According to the periodic financial report sent to the Hanoi Stock Exchange (HNX), Galaxy EE extended its streak of losses with a deficit of over VND 16.6 billion in the first half of 2024. Cumulatively, from 2021 to the present, the company has lost more than VND 1,480 billion.
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Galaxy EE’s business indicators in the first half of 2024
Source: HNX
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A notable point is the equity capital indicator. Since 2022, Galaxy EE’s equity capital has significantly decreased from VND 847 billion to VND 260 billion, and then further declined to nearly VND 46 billion at the end of 2023. In the first half of 2024, the company continued to reduce its capital, leaving only over VND 1.8 billion.
As a result, the debt-to-equity ratio as of June 30, 2024, surged from 28.36 times at the beginning of the year to more than 759 times, equivalent to a total debt of nearly VND 1,400 billion. Similarly, the bond debt-to-equity ratio increased from 4.39 to nearly 111 times.
Currently, Galaxy EE has eight bond issues outstanding, with a total value of VND 200 billion. Despite the massive debt and continuous losses, the company fulfilled its interest payment obligations for these bonds in the first half of 2024.
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Galaxy EE’s bond interest payment status
Source: HNX
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In reality, these bonds have a two-year term. However, on May 18, 2023, Galaxy EE reached an agreement with bondholders to extend the maturity by another two years, while also increasing the applicable interest rate from 10% to 12%. The value of the collateral was also increased. Previously, the value of the collateral for the bond issues was determined to be “at least 100% of the total face value of the circulating bonds and all accrued interest.” After the change, the ratio was raised to 120%.
It is known that Galaxy EE was established on May 17, 2013, with its main business activities in the production of motion pictures, video films, and television programs. The company owns several well-known brands, including the online movie platform Galaxy Play, the film production unit Galaxy Studio, and the cinema chain Galaxy Cinema.
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