Family members of the chairman of Pomina Steel (POM) are continuously selling off shares.
Recently, Ms. Do Thi Kim Lang, sister of Mr. Do Duy Thai, Chairman of the Board of Directors of Pomina Steel Joint Stock Company (POM), registered to sell all 353,788 POM shares she owns. This transaction will reduce Ms. Lang's ownership stake from 0.13% to 0% of the charter capital. The transaction will take place from December 4, 2023 to January 2, 2024.
This is not the only time that family members of Chairman Do Duy Thai have sold shares to divest from Pomina recently. Ms. Do Nhung, another sister of Mr. Thai, also registered to sell all 6,571,727 POM shares to reduce her ownership from 2.35% to 0%. The registration period for the transaction is from November 15, 2023 to December 14, 2023.
Family members of the chairman of Pomina Steel (POM) are continuously divesting their shares, causing the stock price to plummet by 45% (Photo: TL)
Ms. Do Thi Nguyet, Mr. Thai's sister, also registered to sell 3.4 million POM shares, reducing her ownership stake from 1.64% to 0.39% of the charter capital. The transaction took place from November 15, 2023 to December 14, 2023.
Earlier in August, Mr. Thai's relatives also successively registered to sell shares. Ms. Do Thi Kim Cuc, Mr. Thai's sister, registered to sell 3 million shares, reducing her ownership stake from 2.9% to 1.83%. On August 17, 2023, Ms. Do Thi Kim Ngoc, also Mr. Thai's sister, registered to sell 2.3 million POM shares, reducing her ownership stake from 3.64% to 2.82%.
Following sell-offs by the chairman's family and poor business results, POM shares plummeted from 8,450 VND/share on July 18, 2023, to just 4,600 VND/share on November 30, 2023. Thus, POM shares lost 45.6% of their value in just four months.
The company incurred a further loss of 110 billion VND in the third quarter, consistently operating below cost.
According to the latest Q3 financial statements, Pomina Steel achieved revenue of VND 503.5 billion, a decrease of 83.1% compared to the same period last year. The cost of goods sold amounted to VND 508.7 billion, resulting in a gross loss of VND 5.2 billion.
Financial income decreased by 32.3%, to VND 11.3 billion. Financial expenses paid during the period were halved to VND 58.9 billion. Selling expenses amounted to VND 1.2 billion, while administrative expenses recorded a negative VND 6.9 billion. As a result, POM incurred a net loss of VND 47.1 billion from its core business operations.
After deducting taxes and other expenses, Pomina Steel recorded a net loss of VND 110.4 billion. Although this is a decrease compared to the loss of VND 715.6 billion in the same period last year, this result still reflects a bleak business picture for POM.
For the first nine months of the year, Pomina Steel's revenue reached VND 2,948 billion, a decrease of 73.5% compared to the same period last year. Net profit after tax was a loss of VND 647.4 billion, a decrease compared to the VND 707.5 billion loss in the same period last year. Compared to the set plan, POM has only achieved 21% of its revenue target and will certainly not be able to meet its profit target due to the significant losses.
Negative operating cash flow, long-term debt increased by 1.5 times.
Regarding asset structure, by the end of Q3/2023, POM's total assets reached VND 10,688.9 billion, a decrease of 3.1% compared to the same period last year. The company's cash reserves plummeted from VND 206.3 billion to only VND 14.3 billion. This is equivalent to a 93% decrease in cash reserves in just the first nine months of the year.
Long-term assets currently account for a large proportion, totaling VND 7,343.8 billion. Of this, work-in-progress construction costs amount to VND 5,796.9 billion.
POM's capital structure shows liabilities accounting for VND 8,690.4 billion, equivalent to 81.3% of total capital. The company has short-term debt of VND 5,205.1 billion and long-term debt of VND 1,146 billion. Of this, the amount of long-term debt is trending upwards by 55% compared to the beginning of the year.
Furthermore, POM's cash flow in Q3 2023 recorded a negative net cash flow from business operations of VND 253.2 billion, compared to a positive VND 46.6 billion in the same period last year. Notably, interest payments amounted to VND 168.8 billion, indicating significant pressure from interest expenses on the company's cash flow.
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