Vityaz
OJSC "Vityaz"
UNP: 300031652 · 13a P. Brovka St., Vitebsk 210605
Identification
Financial statements
k BYN
| Line item | Reporting year | Prior year |
|---|---|---|
| Fixed assets | 108 585 | 104 471 |
| Intangible assets | 1 692 | 1 847 |
| Income-bearing investments in tangible assets | 1 728 | 1 548 |
| Investments in long-term assets | 6 918 | 7 808 |
| Long-term financial investments | 4 949 | 4 849 |
| Long-term receivables | — | — |
| Total Section I (long-term assets) | 123 872 | 120 523 |
| Inventories | 84 868 | 92 463 |
| — materials | 35 470 | 83 492 |
| — work in progress | 1 058 | 1 145 |
| — finished goods and merchandise | 48 104 | 7 596 |
| — goods shipped | 231 | 225 |
| Deferred expenses | 140 | 95 |
| VAT on acquired goods, works, services | — | — |
| Short-term receivables | 21 486 | 41 944 |
| Short-term financial investments | — | — |
| Cash and cash equivalents | 875 | 5 210 |
| Other short-term assets | 26 | 26 |
| Total Section II (short-term assets) | 111 827 | 140 503 |
| BALANCE (assets) | 235 699 | 261 026 |
| Charter capital | 24 643 | 24 643 |
| Reserve capital | 3 660 | 2 629 |
| Additional capital | 96 218 | 106 253 |
| Retained earnings (uncovered loss) | -7 022 | -8 668 |
| Total Section III (equity) | 117 499 | 124 857 |
| Long-term loans and borrowings | — | — |
| Long-term lease liabilities | — | — |
| Deferred income | 17 725 | — |
| Total Section IV (long-term liabilities) | 17 725 | — |
| Short-term loans and borrowings | 22 521 | 22 664 |
| Current portion of long-term liabilities | — | — |
| Short-term payables | 77 045 | 112 318 |
| — to suppliers, contractors, providers | 51 903 | 43 099 |
| — on payroll | 1 194 | 1 239 |
| — on lease payments | — | — |
| Total Section V (short-term liabilities) | 100 475 | 136 169 |
| BALANCE (equity and liabilities) | 235 699 | 261 026 |
Computed metrics
Integrity checks
Checks passed: 3 of 6
Failed checks indicate gaps or inconsistencies in the source filing itself (typically in form F4, the cash-flow statement), not data-entry errors. The balance sheet (assets = liabilities) reconciles for every enterprise.
Signals
- Finished goods pile-up: F1.214 7,596 → BYN 48,104k — a 6.3-fold rise, even though total inventories F1.210 fell 92,463 → 84,868. The warehouse is shifting from materials into unsold output.F1.214 · F1.210
- Revenue fell 14.0%: F2.010 400,773 → BYN 344,741k. The fall is confirmed in cash — receipts from customers F4.021 443,780 → 317,537 (−28.4%). Sales profitability F2.060/F2.010 4.81% → 1.66%.F2.010 · F4.021 · F2.060
- Net profit fell 72.4%: F2.210 6,118 → BYN 1,690k; its ratio to revenue 1.53% → 0.49%. Profit on sales F2.060 19,296 → 5,715.F2.210 · F2.010 · F2.060
- Current operations do not generate cash: receipts from current activity F4.020 BYN 550,859k against payments F4.030 558,437. The summary line for the current-activity result is not filled in the published form, so the flow is shown by the two lines; a year earlier it was 831,084 against 831,839.F4.020 · F4.030
- There is no own working capital: equity F1.490 BYN 117,499k is below long-term assets F1.190 123,872 — part of the long-term assets is funded by short-term liabilities F1.690 100,475.F1.490 · F1.190 · F1.690
- Equity is mostly revaluation-based: additional capital F1.450 BYN 96,218k out of the total F1.490 117,499 (82%), with an earned base F1.410 24,643 + F1.460 −7,022 = 17,621.F1.450 · F1.490 · F1.410 · F1.460
- Capital is shrinking, and not because of losses: F1.490 124,857 → 117,499 despite positive net profit F2.210 1,690 — it was additional capital F1.450 that fell, 106,253 → 96,218.F1.490 · F2.210 · F1.450
- Cash fell sixfold: F1.270 5,210 → BYN 875k.F1.270
- No dividends were paid in the reporting year: F4.092 1,956 → the line is not filled.F4.092
- Long-term deferred income appeared: F1.540 BYN 17,725k — the line did not exist a year earlier; it is the entire amount of long-term liabilities F1.590.F1.540 · F1.590
- The earned base is positive in both years: F1.410 24,643 + F1.460 −8,668 → −7,022 = BYN 15,975k and 17,621k; the accumulated loss F1.460 is narrowing.F1.410 · F1.460
- Payables were reduced: F1.630 112,318 → BYN 77,045k (−31.4%).F1.630
- Short-term loans are stable: F1.610 22,664 → BYN 22,521k.F1.610
- The current ratio improved: F1.290 140,503 → 111,827 against F1.690 136,169 → 100,475, a ratio of 1.03 → 1.11. The improvement came from shrinking liabilities rather than growing assets: current assets fell by 28,676 while finished goods F1.214 inside them rose to 48,104 — the cover became less liquid in composition.F1.290 · F1.690 · F1.214
- Net profit is positive in both years: F2.210 6,118 and BYN 1,690k.F2.210
Recommendation
Vityaz is the flagship of Belarusian production of color LCD televisions, household appliances, EV charging stations, and medical equipment, located in Vitebsk. 100% state-owned (the sole shareholder is the state), a significant employer (a city-forming candidate for Vitebsk). It produces ~1.1 million televisions a year and has a complex network of 6 subsidiaries (4 in RB, 2 in RF).
Recommendation: Restructuring. Operationally alive, but it needs:
- Restructuring of the product mix (moving away from the segment where Hisense/Xiaomi dominate on price; shifting into charging stations, medical equipment, OEM production — where management already declares diversification)
- A solution for the inventory overhang — either aggressive discounts or arrangements with subsidiary retail chains
- Cost discipline — management is independently executing a cost-reduction plan (actual 2,774k vs plan 1,166 — overachievement)
- Possibly — a state capital injection or subsidy via F1.540 (a new line of 17,725 — its nature requires clarification)
Privatization in the current form is problematic — the financial condition will not attract an investor, and Chinese competition persists; operational stabilization is needed first. Liquidation is ruled out — operationally alive, real equity positive, a regional employer. State investment is possible as a path, but without operational restructuring the money would go to covering the overstocking, not to development.
Why restructuring. Financial condition 2025 — operationally viable, but in a zone of strong pressure. Net profit is positive (BYN 1,690k), the balance sheet reconciles, real equity is positive (+17,621), debt is manageable. But margin compression is sharp: sales profitability 4.81% → 1.66% (−3.16 pp), net profitability 1.53% → 0.49% (−1.04 pp), net profit −72.4%. Revenue fell −14% (close to the 15% red-flag threshold). Finished-goods inventory grew 6.7× — a critical sign of overstocking, which management itself classifies via an "inventory-to-average-monthly-output ratio of 151.98% vs 23.9%" — the televisions are not selling. The root cause, per management's own analysis (explanatory note): Chinese price aggression in the RF market (Hisense/Xiaomi/TCL/Haier supplying directly), a general TV-sales decline of −12–15%, and a shift in demand toward cheap small-diagonal TVs.
Confidence: MEDIUM. The source is annual reporting for 2025; F4 is only partly filled — the summary cash-flow lines are missing from the snapshot, so of the 6 cross-form consistency checks 3 pass and three were not computed.