On December 3rd, JSC Song Da 6 (SD6) announced a resolution approving the adjustment of the time frame for cash dividend payments for the remaining 5% of 2015 and 5% for the first phase of 2016.
Consequently, the company has postponed the dividend payment deadline by one year. According to the previously approved plan, the dividend payment date was December 31st, 2024. The adjusted schedule for the aforementioned 10% dividend payment is now December 31st, 2025.
The reason for this delay is attributed to the company’s inability to arrange funds for payment as per the approved plan. It is estimated that SD6 needs to allocate approximately VND 34.77 billion to cover these dividend payments.
As a result, after more than 8 years, SD6 has yet to fulfill dividend payments from 2016.
JSC Song Da 6, formerly known as Hydraulic Construction Company, is a subsidiary of Song Da Corporation, established on May 1st, 1983. The company underwent privatization and transformed into a joint-stock company as of January 1st, 2006. Currently, Song Da Corporation holds 65% of SD6’s charter capital.
SD6’s primary business activities revolve around the construction of hydroelectric, irrigation, transportation, civil, and industrial projects, among others.
Notable projects that the company has participated in as an investor and builder include Hoa Binh Hydropower Plant, Son La Hydropower Plant, Lai Chau Hydropower Plant, Ngang Pass Road Tunnel, Cat Linh – Ha Dong Elevated Railway in Hanoi, and 18T1 – HH6 Building in Nam An Khanh New Urban Area, to name a few.
In terms of financial performance, after incurring losses for five consecutive quarters, SD6 returned to profitability in Q3 2024. Specifically, the company’s net revenue for this quarter amounted to nearly VND 31 billion, reflecting a 31% decrease compared to the same period last year. However, a significant reduction in cost of goods sold, financial expenses, and management expenses contributed to a positive turnaround, resulting in a post-tax profit of over VND 12 billion. In contrast, the company experienced a loss of VND 40 billion in the corresponding quarter of the previous year.
For the first nine months of 2024, SD6 recorded net revenue of VND 88.6 billion, a 10% decline year-over-year. The post-tax profit for this period stood at VND 83.6 million, compared to a loss of over VND 75 billion in the same period last year. As of Q3 2024, the accumulated loss amounted to nearly VND 277.7 billion.
In the stock market, SD6 was delisted from the exchange on August 23rd, 2024, due to consecutive years of unprofitable operations (2021, 2022, and 2023). Subsequently, in early September, over 34.77 million SD6 shares were transferred to the UpCOM market for trading.
The company’s primary business activities revolve around the construction of hydroelectric, irrigation, transportation, civil, and industrial projects, among others.
Notable projects that the company has participated in as an investor and builder include Hoa Binh Hydropower Plant, Son La Hydropower Plant, Lai Chau Hydropower Plant, Ngang Pass Road Tunnel, Cat Linh – Ha Dong Elevated Railway in Hanoi, and 18T1 – HH6 Building in Nam An Khanh New Urban Area, to name a few.
In terms of financial performance, after five consecutive quarters of losses, SD6 returned to profitability in the third quarter of 2024. Specifically, the company’s revenue for this quarter reached nearly VND 31 billion, a 31% decrease compared to the same period in 2023. However, a significant reduction in cost of goods sold, financial expenses, and management expenses contributed to a positive turnaround, resulting in a post-tax profit of over VND 12 billion. In contrast, the company experienced a loss of VND 40 billion in the third quarter of 2023.
For the nine-month period ending September 30th, 2024, SD6 recorded revenue of VND 88.6 billion, a 10% decline year-over-year. The post-tax profit for this period was VND 83.6 million, compared to a loss of over VND 75 billion in the same period last year. As of the end of the third quarter of 2024, the accumulated loss amounted to nearly VND 277.7 billion.
In the stock market, SD6 was delisted from the exchange on August 23rd, 2024, due to consecutive years of unprofitable operations from 2021 to 2023. Subsequently, in early September 2024, over 34.77 million SD6 shares were transferred to the UpCOM market for trading.
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