Pomina Steel resumed trading on May 23 with a valuation of VND 783.09 billion

Having just delisted from the HoSE, Pomina Steel JSC shares (code POM) will be traded on the UPCoM exchange from May 23 with a reference price of VND2,800/share.

Hanoi Stock Exchange decided to approve the listing of more than 279.6 million Pomina Steel shares on UPCoM, the first trading day is May 23 and the reference price is VND 2,800/share.

Thus, the estimated capitalization of Pomina Steel will be about 783.09 billion VND.

Previously, on April 10, the Ho Chi Minh City Stock Exchange (HoSE) decided to compulsorily delist more than 279.6 million POM shares on the HoSE from May 10, 2024. The reason given was that the unit was late in submitting audited financial statements for 3 consecutive years.

Continued losses in the first quarter of 2024, raising total accumulated losses to VND 1,697.1 billion

In terms of business activities, in the first quarter of 2024 (independent report), Pomina Steel recorded revenue of VND 471.44 billion, down 71.3% over the same period, the parent company's after-tax profit recorded a negative VND 224.9 billion compared to the same period of negative VND 186.6 billion, an additional loss of VND 38.3 billion.

During the period, with continued business operations below cost price, Pomina Steel recorded a negative gross profit of VND 6.5 billion compared to the same period of negative VND 41.3 billion. In addition, financial revenue decreased by 33.7%, equivalent to a decrease of VND 4.08 billion, to VND 8.02 billion, while financial expenses increased by 82.6%, equivalent to an increase of VND 65.9 billion, to VND 145.68 billion; sales and business management expenses decreased by 19.7%, equivalent to a decrease of VND 14.4 billion, to VND 58.84 billion and other activities fluctuated insignificantly.

Explaining the continued loss in the first quarter of 2024, Pomina Steel said that the Pomina 3 and Pomina 1 steel plants are still inactive but have to bear management costs and interest expenses. Of which, interest expenses account for the largest proportion, so there was a loss in the period and the Company is currently looking for investors to restructure in order to resume production as soon as possible.

With continued losses in the first quarter of 2024, as of March 31, 2024, Pomina Steel's total accumulated loss has reached VND 1,697.1 billion, equal to 60.7% of charter capital (charter capital VND 2,796.8 billion).

As of March 31, 2024, Pomina Steel's total assets decreased slightly by 3.2% compared to the beginning of the year, equivalent to a decrease of VND 328.8 billion, to VND 10,075.5 billion. Of which, cash was only over VND 6 billion and total debt was up to VND 6,232.87 billion (VND 5,386.9 billion in short-term loans and VND 845.97 billion in long-term loans), equal to 533.4% of equity.

Pomina Steel explained that the largest lenders are mainly 2,573.1 billion VND from Vietnam Joint Stock Commercial Bank for Industry and Trade - Ho Chi Minh City Branch; 1,639.2 billion VND from Vietnam Investment and Development Bank - Ho Chi Minh City Branch; 488.5 billion VND from Vietnam Joint Stock Commercial Bank for Foreign Trade...

Pomina Steel is looking for shareholders for restructuring

Regarding the restructuring plan, Pomina Steel said it aims to improve the financial structure, synchronize steel smelting and rolling stages to optimize production capacity at Pomina 1 Steel Plant and Steel Billet Plant - Branch (Pomina 3).

The company decided to establish a new legal entity, Pomina Phu My Joint Stock Company, with a charter capital of about VND 2,700 - 2,800 billion; and a bank loan of VND 4,000 billion. Thus, it is estimated that the charter capital accounts for 40% of the total capital, and the remaining 60% is loan capital.

Regarding the shareholder structure at Pomina Phu My Joint Stock Company, Pomina Steel will own 35% of the charter capital (about 900 to 1,000 billion VND) and the remaining 65% of the charter capital belongs to other shareholders (about 1,800 - 1,900 billion VND).

Regarding Pomina Steel's contribution, the Company will contribute capital in kind for all land, factories, and equipment lines at Pomina 1 and Pomina 3 factories. After contributing capital, the business registration of the two units will be terminated; other shareholders will contribute capital in cash.

Auditing company AFC & Savills has valued the two factories Pomina 1 and Pomina 3 of Pomina Steel at VND6,694 billion.

Based on the valuation, the value of the two factories of Pomina Steel is about 6,000 to 6,800 billion VND, Pomina Steel will contribute from 900 to 1,000 billion VND to the new legal entity, Pomina Phu My Joint Stock Company. Thus, the value recovered after contributing capital to the two factories is 5,100 to 5,800 billion VND.

For the remaining recovered amount, Pomina Steel plans to use VND 3,757 billion to pay short-term and long-term loans at the Bank; and the remaining VND 1,343 billion to pay payables to suppliers.

In fact, with the establishment of a new legal entity, the group of strategic shareholders when contributing capital to Pomina Phu My Joint Stock Company, the group of strategic shareholders is only responsible for Pomina Phu My Joint Stock Company, not responsible for obligations related to Pomina Steel and at the same time also owns a majority in Pomina Phu My Joint Stock Company. In contrast, Pomina Steel only owns 35% of the capital, and at the same time loses the right to control the 2 factories that have been built.

Source: https://baodautu.vn/thep-pomina--giao-dich-tro-lai-ngay-235-voi-dinh-gia-78309-ty-dong-d215555.html