AsemconnectVietnam - After a year of business losses, Nam Kim Steel Joint Stock Company (code NKG - HoSE) plans to be profitable again and will not pay dividends in 2022.

Profit plan in 2023 when the most difficult things are over
Nam Kim Steel Joint Stock Company announced the document of the Annual General Meeting of Shareholders in 2023, the meeting is expected to be held on April 21 in Ho Chi Minh City.
In 2023, Nam Kim Steel sets a business plan with a total revenue of VND20,000 billion, up 13.5% over the same period and an expected profit before tax of VND400 billion over the same period, a loss of VND106.91 billion, ie an increase of VND506.91 billion. In which, the total production is estimated at 940,000 tons.
Nam Kim Steel assesses that 2023 is the year that the Board of Directors considers the time to strengthen relationships with domestic and foreign partners as well as stabilize the financial situation. Experiencing extremely difficult periods in the past, such as the period of Vietnam economic crisis 2011-2012 or the trade war period 2018-2019, the Company believes that the market in 2023 will not be really favorable for growth but the hardest is over.
It is known that in 2022, Nam Kim Steel has retained its market share in the Top 3 largest coated steel companies in Vietnam with a market share of 16.9%.
Regarding dividends, Nam Kim Steel is not expected to pay dividends in 2022 due to negative profit after tax.
Another notable content, the Company plans to submit to shareholders to continue merging with Dae Myung Paper Vietnam Co., Ltd and authorize the Board of Directors to carry out the merger.
In 2022, profit decreased by VND57.98 billion after the audit
After the audit of the financial statements in 2022, the profit of Nam Kim Steel decreased by VND57.98 billion, from a loss of VND66.71 billion to a loss of VND124.68 billion.
In which, mainly due to the increase in cost of goods sold by VND60.85 billion, from VND21,529 billion to VND21,589.9 billion.
Nam Kim Steel explained that the cost of goods sold increased after the audit due to the provisioning for inventory at the Subsidiary "Nam Kim Steel Pipe" and do not eliminate this year's unrealized loss for the Subsidiary "Nam Kim Steel Pipe".
With the 2022 audit report recording a loss, the Ho Chi Minh City Stock Exchange (HoSE) has decided to include NKG shares in the list of stocks ineligible for margin trading from March 30, 2023.
Accumulated in 2022, Nam Kim Steel recorded revenue of VND23,071.25 billion, down 18.1% compared to the previous year and profit after tax loss of VND124.68 billion compared to the same period of VND2,225.3 billion. In which, gross profit margin decreased from 15.2% to 6.4%.
During the period, gross profit decreased by 65.3%, equivalent to VND2,788.5 billion, to VND1,481.4 billion; financial revenue increased by 52%, equivalent to an increase of VND 103.66 billion, to VND 302.88 billion; financial expenses increased by 26.5%, equivalent to VND105.51 billion, to VND502.98 billion; selling and administrative expenses decreased by 8.7%, equivalent to VND132.59 billion, to VND1,388.08 billion and other activities did not change significantly.
In 2022, Nam Kim Steel sets a target of total revenue of VND28,000 billion and profit after tax of VND1,600 billion. Thus, with a loss of VND124.68 billion in 2022, Nam Kim Steel has not fulfilled the profit target of VND1,600 billion that the General Meeting of Shareholders assigned to the Board of Management.
N.Nga
Source: VITIC/Tinnhanhchungkhoan