Loc Troi (LTG) shares lost 33% of their value
At the end of the trading session on October 11, 2024, shares with code LTG of Loc Troi Group Corporation closed at VND 9,300/share.
The volume of shares traded in the session was about 2.6 million units, the market price decreased by 10% compared to the previous session. Compared to the beginning of the week, LTG's market price decreased by more than 33%. The capitalization value dropped sharply from 1,410 billion VND to only 937 billion VND.
Loc Troi Group (LTG) shares fell below par value, only VND 9,300/share at the session on October 11, 2024.
Compared to 1 year ago, LTG has decreased by more than 70% in value, almost reaching the bottom it reached in 2020. Many investors believe that the downward trend has not shown any signs of stopping because the "scandals" in the company's operations have not ended.
Farmers' rice debt, upper-level conflict
The first negative information about Loc Troi Group is the debt of rice purchase money from farmers. In early 2024, the Department of Agriculture and Rural Development of An Giang province announced that Loc Troi Group owed money to buy rice from 900 farming households, with a total debt of up to 245 billion VND.
Although the company resolved the case in May 2024, it still makes investors wonder what is happening at this famous agricultural corporation?
Loc Troi Group is constantly entangled in scandals, from changing leaders to owing farmers money for buying rice (Photo TL)
Immediately after that, information about the 'scandal' with the company's former General Director continued to attract public attention. Accordingly, on July 15, 2024, Loc Troi Group dismissed Mr. Nguyen Duy Thuan from his position as General Director. At the same time, Mr. Huynh Van Thon, Chairman of the Board of Directors, was assigned to temporarily run the company until the company appointed a new CEO.
The above incident did not stop at changing the personnel structure. On July 24, 2024, Loc Troi Group sent a document requesting the People's Committee of An Giang province to revoke the APEC card and apply a temporary exit suspension measure for Mr. Nguyen Duy Thuan. The reason given by Loc Troi was that Mr. Thuan avoided and was irresponsible in handing over the matter and showed signs of leaving the country to shirk responsibility.
Recently, the People's Committee of An Giang province issued Official Dispatch No. 4902 stating that it had received an official dispatch on the above issue from Loc Troi Group and had proposed transferring it to the provincial police for consideration and resolution according to its authority.
Revenue growth still loss 96 billion VND, negative cash flow 434 billion
Loc Troi's business situation faced many difficulties in the first quarter of 2024. Revenue in the quarter reached VND 3,849 billion, up 57% over the same period last year. However, the very high cost of goods sold caused gross profit to be only VND 245 billion, equivalent to a gross profit margin of 6.4%.
Financial revenue during the period was VND33 billion, but financial expenses accounted for VND189 billion. Of which, the interest payable alone amounted to VND127 billion. It can be seen that the loss from financial activities has eroded almost all of the company's profits.
In addition, Loc Troi still has to bear additional sales costs and business management costs, accounting for 137 billion and 105 billion VND respectively. As a result, the company lost 96 billion VND in the first quarter of 2024.
The business losses have also greatly affected the company's cash flow. The company's cash flow from operating activities is negative VND434 billion, compared to a negative VND2,710 billion in the same period last year. The amount of cash on the financial statements is only VND106 billion and VND120 billion in short-term deposits. Compared to the beginning of the year, the amount of cash has decreased 5 times in just 3 months.
Source: https://www.congluan.vn/dong-tien-am-434-ty-lanh-dao-vuong-lum-xum-co-phieu-loc-troi-ltg-lao-doc-33-trong-1-tuan-post316507.html
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