Siba Group (SBG) issued shares immediately after listing 1 month

Issue shares immediately after listing 1 month

The Board of Directors of Siba High-Tech Mechanical Group Joint Stock Company - Siba Group (Code SBG) has just issued a notice on closing the list of shareholders to collect written opinions regarding the issuance of shares to increase share capital.

The stock issuance ratio is 1:1, corresponding to each share owned by a shareholder, 1 new share will be issued. The ex-right date is January 9, 2024, and the shares are expected to be issued in February 2024.

Siba Group SBG issued shares immediately after the 1st month of establishment. — Siba Group (SBG) plans to issue shares to increase equity capital (Photo TL)

Previously, on December 1, 2023, Siba Group's SBG shares were officially listed on the HoSE with a reference price of VND 15,000/share. Thus, Siba Group's plan to issue additional shares at a ratio of 1:1 was implemented just about 1 month after the shares were listed on the stock exchange.

Immediately after being listed, SBG shares had a strong price increase before adjusting down to VND 16,200/share in the trading session on December 22, 2023.

Revenue down 18%

Regarding the business situation in the third quarter of 2023, Siba Group recorded revenue of VND 803 billion, down 18% over the same period. Gross profit was VND 25.9 billion, corresponding to a gross profit margin decrease from 3.6% to 3.6%.

The company's financial revenue was insignificant, only recorded at 200 million VND. Meanwhile, financial expenses accounted for 2.2 billion VND. Sales expenses and business management expenses recorded 2.2 billion VND and 5.8 billion VND respectively. Profit after corporate income tax was 12.9 billion VND.

Cumulative revenue in the first 9 months of the year reached over VND3,092.7 billion, down 7% over the same period. Of which, the mechanical sector recorded revenue of VND479 billion, double that of the same period. Profit after tax reached VND31 billion, up 15%.

Cash dropped sharply by 88%, only nearly 10 billion VND left

By the end of the third quarter of 2023, Siba Group's total assets recorded a sharp decline from VND 2,105.3 billion to VND 1,177.6 billion, equivalent to a decrease of 44.1%. The decrease mainly came from the company's debt structure.

Notably, cash and cash equivalents decreased by 88%, leaving only VND9.8 billion. Notably, although the proportion of loans has decreased, the amount of cash paid for interest of Siba Group has increased, up to nearly VND13 billion, causing considerable pressure on the cash flow of the unit.

Short-term receivables from customers also decreased by nearly half, to only VND 635.5 billion at the end of the third quarter. Inventories recorded a decrease of 61.6% to VND 162.7 billion.

Notably, in the capital structure of Siba Group, payables tend to decrease sharply from 1,707 billion VND to 747.8 billion VND. Mainly from short-term payables to suppliers. The amount of short-term debt also decreased by more than half, from 66.8 billion to only 33.9 billion VND.

SBG's equity currently accounts for VND429.7 billion, equivalent to 36.4% of total capital. Undistributed profit after tax currently accounts for about VND87.3 billion.

Source