Pomina Steel continues to lose more than VND 225 billion in Q1/2024. Illustrative photo.
Pomina Steel JSC (Stock code: POM) has just announced its consolidated financial statement for Q1/2024, with recorded revenue reaching VND 471.44 billion, a decrease of 71.3% compared to the same period last year. Due to continuing to do business below the cost of capital, Pomina Steel recorded a gross loss of VND 6.5 billion (gross loss of VND 41.3 billion in the same period last year).
During the period, financial revenue decreased by 33.7%, equivalent to a decrease of VND 4.08 billion, to VND 8.02 billion, while financial expenses increased by 82.6%, equivalent to an increase of VND 65.9 billion, to VND 145.68 billion; selling and administrative expenses decreased by 19.7%, equivalent to a decrease of VND 14.4 billion, to VND 58.84 billion, and other activities fluctuated insignificantly.
As a result, Pomina Steel lost more than VND 225 billion in Q1/2024, in the same period last year, the loss was VND 186.8 billion.
Explaining the continued loss in the first quarter of 2024, Pomina Steel said that because Pomina 3 steel factory and Pomina 1 steel factory are still suspended but have to bear management costs and interest expenses. In which, interest expenses account for the largest proportion, resulting in a loss during the period, and currently the Company is looking for investors to restructure in order to be able to resume production as soon as possible.
With the continued loss in Q1/2024, as of March 31, 2024, Pomina Steel’s total accumulated loss amounted to VND 1,697.1 billion, equivalent to 60.7% of charter capital (charter capital of VND 2,796.8 billion).
As of March 31, 2024, Pomina Steel’s total assets decreased slightly by 3.2% compared to the beginning of the year, equivalent to a decrease of VND 328.8 billion, to VND 10,075.5 billion. In which, cash was only over VND 6 billion.
Short-term accounts receivable decreased by 21% compared to the beginning of the year. The value of inventory is also down to VND 551.2 billion.
Pomina Steel’s total borrowings at the end of March 2024 were recorded up to VND 6,232.9 billion (VND 5,386.9 billion in short-term borrowing and VND 845.97 billion in long-term borrowing), 5.3 times higher than the equity capital.
Pomina Steel explained that the largest creditor is Joint Stock Commercial Bank for Industry and Trade of Vietnam – Ho Chi Minh City Branch (VND 2,573.1 billion); Vietnam Development and Investment Bank – Ho Chi Minh City Branch (VND 1,639.2 billion); Joint Stock Commercial Bank for Foreign Trade of Vietnam (VND 488.5 billion)…
Previously, on April 10, Ho Chi Minh City Stock Exchange (HoSE) decided to forcibly delist nearly 280 million POM shares on HoSE from May 10, 2024. The reason for the delisting is because POM has been late in submitting audited financial statements for 3 consecutive years, and is subject to forced delisting. Previously, POM had sent a request to extend the submission of the 2023 audited financial statements to May 15, 2024, but it was not approved by HoSE.
