AsemconnectVietnam - Pomina Steel (POM) recorded a loss of VND504.36 billion in the first 6 months of 2023 after audit; Vicasa Steel (VCA) continues to report losses in Q3/2023; Thai Nguyen Iron and Steel (TIS) lost anotherVND 58.5 billion in Q3/2023. VNSteel reached VND7,947 billion net revenue in Q3/2023. Tien Len Steel Group Joint Stock Company (code TLH - HoSE) recorded a profit of VND5.3 billion in Q3/2023.

Pomina Steel (POM)
Pomina Steel Joint Stock Company (POM code – HOSE) recorded a loss of VND504.36 billion in the first half of 2023, bringing the total accumulated loss to VND758.1 billion VND, equal to 27.1% of charter capital.
After many delays in submitting semi-annual financial reports and being banned by the City Stock Exchange HCM (HOSE) put stocks under control from October 10. On October 13, Pomina Steel Company announced its 2023 semi-annual financial report audited by Ernst & Young Vietnam Co., Ltd.
The audit emphasized that in the first half of 2023, Pomina Steel Company incurred a loss of VND504.89 billion, increasing the accumulated loss until June 30, 2023 to VND758.1 billion. In addition, also as of June 30, 2023, Pomina Steel Company recorded short-term debt exceeding short-term assets of VND4,376.96 billion, and at the same time Pomina Steel Company had a number of outstanding loans overdue with the amount of VND2,200.1 billion, some short-term payables to sellers are overdue with payment of VND922.2 billion.
“These conditions, together with other matters, indicate the existence of material uncertainties that may cast significant doubt on Pomina Steel Company's ability to continue as a going concern,” the Company said. Ernst & Young Vietnam Limited emphasized.
Trading below cost in the first half of 2023
In terms of business activities, in the first half of 2023, Pomina Steel Company recorded revenue of VND2,192.39 billion, down 73% over the same period last year, the parent company's after-tax profit recorded loss of VND504.36 billion, compared to the same period, loss of VND22.97 billion, a decrease of VND481.39 billion over the same period.
Notably, Pomina Steel Company operates below cost, resulting in a negative gross profit of VND32.21 billion compared to a positive VND348.43 billion in the same period, or a decrease of VND380.64 billion.
It is known that in 2023, Pomina Steel Company plans revenue of VND9,000 billion and profit after tax to record a loss of VND150 billion. Thus, with a record loss of more than VND504 billion in the first half of 2023, this loss has exceeded the plan of only a loss of VND150 billion.
With losses in the first half of 2023, as of June 30, 2023, Pomina Steel Company's total accumulated losses amounted to VND758.1 billion, equal to 27.1% of charter capital.
Vicasa Steel (VCA)
Vicasa Steel Joint Stock Company - VNSteel (stock code VCA - HOSE) has just announced its financial statements for the third quarter and accumulated for the first 9 months of 2023 with losses narrowed significantly compared to the same period last year.
In the third quarter, the business recorded net revenue of VND390 billion, down 18% compared to the same period last year. Because the cost price decreased more strongly by 21%, to VND383 billion, VCA gross profit margin from negative nearly VND10 billion turned positive to more than VND7 billion.
This period, Vicasa simultaneously cut costs, specifically: financial costs decreased by 6% to more than VND3.2 billion; Sales costs decreased by 9% to nearly VND4.1 billion due to reduced transportation costs and reduced brand advertising costs; Business management costs were also sharply reduced by 42% to more than VND3 billion.
As a result, Vicasa's after-tax loss of nearly VND22 billion in the same period last year was narrowed to only a loss of VND2.7 billion in the third quarter.
Accumulated in the first 9 months of 2023, Vicasa's net revenue reached VND1,254.3 billion, down 32% over the same period last year and had a profit of VND3.5 billion, while the same period lost more than VND12.55 billion.
At the end of the third quarter of 2023, total corporate assets reached more than VND386 billion, an increase of 4% compared to the beginning of the year. Of which, the business has more than VND20 billion in cash. VCA's receivables decreased by more than 24%, to VND73.79 billion; Inventory increased by more than 24%, to VND244 billion, the Company also had to reserve more than VND2.2 billion for inventory depreciation.
Meanwhile, corporate liabilities also increased by 6%, to VND197.8 billion, all of which are short-term debt. Vicasa's short-term financial lease debt alone is more than VND137.7 billion.
Thai Nguyen Iron and Steel (TIS)
Thai Nguyen Iron and Steel Joint Stock Company (Tisco, stock code TIS - UPCoM) has just announced its consolidated financial statements for the third quarter and accumulated 9 months of 2023.
In the third quarter, Tisco recorded net revenue of VND2,413.8 billion, down 7% over the same period last year. Cost prices also decreased by 7%, to VND2,380 billion, so the company's gross profit reached VND33.8 billion, down 24% over the same period.
The company said that in the third quarter of this year, the steel consumption market faced many difficulties, output and selling prices decreased while input material prices were high. Of which, rolled steel consumption decreased by more than 14,490 tons, equivalent to a decrease of 8.3% over the same period.
