Loc Troi Rice Group anticipates significant losses, cancels dividend distribution.

Loc Troi Group is facing challenges in terms of both top-level personnel changes and liquidity difficulties, with the risk of being unable to repay loans.

Loc Troi logo at its representative office in Ho Chi Minh City - Photo courtesy of HONG PHUC

Loc Troi Group Joint Stock Company (UPCoM: LTG) has just announced the documents for its 2025 Annual General Meeting of Shareholders, scheduled to be held in mid-July in An Giang province.

Accordingly, the Board of Directors of Loc Troi presented to the General Meeting for approval a revenue plan for this year of VND 4,200 billion and a projected pre-tax loss of VND 524 billion. The operating budget for the Board of Directors and the Supervisory Board this year is VND 1 billion and VND 500 million respectively.

Currently, the company has not paid several amounts due to the State, including taxes, social insurance, and outstanding debts to suppliers, partners, and bank loans. Therefore, the company's Board of Directors is proposing to cancel the 2023 dividend payment (at a rate of 30%).

In the first three months of this year, the group achieved revenue of over 3,800 billion VND but incurred a loss of over 96 billion VND due to high cost of goods sold and various expenses. In particular, the rice segment generated over 3,200 billion VND in revenue, but the cost of goods sold reached 3,100 billion VND.

As of the end of March 2025, Loc Troi's total liabilities amounted to over 8,900 billion VND (primarily short-term debt with large loans and financial lease obligations), while its total assets were nearly 12,000 billion VND.

Regarding finances, Mr. Huynh Van Thon, Chairman of the Board of Directors of Loc Troi, stated that the past year was particularly difficult for rice exporting businesses, as rice exports reached a peak in value, but profits were very low, or even resulted in losses.

Specifically, Loc Troi faces challenges in establishing raw material areas with farmers and limiting exports due to pressure from operating costs, low profit margins, and financial difficulties in its rice and paddy business.

HONG PHUC

Source: https://tuoitre.vn/tap-doan-lua-gao-loc-troi-du-kien-lo-lon-huy-chia-co-tuc-20250617100710186.htm