AsemconnectVietnam - Pomina Steel Joint Stock Company (POM code - HOSE) continued to lose VND312.7 billion in Q4/2023, cumulatively for the whole year 2023 recorded a loss of VND959.7 billion.

In the fourth quarter of 2023, Pomina Steel recorded revenue of VND333.28 billion, down 81.5% over the same period, the parent company's profit after tax recorded a loss of VND312.7 billion compared to the same period VND459.4 billion.
During the period, the Company no longer operated below cost, resulting in a positive gross profit of VND22.17 billion compared to a negative VND241.6 billion in the same period, an increase of VND263.8 billion. In addition, during the period, financial revenue decreased by 71.7%, equivalent to a decrease of VND21.72 billion, to VND8.59 billion; Financial costs decreased by 2.6%, equivalent to a decrease of VND4.8 billion, to VND180 billion; Sales and corporate management expenses decreased by 47.2%, equivalent to a decrease of VND14.22 billion, to VND15.92 billion; Other profits recorded a loss of VND148.3 billion compared to the same period, a loss of VND35.3 billion, an increase in loss of VND113.1 billion; and other activities fluctuated insignificantly.
Thus, in the last quarter of 2023, gross profit only generated VND22.17 billion while financial costs amounted to more than VND180 billion, and other activities lost more than VND148 billion, these are the two main reasons resulting in a loss in the fourth quarter.
Explaining the continued profit loss in the fourth quarter, Pomina Steel said that Pomina Steel Factory 3 is still out of operation but has to bear many costs including interest costs. The Company is restructuring and has found a new investor. All procedures are awaiting approval from the General Meeting of Shareholders scheduled to take place on March 15, 2024. After the General Meeting of Shareholders, the Company will issue Pomina 3 steel factory is back in operation, expected in the second quarter of 2024.
In addition, Pomina Steel also said that the real estate situation is still frozen, steel consumption demand and revenue during the period decreased sharply, while fixed costs and high interest rates caused large losses during the period.
Cumulatively in 2023, Pomina Steel recorded revenue of VND3,281.2 billion, down 74.6% over the same period, and the after-tax profit of parent company shareholders recorded an additional loss of VND959.7 billion compared to the same period lost VND1,166.9 billion.
It is known that in 2023, Pomina Steel Company plans a revenue of VND9,000 billion and profit after tax to record a loss of VND150 billion. Thus, the loss in 2023 has far exceeded the loss plan of VND150 billion.
In addition, with continued losses in 2023, as of December 31, 2023, Pomina Steel's total accumulated loss is VND1,270.96 billion, equal to 45.4% of equity.
In terms of cash flow, in addition to losing business for the second consecutive year, in 2023, Pomina Steel's main business cash flow also recorded a negative VND331.3 billion compared to a positive VND15.3 billion in the same period. In addition, investment cash flow recorded a positive VND8.2 billion and financial cash flow recorded a positive VND127.1 billion.
As of December 31, 2023, Pomina Steel's total assets decreased by 5.7% compared to the beginning of the year, equivalent to a decrease of VND627.3 billion, to VND10,404.3 billion. Of which, the main assets were long-term unfinished assets recorded at VND5,808 billion, accounting for 55.8% of total assets; Short-term receivables recorded VND1,603.2 billion, accounting for 15.4% of total assets; Fixed assets recorded VND1,446.2 billion, accounting for 13.9% of total assets...
As for capital, by the end of 2023, total short-term and long-term debt increased by 1.5% compared to the beginning of the year, corresponding to an increase of VND93.83 billion, to VND6,312.47 billion and equal to 395.8 % of equity (at the beginning of the year recorded VND6,218.64 billion, equal to 238.1% of equity).
Worth noting, as of December 31, 2023, total short-term debt was VND7,963.6 billion and short-term assets recorded VND3,099.3 billion. Thus, short-term debt is greater than short-term assets by VND4,864.3 billion, or it can be understood that the Company is using VND4,864.3 billion of short-term capital of less than 1 year to finance long-term assets with a maturity period term greater than 1 year.
N.Nga
Source: VITIC/Tinnhanhchungkhoan