Thanh Cong Textile (TCM) profit hits 7-year low
Faced with the general difficulties in the last months of the year in the textile industry, Thanh Cong Textile - Investment - Trading Joint Stock Company (TCM) also recorded a sharp decrease in profits compared to previous years. Thanh Cong Textile's net profit in 2023 was only VND 132 billion, down 53%.
In the consolidated financial statements for the fourth quarter of 2023, TCM achieved revenue of VND 815 billion, down 13% year-on-year. Gross profit decreased by 15% to VND 129 billion, with a gross profit margin of 16%. Selling expenses and administrative expenses were similar to the same period, without much fluctuation.
Thanh Cong Textile (TCM) recorded profits hitting the lowest level in the past 7 years (Photo TL)
After deducting all expenses, TCM's after-tax profit was only 22 billion VND, down 64% over the same period.
TCM's accumulated revenue in 2023 reached nearly VND 3,300 billion, down 23%. Net profit recorded VND 132 billion, down 53% over the same period. Compared to the achieved business results, this is the lowest profit level that TCM has achieved in the past 7 years.
Compared to the set plan, TCM has only completed 85% of the revenue target and 55% of the profit plan for 2023.
Business declines, TCM still issues 10.65 million bonus shares
With the business situation declining, TCM still plans to issue 10.65 million bonus shares. Specifically, TCM plans to issue 10.65 million bonus shares to shareholders, equivalent to an issuance ratio of 13%. Each shareholder owning 100 shares will receive an additional 13 newly issued shares.
The issuance price is 10,000 VND/share, the total issuance value will be 106.5 billion VND. The issuance capital is taken from the Development Investment Fund recorded in the company's financial statements as of December 31, 2022. TCM's charter capital will increase to 927 billion VND after the issuance.
In another move, at the end of the first quarter of 2023, Thanh Cong Textile also temporarily suspended the plan to pay the first cash dividend of 2022 at a rate of 7%. Correspondingly, each shareholder owning 1 share will receive 700 VND in cash dividends.
In the trading session on January 22, 2023, TCM is recording transactions at a price of VND 40,400/share.
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