AsemconnectVietnam - Thai Nguyen Iron and Steel Joint Stock Company - Tisco (stock code TIS - UPCoM) has just announced its financial statements for the second quarter of 2023 with a profit after tax loss of nearly VND100 billion.

In the second quarter of 2023, the Company's net revenue reached VND1,946.4 billion, down 39% compared to the second quarter of 2022. Due to trading below cost (VND1,970.3 billion), TIS's gross loss was approximately VND24 billion during the period.
This period, financial revenue of TIS increased by 30% to VND13.46 billion. However, financial expenses also increased by 28.4%, to more than VND45 billion. While corporate selling expenses decreased by 41% to more than VND8.1 billion, administrative expenses increased by 127%, to more than VND50 billion.
As a result, TIS lost VND98 billion after tax in the second quarter of 2023, while in the same period last year, it profited nearly VND4 billion. The company said this result was due to a sharp decrease in selling prices, while the price of input materials (ingot, scrap steel) decreased slowly, and total costs increased over the same period. Thus, this is the fourth consecutive quarter of loss for TIS since the third quarter of 2022.
In the first 6 months of 2023, Tisco recorded net revenue of VND4,392 billion, down 36.5% over the same period last year and a loss after tax of more than VND117 billion (nearly VND33 billion in the same period).
This result of TIS is not surprising given that weak steel demand remains weak in most regions of the world and affects the selling price of finished steel. Since the beginning of the year, steel prices have continuously decreased (especially construction steel has had 12-13 consecutive declines) while consumption has not improved, making the business results of the steel industry forecasted to be difficult in the second quarter.
As of June 30, the total assets of the enterprise reached VND10,617.6 billion, up 4.2% compared to the beginning of the year. In which, cash and cash equivalents increased by 107%, reaching VND216.3 billion; short-term receivables increased by 36.7% to VND682 billion and inventories decreased slightly to VND1,753.8 billion.
In contrast, Tisco had VND8,785 billion of liabilities, up 6.8% compared to the beginning of the year. Short-term and long-term debt of the enterprise remained at VND2,994 billion and VND1,716 billion, respectively. The positive point is that TIS's business cash flow has changed from negative VND172.8 billion to more than VND17 billion positive.
N.Nga
Source: VITIC/Tinnhanhchungkhoan