Thien Long Group reports a decline in profits for Q1 2024. Image for illustrative purposes.
Thien Long Group Corporation (TLG) recently released its consolidated financial report for the first quarter of 2024, revealing a 12% decrease in net revenue to VND 808.6 billion compared to the same period last year. After deducting the cost of goods sold, TLG’s gross profit amounted to VND 343.4 billion, a 10.7% decrease compared to Q1 2023.
During the period, financial revenue fell by 35.3% to VND 8.6 billion. Financial expenses decreased by 39.8% to VND 5.3 billion; selling expenses decreased by 10% to VND 156.1 billion. Business management expenses also decreased by 11.4% to VND 82.3 billion.
Consequently, TLG reported a post-tax profit of VND 88.3 billion, a decrease of 11.7% compared to the same period last year.
As of March 31, 2024, Thien Long’s total assets increased by nearly VND 69 billion compared to the beginning of the year, reaching VND 2,877.2 billion. Notably, the company has VND 600.5 billion in bank deposits. Short-term accounts receivable increased by 39.6% to VND 612.5 billion. Inventories increased slightly to VND 838.7 billion.
Thien Long’s total liabilities as of the end of March 2024 were recorded at VND 698 billion. Of which, outstanding financial debt is VND 321.1 billion, an increase of 13.2% compared to the beginning of the year.
At the 2024 Annual General Meeting of Shareholders held on April 24, TLG shareholders approved the 2024 business plan with a net revenue target of VND 3,800 billion, a consolidated post-tax profit of VND 380 billion, and a dividend payout of 35% of par value.
In addition, the meeting approved a dividend payment of 35% of par value for 2023, with 25% in cash and 10% in shares. In 2023, the company paid an interim cash dividend of 15%, equivalent to VND 116.7 billion. The AGM authorized the Board of Directors to determine the record date for the remaining 10% cash dividend payout for 2023, in accordance with the approved plan for issuing shares as dividends for 2023.
The meeting also approved a plan to issue shares as dividends for 2023. The ratio of the number of shares issued will be 10%, corresponding to the issuance of nearly 7.9 million shares. The actual ratio will be 10:1 (each shareholder owning 1 share will have 1 right to receive a dividend in shares; for every 10 rights, an additional 1 new share will be received). The implementation will take place after the State Securities Commission has received all necessary documentation for the issuance, which is expected in Q2 or Q3 of 2024.
Furthermore, TLG also plans to issue shares under its Employee Stock Option Plan (ESOP) if the consolidated net revenue for 2024, according to its independently prepared/audited financial statements, reaches VND 4,000 billion or higher. The number of shares expected to be issued is 1% of the company’s total outstanding shares at the time of issuance.
