Loc Troi requests to postpone submitting the second quarter report to focus on handling financial issues.

Loc Troi Group Joint Stock Company (code LTG) has just sent an official dispatch to the State Securities Commission (SSC) and Ho Chi Minh City Stock Exchange (HOSE) to temporarily postpone information disclosure due to "facing some force majeure events" leading to the inability to publish the Financial Report for the second quarter of 2024 on time.

Specifically, Mr. Huynh Van Thon - Chairman of the Board of Directors of Loc Troi Group said that the company is facing some force majeure events that require it to increase the stability of capital flow for production and business activities. The entire company must focus on handling immediate financial issues.

In addition, according to the company's leadership, Loc Troi will hold the 2024 annual general meeting of shareholders later than in previous years. After the General Meeting, some personnel changes, changes in some key personnel, etc. have affected the progress of synthesizing and providing data to complete the second quarter financial report on time as prescribed.

Chairman of the Board of Directors Huynh Van Thon proposed that the management agency consider and approve the postponement of the announcement of the second quarter financial report until August 30, 2024.

Previously, the Board of Directors of Loc Troi Group (Code: LTG) approved the dismissal of Mr. Nguyen Duy Thuan from the position of General Director from July 15.

Following this announcement, on July 22, Ms. Nguyen Thi Thuy submitted her resignation as a member of Loc Troi's Board of Supervisors, after less than 1 month in office since being elected at the Annual General Meeting of Shareholders on June 26, 2024. At the same time, Mr. Uday Krishna was elected as Head of the Board of Supervisors from July 23, 2024.

On July 24, Mr. Nguyen My (who had not held any position before) was appointed as Deputy General Director of Loc Troi. Mr. Nguyen My was born in 1962, originally from An Giang, and is currently Chairman of the Board of Directors of Lion Agrevo Joint Stock Company.

Loc Troi is losing money, calling on shareholders to stay, needing a few years to overcome difficulties

The high-level personnel changes took place in the context of Loc Troi's losses. In the first quarter, Loc Troi's net revenue reached VND3,849 billion, up 57% over the same period last year. Of which, the food - rice segment contributed up to 85% of total revenue, equivalent to VND3,286 billion, nearly double the same period; offsetting the 40% decrease in revenue from the plant protection drug segment to VND371 billion.

However, the cost of goods sold increased sharply by 65%, causing Loc Troi's gross profit to decrease by 10% to VND245 billion; gross profit margin decreased from 11% in the same period to 6%.

Financial revenue this period was VND33 billion, down 47% compared to the same period last year. While financial expenses increased by more than 28% to VND188.6 billion, most of which were interest expenses and exchange rate losses that eroded Loc Troi's profits.

Loc Troi had a loss after tax of more than VND 96 billion in the first quarter, an increase in loss compared to the VND 81.2 billion recorded in the same period in 2023.

According to the minutes of the 2024 Annual General Meeting of Shareholders recently held, Loc Troi Group Corporation (Code: LTG) has set a target of after-tax profit in 2024 of VND 50 billion, 3.1 times higher than the same period.

In addition, Loc Troi shareholders also approved the plan to transfer stock listing from UPCoM to HOSE in 2024.

Loc Troi remains optimistic about its year-end business prospects as demand for imported rice increases from traditional Vietnamese customers.

Loc Troi said this year's revenue is expected to reach VND20,000 - 24,000 billion from rice exports and other activities. From now until the end of the year, Loc Troi will sign rice export contracts equivalent to more than USD400 million.

Loc Troi's leaders predict that it will take several years for the company to overcome difficulties. The current problem is cash flow, Loc Troi needs to increase capital to ensure its business plan.

It is known that LTG stock price on the stock exchange has decreased by nearly 31% in a month and is trading at 16,200 VND/share in the afternoon session of July 31. Average liquidity since the beginning of the year has reached more than 325 thousand shares/day. Loc Troi calls on shareholders to stay, it will take a few years for the Company to overcome difficulties.