AsemconnectVietnam - The financial report for Q1/2025 of SMC Investment and Trade Joint Stock Company (SMC - HOSE) shows that the enterprise recorded net revenue of nearly VND1,847 billion, down 17% compared to the same period last year.

Meanwhile, cost of goods sold increased by 17%, to VND1,804 billion. This caused the Company's gross profit to drop sharply by 37% to nearly VND43 billion.
SMC's revenue from financial activities in the quarter decreased by 98%, to only VND5.7 billion. The main reason is that in the same period last year, SMC earned nearly VND327 billion from selling NKG shares, while this quarter no longer recorded this revenue.
Despite efforts to cut costs during the period, SMC still could not escape a net loss from business operations of more than VND16 billion, compared to a profit of more than VND168 billion in the same period.
The only positive point is that other income increased sharply to VND21.7 billion, while in the same period only VND2.9 billion was recorded, mainly from revenue from liquidation and transfer of fixed assets, resulting in other profits reaching more than VND16.6 billion, while in the same period last year there was a loss of more than VND7 billion.
As a result, SMC recorded a profit after tax of VND127 million, escaping losses after 3 consecutive quarters, but a sharp decrease compared to the first quarter of 2024 when the profit was more than VND179 billion.
According to the Company's leaders, the economic situation in the first quarter of 2025 is still difficult, with a slow recovery rate due to the impact of political tensions, tariff wars and global trade. Along with that, the steel industry continues to face difficulties due to falling steel prices, low consumption demand and fierce competition from imported steel products.
Recently, SMC announced its audited consolidated financial statements for 2024 with after-tax profit down 75% compared to the self-prepared report, to just over VND12 billion. However, thanks to its return to profit in 2024, SMC has avoided the risk of being forced to delist its shares due to two consecutive years of losses (2022 and 2023).
However, the auditor still expressed doubts about the Company's ability to continue operating, as SMC still has an accumulated loss of VND140 billion, cash flow from business operations is negative by more than VND500 billion and short-term debt exceeds short-term assets by about VND600 billion.
Previously, SMC adjusted its 2024 financial report, changing from a loss of VND287 billion to a profit of more than VND48 billion. The reason was that the company adjusted the value of the provision for doubtful debts down from VND663 billion to VND328 billion, a decrease of 51%.
N.Nga
Source: VITIC/Tinnhanhchungkhoan