Ha Bac Fertilizer and Chemicals Joint Stock Company (Ha Bac Fertilizer, code DHB) has just announced its audited semi-annual financial report. Accordingly, Ha Bac Fertilizer's revenue in the first half of the year reached VND1,967 billion, a slight decrease compared to the same period last year.

After deducting expenses, Ha Bac Fertilizer had a net loss of more than 99 billion VND, not much changed compared to the self-made report.

In the second quarter of 2024 alone, Ha Bac Fertilizer unexpectedly recorded a loss of more than VND 137 billion, breaking the streak of two consecutive quarters of profits. Specifically, thanks to other profits of up to VND 142 billion, net profit in the first quarter of 2024 reached VND 38 billion, while in the same period last year it lost VND 129 billion.

Ha Bac Fertilizer said that other profits in the first quarter came from the company's debt cancellation of interest calculated on late interest payments in 2023 from the Vietnam Development Bank - North Northeast region.

Similarly, in the fourth quarter of 2023, Ha Bac Fertilizer Company also had up to 1,800 billion VND in debt cleared from the Vietnam Development Bank's loan restructuring project. Thanks to that, the company earned nearly 860 billion VND in pre-tax profit.

Returning to the business results for the first 6 months of 2024, Dam Ha Bac explained that the unfavorable production situation was due to unusual weather developments, hot and rainy weather, especially lightning strikes many times that broke the company's power transmission lines, causing production lines to suddenly stop, greatly affecting equipment.

Ha Bac Fertilizer said that when the company fixed the problems caused by the power grid and restarted the machine, it discovered that there was an equipment leak, so it had to stop the machine for a long time to fix it and combine it with major maintenance and repair.

Therefore, the machine running time is reduced by 45 days compared to the plan, without any products. In addition, the price of input materials, especially coal price, remains high.

Commenting on the financial statements of Ha Bac Fertilizer, the auditing agency concluded that, except for the fact that the company had recorded the original price and depreciated the fixed assets of the project to renovate and expand the Ha Bac Fertilizer Factory, there was not enough basis to determine the existence and completeness of the debts, as well as potential debts that may arise in the future related to the settlement of the above project.

The auditor emphasized that as of June 30, the company's short-term assets were VND77.5 billion lower than its short-term liabilities, indicating that there were still material uncertainties affecting the company's ability to continue operating.

As of June 30, 2024, Ha Bac Fertilizer had VND 962.8 billion in short-term assets, a decrease of VND 234.4 billion compared to the beginning of the year; short-term debt was VND 1,040.3 billion, a decrease of more than VND 40 billion.

However, after restructuring loans at the Vietnam Development Bank (VDB) North-Eastern branch to clear overdue principal interest and late interest, and reduce loan interest rates, the company's financial structure has improved, and equity is greater than accumulated losses as of June 30.

At the end of the trading session on August 8, DHB shares reached 8,700 VND/share.

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