Accumulated loss swelled to 789.3 billion, Pomina Steel (POM) was just reminded by HoSE again

Pomina Steel Corporation (POM) has just been reminded by the Ho Chi Minh City Stock Exchange (HoSE) about the delay in disclosing information and documents for the 2023 Annual General Meeting of Shareholders.

Specifically, on July 14, 2023, POM held the 2023 Annual General Meeting of Shareholders. The notification information was announced to HoSE from June 30, 2023. However, according to the provisions of Point a, Clause 3, Article 10 of Circular 96/2020/TT-BTC dated November 16, 2020 guiding the disclosure of information on the stock market, information about the Annual General Meeting of Shareholders must be announced at least 21 days before the opening date. Thus, POM was late in announcing the information about the Annual General Meeting of Shareholders and was reminded by HoSE.

Losing for 5 consecutive quarters, accumulated loss of 789.3 billion VND, Pomina Steel (POM) has just been reminded by HoSE (Photo TL)

Regarding business performance, Pomina Steel Corporation has recorded losses for 5 consecutive quarters since 2022. The reason is that the difficult economic situation and increased input material prices have forced the company to operate below cost price. In 2022 alone, POM suffered a loss of VND 1,079.9 billion.

In the first quarter of 2023, POM's revenue reached VND 1,645.1 billion, after-tax loss decreased to negative VND 186.8 billion but is still a significant number.

However, in the second quarter of 2023, POM's revenue dropped sharply to only VND 799.4 billion. The situation of doing business below cost price still occurred, causing the company to have a net loss from business activities of VND 35.2 billion.

On the other hand, financial revenue only reached 8.9 billion VND while interest expenses increased to 230.3 billion VND. The majority of which was interest expenses, accounting for 227.2 billion VND. Sales expenses and business management expenses accounted for 2.4 billion and 66 billion VND respectively.

With the burden of rising financial costs, Pomina Steel's after-tax loss in the second quarter of 2023 increased to VND 350.2 billion.

In terms of assets, as of the end of the second quarter, POM recorded a total of short-term and long-term debt of VND6,266.5 billion. The debt source has a proportion 3 times higher than the owner's equity. POM's owner's equity only reached VND2,077.7 billion, down 20.4% compared to the beginning of the period. Due to business losses, the company's accumulated undistributed losses are up to VND789.3 billion, causing the owner's equity to be more negative than before.

Source: https://www.congluan.vn/lo-luy-ke-phinh-to-len-7893-ty-thep-pomina-pom-lai-vua-bi-hose-nhac-nho-post260312.html