Loc Troi appoints new General Director in the midst of 'extreme hardship'
Loc Troi Group (stock code LTG) has just announced the appointment of Mr. Nguyen Tan Hoang as General Director, from October 16, 2024.
Mr. Nguyen Tan Hoang, born in 1977, started working at Loc Troi in August 2012 and has been the Group's chief accountant since 2012. Before joining Loc Troi, Mr. Hoang held many important positions at CP Vietnam, NLSH Phuong Dong, etc.
Taking responsibility in what is considered the most difficult period of Loc Troi, the new General Director of Loc Troi pledged to revive Loc Troi from the crisis. The decision to appoint Mr. Nguyen Tan Hoang to the position of General Director is also considered an important milestone in the restructuring process, perfecting key personnel for the leadership position of Loc Troi Group.
Mr. Nguyen Tan Hoang - new General Director of Loc Troi Group.
At Loc Troi, Mr. Hoang personally owns 15,000 shares.
Previously, Loc Troi's Board of Directors approved the dismissal of Mr. Nguyen Duy Thuan from the position of General Director from July 15, 2024. At the same time, Mr. Thuan is no longer the legal representative of the company. Mr. Huynh Van Thon directly directs and operates all activities of the Group until the appointment of a new General Director.
Recently, Loc Troi has had many changes in personnel. Mr. Tieu Phuoc Thanh - a member of the Board of Supervisors has submitted his resignation since September 6, 2024. Not long before that, Ms. Nguyen Thi Thuy also submitted her resignation as a member of the Board of Supervisors. Thus, LTG's Board of Supervisors currently only has Head Uday Krishna.
At the end of August, Mr. Johan Boden also submitted a resignation letter from the Board of Directors of Loc Troi for personal reasons. He was recently elected to the Board of Directors of Loc Troi for the 2024-2029 term at the 2024 Annual General Meeting of Shareholders held on June 26, 2024.
Loc Troi is being shaken by successive difficulties.
To date, Loc Troi has not yet announced its financial report for the second quarter of 2024. The company has sent a request for an extension of the announcement to the regulatory agencies, citing the reason that "it is facing a force majeure event that requires increased stability of capital flow for production and business activities, and the entire company is focusing on handling immediate financial issues."
In the first quarter of 2024, this enterprise had a loss after tax of nearly 100 billion VND, higher than the loss of 81 billion VND in the same period last year and is still far from the profit target of 50 billion VND in 2024. The main reason, according to Loc Troi, is due to exchange rate difference losses causing financial costs to increase.
In 2023, Loc Troi only made a profit of 17 billion VND, compared to more than 400 billion VND in 2022. Profits decreased sharply despite increased revenue (reaching more than 16,000 billion VND) due to high cost of goods sold and skyrocketing expenses.
Loc Troi has suffered heavy losses and debt recently.
It is known that as one of the leading enterprises in the pesticide business in Vietnam, with a net profit of hundreds of billions each year, in the period of 2020-2021, Loc Troi surprised shareholders when it announced restructuring and shifting to the food industry.
Loc Troi, formerly An Giang Plant Protection Service Company, has the advantage of a strong and long-standing distribution network, including reputable plant protection products and extensive relationships with farmers in the Mekong Delta region. However, since 2019, the company has begun to gradually reduce its dependence on this segment to shift to the food industry, leading to a sharp decline in both revenue and proportion of the plant protection segment.
Currently, Loc Troi's pesticide segment still exists but no longer holds the central position as before, and Loc Troi's market share in this field is also gradually narrowing.
It is known that Loc Troi is still under considerable debt pressure. Total debt payable as of the end of the first quarter of 2024 exceeded VND 8,900 billion, accounting for 75% of total assets, of which total debt is VND 6,327 billion.
Of the VND6,327 billion, nearly VND6,200 billion was borrowed by Loc Troi from domestic and foreign banks. These loans have interest rates ranging from 4.5 - 10%/year, are almost unsecured loans and have a maturity date this year.
Loc Troi is a large enterprise in the agricultural service sector, with thousands of agricultural engineers working directly with nearly 1 million farming households, on millions of hectares of rice, along the Mekong Delta, Southeast and Central Highlands.
For over 30 years, Loc Troi has been associated with the production and supply of millions of tons of paddy/rice each year for the domestic market and export. LTG is large-scale, with total assets by the end of the first quarter of 2024 of more than 11,900 billion VND.
Source: https://danviet.vn/loc-troi-co-tan-tong-giam-doc-doi-mat-the-nao-voi-nhung-kho-khan-20241017144951606.htm
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