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The Revenue Tune: LDG Struggles to Stay Afloat with a Second Year of Losses

1 February, 2025

## LDG’s 2024 Financial Results: A Challenging Year

LDG’s 2024 business results in VND billion

Source: VietstockFinance

In 2024, LDG faced significant challenges as reflected in their financial results. The company recorded returns on sales of over VND 358 billion, a staggering 4.2 times higher than the previous year, while total revenue fell short at just over VND 185 billion. Consequently, LDG experienced a negative gross revenue of more than VND 173 billion.

Adding to their woes, LDG’s selling and management expenses witnessed a surge, with a 17% and 83% increase respectively, totaling nearly VND 14 billion and over VND 453 billion. Of this amount, over VND 417 billion was attributed to provisioning costs, which doubled compared to the previous period.

As a result of these unfavorable factors, LDG incurred a net loss of nearly VND 778 billion in 2024, marking its second consecutive year in the red. Moreover, this loss pushed the company’s cumulative loss as of December 31, 2024, to over VND 1,000 billion.

Despite the company’s financial struggles, all board members except Chairman Ngo Van Minh and Vice Chairman Nguyen Minh Khang received increased remuneration in 2024 compared to the previous year.

LDG’s Board of Directors’ remuneration in 2024

Source: LDG

Turning to the balance sheet, LDG’s total assets at the end of 2024 decreased by 9% from the beginning of the year, amounting to nearly VND 6,700 billion. This decline was primarily due to an increase in provisions for doubtful debts from VND 171 billion to nearly VND 508 billion, resulting in a 22% decrease in short-term receivables to over VND 2,900 billion. Notably, the company’s remaining cash balance stood at just over VND 900 million, a significant drop of 74%.

LDG’s bad debts from customers also revealed a substantial decrease in recoverable value over the year. Starting with over VND 1,600 billion (out of a total of VND 1,800 billion in principal debt) at the beginning of the year, it ended with over VND 1,000 billion (out of a total of over VND 1,600 billion in principal debt). The highest provisioning for bad debts was made for Bac Phuoc Kien JSC, amounting to nearly VND 663 billion.

On the liabilities side, LDG’s total liabilities increased by 12%, reaching over VND 4,100 billion, mainly due to a 17% rise in other short-term payables to nearly VND 1,500 billion. This included a nearly 95% increase in amounts payable to customers for project cancellations, totaling nearly VND 373 billion. In contrast, the company’s debt decreased by 6%, settling at nearly VND 1,300 billion.

LDG’s project cancellation liabilities as of the end of 2024