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 overstocking: F1.214 = 48,104 (vs 7,596 prior) = +6.7x; management (P11) acknowledges a stock-to-monthly-production ratio = 151.98% (vs 23.9%) — TVs not leaving the warehouse for ~5 months
- K2 sales profitability collapsing: 4.81% → 1.66% (-3.16pp); K2 net: 1.53% → 0.49%; net profit -72.4%
- K1 SOS provision = -0.057 (negative): current assets not covered by own sources; F1.490 − F1.190 = 117,499 − 123,872 = -6,373 — long-term assets funded by short-term payables
- OCF margin negative: -2.20% (vs -0.19% prior); management in the Notes (P12) cites 'free cash flow -4,070k BYN' with an assessment of 'declining cash flow'
- Management's own assessment (P12, Resolution No.16/46): medium bankruptcy-risk degree; liquidity — 'high risk'; quick liquidity — 'critical risk'; interest coverage 0.45 — 'critical risk'; debt/EBITDA 13.31 — 'critical risk'
- Export dependence on the RF = 99.9% of all exports; Chinese price aggression in the RF market (Hisense/Xiaomi/TCL/Haier); overall TV-sales decline in the RF -12-15%
- 10 planned targets for 2025 not met (management P11): profitability, exports, physical-volume index, net profit, cost reduction, investment, TV production volume, TV export volume, stock ratio
- Long-term-asset coverage on real capital (with long-term liabilities) = 0.285 — F1.490 is positive (117,499) but F1.450 fixed-asset revaluation = 96,218 (82% of capital). Real equity (F1.410+F1.460) = +17,621 — positive, but small. Coverage on standard capital 1.092 vs on real 0.285 — a large gap. Capital is nominal; liquidation is not realistic via asset sale (the revalued value may not match market value)
- Dividends accrued 1,372 (to the state shareholder), but actually paid 0 (vs 1,465 paid prior). The payment deadline is tied to Art.72 of the Economic-Companies law — deferred until circumstances are resolved. May be either a timing-shift (declared not paid) or a sign of financial strain
- K1 current ratio improving 1.032 → 1.113 (+7.9%), but still below the 1.25 requirement; management classifies it as 'high risk'
- Cash F1.270 = 875 (vs 5,210 prior), a 6-fold drop — the liquidity buffer is nearly exhausted
- Financial cycle grew 16.1 → 27.2 days; inventory turnover 78.3 → 101.5 days (management's own metric, P12)
- Appearance of F1.540 'deferred income' (long-term) = 17,725 (a new line, prior 0). Nature unclear — possibly state targeted financing (a capital-channel candidate) or deferred revenue from long-term contracts. Requires clarification via the Notes (an indirect subsidy sign, not directly confirmed)
- Real equity (F1.410 + F1.460) = +17,621k BYN, positive in both years (cur 17,621, prior 15,975) — structurally NOT bankrupt, unlike deeply distressed enterprises in the sample (with real equity around -85,854)
- Debt reduced: F1.630 short-term payables 112,318 → 77,045 (-31%); F1.610 short-term loans stable 22,664 → 22,521 (-0.6%). Overall debt falling
- Positive capital transition: F3.200 = 117,499 vs opening 124,857, a decline via dividends (-1,372) + revaluation reduction (-5,774), but not via loss — the operating base is positive
- Capital repair of fixed assets is active: F1.110 fixed assets +4k (+3.9%); F4.060 investment expenses (-202) — symbolic; the main inflow into fixed assets is via revaluation F2.220 = +8,215
- Net profit positive 1,690k BYN — operationally viable; not a liquidation zone
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). Exports make up ~82.5% of revenue — this is the first primary_group: export_oriented in the pilot after a long series of district-level agribusiness and mid-scale city-forming enterprises.
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 K2 4.81% → 1.66% (−3.16 pp), net K2 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 (Notes P11): 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. 99.9% of exports go to Russia — maximum concentration, a concrete risk.
Outcome — restructuring (distressed tier, MEDIUM confidence). Operationally alive, but it needs:
1. 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)
2. A solution for the inventory overhang — either aggressive discounts or arrangements with subsidiary retail chains
3. Cost discipline — management is independently executing a cost-reduction plan (actual 2,774k vs plan 1,166 — overachievement)
4. 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.