The profit in the first quarter of Ton Dong A Joint Stock Company is 40% compared to the same period in 2022

DNHN - Tonne Dong A's first-quarter profit after taxes decreased by 60% due to a precipitous 19% decline in financial revenue and a 37% increase in financial expenses.

Tonne Dong A Joint Stock Company has just released its financial statements for the first quarter of 2023, which show a 38% decline in net revenue compared to the same period in 2022. Gross profit decreased by 46% to 294 billion VND, and gross profit margin decreased to 7%.

19% y/y decline in financial income to VND75 billion; 37% increase in financial expenses to VND101 billion. As a result, Tonne Dong A reported a profit after taxes of VND 82 billion in the first quarter, down 60% from the same period last year.

Tonne Dong A's total assets reached VND 11,276 billion at the end of the first quarter of 2023, an increase of VND 970 billion from the beginning of the year. The value of inventories rose sharply by 540 billion dongs to 3,835 billion dongs, while the provision for devaluation of inventories fell from 58 billion dongs to 27 billion dongs.

Tonne Dong A was founded in 1998, and its primary product is construction-related galvanized steel. Tonne Dong A currently operates two factories in Song Than 1 and Dong An 2 industrial zones in the province of Binh Duong, with a combined annual capacity of up to 850,000 tonnes.

In Vietnam, Dong A Tonne holds the second largest market share for coated steel sheets in 2020, at 16%, just behind Hoa Sen (HSG). Tonne Dong-A is frequently the second largest company on the domestic market, with a market share of 17 to 18 percent over the past three years.

Recently, in April 2023, Tonne Dong A requested to withdraw his application for the initial listing on the HoSE. Tonne Dong A's application is being withdrawn because the domestic and international macroeconomic climate will hurt the business results of the entire industry and the company in 2022.

In 2022, Tonne Dong A's consolidated revenue reached VND 21,680 billion, a decrease of 14.3% compared to the previous year's revenue of over $1 billion. However, this company still holds the second position in terms of metal-plated and color-coated steel sheet market share, even gaining market share from the number one company when Hoa Sen drastically reduced consumption.

Nonetheless, the decline in gross profit margin pushed this steel industry into the red. In 2022, according to General Director Ho Song Ngoc, the price of the primary raw material, steel, fluctuates continuously as a result of global economic fluctuations that push up raw material and fuel prices, thereby increasing freight costs. dramatically increased. Moreover, exchange rate fluctuations and high bank interest rates relative to the previous year were the primary causes of a negative after-tax profit of 276.5 billion dongs. The absence of a loss in the preceding fiscal year is another requirement for listing on the HoSE.

The HoSE also announced at the start of April that it would cease reviewing the listing documents of Dong-A Tonne Joint Stock Company. If the Company resubmits the application, the Department will review it from scratch.

P.V (t/h)