Losses exceeding annual plan, VNG has just been fined an additional 85 million VND
Recently, the Inspectorate of the State Securities Commission issued a Decision on administrative sanctions against VNG Joint Stock Company (Code VNZ) for violating the provisions of Point a, Clause 4, Article 42 of Decree No. 156/2020/ND-CP dated December 31, 2020 of the Government regulating sanctions for administrative violations in the field of securities and the securities market.
VNG was fined a total of VND85 million for failing to publish its audited separate and consolidated semi-annual financial statements for 2023. In addition, the company also published information on its audited separate and consolidated financial statements for 2022 and its 2022 annual report late.
VNG (VNZ) lost 465.1 billion VND in the first 9 months of the year. The company was also fined 85 million VND for violating information disclosure regulations (Photo TL)
VNG's fine for late information disclosure comes in the context of the company's loss-making business in the most recent Q3/2023.
Q3 business results recorded revenue of VND2,332.9 billion, up 11% over the same period. Gross profit reached VND997.6 billion, up 3.7%. Gross profit margin decreased from 44.9% to 41.9%.
Financial revenue in the period increased to VND28.2 billion, equivalent to an increase of 21.9%. Financial expenses also increased to VND52.5 billion while in the same period only recorded VND700 million. Interest expenses are currently also accounting for VND29.4 billion.
In Q3, VNZ's selling expenses accounted for VND718.3 billion, a slight increase over the same period. Business management expenses accounted for VND334.9 billion, a decrease of nearly 12%. In addition, business activities at affiliated companies also recorded a loss of VND29.4 billion.
As a result, VNZ's third-quarter after-tax profit recorded a loss of VND117 billion, down from the loss of VND141.5 billion in the same period. VNG's accumulated revenue for the first 9 months reached VND6,431.3 billion. The company is currently suffering an accumulated loss of VND465.1 billion. Compared to the 2023 plan, VNG is currently at a loss of 82.2% of the plan.
Increase short-term debt by 16.4 times
At the end of Q3/2023, VNZ's total assets reached VND9,756.3 billion, up 9.6% compared to the beginning of the period. Cash and cash equivalents increased by more than VND1,000 billion, to VND3,665.7 billion. In return, short-term deposits decreased from VND445.5 billion to only VND108.7 billion.
Short-term receivables accounted for 1,222.3 billion VND. Of which, short-term receivables from customers tended to increase to 693.7 billion VND. Inventories accounted for only 75.9 billion VND.
In VNG's capital structure, payables account for VND5,097 billion, equivalent to 52.2% of total capital. In particular, the company's short-term debt ratio has tended to increase sharply in the first 9 months of the year. The short-term debt ratio has increased by 16.4 times, from VND44.4 billion to VND729.5 billion.
Long-term debt also increased by one and a half times, from VND999.2 billion to VND1,309.8 billion. The increase mainly came from long-term debt, increasing from VND399.6 billion to VND619.5 billion, equivalent to an increase of 55%.
VNG's equity capital decreased from VND5,114.6 billion to only VND4,659.3 billion. The company also has a negative equity surplus of VND409.8 billion. Meanwhile, undistributed profit after tax also accounted for VND4,684.1 billion, a slight decrease compared to the beginning of the year.
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