After two consecutive years of losses, Lam Dong Pharmaceutical (LDP) has just been fined by the State Securities Commission.

Lam Dong Pharmaceutical's 2 consecutive years of losses

Many securities companies forecast the pharmaceutical market to be positive in 2024. However, Lam Dong Pharmaceutical Joint Stock Company (Code LDP) has just experienced 2 consecutive years of losses of tens of billions. LDP's business results in the first 3 months of 2024 were just enough to escape losses.

Specifically, in 2022, Lam Dong Pharmaceutical recorded revenue of 187.4 billion VND. Gross profit was 37.5 billion VND, but increased operating costs and financial costs caused the company to lose 38.9 billion VND.

Lam Dong Pharmaceutical - Ladophar (LDP) has suffered losses for 2 consecutive years and has just been fined by the State Securities Commission (Photo TL)

Entering 2023, LDP's revenue remained stable at 186 billion VND, the after-tax loss decreased but still accounted for 20.1 billion VND, marking the second consecutive year that Lam Dong Pharmaceutical suffered heavy losses.

Entering 2024, Lam Dong Pharmaceutical plans to earn 275 billion VND in revenue, up 48% compared to last year. Of which, commercial goods are expected to bring in 102 billion VND, manufactured goods are expected to bring in 171 billion VND. Pre-tax profit is planned at 3 billion VND.

In fact, at the end of the first quarter of 2024, LDP recorded a revenue of VND 45.3 billion. Profit after tax was only a symbolic VND 178 million. In other words, LDP just barely escaped losses in the first quarter, completing only 16.4% of the revenue plan and more than 6% of the profit target for 2024.

Accumulated losses are getting bigger and bigger, eroding equity.

Before 2022, Lam Dong Pharmaceutical had suffered losses in its core business for three consecutive years. From 2018-2020, LDP continuously recorded losses of 20 billion, 7.8 billion and 28.7 billion VND from its core business.

These losses combined with two consecutive years of losses in 2022 and 2023 have caused a large amount of LDP's equity to be eroded.

By the end of the first quarter of 2024, LDP's total assets reached VND 189.1 billion. Most of which are short-term assets. Cash and cash equivalents recorded VND 15.1 billion.

Notably, most of LDP's assets are in the form of short-term receivables of VND82.5 billion. The amount of receivables is equivalent to 43.6% of LDP's total assets. In addition, LDP also has VND6.7 billion in bad receivables. The company's inventory is also at a low level, only recording VND842 million.

Regarding capital structure, LDP currently has 96.5 billion VND in liabilities, equivalent to 51% of total capital. Most of which is short-term debt, accounting for 63.5 billion VND.

The current equity is 92.5 billion VND, while the initial contributed capital is up to 127 billion VND. The reason for the loss of equity is due to the undistributed accumulated loss of 58.8 billion VND accumulated over the years of Lam Dong Pharmaceutical.

LDP was fined 92.5 million VND by the State Securities Commission

Recently, the State Securities Commission also issued a decision to sanction administrative violations in the field of securities and the securities market against Lam Dong Pharmaceutical.

Of which, LDP was fined VND92.5 million for failing to disclose information required to be disclosed under the law. The information includes documents and reports used in the extraordinary shareholders' meeting on December 20, 2023.

In addition, Lam Dong Pharmaceutical also disclosed information on the authorized person to disclose information, Mr. Le Tien Thinh, after the deadline, according to the Authorization to disclose information No. 55/GUQ-LDP/2023 dated December 20, 2023.

Source: https://www.congluan.vn/2-nam-lien-chim-trong-thua-lo-duoc-lam-dong-ldp-lai-vua-bi-ubcknn-xu-phat-post303938.html