Vietnam Steel Corporation TVN lost nearly 124 billion VND in the third quarter

DNVN - Although the loss has decreased compared to the same period last year, the after-tax profit in the third quarter of 2024 of Vietnam Steel Corporation (VNSteel, stock code: TVN) is still negative by nearly 124 billion VND.

According to the consolidated business performance report for the first 9 months of 2024 of Vietnam Steel Corporation (VNSteel, stock code: TVN), sales and service revenue in the third quarter of 2024 reached more than VND 8,800 billion - an increase of more than 10.1% over the same period in 2023. In the first 9 months of this year, sales and service revenue increased to VND 26,538 billion - an improvement compared to VND 23,148 billion in the same period last year.

Net revenue reached VND8,698 billion, up more than 9% over the same period last year. Gross profit reached nearly VND138 billion, down sharply by 22% over the same period due to the cost of goods sold increasing higher than the increase in revenue. Accordingly, the gross profit margin narrowed to 1.58%. In addition, financial revenue decreased by 32%, reaching only VND49 billion; financial expenses decreased slightly by 7%, recording more than VND93 billion.

Meanwhile, financial expenses increased significantly. Specifically, financial expenses in the third quarter of 2024 were VND95.4 billion, a sharp increase compared to VND40.4 billion in the same period last year. Accumulated in the first 9 months of 2024, financial expenses increased to VND228.2 billion, a significant increase compared to the previous year at VND110.6 billion.

Vietnam Steel Corporation (VNSteel, stock code: TVN) lost nearly VND 124 billion in the third quarter of 2024.

After-tax profit in the third quarter of this year was a loss of nearly VND124 billion, down from a loss of nearly VND172 billion recorded in the same period in 2023. With this loss, VNSteel ranked second in the industry, only after Hoa Sen (loss of VND186 billion). In the first 9 months of the year, VNSteel recorded a profit after tax of more than VND115 billion, while in the same period it lost VND453 billion.

Previously, according to VNSteel's consolidated financial report for 2022-2023, this unit recorded a negative profit of VND 770.5 billion in 2022 and VND 257.7 billion in 2023.

However, according to the Resolution of the 2024 Annual General Meeting of Shareholders approved by VNSteel on April 26, VNSteel set a target of total revenue on the consolidated financial statements (FS) of VND 31,500 billion, pre-tax profit on the consolidated FS of VND 120 billion, total revenue on separate FS of VND 2,341 billion, pre-tax profit on separate FS of VND 15 billion, and credit limit for parent company of VND 4,350 billion.

VNSteel plans to invest in development and purchase, upgrading the parent company's fixed assets, estimated at 537.6 - 847.6 billion VND. Of which, investing in other enterprises to serve business operations or to invest in new projects is from 519.2 - 829.2 billion VND. Buying back shares of VII Vinausteel for 67 billion VND. Buying back about 6% of the capital contribution of foreign partners at Phuong Nam Steel Company for more than 92 billion VND. Buying shares at Nha Be Steel JSC to invest in adding a billet smelting line with a capacity of 150,000 tons/year worth 150 billion VND.

At the same time, investing in a steel rolling mill with a capacity of 500,000 tons/year in the form of mergers and acquisitions of existing steel manufacturing enterprises in the Southern region, estimated at over 210 - 520 billion VND.

In addition, VNSteel plans to invest in development and purchase, upgrading fixed assets of subsidiaries and associates.

Currently, Vietnam Steel Corporation - JSC (VNSteel) operates under the model of a joint stock company with nearly 40 affiliated units, subsidiaries and associated companies. VNSteel's head office is located at 91 Lang Ha, Dong Da District, Hanoi. Mr. Le Song Lai is Chairman of the Board of Directors, Mr. Nghiem Xuan Da holds the position of General Director and member of the Board of Directors.

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