Kido Group (KDC) fined for violating bond information disclosure

Kido Group (KDC) was fined 117.5 million VND

Recently, the Inspectorate of the State Securities Commission (SSC) issued a Decision to impose administrative sanctions on Kido Group Corporation (Code KDC) for violations in disclosing information related to the bond issuance plan.

Kido was fined VND 92.5 million according to the provisions of Point a, Clause 4, Article 42 of Decree No. 156/2020/ND-CP dated December 31, 2020 of the Government for failing to disclose information as prescribed by law.

Kido KDC Group's third quarter revenue decreased by 29%, fined for violating bond information disclosure regulations, image 1 — Kido Group (KDC) has just been fined for not disclosing bond information as required (Photo TL)

Specifically, Kido did not disclose information to the Hanoi Stock Exchange on the report on the use of capital from the bond issuance in 2021 and the first half of 2022. The company also did not report on the payment of interest and principal of bonds in 2021 and the first half of 2022. In addition, Kido also did not disclose the use of capital from the bond issuance for audited outstanding bonds in 2022 and the first half of 2023.

Kido Group was also fined VND 25 million according to the provisions of Clause 2, Article 15 of Decree No. 156/2020/ND-CP for not including the remuneration of members of the Board of Directors, the salary of the General Director and other managers as a separate item in the Annual Financial Report as well as the report to the General Meeting of Shareholders at the annual meeting.

The total amount of money that Kido was fined was 117.5 million VND for the above administrative violations.

Q3 revenue drops, still reports big profits thanks to affiliated companies

Regarding the business situation of Kido Group, in the third quarter of 2023, the company recorded net revenue of VND 2,303 billion, down 29% over the same period. Gross profit was VND 442.7 billion, down 20%. Gross profit margin increased to 19.2% in the third quarter.

Financial revenue in the period reached VND49.1 billion, down 19%. Meanwhile, financial expenses decreased by 17%, down to VND51.7 billion. The majority of which was interest expense, accounting for VND47.5 billion. Selling expenses and administrative expenses accounted for VND263.3 billion and VND83.2 billion, respectively.

The notable bright spot in Kido's financial statements comes from its operations in affiliated companies. Kido reported a profit of VND30.8 billion from investment activities in affiliated companies while it was losing VND34.9 billion in the same period. The conversion of losses into profits in affiliated companies' operations has helped Kido's third quarter profit increase significantly.

Currently, Kido is recording 4 joint venture companies including Kido Frozen Food (holding 49%), LG Vina Cosmetics (holding 40%), Lavenue (holding 50%) and Dabaco Food Processing (holding 50%).

As a result, Kido's third quarter after-tax profit reached VND81.9 billion, 2.7 times higher than the same period.

Short-term debt scale reduced by nearly 50%

At the end of the third quarter of 2023, Kido's total assets fluctuated relatively. Total assets decreased from 14,004.8 billion to 13,179.3 billion VND. Of which, the company nearly doubled its cash, accounting for 2,057.9 billion VND.

Inventory decreased from VND 2,212.3 billion to VND 1,118.7 billion, inventory price reduction provision accounted for VND 15.2 billion.

In addition, the target for long-term financial investment also decreased by 30.5% to VND2,764.6 billion. The decrease was mainly due to investments in associates and joint ventures with joint-stock divestment from Calofic (VND2,081.7 billion) and Vibev (VND140.2 billion).

Regarding capital structure, Kido tends to cut short-term debt by nearly 50%, from 4,168.3 billion VND to only 2,181.8 billion VND. Long-term debt also tends to decrease from 751.9 billion to 501.3 billion VND.

Owner's equity currently accounts for VND8,131.2 billion with share capital reaching VND2,797.4 billion. Notably, undistributed profit after tax in the period has skyrocketed from VND1,619.4 billion to VND2,554 billion.

Source