Ha Bac Fertilizer and Chemical Joint Stock Company (Ha Bac Fertilizer, ticker DHB) has just announced its audited semi-annual financial report. Accordingly, Ha Bac Fertilizer's revenue in the first half of the year reached VND 1,967 billion, a slight decrease compared to the same period last year.
After deducting expenses, Ha Bac Fertilizer Company reported a net loss of over 99 billion VND, which remained largely unchanged from its self-prepared report.
In the second quarter of 2024 alone, Ha Bac Fertilizer unexpectedly recorded a loss of over 137 billion VND, ending a streak of two consecutive profitable quarters. Specifically, thanks to other income of up to 142 billion VND, the net profit in the first quarter of 2024 reached 38 billion VND, while in the same period last year it incurred a loss of 129 billion VND.
According to Ha Bac Fertilizer, the other profit in the first quarter came from the company receiving a waiver of interest on overdue payments in 2023 from the Vietnam Development Bank - North-Northeast region.
Similarly, in the fourth quarter of 2023, Ha Bac Fertilizer Company also had 1,800 billion VND of its debt written off under the restructuring plan of the Vietnam Development Bank. As a result, the company achieved a pre-tax profit of nearly 860 billion VND.
Regarding the business results for the first six months of 2024, Ha Bac Fertilizer explained that the unfavorable production situation was due to unusual weather patterns, with frequent heatwaves and thunderstorms, especially multiple lightning strikes that severed the company's power transmission lines, causing production lines to shut down unexpectedly and significantly affecting equipment.
Hebei Fertilizer Company stated that after resolving the power grid issues and restarting the machinery, they discovered a leakage problem in the equipment, requiring an extended shutdown for repairs and major overhaul and maintenance.
Therefore, the machine's operating time was reduced by 45 days compared to the plan, resulting in no product output. In addition, the price of raw materials, especially coal, remained high.
Commenting on the financial report of Ha Bac Fertilizer Plant, the auditing agency concluded that, except for the fact that the company has recorded the original cost and depreciation of fixed assets for the renovation and expansion project of the Ha Bac Fertilizer Plant, there is insufficient basis to assess the existence and completeness of the debts, as well as potential debts that may arise in the future related to the settlement of the project.
The auditors emphasized that, as of June 30th, the company's current assets were lower than its current liabilities by VND 77.5 billion, indicating significant uncertainties still affecting the company's ability to continue operating.
As of June 30, 2024, Ha Bac Fertilizer had short-term assets of VND 962.8 billion, a decrease of VND 234.4 billion compared to the beginning of the year; short-term liabilities were VND 1,040.3 billion, a decrease of more than VND 40 billion.
However, after restructuring loans at the Vietnam Development Bank (VDB) North-Northeast branch by waiving interest on overdue principal and interest on late payments, and reducing interest rates on loans, the company's financial structure improved, and its equity exceeded its accumulated losses as of June 30th.
At the close of trading on August 8th, DHB shares reached 8,700 VND/share.
Source: https://vietnamnet.vn/nhieu-lan-bi-set-danh-dam-ha-bac-bat-ngo-bao-lo-tram-ty-2310079.html
