CBI Steel Enterprise Slips Into Losses, TDS Profits Drop Sharply

Up to now, a number of steel enterprises have announced their business results for the first quarter of 2025. In particular, the financial report for the first quarter of 2025 of Cao Bang Iron and Steel Corporation (CBI) shows that the enterprise has been sliding into losses.

CBI recorded net revenue of only nearly VND418 billion, down nearly 39% compared to the same period last year. Meanwhile, the cost of goods sold was higher than revenue (VND440 billion), causing the company to have a gross loss of VND22 billion.

Notably, selling expenses skyrocketed to over VND12 billion, nearly 25 times higher than the same period last year, mainly due to the cost of transporting steel billets. As a result, Cao Bang Iron and Steel lost more than VND50.5 billion after tax, while in the same period last year it still made a profit, albeit modest (VND958 million).

This is the fourth consecutive quarter that the company has reported a loss, bringing the total loss in 2024 to VND160 billion. The main reason is explained by the fact that the steel billet consumption output in the first quarter of 2025 decreased by nearly 35%, to about 33,121 tons, while the selling price also decreased by 6.3% compared to the same period.

Illustration photo.

CBI's financial situation continues to be worrying as its liabilities amount to more than VND1,787 billion, of which loans account for more than VND714 billion. Inventories also increased by more than 8%, to VND966 billion - accounting for nearly half of total assets.

Thu Duc Steel Corporation VnSteel (TDS) also strives to maintain profits amid rising costs. Thanks to a 54% increase in rolled steel sales, the company recorded a 39.1% increase in gross profit. However, sales and administrative expenses also increased by more than 14%, combined with the fact that nearly VND3.6 billion of land rental costs were reimbursed in the same period last year, causing after-tax profit in the first quarter of 2025 to decrease by 21.4%, to about VND2.1 billion.

Meanwhile, Seoul Metal Vietnam JSC - a 100% invested enterprise of Seoul Metal Tech Group (Korea) specializing in providing metal components achieved revenue of VND 121.1 billion, a slight increase over the same period. Profit after tax reached VND 10.1 billion, a slight decrease of 8% compared to VND 11 billion in the first quarter of 2024.

In contrast to the above declines and losses, in the context of a volatile steel market, Thong Nhat Sheet Steel Joint Stock Company (TNS) recorded a 56% increase in profit compared to the same period last year. Although revenue decreased sharply by 44% compared to the same period, to more than 450 billion VND, thanks to a deeper decrease in cost of goods sold (45%), the company still recorded a 12% increase in gross profit, reaching nearly 17 billion VND.

TNS reported a profit after tax of nearly VND9 billion in the first 3 months of this year, up 56% over the same period last year. According to TNS, this result was achieved due to the company finding new customers, maintaining existing customers, and finding sources of goods at reasonable prices. The company also implemented solutions to reduce costs and improve business efficiency, helping to reduce capital by 45%, increasing gross profit by 12% over the same period. In addition, interest expenses decreased by 48% and sales and business management expenses also decreased sharply, helping to increase profit after tax.

Meanwhile, the revenue of Hoa Phat Group Joint Stock Company (HPG) in the first 3 months of 2025 recorded a modest growth, reaching more than 37,900 billion VND, an increase of 22% over the same period last year. Profit after tax was more than 3,300 billion VND, equivalent to completing 16% of the 2025 profit plan.

Thu An

Source: https://doanhnghiepvn.vn/kinh-te/kinh-doanh/doanh-nghiep-thep-cbi-truot-dai-trong-thua-lo-loi-nhuan-tds-giam-manh/20250421101927933