The Board of Directors of Vinh Hoan Joint Stock Company (VHC) has just approved a plan to issue 3.667 million ESOP shares to reward employees for the business results achieved in 2022.
Accordingly, the VHC shares issued under the ESOP program will be priced at VND 10,000 per share, 86% lower than the market price during the trading session on August 21, 2023. The total value of the issuance at par value is expected to be VND 36.67 billion.
Vinh Hoan's second-quarter profit decreased by 47.7%. (Photo courtesy)
The shares are restricted from transfer for 5 years from the date of issuance. The maximum transferable percentage will gradually increase by 20% each year, and employees who purchase ESOP shares will be able to transfer all of them after 60 months from the date of issuance.
Regarding business performance, Vinh Hoan recorded revenue of VND 2,723.6 billion in the second quarter of 2023, a decrease of approximately 35.6% compared to the same period last year. Gross profit decreased by 48.7%, to VND 562.5 billion. Financial revenue decreased slightly to 99.1%, a decrease of 7.4%.
All expenses during the period were significantly reduced, including financial expenses which decreased by VND 60.5 billion, and selling and administrative expenses which also fell sharply to only VND 114 billion, a decrease of 46.1%. Despite the reduction in expenses, VHC's overall after-tax profit still decreased by 47.7% to VND 412.4 billion.
As of the end of the second quarter, VHC's cumulative revenue reached VND 4,945.2 billion, a decrease of approximately 34% compared to the same period last year. Net profit after tax reached VND 655.5 billion, a decrease of 51.6% compared to the first half of 2022. Compared to the initial plan of VND 11,500 billion in revenue and VND 1,000 billion in net profit attributable to parent company shareholders, VHC has currently only achieved 43% of its revenue target and 63.1% of its profit target for the year.
Also at the end of the second quarter, VHC's total assets reached VND 12,169.6 billion, an increase of 5.1%. Of this, equity accounted for VND 8,316.9 billion while liabilities only amounted to VND 3,852.7 billion. The company's short-term debt currently stands at VND 3,713.4 billion.
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