The bright spot is that this period, TIS's financial revenue reached VND10.14 billion, 3.76 times higher than the same period. However, costs also increased by 14% to VND43.4 billion due to increased interest expenses and reduced reversal of long-term investment provisions.
Management costs increased sharply by 36% to VND48.9 billion mainly due to the third quarter of 2022 having a salary reserve reversal of VND27.2 billion. Selling costs were reduced by 8% to VND10.2 billion.
As a result, the Company's profit and loss after tax was VND58.5 billion, while the same period loss was more than VND25 billion. This is also the 5th consecutive quarter that Tisco is in losses.
Accumulated in the first 9 months of 2023, Tisco recorded net revenue of VND6,790 billion, down 29% over the same period, and a loss after tax of VND194 billion, while in the same period last year the profit was more than VND7 billion.
As of the end of the third quarter, total corporate assets reached VND10,690.8 billion, an increase of more than 5% compared to the beginning of the year. Of which, the Company also holds more than VND108.7 billion in cash and bank deposits. Tisco still has nearly VND1,000 billion in short-term receivables from customers and a reserve of up to VND347.7 billion for bad short-term receivables. TIS's inventory remains VND1,790.2 billion, a slight increase compared to the beginning of the year, mainly raw materials and finished products.
In addition, Tisco still has nearly VND6,530 billion in the Iron and Steel Improvement Project phase 2. The total investment cost of the entire project according to the initial estimate is VND3,843.67 billion and according to the approved adjusted estimate. The total new investment of the project is VND8,104.9 billion, the main contractor is China Metallurgical Group Corporation.
Currently, the project has taken longer than originally expected, Tisco's Board of Directors and Vietnam Steel Corporation continue to negotiate with contractors and coordinate with relevant state agencies to resolve difficult for the project. By September 30, 2023, the total investment value of the implemented project is VND6,530 billion, of which, capitalized loan interest is VND3,317 billion, the main costs incurred in the first 9 months of 2023 are capitalized loan costs.
On the other side of the balance sheet, TIS's total liabilities are VND9,011.1 billion, an increase of more than 9.5%. TIS's short-term and long-term debt alone is VND2,872 billion and VND1,734.5 billion.
VNSteel (TVN)
Vietnam Steel Corporation - Joint Stock Company (VNSteel, stock code TVN - UPCoM) has just announced its financial statements for the third quarter and accumulated 9 months of 2023.
In the third quarter, TVN's net revenue reached VND7,947 billion, down 7% over the same period last year, while cost of goods fell more sharply, down 12%, to VND176 billion, leading to corporate gross profit reaching VND176 billion, while the same period lost VND271 billion.
This period, TVN's financial revenue reached VND72 billion, down 74% compared to the same period last year. Costs were also simultaneously reduced, specifically: financial costs decreased by 25% to VND100 billion; Selling expenses decreased by 5% to VND52 billion and business management expenses decreased slightly by 2% to VND149 billion.
In addition, TVN also lost VND118.5 billion in joint venture companies. As a result, the Company's after-tax loss was VND172 billion in the third quarter of 2023, while the same period last year lost VND576.5 billion.
Accumulated in the first 9 months of 2023, Vietnam Steel's net revenue continues to decrease by 24%, to VND23,027 billion and loss after tax is VND453 billion (same period last year loss was VND412 billion).
Looking ahead, the Company forecasts that the global economic, socio-political, and security situation will continue to become complicated and unpredictable. Vietnamese businesses still face many difficulties in recovering production and business; Strategic commodities in the world market have many potential risks of price increases, exchange rate risks create pressure on the cost of importing raw materials, fuel, and domestic materials...
Faced with current difficulties, the Company has submitted to the General Meeting of Shareholders for consideration and approval of adjusting the production and business plan assigned for 2023 with the parent company's pre-tax profit target from VND52 billion to VND1 billion.
As of the end of the third quarter, total corporate assets reached VND23,284.6 billion, a slight increase compared to the beginning of the year. The company has VND1,517.7 billion in cash and cash equivalents; VND1,456.9 billion and short-term financial investment. Short-term receivables are VND2,953.8 billion, an increase of 18%; Of which, the Company has provisioned for short-term bad receivables of VND601.3 billion. Inventories decreased approximately 10%, to VND4,263.6 billion.
Capital construction costs increased by 4.3% compared to the beginning of the year, to 6,551.3 billion VND. The project to renovate and expand production of Thai Nguyen Iron and Steel Company alone accounted for nearly VND6,530 billion, of which capitalized loan costs were VND3,317 billion.
On the other side of the balance sheet, VNSteel's total debt is VND13,978 billion, an increase of 4.7%. A lot of debt comes from short-term payables to sellers of VND1,535 billion; short-term payable expenses VND2,161.6 billion; Short-term and long-term debt are VND5,767 billion and VND1,736.6 billion, respectively.
Tien Len Steel (TLH)
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