In the first quarter of the year, the steel trading company recorded net revenue of nearly VND 1,850 billion and a net profit of nearly VND 2 billion, down 17% and 99%, respectively, compared to the same period.
SMC’s Q1/2025 Business Results
Unit: Billion VND
Source: VietstockFinance
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The dismal performance was mainly due to a decline in core business activities (gross profit down 37%) and no longer recognizing profits from the sale of NKG shares (financial income of nearly VND 330 billion in the same period last year). If the other income of nearly VND 17 billion was not recognized, SMC would have fallen into a loss-making state.
SMC‘s business operations face challenges amid weak demand, declining steel prices, domestic oversupply, and a wave of protectionism globally. In addition, capital retrieval has been arduous as the company’s partners, mostly from the real estate industry, have yet to recover. By the end of Q1/2025, SMC slightly increased provisions for doubtful short-term debts to VND 365 billion.
Unstable Finance
The balance sheet also indicates SMC‘s precarious financial situation. As of Q1/2025, SMC held over VND 2,960 billion in short-term assets, including nearly VND 660 billion in cash and short-term financial investments.
On the other side of the balance sheet, short-term debts amounted to nearly VND 3,820 billion, including short-term borrowings of over VND 2,150 billion.
The company’s short-term liabilities exceeding its short-term assets is also one of the reasons why auditors have drawn attention to SMC’s ability to continue as a going concern in the recently published 2024 audit report.
Post-audit 2024: SMC turns profitable, avoids delisting thanks to agreement with Novaland
– 15:24 05/07/2025
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