Thanh Cong Textile (TCM) lacks orders in Q2, must change senior personnel

Thanh Cong Textile - Investment - Trade (TCM) revenue in the first 5 months of the year decreased by 25%, lack of orders for the 2nd quarter, rescue thanks to stock transfer

Thanh Cong Textile - Investment - Trading Joint Stock Company (TCM) has just announced information on business results for the first 5 months of 2023 with not very positive signals.

Specifically, the company's revenue in May reached about 231 billion VND, down 25% over the same period. However, after-tax profit reached more than 12 billion VND, 5% higher than the same period. TCM's accumulated revenue in the first 5 months of the year reached 1,342 billion VND, down 26% compared to the first 5 months of 2022. After-tax profit reached 101 billion VND, down slightly by 3% over the same period.

5 month revenue decreased by 25%, successful sewing machine TCM lacked orders for quarter 2, had to hire senior staff, picture 1 — Thanh Cong Textile - Investment - Trade Joint Stock Company (TCM) revenue in the first 5 months of the year decreased by 26%, orders in the second quarter were in short supply (Photo TL)

It can be seen that the company's main business activities showed signs of decline, causing revenue to decrease by 26% compared to the first 5 months of 2022. However, according to TCM's explanation, due to profits from stock transfers, as well as cost cuts, the overall profit did not decrease too much.

In the revenue structure of May, revenue from garment products accounted for 76%, fabric accounted for 16% and yarn accounted for 6% of total revenue. The majority of which was export revenue with the structure of Asian markets accounting for 59.4%, the American market accounting for 32.2%. The European market only accounted for 7.8% of export revenue.

It is worth noting that in the second quarter, the company had to admit a shortage of orders. It is expected that in the third quarter, the company will only receive 77% of the planned order revenue.

Revenue declines, TCM just changed a series of senior personnel

Faced with a volatile business situation with recorded revenue from business activities in the first 5 months of the year decreasing by 26% compared to the same period, Thanh Cong Textile has just had to change a series of senior personnel.

Specifically, TCM has just announced the appointment of Mr. Lee Hyoung Kyu as Strategy Director and Capital Representative of TC Tower Co., Ltd. from June 19, 2023. At the same time, Mr. Han Kwang Taek was appointed as Creative Director and Capital Representative of TC Commerce Co., Ltd. from June 19, 2023.

In addition, TCM also had to announce that the two representatives of the capital contributions of the former TC Tower and TC Commerce, Mr. Choi Haeoi and Ms. Huynh Thi Thu Sa, are no longer representing the capital contributions of these two companies at TCM.

The change in senior leadership of TCM comes in the context of the company's somewhat declining business situation. According to the plan set for 2023, revenue is expected to be 4,364 billion VND, profit reaching 274 billion VND.

However, through the business results of the first 5 months of 2023, it can be seen that TCM has only completed 30.7% of the revenue plan and 36.5% of the initial profit plan.

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