Ha Bac Fertilizer Plant - Photo: L. BANG
Ha Bac Fertilizer and Chemical Joint Stock Company (DHB) has just announced its audited semi-annual report for 2024, with revenue reaching VND 1,967 billion in 6 months, down nearly 6% over the same period last year.
This period, Ha Bac Fertilizer's interest expense decreased significantly, to only 102 billion VND, while in the same period it was up to more than 329 billion VND. Other expenses such as sales and business management also decreased.
Ha Bac Fertilizer still reported a net loss from business operations of more than VND292 billion, but a significant decrease compared to the negative VND480 billion in the same period last year.
After deducting expenses and taxes, Ha Bac Fertilizer reported a net loss of more than VND99.2 billion, while in the same period last year it lost nearly VND480 billion. Ha Bac Fertilizer's semi-annual loss this year fell in the second quarter. Previously, in the first quarter financial report, Ha Bac Fertilizer had a profit of more than VND38 billion.
The financial report also shows that in the first 6 months of this year, this fertilizer company recorded another income of up to 243 billion VND.
As explained in the financial statements, this other income is due to the company's debt cancellation of interest calculated on the late interest debt that has not been collected until December 21, 2023 with the Vietnam Development Bank - Northeast branch on January 31, 2024.
Accordingly, the value of the interest that was written off and reduced was recorded by the company in other income for the year. But even though the debt was written off, Ha Bac Fertilizer still made a loss.
Explaining to the Securities Commission, the leader of Ha Bac Fertilizer said that the unfavorable production situation was mainly due to unusual weather, especially lightning strikes that broke the company's power transmission lines many times. The production line had to stop suddenly and abnormally, causing a big impact.
"When the company fixed the problem caused by the power grid, the machine started running again and found a leak in the equipment, so the machine had to be shut down for a long time to fix it and combine it with major maintenance and repair," informed the leader of Ha Bac Fertilizer. The machine's running time was reduced by 45 days compared to the plan, and there was no product.
In addition, input material prices remain high, especially coal prices, causing difficulties for businesses.
Accumulated loss of Ha Bac fertilizer is more than 2,200 billion VND
Also in the 2024 semi-annual report, the independent auditor emphasized that at the end of June 2024, the company's short-term assets were VND 77.47 billion lower than its short-term debt, showing that there are still important uncertainties affecting the company's ability to continue operating.
However, after restructuring loans at VDB to eliminate interest on overdue principal and interest on late interest, and reduce loan interest rates, the company's financial structure has improved. At the same time, equity (VND2,772 billion) is greater than accumulated losses (VND2,209 billion) at the end of June, according to the audit.
Therefore, the financial report for the first 6 months of this year of Ha Bac Fertilizer is presented on the basis of the assumption of continuous operation.
It is known that Ha Bac Fertilizer's loan at VDB was signed in 2008 with the purpose of investing in the project of renovating and expanding Ha Bac Fertilizer Factory. The loss-making situation has made Ha Bac Fertilizer one of the 12 weak major projects of the industry and trade sector.
Source: https://tuoitre.vn/duoc-ngan-hang-xoa-lai-vai-tram-ti-dam-ha-bac-van-bao-lo-khung-do-set-danh-20240809162428621.htm
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