An Cuong Wood (ACG) was fined and had to pay 2 billion VND in back taxes, Q2 profit decreased by 31%

An Cuong Wood (ACG) has just been fined and had to pay back nearly 2 billion VND in taxes.

On August 16, 2023, An Cuong Wood Joint Stock Company (HoSE code: ACG) received a decision on administrative sanctions from the General Department of Taxation with a total fine and tax arrears of more than 2 billion VND.

In which, An Cuong Wood under-declared the tax payable by 1.6 billion VND and was fined 326 million VND, equivalent to 20% of the tax payable. Of the 1.6 billion VND underpaid tax, there were 413 million VND in VAT and 1.2 billion VND in corporate income tax.

In addition, An Cuong Wood must pay an additional VND 81 million in late tax payment penalties by August 3, 2023. Thus, the total amount of fines and tax arrears that An Cuong Wood must pay is more than VND 2 billion.

Wood industry faces difficulties, An Cuong Wood's profit in Q2 decreased by 31.6%

Regarding business results in the second quarter of 2023, An Cuong Wood recorded net revenue of VND 968 billion, down 9% over the same period. Gross profit reached VND 280 billion, gross profit margin decreased from 29.1% to only 28.9%.

Financial revenue during the period decreased by 20% to only VND38 billion. Meanwhile, financial expenses, mostly interest expenses, increased by 38% to VND13 billion. Sales expenses and business management expenses both increased to VND128 billion and VND47 billion, respectively.

Profit 2 reduced by 316, An Cuong ACG was just fined and had to pay back 2 billion VND in taxes. — An Cuong Wood's Q2 profit decreased by 31.6%, shares changed floors twice, losing nearly 50% of their value compared to the peak (Photo TL)

After deducting all expenses and taxes, ACG's after-tax profit was nearly VND109 billion, down 31.6% over the same period last year.

The reason for the decline in revenue and profit given by An Cuong Wood is due to the complicated domestic and international economic situation, consumers are cautious in spending. At the same time, in the second quarter, increasing costs also put pressure on the company's production and business results.

An Cuong Wood and 2 floor changes, stock price drops by more than half

On October 10, 2022, An Cuong Wood Joint Stock Company switched to listing ACG shares on the HoSE with a reference price on the first trading day of VND 67,300/share. Previously, ACG was listed on the UPCoM exchange since August 2021 with a price of up to nearly VND 90,000/share.

At present, ACG shares are only trading at 44,400 VND/share. Thus, it can be seen that after nearly 2 years, with 2 floor changes, ACG shares have "evaporated" more than 50% of their value.

In terms of asset size, by the end of the second quarter of 2023, ACG's total assets reached VND 5,237.8 billion. The majority of which is equity at VND 4,006.6 billion. Liabilities accounted for VND 1,231.2 billion, mostly short-term debt.

An Cuong Wood's short-term debt has decreased sharply from VND813.7 billion at the beginning of the period to only VND622 billion, equivalent to a decrease of nearly VND200 billion in just the first 6 months of the year. This shows that the company is reducing the scale of short-term debt.

In ACG's asset structure, cash decreased sharply from VND387.9 billion at the beginning of the period to only VND61 billion. But in the opposite direction, bank deposits increased from VND1,049 billion to VND1,297 billion. The shift in cash and short-term deposits shows a defensive trend in the unit's business strategy.

Source