Digiworld (DGW) increased short-term debt by more than 300 billion, paid 35% dividend

Digiworld (DGW) pays cash dividends at a rate of 5%

Recently, the Board of Directors of Digiworld Corporation has just announced the decision to pay dividends in 2023. In which, the dividend will be paid 5% in cash, corresponding to each shareholder owning 1 share will receive 500 VND in dividends.

Currently, with 167 million dividends in circulation on the market, Digiworld expects to have to spend about 83.5 billion VND to pay dividends to existing shareholders. The expected payment date is September 25, 2024.

Digiworld (DGW) profit increased by 7%, issued shares to pay dividends at a rate of 30% (Photo TL)

In addition, Digiworld also issued shares to pay dividends at a rate of 30%. Equivalent to each shareholder owning 100 shares will receive 30 additional shares. With this plan, Digiworld plans to issue 50 million shares, taken from the undistributed profit after tax on the audited consolidated financial statements as of December 31, 2023.

Regarding the dividend payment plans previously implemented, DGW's dividend payment plan for 2023 is lower than in previous years. Specifically, in 2022, DGW will pay a 10% cash dividend and 80% stock bonus. In 2020, Digiworld will also pay a 10% cash dividend and 100% stock bonus.

Profit after tax increased by 7%

Regarding business activities, Digiworld recorded consolidated net revenue in the first 6 months of the year reaching VND9,993 billion, up 17% over the same period. The parent company's after-tax profit reached VND181.5 billion, up 12% over the previous year.

During the period, cost of goods sold increased sharply compared to 2023, accounting for VND 9,140.6 billion, gross profit reached VND 852.5 billion, an increase of more than 30%. Financial revenue recorded VND 64.7 billion, down 20.8%.

On the other hand, although financial expenses decreased, they still accounted for 69.8 billion VND. Of which, 43.4 billion VND was interest expense. Due to the strong growth in revenue, sales expenses and business management expenses also increased, accounting for 500.4 billion and 113.1 billion VND, respectively.

As a result, after deducting expenses and taxes, Digiworld recorded a profit after tax of VND180.8 billion, an increase of 7% compared to the previous year. At the same time, due to the recognition of a loss after tax of VND750 million of non-controlling shareholders, the profit after tax of the parent company's shareholders increased to VND181.5 billion.

Explaining the above results, Digiworld said that revenue growth came from the laptop segment with 2,707 billion VND, up 11%. The mobile phone segment recorded revenue of 4,663 billion VND, up 14%. The office equipment segment reached 1,868 billion VND, up 32%. Household appliances reached 409 billion VND, up 24%.

Short-term loans increased by 300 billion

As of the end of the second quarter of 2024, Digiworld's total assets reached VND 7,355.1 billion. The amount of cash held was recorded at VND 833.6 billion, down from VND 1,450 billion at the beginning of the year.

Notably, the amount of short-term receivables from customers has increased sharply from 1,981.7 billion to 2,544.1 billion VND, showing that although the company has sold goods, it has not yet fully collected the money. The amount of inventory has decreased compared to the beginning of the year, accounting for 2,908.4 billion VND.

Regarding capital structure, liabilities account for 62% equivalent to VND 4,546.9 billion, most of which is short-term debt.

The amount of short-term payables to suppliers is currently 1,603.1 billion VND, showing that the company is holding a large amount of money to pay to partners. In addition, the record of short-term debt has increased by more than 300 billion VND, accounting for 2,644.6 billion VND in the company's total assets. Meanwhile, long-term debt only accounts for 12.4 billion VND.

Digiworld's total equity is recorded at VND2,808.2 billion. Of which, equity capital accounts for only VND1,672.2 billion, undistributed profit after tax is recorded at VND1,048.5 billion.

Source: https://www.congluan.vn/digiworld-dgw-phat-hanh-co-phieu-tra-co-tuc-ty-le-30-tang-vay-no-ngan-han-hon-300-ty-post310717.html