According to the periodic announcement on the financial situation of Thanh Cong Securities Joint Stock Company (UPCoM: TCI), equity in the first 6 months of 2023 recorded a slight increase of 2.5% to VND 1,221 billion.
On the contrary, Thanh Cong Securities' after-tax profit decreased 5 times compared to the same period last year, to just over 27 billion VND, while in the first 6 months of 2022 it was over 53 billion VND.
The debt/equity ratio recorded at 0.24 times, equivalent to the company having debt payable up to 293 billion VND. This period, the company has completely paid off the previous bond debt, while in the same period there was still a surplus of 202 billion VND.
In early 2022, Thanh Cong Securities issued a bond lot with a face value of VND 200 billion, bond code TCIH2223001, 1-year term and issued on February 23, 2022, fixed interest rate of 10%/year, with the aim of increasing the scale of working capital to finance margin lending and investment transactions. In which, this bond lot is secured by 19 million TCI shares.
However, with the unfavorable developments of the stock market in the second half of 2022, the value of TCI's collateral assets has decreased sharply. By November 2022, TCI had to buy back VND 50 billion of TCIH2223001 bonds before maturity on November 21, 2022.
On February 23, 2023, the company continued to buy back 1,500 bonds, equivalent to VND 150 billion. Therefore, TCI has now completely paid off the outstanding bonds issued by the enterprise.
Regarding the financial picture, in the second quarter of 2023, TCI's total operating revenue decreased by 24% to VND 36.5 billion, but financial operating revenue increased by more than 133 times to VND 24 billion.
After deducting expenses, Thanh Cong Securities' after-tax profit reached VND 19.4 billion, up slightly by 1%. In the first 6 months of 2023, the company's after-tax profit reached more than VND 27 billion, down 49% over the same period, so the company only completed 24% of the annual profit target.
As of June 30, TCI’s total assets were VND1,514 billion, up 14% compared to the beginning of this year. Owners’ equity expanded nearly 5.9% to VND1,221 billion thanks to a 135% increase in profit from available-for-sale (AFS) assets in the second quarter to nearly VND5.7 billion.
The company's liabilities increased sharply by 71% to VND293 billion. Most of which were new short-term loans at banks and financial institutions with VND279 billion.
In the same direction, outstanding margin loans also doubled at the beginning of the year to VND474 billion. However, this item currently accounts for only nearly 40% of equity, quite modest compared to other securities companies .
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