Cao Bang Steel Corporation suffered the heaviest loss in 5 years

Cao Bang Iron and Steel reported a loss after tax in the third quarter of 2024 of nearly 40 billion VND, double the same period last year and marking the biggest quarterly loss in the past 5 years.

The financial report for the third quarter of 2024 of Cao Bang Iron and Steel Joint Stock Company (stock code CBI) recorded net revenue of VND 536 billion, down more than 29% over the same period. After deducting the cost of goods sold, the company had a gross loss of VND 18.6 billion, while in the same period last year, it made a profit of about VND 5.6 billion.

Financial and administrative expenses both decreased compared to the same period. Specifically, financial expenses decreased by about 29% to VND11.7 billion, and administrative expenses decreased by 24% to VND4.4 billion. In contrast, sales expenses increased sharply from VND416 million in the same period to VND12 billion. After deducting expenses, the company reported a loss after tax of VND39.6 billion, 2.4 times higher than the same period last year.

The loss in the third quarter of 2024 has extended the chain of negative profits for two consecutive quarters, and is also the biggest quarterly loss of Cao Bang Iron and Steel in nearly 5 years.

Explaining the poor business results, in a document sent to the Hanoi Stock Exchange, Mr. Nguyen Van Phuong, Director of Cao Bang Iron and Steel Joint Stock Company, said the main reason was that the output of steel billets in the third quarter reached 33,017 tons, down 30% compared to the same period. In addition, input prices of some raw materials such as coke and iron ore increased compared to the same period in 2023.

In the first 9 months, the company recorded net revenue of VND1,721 billion, down 18% compared to VND2,096 billion achieved in the same period. Gross profit for this period was approximately VND24.9 billion, gross profit margin reached 1.4%. After deducting all expenses, the company reported a loss after tax of VND51.5 billion, significantly higher than the loss of VND14.5 billion in the same period.

This year, Cao Bang Iron and Steel Corporation expects to achieve revenue of VND3,056 billion, up 17% over last year, and after-tax profit of more than VND5 billion. After the first three quarters of the year, the company has completed 56% of its revenue plan and is still far from its profit target.

Cao Bang Iron and Steel's total assets as of the end of September 2024 reached VND 2,030 billion, a slight increase compared to the beginning of the period. Inventory value accounted for nearly VND 854 billion in total assets. The company's cash was more than VND 25 billion.

The company recorded about VND1,644 billion in liabilities, of which VND1,431 billion was in short-term debt. Owners' equity currently reached VND386 billion, with undistributed loss after tax of more than VND44 billion.

CBI shares are traded on UPCoM at VND9,400. Compared to the price at the beginning of this year (VND7,000), this code has increased by 34%. The average matched volume in the last 10 sessions is only 270 units. Market capitalization is over VND404 billion.