VKC Holdings (VKC) accumulated loss increased to 364 billion, shares continue to be restricted from trading

Accumulated loss reaches 350 billion VND

VKC Holdings JSC, formerly Vinh Khanh Plastic Cable JSC, established in 1993, has just recorded a period of gloomy business with accumulated losses of nearly 350 billion VND.

In the most recent business period in the second quarter of 2024, VKC Holdings recorded net revenue of VND 5.9 billion and a net loss from business operations of VND 1.8 billion. Despite the loss, the company still had to bear interest expenses of more than VND 14.1 billion.

The accumulated loss at the end of the second quarter of 2024 of VKC Holdings after audit has reached 364 billion (Photo TL)

In addition, sales expenses still have to be paid at 1 billion VND, along with business management expenses of 11 billion VND. Compared to the same period last year, business management expenses have nearly doubled.

Excluding expenses and taxes, despite not being very active in Q2, VKC still reported a loss of VND29.2 billion. By the end of the first 6 months of 2024, VKC had a loss after tax of VND59.3 billion. The company's total undistributed accumulated loss after audit increased to VND364.6 billion, pushing equity down to negative VND143.5 billion.

The negative equity situation not only makes it difficult to maintain operations but also directly affects VKC stock transactions, with existing shareholders suffering losses.

VKC shares continue to be restricted from trading

Recently, the Hanoi Stock Exchange has decided to maintain the trading restriction for VKC shares. The reason is that the owner's equity is negative in the 2024 semi-annual financial statements.

In addition, the auditor also refused to comment on the audited financial statements for 2023. With this decision, VKC shares will continue to be traded only on Fridays every week.

Regarding the 2024 semi-annual financial statements, VKC Holdings previously announced its financial statements audited by Chuan Viet Auditing and Consulting Co., Ltd.

The audit unit refused to give a conclusion on the grounds that it had not yet collected enough confirmation letters in the form of direct responses regarding the balance as of June 30, 2024 for financial indicators including: VND 148.8 billion in short-term receivables from customers; VND 165.6 billion in other short-term receivables; VND 36 billion in capital contributions to other units; VND 8.2 billion in short-term payables to sellers; VND 7.1 billion in short-term prepayments to sellers...

In addition, the auditing firm also said that in the first 6 months of the year, VKC had set aside a provision for overdue receivables of VND117.3 billion. However, the auditing firm could not collect evidence related to the above amount.

VKC Holdings' determination to sell land to pay off debt

Recently, to resolve the difficult business situation, at the 2024 Annual General Meeting of Shareholders, many solutions were proposed revolving around the company's debt settlement goal.

Many shareholders are wondering about the plan to sell land owned by the company to pay off debts. This includes land lots that the company has bought in the past and have increased in price quite a bit.

The results of the annual general meeting of shareholders of VKC Holdings approved the auction and mortgage of 5 land lots with a total area of ​​over 25,100 m2 to pay off debt.

These land lots include a 6,476 m2 lot in Binh Duong that is being mortgaged at a commercial bank. A 13,486 m2 lot is also in Binh Duong and is being mortgaged. In addition, the company has another 2,366 m2 lot that is in the process of being transferred.

Source: https://www.congluan.vn/vkc-holdings-vkc-lo-luy-ke-tang-len-364-ty-co-phieu-tiep-tuc-bi-han-che-giao-dich-post308643.html