Loc Troi requests to postpone submitting the second quarter report to focus on handling financial issues.

The company said it is facing a number of force majeure events that require it to increase the stability of its capital flow for production and business operations.

Loc Troi requests to postpone the announcement of the second quarter financial report until August 30.

Loc Troi Group Joint Stock Company (code LTG) has just sent a dispatch to the State Securities Commission (SSC) and Ho Chi Minh City Stock Exchange (HOSE) to postpone information disclosure due to "facing some force majeure events" that have resulted in the inability to publish the Financial Report for the second quarter of 2024 on time.

Specifically, Mr. Huynh Van Thon, Chairman of the Board of Directors of Loc Troi Group, stated that the company is facing several force majeure events that require strengthening the stability of its working capital for production and business operations. The entire company must focus on addressing immediate financial issues. Furthermore, according to company leaders, Loc Troi is holding its 2024 annual general shareholders' meeting later than in previous years. Following the meeting, some personnel changes, including the replacement of key personnel, have affected the progress of compiling and providing data to complete the Q2 financial report on time as required.

Chairman of the Board of Directors Huynh Van Thon proposed that the management agency consider and approve the postponement of the announcement of the second quarter financial report until August 30, 2024.

In the first quarter of 2024, Loc Troi recorded a 56.9% increase in revenue over the same period, to VND 3,848.69 billion. However, the company increased financial expenses because the Group continued to use financial leverage to ensure stable operations. The ratio of cost of goods sold to revenue was also higher than the same period, reducing the company's gross profit margin. Therefore, Loc Troi had a net loss of nearly VND 159 billion in the first quarter, 2.86 times higher than the same period last year. With additional inventory, cash flow from business activities in the first three months of the year was in deficit, negative VND 434 billion. As of March 31, 2024, the value of cash and cash equivalents decreased to VND 105.6 billion.

Loc Troi has a large source of revenue from the rice business. This is also the growth driver that has increased the scale of this enterprise's revenue sharply over the past year. However, along with that, financial costs increased as Loc Troi took advantage of leverage to expand its business. Despite many expectations from Vietnam's rice exports increasing thanks to soaring demand from countries in the region and the global rice price race, Loc Troi reported a loss in the third quarter of 2023, recovered significantly afterwards but returned to a loss-making state in the first quarter of the year.

Source: https://baodautu.vn/loc-troi-xin-hoan-nop-bao-cao-quy-ii-de-tap-trung-xu-ly-van-de-tai-chinh-d221260.html