Vicem Hai Van Cement HVX explains measures to overcome accumulated losses

DNVN - VICEM Hai Van Cement Joint Stock Company (stock code: HVX) has just reported on measures to overcome accumulated losses up to September 30, 2024.

According to the official dispatch explaining the measures to overcome accumulated losses as of September 30, 2024 of VICEM Hai Van Cement Joint Stock Company (stock code: HVX), total revenue in the first 9 months of 2024 stopped at VND 261.4 billion - a sharp decrease compared to the figure of VND 512.1 billion recorded last year. Profit after tax in the first 9 months of 2024 was negative VND 37.8 billion - while in 2023 it was negative VND 64.1 billion.

Accumulated profit up to September 30, 2024 is negative VND90.3 billion, while accumulated profit up to December 31, 2023 is negative VND60.7 billion.

HVX's explanation to the State Securities Commission (SSC) and the Ho Chi Minh City Stock Exchange (HoSE) showed that in the third quarter of 2024, the company's production and business situation faced many difficulties due to low demand for cement, few new civil construction works were started, project works were slow to be implemented, and the real estate market had not recovered. In addition, there was fierce competition on selling prices between cement production units, especially in the Central region, due to pressure on product inventory and excess production capacity.

“Due to the above objective conditions, accumulated profit up to September 30, 2024 is negative VND 90.3 billion, of which accumulated loss as of December 31, 2023 is negative VND 60.7 billion,” HVX stated.

Accumulated profit of VICEM Hai Van Cement JSC as of September 30, 2024 is negative 90.3 billion VND.

Based on forecasts of the production and business situation in the coming time, HVX builds production and business management scenarios for 2024 based on assessments of the actual situation in key areas for decisive management.

Continue to thoroughly reduce costs in production and business, consumption of raw materials; review unnecessary costs to improve production and business efficiency. At the same time, focus on boosting cement consumption output, maintaining market share, stabilizing quality to increase competitiveness.

Also according to HVX, the above solutions will be implemented synchronously in the coming time to ensure a source of income to offset accumulated losses as of September 30, 2024, improve the company's financial situation, and gradually bring HVX securities to no longer be warned.

Previously, on October 18, explaining the business results of the third quarter of 2024 to the State Securities Commission and HoSE, HVX said that the cement output consumed in the third quarter of this year reached nearly 117,784 tons, an increase of 109% over the same period last year. Total revenue reached 109.6 billion VND, an increase of 86% over the same period in 2023; total expenses were at 117.9 billion VND - an increase of 83% over the same period. Accordingly, pre-tax profit was negative 8.2 billion VND, in the same period last year it was negative 15.7 billion VND.

According to HVX's explanation, total revenue in the third quarter of 2024 is 109.6 billion VND, a decrease of 17.2 billion VND compared to the third quarter of 2023. HVX's pre-tax profit result is a loss of 8.2 billion VND, a decrease of 7.4 billion VND compared to the same period in 2023.

HVX said the main reasons affecting business results in the third quarter were that the company did not produce and consume clinker due to lack of market demand and high clinker production costs, and logistics disadvantages.

Cement consumption output including processed cement in the third quarter of 2024 increased by more than 8,350 tons, reaching 109% compared to the same period in 2023.

The fixed costs of Van Ninh Cement Factory in the last quarter due to clinker production suspension accounted for in the cost of capital was 18.6 billion VND. Business management costs and financial costs decreased compared to the same period in the third quarter of last year because the company thoroughly saved maximum costs in production and business.

Selling expenses in the third quarter of 2024 increased by VND 466 million compared to the same period due to fierce competition in the consumer market, especially in the Central Highlands region, where many low-cost cement brands other than VICEM have entered this region. Therefore, the company has come up with many solutions to boost consumption, increase output, and maintain market share.

Regarding HVX shares, on August 13, HoSE announced to maintain the warning status for HVX shares according to Decision No. 122/QD-SGDTPHCM dated March 15, 2024 of the General Director of HoSE. The reason is that the company's undistributed profit after tax as of June 30 was negative VND 82 billion, HVX shares have not met the regulations to be removed from the warning status according to the Regulations on listing and trading of listed securities.

Vicem Hai Van Cement Joint Stock Company was established in 1994. The company's headquarters is located at 65 Nguyen Van Cu Street, Hoa Hiep Bac Ward, Lien Chieu District, Da Nang City. Currently, Mr. Le Xuan Khoi holds the position of Chairman of the Board of Directors, and the position of General Director is held by Mr. Tran Viet Hong.

Thu An

Source: https://doanhnghiepvn.vn/kinh-te/chung-khoan/xi-mang-vicem-hai-van-hvx-giai-trinh-bien-phap-khac-phuc-lo-luy-ke/20241024051331845