Thanh Cong Textile (TCM) October profit dropped 45%

October revenue dropped, Q4 only received 75% of planned orders

Thanh Cong Textile - Investment - Trading Joint Stock Company (abbreviated as Thanh Cong Textile), stock code TCM, has just announced its October business results with recorded revenue of 11.44 million USD, equivalent to 278 billion VND, down 16% over the same period.

In the October revenue structure, garment products accounted for 75% of total revenue, fabric products accounted for 16% and yarn products brought in 8% of revenue. Profit after tax in the period reached 439,000 USD, equivalent to 106.6 billion VND, down 45% compared to the same period.

Thanh Cong Textile recorded net revenue of 116.32 million USD, equivalent to 282.6 billion VND, down 26%. Profit after tax reached 174.2 billion VND, down 27% compared to the same period last year.

Thanh Cong Textile (TCM)'s after-tax profit decreased by 27% compared to the same period (Photo TL)

Explaining the decline in revenue and profit, Thanh Cong Textile said that the last months of the year are usually the peak time to prepare for festivals and Tet. However, customer demand this year has been slower than in other years due to the difficult economic situation, and the recovery is still relatively slow.

Regarding the number of orders, TCM has not yet received enough orders for the end of the year. In the fourth quarter of 2023, Thanh Cong Textile only received 75% of the orders according to the revenue plan.

Despite declining business results, TCM still issues 10.65 million bonus shares

Thanh Cong Textile's business situation recorded a sharp decline in the second quarter and only slightly recovered in the past few months. However, the company still continues to issue bonus shares to existing shareholders.

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 par value of the issued shares is VND 10,000/share, the total issuance value will be VND 106.5 billion. The issuance capital is drawn from the Development Investment Fund recorded in the company's financial statements as of December 31, 2022. It is expected that after issuing bonus shares, TCM's charter capital will increase to VND 927 billion.

Previously, 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%. Accordingly, each shareholder owning 1 share will receive 700 VND in cash dividends.

In the trading session on November 16, 2023, TCM is recording transactions at a price of VND 42,300/share.

Source: https://www.congluan.vn/det-may-thanh-cong-tcm-loi-nhuan-thang-10-sut-giam-45-post272704.html