TCB of Techcombank, SHS of Saigon Hanoi Securities Joint Stock Company, besides GEX of Gelex Group and the Group. IPA – a company closely related to VNDirect Securities.Looking back at the period of 2021, the prices of the stocks in the above portfolio increased strongly, in times, of which IPA shares increased by 5 times from 7,000 VND/share since the beginning of the year and reached 60,000 VND/share. December 31, 2021.By the end of the first quarter of 2022, PLP still kept this investment portfolio.However, the current market price of the shares has decreased deeply compared to 2021, leading to the possibility that the Company has to make provision for these investments.Meanwhile, with high capital demand (because PLP's asset structure is largely concentrated in receivables and inventories and fixed assets), Crystal Plastic has to continuously raise new capital in the coming years. recently from banking channel and bond issue.Market value of stocks in the investment portfolio of Crystal Plastic as of June 20, 2022.(Source: MH synthesis).Recently, Pha Le Plastics has just announced the Resolution of the Board of Directors on the implementation of a plan to offer 10 million individual shares to professional securities investors.The offering price is 10,000 VND/share, it is expected to mobilize 100 billion VND, of which 70 billion VND is to pay off bank loans, the rest is to supplement working capital.Earlier in early March, Pha Le Plastics also successfully offered 20 million shares to existing shareholders at the price of 10,000 VND/share, raising the charter capital to 600 billion VND.If this offering is successful, the charter capital of Crystal Plastic will increase to 700 billion dong.The representative of Crystal Plastic also added that, when the business is stable, the company will use retained earnings to supplement operations, thereby reducing bank loans and reducing financial burden.Crystal Plastic was established in 2008, specializing in the business of plastic beads.Currently, the company owns 6 mineral mines: 2 Granite quarries in Ninh Thuan, 3 white marble quarries in Nghe An, 1 quarry in Tuyen Hoa - Quang Binh.In which, the Granite quarry in Ninh Thuan has a reserve of 1.3 million m3, is the only quarry in Vietnam that has a railway system that goes right to the mine.In recent years, the Company focuses on deeper processing such as CaCO3 (Filler masterbatch).The company also invests heavily in SPC technology stone flooring through an investment in its subsidiary, Hoang Gia Pha Le JSC, which has a factory located in Dong Nai.In terms of business results, in 2021, pre-tax profit suddenly increased to 122 billion dong after the audit.In which, "financial income" contributed nearly 85 billion VND, which was explained by PLP as "revenue from business combinations".Company leaders said that this is the first year two projects producing SPC technology stone floors at the joint venture of Hoang Gia Pha Le JSC and the project of apartment buildings and services after Lan Be - Column 8. Hong Ha ward, Ha Long city brings efficiency to the company.Before the audit, the profit that the company made by itself was up to 144 billion dong, 22 billion dong higher than the figure after the audit.PLP said that "due to making provisions for investments in accordance with the new accounting standards and the application of the rule to exclude loan interest expenses for enterprises having associated transactions under Decree 68/ 2020/ND-CP".In the first quarter of 2022, Crystal Plastic recorded a revenue increase of 52% to VND 698 billion, profit after tax of more than VND 16 billion, an increase of 81% compared to the same period last year, corresponding to achieving 18% of revenue targets and 16 % profit target for the whole year.Source: Compiled from PLP's financial statements.Minh Hang