Chương Dương soft drink company has been delisted.

Chương Dương Beverage Joint Stock Company's shares were delisted by the HoSE after an audit revealed accumulated losses exceeding 200 billion VND and negative equity of nearly 12 billion VND.

The Ho Chi Minh City Stock Exchange (HoSE) has just issued a notice to Chuong Duong Beverage Joint Stock Company (stock code: SCD) regarding the delisting of its shares.

This decision was made after HoSE received the company's financial report showing a net loss after tax of VND 119.25 billion, resulting in accumulated losses of over VND 200 billion and negative equity of VND 11.73 billion.

According to HoSE, SCD shares were delisted because "the company's business results showed losses for three consecutive years, or the total accumulated losses exceeded the actual contributed charter capital, or the equity was negative in the most recent audited financial statement."

Prior to receiving the delisting notice, the company's shares had been placed under control by the HoSE (Ho Chi Minh Stock Exchange) since August 24, 2023, due to its audited financial report for the first half of the year showing accumulated losses of nearly 120 billion VND. The management later stated that the company had made significant efforts to optimize costs and boost business, but revenue still decreased due to a substantial drop in demand for beverage products, coupled with increased inventory from partners. To avoid losses, the company implemented various solutions such as increasing market coverage and distribution channels to boost sales volume and optimize operating costs.

On the stock exchange, SCD shares are currently trading at around 13,650 VND with negligible liquidity. Throughout the morning session of April 3rd, no transactions were recorded for this stock.

For the full year, the company recorded revenue of VND 141 billion and a net loss of approximately VND 120 billion. This result falls far short of the revenue target of VND 365 billion and profit of VND 3.8 billion set by the management. In fact, the management acknowledged that achieving the plan would not be easy due to "the numerous challenges the company faces this year." The company is concerned about the continued increase in bank interest rates, which would drive up financial costs, and the proposed excise tax on soft drinks, which could significantly reduce demand. Furthermore, a large number of sales staff resigned, putting significant pressure on the traditional sales channel.

In a recent financial results report, the company's management stated that business operations continued to be severely impacted by high input costs coupled with challenging external economic conditions, lower-than-expected demand, and rising unemployment. The cost of raw materials, including refined sugar and aluminum cans, increased significantly. Simultaneously, rising land lease costs and high operating expenses for outsourced services also negatively affected profitability.

Total assets reached VND 687 billion, an increase of VND 90 billion compared to the beginning of the year. The company's liabilities amounted to approximately VND 700 billion, an increase of over VND 210 billion. Short-term debt was the most volatile item on the financial statement, reaching VND 438 billion at the end of the year, compared to only about VND 93 billion at the beginning of the year.

Chương Dương soft drink company listed its shares on the stock exchange at the end of 2006. Currently, the company has 8.5 million shares listed and a market capitalization of VND 115 billion. The largest shareholder is Saigon Beer, Alcohol and Beverage Corporation ( Sabeco ) with 5.26 million shares (equivalent to 62.06%).

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