Loc Troi dismisses CEO, company requests to postpone submitting Q2/2024 financial statements
Loc Troi Group Corporation (LTG) has just announced the postponement of submitting its Q2/2024 financial statements. The reason is that the company's staff is focusing on handling force majeure issues and strengthening the stability of production and business capital flows.
At the same time, the company's 2024 Annual General Meeting of Shareholders will also be held later than in previous years. The company's leadership team has also undergone changes that have affected the progress of synthesizing and providing data to complete the Q2/2024 financial statements.
Loc Troi Group (LTG) has just had to postpone submitting its Q2/2024 financial statements due to leadership changes and business operations facing many issues that need to be focused on solving. (Photo TL)
Therefore, Loc Troi proposed that the State Securities Commission approve the postponement of the announcement of the 2nd Quarter 2024 Financial Statements until August 30. According to regulations, public enterprises must submit the 2nd Quarter Financial Statements before July 31, 2024.
Recently, Loc Troi has had a change in top leadership. In particular, the company dismissed General Director Nguyen Duy Thuan from July 15, 2024. Chairman of the Board of Directors, Mr. Huynh Van Thon, has temporarily managed the business operations until a new CEO is appointed for the group.
Revenue increased sharply, Loc Troi still lost 96 billion
The dismissal of the General Director of Loc Troi Group took place in the context of the company's business operations facing many problems.
Specifically, in the first quarter of 2024, Loc Troi recorded revenue of VND 3,849 billion, an increase of 57% over the same period last year. Cost of goods sold still accounted for a high proportion, causing gross profit to only reach VND 245 billion. Gross profit margin reached 6.4%.
Financial revenue only reached 33 billion VND, but on the contrary, financial expenses accounted for 189 billion VND. Of which, interest expenses accounted for 127 billion VND.
Business activities at the affiliated company brought in 19 billion, partly covering the expenses of the period. Sales expenses and business management expenses accounted for 137 billion and 105 billion VND respectively, putting significant pressure on Loc Troi Group.
As a result, Loc Troi reported a loss of VND96 billion in the second quarter. This result "blew away" part of the first quarter's profit, dragging down the company's first-half business results.
Cash plummets, Loc Troi entangled in scandal over rice debt to farmers
Not only did the first quarter business results decline, Loc Troi Group has also been caught up in a scandal of owing farmers hundreds of billions of dong in rice debt.
Specifically, according to a report by the Department of Agriculture and Rural Development of An Giang province, in the 2023-2024 winter-spring crop alone, Loc Troi Group owed money to buy rice from 900 farming households. The total amount of rice that Loc Troi owed was up to 245 billion VND.
Looking back at the Q1/2024 financial statements of Loc Troi Group, it can be seen that this unit is facing great difficulties in cash flow in the short term.
Cash is only 106 billion VND left, along with short-term deposits of about 120 billion VND. Compared to the beginning of the year, the amount of cash has decreased by nearly 5 times, showing that the company is facing big problems.
In the asset structure, Loc Troi has up to 6,622 billion VND in receivables, most of which are receivables from customers. The amount of receivables is too large, only on paper, making it more difficult for Loc Troi to manage assets.
In terms of capital, Loc Troi recorded payables of VND8,939 billion, equivalent to 75% of assets being debt. Short-term debt is also accounting for VND6,246 billion, twice as high as equity. This further increases interest expenses, creating great pressure on business operations.
Loc Troi's cash flow statement also shows that the company is not earning enough to cover its expenses. Net cash flow from operating activities was negative VND434 billion in the first quarter, while it was still negative VND2,710 billion in the same period. The lack of cash forced Loc Troi to borrow to compensate, which will increase interest expenses, increase debt structure, and increase risks in capital management.
Source: https://www.congluan.vn/gap-kho-ve-dong-tien-tgd-nghi-viec-loc-troi-ltg-vua-xin-hoan-nop-bctc-quy-2-post306151.html
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