Angimex (AGM) proposes to shareholders to use 120.5 billion from the Development Investment Fund to compensate for undistributed profit after tax.

An Giang Import-Export Joint Stock Company - Angimex (HoSE code: AGM) is facing great difficulties in production and business activities since its chairman Do Thanh Nhan was arrested on charges of stock manipulation. One of the problems that Angimex is facing is the inability to pay for matured bonds.

In addition, the decline in business has caused Angimex to record negative accumulated undistributed profit after tax of VND 125.4 billion at the end of the second quarter of 2023.

To overcome this situation, An Giang Import-Export Joint Stock Company has just announced a plan to use the development investment fund (currently VND 120.5 billion) to compensate for undistributed profit after tax as of December 31, 2022. The above plan will be presented and consulted with Angimex shareholders at the extraordinary general meeting of shareholders scheduled to be held in October 2023.

Also at this extraordinary shareholders' meeting, Angimex also asked for shareholders' opinions on the plan to issue shares to strategic investors to supplement capital for business operations.

AGM's undistributed profit after tax was negative by VND 125.4 billion on the audited consolidated financial statements for the first half of 2023, causing AGM shares to be put on warning status by HoSE.

In addition, AGM code is also subject to trading suspension from September 18, 2023. Before this information was released, AGM shares had also continuously dropped to the floor for 5 sessions from VND 8,370/share to only VND 6,280/share, forcing Angimex to issue a written explanation about the above situation.

Angimex continuously delays interest payments for 2 bond lots in the first half of 2023

The situation of interest payment for Angimex's bond lots is really making many shareholders and partners of the company feel worried because in the first half of 2023 alone, Angimex has delayed interest payment for 2 bond lots.

Specifically, the company has been late in paying interest on the bond lot coded AGMH2123001 issued on November 9, 2021 with a face value of VND 350 billion, term of 2 years. The company has been late in paying interest twice in February and May 2023 with the interest payable amount of VND 6.2 billion.

The second bond lot has the code AGMH2223001 issued on March 14, 2022 with a value of VND 300 billion, term of 18 months. The company has repurchased a part and the remaining value is VND 210 billion. The interest payment date is June 14, 2023 but the company has not yet fulfilled its payment obligation.

Regarding the business situation in the first 6 months of the year, Angimex recorded a loss of 57.7 billion VND, a sharp increase compared to the same period last year's loss of only 6.2 billion VND. The above loss completely wiped out Angimex's accumulated profit, causing the unit to record an accumulated loss of 125.4 billion VND.

At the end of the second quarter of 2023, Angimex's total debt had reached VND 1,150.9 billion, 3.6 times higher than its equity. Of which, short-term debt was VND 541.6 billion, long-term debt accounted for VND 609.3 billion.