Chuong Duong Sarsaparilla was delisted

Chuong Duong Beverage Joint Stock Company had its shares delisted by HoSE after being audited with an accumulated loss of more than VND200 billion and negative equity of nearly VND12 billion.

Ho Chi Minh City Stock Exchange (HoSE) has just sent a notice to Chuong Duong Beverage Joint Stock Company (stock code: SCD) about delisting its shares.

This decision was made after HoSE received the company's financial report with a post-tax loss of VND119.25 billion, resulting in an accumulated loss of more than VND200 billion and negative equity of VND11.73 billion.

According to HoSE, SCD shares were delisted because "business results were loss-making for 3 consecutive years or the total accumulated loss exceeded the actual contributed charter capital, or negative equity in the most recent audited financial report".

Before receiving the document on delisting, the company's shares were put under control by HoSE from August 24, 2023 because the audited financial report for the first half of the year recorded an accumulated loss of nearly VND 120 billion. The Board of Directors later said that the company had made great efforts to optimize costs and boost business, but revenue still decreased due to a significant decrease in demand for beverage products, plus high inventory of partners. To escape losses, the company has implemented many solutions such as increasing coverage and distribution channels to increase sales volume and optimize production and business operating costs.

On the stock exchange, SCD shares are currently trading at 13,650 VND with negligible liquidity. During the entire morning session of April 3, this stock did not record any transactions.

For the whole year, the company recorded a revenue of VND141 billion and a loss after tax of approximately VND120 billion. This result is far lower than the revenue target of VND365 billion and profit of VND3.8 billion set by the management board earlier. In fact, the management board admitted that it was not easy to complete the plan because "the challenges the company faces this year are numerous". The company is worried that bank interest rates will continue to increase, causing financial costs to rise, and the draft special consumption tax on soft drinks could sharply reduce consumption demand. In addition, a series of sales department employees quit, putting great pressure on traditional sales channels.

In a recent business results report, the company's management said that business operations continued to be severely affected by high input costs combined with difficult external economic conditions, lower-than-expected demand and rising unemployment. Input costs from refined sugar and aluminum cans have all increased. At the same time, increased land rental costs as well as high outsourcing costs have affected profits.

Total assets reached 687 billion VND, an increase of 90 billion VND compared to the beginning of the year. The company's liabilities were approximately 700 billion VND, an increase of more than 210 billion VND. Short-term debt was the item with the strongest fluctuations in the financial report, reaching 438 billion VND at the end of the year, while at the beginning of the year it was only about 93 billion VND.

Chuong Duong Sarsaparilla listed its shares on the stock exchange at the end of 2006. Currently, the company has 8.5 million listed shares and a market capitalization of VND115 billion. The largest shareholder is Saigon Beer - Alcohol - Beverage Corporation (Sabeco) with 5.26 million shares (equivalent to 62.06%).

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