Cement Stock of Vicem Hải Vân Faces Warning Due to Heavy Losses
Due to business losses, HVX stock of Vicem Hải Vân Joint Stock Company has entered a warning status because its undistributed post-tax profit as of December 31, 2023, in the 2023 audited financial statement is negative 60.753 billion VND
The Ho Chi Minh City Stock Exchange (HoSE) has announced that the HVX stock of Vicem Hải Vân Joint Stock Company will be under warning starting from March 22, 2024, due to its undistributed post-tax profit being negative 60.753 billion VND as of December 31, 2023, according to the 2023 audited financial statement. This decision aligns with the securities warning provisions as per clause 1, Article 37 of the Listing and Securities Trading Regulation issued with Decision No. 17/QĐ-HĐTV on March 31, 2022, by the Vietnam Securities Trading Board.
Vicem Hải Vân, established from the state-owned enterprise transformation of Hải Vân Cement Company as per Decision No. 367/QĐ-BXD on March 9, 2007, by the Minister of Construction, primarily operates in cement, lime, and gypsum production. As of the end of 2023, Vicem Hải Vân reported a charter capital of over 415.252 billion VND, with the Vietnam Cement Industry Corporation holding 75.75% and other shareholders owning 24.25%.
The company's Q4 2023 performance showed a net revenue of over 88 billion VND, a 44% decrease from the same period last year. The revenue primarily came from cement processing, accounting for 69% of the total and experiencing a 40% decrease year-over-year. This decline in sales revenue led to a gross loss of over 16 billion VND and a net loss of 29.5 billion VND in Q4 2023, marking the company's worst performance since its listing on HoSE in 2010. Vicem Hải Vân attributed these results to the low market demand for cement in Central and Highlands regions in Q4 2023, achieving only 56% of the sales compared to the same period in 2022.
Additionally, the company's cumulative annual revenue for 2023 was nearly 512 billion VND, a 32% decrease from the previous year, with a net loss of over 64 billion VND, contrasting with a nearly 2 billion VND profit in the same period last year. This marks the heaviest annual loss for Vicem Hải Vân since 2010. As of December 31, 2023, the company's total assets were recorded at over 686 billion VND, a decrease of 11% from the beginning of the year.
Despite the challenging 2023, there are expectations of market recovery for the cement industry in 2024, driven by government efforts to boost public investment and the implementation of major infrastructure and urban projects.
