AsemconnectVietnam - Tien Len Steel Group Joint Stock Company (code TLH - HoSE) recorded a profit of VND5.3 billion in the third quarter, cumulatively in the first 9 months of 2023 recorded a profit of VND16.5 billion, down 86.4% over the same period.

In the third quarter of 2023, Tien Len Steel Company recorded revenue of VND1,324.52 billion, an increase of 14.3% over the same period and profit after tax recorded a profit of VND5.2 billion, a decrease of 23.5% compared to the same period last year. In particular, gross profit margin decreased sharply from 4.9%, to only 2.7%.
During the period, gross profit decreased by 36.9% over the same period, corresponding to a decrease of VND20.95 billion, to VND35.78 billion; Financial revenue increased by 185.4%, equivalent to an increase of VND8.4 billion, to VND12.93 billion; Financial expenses decreased by 12.4%, equivalent to a decrease of VND3.87 billion, to VND27.45 billion; Sales and corporate management expenses decreased by 4.5%, equivalent to a decrease of VND0.97 billion, to VND20.77 billion; Other profits recorded a profit of VND5.77 billion compared to the same period, recorded a negative profit of VND1.35 billion, an increase of VND7.12 billion and other activities fluctuated insignificantly.
In terms of core business activities (gross profit - financial costs - sales & corporate management costs), in the third quarter, Tien Len Steel Company recorded a loss of VND12.44 billion over the same period of VND3.67 billion, a decrease of VND16.11 billion.
Thus, in the third quarter, the gross profit that Tien Len Steel Company generated was not enough to cover financial, sales and business management costs. The Company escaped losses thanks to financial revenue and other profits.
The company said that financial revenue mainly recorded VND7.88 billion of profit from selling securities, VND3.84 billion of interest on exchange rate differences arising during the period... In addition, other income increased suddenly due to recording VND5.55 billion income from sale and liquidation of fixed assets.
Cumulatively in the first 9 months of 2023, Tien Len Steel Company recorded revenue of VND3,988.93 billion, an increase of 8.9% over the same period and profit after tax recorded a profit of VND16.5 billion, a decrease of 86.4% over the same period.
In 2023, Tien Len Steel Company sets a business plan with revenue of VND5,000 billion, and profit after tax of VND100 billion, a decrease of 6.1% and an increase of 11.5 times respectively compared to the implementation in 2022. Thus, at the end of the first 9 months of 2023, Tien Len Steel Company has only completed 16.5% of the year's profit plan.
There is still a provision of VND13.5 billion for securities investment
As of September 30, 2023, total assets of Tien Len Steel Company decreased by 5.4% compared to the beginning of the year, equivalent to a decrease of VND226.29 billion, to VND3,973.7 billion. Of which, main assets in inventory recorded VND2,754.95 billion, accounting for 69.3% of total assets; Short-term receivables recorded VND437.6 billion, accounting for 11% of total assets; Fixed assets recorded VND327.2 billion, accounting for 8.2% of total assets and other items.
During the period, the main fluctuating assets were short-term receivables increased by 17.2% compared to the beginning of the year, corresponding to an increase of VND64.3 billion, to VND437.6 billion; Inventory decreased by 8% compared to the beginning of the year, equivalent to a decrease of VND239.35 billion, to VND2,754.95 billion...
For the securities investment portfolio, as of January 1, 2023, the Company invested VND105.6 billion, made a provision of VND62.9 billion, but by September 30, 2023, the investment value Securities investment is only VND88.2 billion, provision provisioning is VND13.5 billion, equivalent to a temporary loss of 15.3%. Of which, the Company is investing VND12.02 billion in NVL shares, making an appropriation of VND1.73 billion; invested VND5.56 billion in IJC shares, made a provision of VND0.43 billion; invested VND4.59 billion in VIX shares, made a provision of VND0.7 billion; and invested VND66.1 billion and other stocks, making a provision of VND10.6 billion.
In addition, as of the end of the third quarter, total short-term and long-term debt of Tien Len Steel Company decreased by 17.9% compared to the beginning of the year, corresponding to a decrease of VND277.2 billion, to VND1,275.5 billion. Of which, short-term debt is VND1,271.2 billion and long-term debt is VND4.3 billion.
N.Nga
Source: VITIC/Tinnhanhchungkhoan