Nam Kim Steel Corporation (code NKG) has just announced the documents for the 2023 Annual General Meeting of Shareholders, scheduled to be held in Ho Chi Minh City on April 21, 2023. The most notable content is the business plan target with total revenue of VND 20,000 billion, an increase of 13.5% over the same period. Pre-tax profit is expected to reach VND 400 billion.
This business target set by Nam Kim Steel is somewhat ambitious compared to the after-tax loss of up to 124.7 billion VND. The company said that due to the stable relationship with foreign partners, the company is expected to start making profits again in 2023.
Nam Kim Steel (NKG) suffers losses and will not pay dividends in 2022 (Photo TL)
Regarding the business situation in 2022, Nam Kim Steel, like many other companies operating in the steel manufacturing industry, recorded losses in 2022 due to fluctuations in the macroeconomic situation and exchange rate pressure on input materials.
The company's net revenue reached VND23,071.2 billion, down 22.1% over the same period last year. The unit's gross profit reached VND1,481.4 billion, but due to the burden of costs, it caused a loss during the year.
Specifically, financial expenses increased from 397.5 billion VND to 503 billion VND, an increase of more than 100 billion VND in 1 year. Of which, interest expenses accounted for 262.5 billion VND. Sales expenses still accounted for a large proportion of 1,202.3 billion VND, although they decreased compared to before, they were still a burden on the company's revenue. Business management expenses increased by one and a half times, from 122.7 billion VND to 185.8 billion VND.
After deducting all expenses and taxes, Nam Kim Steel recorded a loss of VND124.7 billion for the first time in many years of business. Due to this loss, the Ho Chi Minh City Stock Exchange (HoSE) has put NKG shares on the list of stocks ineligible for margin trading from March 30, 2023. In addition, due to losses, Nam Kim Steel also plans not to pay dividends.
In terms of asset structure, by the end of 2022, Nam Kim Steel's total assets reached VND 13,460.8 billion, down 12.6% compared to the beginning of the year. Of which, liabilities accounted for a large proportion, up to VND 8,108.9 billion, equivalent to 60.2% of total capital. Owner's equity accounted for VND 5,319.7 billion, and the company's undistributed profit after tax reached VND 1,628 billion.
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