AsemconnectVietnam - SMC Investment and Trade JSC (code SMC - HOSE) recorded a loss of VND82.42 billion in the third quarter, the accumulated profit in the first 9 months of 2024 was VND6.8 billion and there was still an accumulated loss of VND146.97 billion.

Profit in 9 months from asset sales and divestment of investments
In the third quarter of 2024, SMC Commercial Investment recorded revenue of VND2,276.51 billion, down 27.5% year-on-year; profit after tax recorded a loss of VND82.42 billion compared to the same period of VND178.15 billion.
It is known that SMC Commercial Investment experienced 3 consecutive quarters of losses from the second quarter of 2023 to the fourth quarter of 2023, then made a slight profit of VND183.3 billion in the first quarter of 2024 and continued to lose again in two consecutive quarters, the second quarter of 2024 and the third quarter of 2024.
During the period, the Company recorded a positive gross profit of VND10.33 billion compared to the same period of negative VND41.36 billion, an increase of VND51.69 billion; Financial revenue decreased by 58.2%, equivalent to a decrease of VND 14.39 billion, to VND10.35 billion; financial expenses decreased by 44.5%, equivalent to a decrease of VND38.29 billion, to VND47.8 billion; sales and administrative expenses decreased by 17.8%, equivalent to a decrease of VND11.45 billion, to VND52.85 billion and other activities fluctuated insignificantly.
In terms of core business activities (gross profit - financial expenses - sales & administrative expenses), in the third quarter of 2024, SMC Investment and Trade recorded a loss of VND90.32 billion compared to the same period of VND191.75 billion.
Thus, in the third quarter, the gross profit generated by SMC Investment and Trade was not enough to pay for financial expenses, sales and administrative expenses.
In the first 9 months of 2024, SMC Investment and Trade recorded revenue of VND6,747.23 billion, down 36.2% over the same period, and after-tax profit recorded a profit of VND6.8 billion compared to a loss of VND585.95 billion in the same period, an increase of VND592.75 billion.
Explaining the slight profit of VND6.8 billion in the first 9 months of 2024, SMC Investment and Trade said that the steel market still faces many difficulties when steel prices decrease, domestic consumption demand is poor due to the real estate industry not really stabilizing, recovering, negatively affecting and directly affecting output. In addition, business performance in the first 9 months of 2024 mainly comes from financial activities and asset transfers.
In 2024, SMC Investment and Trade plans to have revenue of VND13,500 billion, down 1.5% over the same period; After-tax profit is expected to be VND 80 billion compared to the same period of VND925.3 billion loss, an increase of VND1,005.3 billion.
Thus, ending the first 9 months of 2024 with a profit of VND 6.8 billion, SMC Investment and Trade has only completed 8.5% of the profit plan of VND80 billion.
In fact, although it made a profit again in the first 9 months of 2024, as of September 30, 2024, SMC Investment and Trade still had an accumulated loss of VND146.97 billion, equal to 19.9% of charter capital (charter capital of VND736.8 billion).
Total assets decreased by VND1,103 billion in the first 9 months of 2024
Regarding the size of assets, as of September 30, 2024, the total assets of SMC Investment and Trade decreased by 17.9% compared to the beginning of the year, equivalent to a decrease of VND1,103 billion, to VND5,075.7 billion. In which, the main assets were short-term receivables recorded at VND1,427.8 billion, accounting for 28.1% of total assets; fixed assets recorded at VND1,321 billion, accounting for 26% of total assets; inventories recorded at VND814.6 billion, accounting for 16% of total assets; Cash and short-term financial investments recorded VND657.3 billion, accounting for 12.9% of total assets...
In particular, SMC Investment and Trade announced a list of bad debts of VND1,309.1 billion, with a provision of VND579 billion at the end of the third quarter of 2024.
In addition, it is worth noting that in the first 9 months of 2024, SMC Investment and Trade sold all NKG shares (to take profit), POM shares. On the contrary, it bought an additional VND104.79 billion of shares of Hoa Binh Construction Group Corporation (code HBC - UPCoM floor) in the second quarter, setting aside a provision of VND24.31 billion, meaning a temporary loss of 23.2% immediately after the investment.
It is known that previously, Hoa Binh Construction issued individual shares to convert debt, among the creditors buying the swap was SMC Investment and Trade. In particular, HBC shares have just been decided by the Ho Chi Minh City Stock Exchange (HOSE) to be delisted due to accumulated losses exceeding charter capital at December 31, 2023, which is a case of mandatory delisting and has been transferred to UPCoM.
In addition, in terms of capital sources, as of the end of the third quarter of 2024, total short-term and long-term debt decreased by 20.1% compared to the beginning of the year, equivalent to a decrease of VND607.1 billion, to VND2,410.4 billion and equal to 299.6% of equity (equity is only VND804.6 billion).
In addition, also at September 30, 2024, short-term debt was recorded at VND3,974.3 billion, short-term assets were recorded at VND3,197.2 billion. Thus, short-term debt is VND777.1 billion larger than short-term assets, or more correctly, SMC Investment and Trade is using VND777.1 billion of short-term capital (less than 1 year) to finance long-term assets (term greater than 1 year).
N.Nga
Source: VITIC/Tinnhanhchungkhoan