Business is bad, AGM plans to continue selling assets

DNVN - With a net loss of more than VND 250 billion in 2024, shares being monitored and controlled, An Giang Import-Export Joint Stock Company (Angimex, stock code: AGM) plans to continue selling assets to supplement working capital and gradually restructure debts.

On March 6, An Giang Import-Export Joint Stock Company (Angimex, stock code: AGM) sent an official dispatch to the Ho Chi Minh City Stock Exchange (HoSE) regarding the resolution of the situation of securities being warned and controlled.

According to HoSE's decisions, AGM shares are being monitored under warning status since April 5, 2024 because the auditing organization has an exception opinion on the audited financial statements for 2023.

This stock is also under control from April 5, 2024 because the after-tax profit of the parent company's shareholders on the audited financial statements in the last 2 years (2022, 2023) is negative, from August 9, 2024 because the equity is negative on the most recent consolidated financial statements except for the annual audited financial statements, from September 10, 2024 because the accumulated loss exceeds the actual contributed charter capital in the audited semi-annual consolidated financial statements of 2024.

Regarding the situation of overcoming the situation of stocks being warned due to the audit organization's exception opinion on the audited financial statements of 2023), regarding the issue of not receiving the balance confirmation letter from some customers: Angimex is sending debt reconciliation files, confirming the balance for the audited financial statements of 2024. In case of still not receiving confirmation from customers, we will discuss with the audit organization about alternative measures to overcome this exception opinion. These debts have been provisioned for 100% bad debt.

AGM said it is stepping up efforts to collect bad debts through legal measures, liquidating assets that are no longer needed to supplement working capital and gradually restructure debts.

Regarding the advance payment of Ms. Luong Dang Xuan to serve the production and business activities of the group of companies arising from 2021 to date, it has not been recovered. This is an advance payment that was available at Dinh Thanh LLC before Angimex received the transfer of capital contribution of this company. Angimex is still working with the transferor of Dinh Thanh Company to recover the advance payment. Because it has not been recovered, Angimex has made a 100% provision for the advance payment in the 2024 audited semi-annual financial report and the 2024 independent financial report.

Regarding significant doubts about the group's ability to continue as a going concern, Angimex said: To supplement working capital to maintain operations, Angimex has divested 55% of its capital contribution at Angimex Food Company Limited and converted this company into a Joint Stock Company. In addition, Angimex is continuing to divest its capital investment in other subsidiaries, joint ventures and associates and is in the process of liquidating some assets that are not in use, while seeking other organizations and individuals to cooperate in business. The group is expected to continue to operate continuously.

Regarding the situation of overcoming the situation of controlled stocks (for the above reasons), Angimex said that the company has reviewed the production process to reduce waste, improve the efficiency of using raw materials, labor and machinery; eliminate unnecessary costs, optimize human resources and sales costs to improve production and business activities.

Strengthening the collection of bad debts by legal measures, liquidating assets that are no longer needed to supplement working capital and gradually restructure debts, and continuing to divest capital in a number of subsidiaries and joint ventures.

Although the current business segment is effective, it is not enough to cover depreciation and financial costs, especially the interest expense of the two bond packages, so the company will not make a profit in 2024.

The consolidated financial report for the fourth quarter of 2024 shows that AGM recorded net revenue of nearly VND 241 billion in 2024, down 69% compared to the previous year, resulting in a gross loss of nearly VND 416 million.

Revenue decreased but financial expenses remained at nearly VND107 billion, management expenses increased to more than VND128 billion, equivalent to an increase of 91%. Therefore, AGM had a net loss of more than VND251 billion.

At the end of February 2025, Angimex's leadership approved a plan to sell all 49% of its capital at Angimex Furious. The buyer could be The Golden Group JSC (UPCoM: TGG) - formerly Louis Capital JSC and the party holding the remaining 51% of capital. The proceeds from the divestment at Angimex Furious will be used to pay off debts and supplement working capital for business operations.

An Giang Import-Export Joint Stock Company was established and officially put into operation in 1976, formerly known as An Giang Foreign Trade Company (Angimex). The company operates in the fields of food production, processing and trading; trade in vehicles, agricultural materials and high-tech agricultural services...

Thu An

Source: https://doanhnghiepvn.vn/kinh-te/chung-khoan/lam-an-bet-bat-agm-du-dinh-tiep-tuc-ban-tai-san/20250307052958316