FLC lost $9.6 million due to H.A.I stock |
In the last four months of 2017, FLC was strongly buying the stocks of H.A.I. Agrochem JSC. So far, FLC has invested VND261 billion ($11.35 million) in H.A.I. by buying 23 million H.A.I. shares, accounting for 12.65 per cent, and is the company's largest shareholder.
However, FLC also has to set aside a provision of VND220 billion ($9.6 million), which reduced the value of its investment in H.A.I to only VND41 billion ($1.78 million).
Since FLC bought H.A.I stock at the end of 2017, the price plunged from the peak of VND22,000 ($0.96) to VND7,000 ($0.34) per share and has been below VND5,000 ($0.22) ever since February 2018. The stock ended the session on May 2 at only VND1,670 ($0.07). This continuous plunge forced FLC to set aside sizeable provisions.
The firm's financial statement also reported total short-term and long-term loans of VND5.2 trillion ($227.22 million).
Recently, on April 12, FLC announced Resolution No.45/2019/NQ-HDQT-FLC on issuing nearly 300 million shares at the unit price of VND10,000 ($0.43). At the end of May 2, the FLC stock was only at VND4,810 ($0.21) per share.
The financial report also showed that the net revenue of FLC in the first quarter reached VND2.98 trillion ($129.56 million), an increase of 35 per cent compared to 2018. However, after-tax profit was only VND8 billion ($347,826), down 92 per cent, because the cost of sales increased sharply.
Criteria | First quarter, 2019 (unit: million dollar) | First quarter 2018 (unit: million dollar) | Increase/Decrease (per cent) |
Net revenue | 129.56 | 95.96 | 35 |
Cost of goods sales | 125.87 | 86 | 46 |
Gross profit | 3.65 | 9.91 | -63 |
Gross profit margin | 2.8 per cent | 10.3 per cent | |
Financial revenue | 13.56 | 5.78 | 135 |
Financial expenses | 4.87 | 3.43 | 42 |
Interest expenses | 3.78 | 3.43 | 10 |
Sales expenses | 4.2 | 2 | 111 |
Enterprise cost management | 6.8 | 4.2 | 62 |
Other profit | 1.8 | -0.08 | |
After-tax profit | 0.35 | 4.3 | -92 |
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