Becamex IDC (BCM) issues 2,000 billion bonds
Becamex IDC Investment and Industrial Development Corporation (HoSE Code: BCM) has just approved a plan to issue private bonds with a maximum value of VND2,000 billion.
In early June, BCM's Board of Directors also approved the plan to issue the first private bond with a total value of VND 1,000 billion.
The bonds have a term of 2 years, an interest rate of 13%/year and will be used for Becamex IDC to pay part or all of its maturing bond debts. This bond lot is expected to be issued in June 2023 with collateral being assets owned by Becamex IDC.
Q1 profit down 81%, revenue down but costs remain high
According to Becamex IDC's Q1 2023 financial statements, net revenue reached only VND791 billion, down 44.8% year-on-year. Profit after tax reached VND74 billion, down 81% year-on-year.
A notable point is that although revenue decreased sharply by nearly 45%, the company's expenses during the period remained high. Specifically, financial expenses accounted for 191 billion VND, although they decreased compared to the same period, they are still a big pressure on revenue.
Profit down 81%, Becamex IDC (BCM) plans to issue 2,000 billion bonds (Photo TL)
Selling expenses only decreased slightly from 165 billion to 146 billion VND, and business management expenses also decreased from 111 billion to 95 billion VND. The lack of cost reduction caused gross profit to only 81 billion VND, down 83%. Profit after tax was only 74 billion VND.
Compared with the business target set at the beginning of 2023, Becamex IDC planned revenue at VND 9,460 billion, expected profit after tax at VND 2,263 billion, but currently the company has only completed 3.3% of the annual profit plan.
Increasing debt, business cash flow is negative by thousands of billions of dong
As of the end of the first quarter of 2023, Becamex's total assets reached VND 48,589 billion, a slight increase compared to the beginning of the year. Of which, equity did not fluctuate much, accounting for VND 17,692 billion with undistributed profit after tax accounting for VND 5,196 billion.
During the period, Becamex's short-term debt increased sharply from VND4,951 billion to VND5,639 billion, an increase of 12.2%. Not only that, the long-term debt index also remained high, reaching VND10,849 billion.
The capital structure with a total debt of more than 16,000 billion VND has forced Becamex to record a huge amount of money used to pay interest. On the cash flow statement, the money used to pay interest during the period alone amounted to 469 billion VND, 15% higher than the same period last year. This means that Becamex is spending 5.2 billion VND a day to pay interest.
At the end of the first quarter, Becamex's recorded negative cash flow of VND 1,238 billion showed that the company was lacking a large amount of cash in its daily business activities.
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