Ocean Group (OGC) suffered a loss of thousands of billions, and all leaders resigned.

A series of leaders of Ocean Group (OGC) resigned.

Ocean Group Corporation (Code: OGC), owner of the famous Trang Tien Ice Cream brand in Hanoi, has just announced that it has received resignation letters from four senior leaders in the group. Most of them were appointed in 2022.

Specifically, the four senior leaders who resigned include: Ms. Pham Thi Hong Nhung, member of the Board of Directors and General Director; Ms. Tran Thi Ngoc Bich, independent member of the Board of Directors; Ms. Nguyen Thi Thanh Huong, member of the Board of Directors; Mr. Pham Trung Hieu, Head of the Supervisory Board.

ogc group of sugar companies, the owner of the first line of credit, lost billions of dollars in capital, fluctuating in series from the picture 1 — A series of leaders of Ocean Group (OGC) - the owner of Trang Tien Ice Cream brand, have submitted their resignations (Photo TL)

According to the company charter, the resignation will be approved from January 8, 2023 and reported to the nearest General Meeting of Shareholders for approval of the dismissal. Mr. Pham Hung Viet was appointed as General Director and legal representative of Dai Duong Group on the same day.

The change in leadership structure of Dai Duong Group takes place in the context that this unit is undergoing many changes in both business activities and shareholder structure.

The appearance of 2 major shareholders are 2 newly established companies

In December 2023, Ocean Group announced that it had 2 more major shareholders, both of which are newly established legal entities at the end of 2023, including:

Song Hong Bac Viet Construction Joint Stock Company owns 27 million OGC shares, equivalent to 9.02% of charter capital. The company was established on December 1, 2023, with its head office located on the 6th floor, Icon 4 building, 243 De La Thanh, Lang Thuong ward, Dong Da, Hanoi.

Vietnam Housing and Urban Development Trading Joint Stock Company owns 51.7 million OGC shares, equivalent to 17.24% of charter capital. The company was established on December 25, 2023, operating in the real estate sector. The company is headquartered at VNT Tower Building, 19 Nguyen Trai, Thanh Xuan, Hanoi. The legal representative and General Director of the company is Ms. Dinh Thi Nhi (born in 1994).

The changes in shareholders and senior personnel of Ocean Group occurred at the same time as OGC shares were under warning because the undistributed profit after tax on the financial report as of September 30, 2023 was negative VND 2,636 billion.

Loss of more than 2,636 billion VND, 3,000 billion VND in equity almost completely eroded

Regarding business performance, in the third quarter of 2023, OGC recorded revenue of VND 2,886.2 billion, down 13.7% over the same period. Cost of goods sold accounted for VND 2,033.7 billion, leaving gross profit at only VND 832.4 billion.

Financial expenses during the period were more restrained than the same period, accounting for only 62.6 billion VND. Financial revenue was insignificant, only reaching 313 million VND. Sales expenses and business management expenses accounted for 665 million VND and 3,373 billion VND, respectively.

After deducting all expenses and taxes, Ocean Group's after-tax profit reached VND60.4 billion, down 14.8% over the same period.

OGC's accumulated revenue in the first 9 months of the year reached VND8,624.4 billion, down nearly 40% compared to the same period last year. In return, after-tax profit more than doubled to VND77.5 billion.

Despite recording relatively positive business results, in early October 2023, Ocean Group's shares hit bottom at VND 5,600/share because the shares were put on warning status.

The reason comes from the recognition of OGC's capital in the Q3/2023 financial statements. Of which, the company has a debt of VND 1,036.6 billion. Most of which are obligations to pay to parties, short-term and long-term loans account for nearly VND 33 billion.

The owner's equity was recorded at VND3,000 billion but has been almost completely eroded, currently the owner's equity is only recorded at VND475.8 billion. The company currently has an accumulated loss after tax of up to VND2,636.2 billion.

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