Lideco (NTL) sees revenue halved, upcoming release.

Tu Liem Urban Development Joint Stock Company - Lideco (Code NTL) originated from Tu Liem Construction Enterprise, established in 1974. The company has recently implemented a plan to issue shares to increase its share capital from equity. The issuance ratio is 1:1, meaning that for every 1 share a shareholder owns, they will receive 1 newly issued share.

Lideco (NTL) only completed 2% of its annual plan in 3 months, but still intends to double its capital (Photo: TL)

Following the issuance, Lideco's charter capital is expected to increase to nearly 1,220 billion VND. July 5th will be the last registration date to exercise the right to receive the increased capital shares.

In terms of business performance, in the first quarter of 2024, Lideco recorded net revenue of only VND 36.8 billion, a decrease of nearly half compared to the same period last year. Low cost of goods sold resulted in a gross profit increase to VND 21 billion.

However, in return, financial costs tended to increase dramatically, eroding up to 11 billion VND. Of that, interest expenses only accounted for 1.6 billion VND.

Despite a decline in revenue, business management expenses and selling expenses still showed a slight upward trend, amounting to VND 7.2 billion and VND 344 million respectively. As a result, Lideco's after-tax profit reached VND 5.3 billion, more than double that of the same period last year.

In 2024, the company aims for revenue of VND 750 billion and after-tax profit of VND 256 billion, representing decreases of 18% and 29% respectively compared to 2023. With the Q1 business results, Lideco has achieved 4% of its revenue target and 2% of its profit target for the year.

With these results, unless there is a significant breakthrough in the remaining months of the year, Lideco is almost certain to fail to meet its business plan for 2024.

Source: https://www.congluan.vn/lideco-ntl-doanh-thu-giam-mot-nua-sap-phat-hanh-post300241.html