Sao Mai Group (ASM): The fourth quarter of 2023 reported a 75% decline in profits, the lowest since 2018 to date

Sao Mai Group Joint Stock Company (HoSE: ASM) has just released its 2023 consolidated financial report, showing that the Group’s business results are on a downward trend.

Sao Mai Group (ASM) profit of 16.5 billion VND in the fourth quarter of 2023

Specifically, ASM’s net revenue in the fourth quarter of 2023 reached VND 2,788.7 billion, down 12.4% over the same period last year. Cost of goods sold was at 2.5 billion VND, down 11.8%, gross profit this period reached 273.7 billion VND, down 17.8% compared to the same period in 2022.

Fourth quarter financial revenue reached nearly 92 billion VND, an increase of 64.3%, however costs were high at more than 203 billion VND, of which 176.2 billion VND was interest expenses.

Sales expenses were 47 billion VND, down 21%, management costs increased 5% to 86.9 billion VND. Profit for this period decreased sharply from 8.6 billion VND to more than 100 million VND.

As a result, profit following corporate income tax decreased by 75% to 16.5 billion VND. This is the quarter recording Sao Mai’s lowest results since 2018.

ASM’s consolidated financial statements

Cumulatively for the whole year 2023, Sao Mai Group recorded total consolidated revenue of 11,968.5 billion VND, down 13%, profit following tax for the whole year reached more than 274 billion VND, down 71.5% compared to the year’s performance. 2022.

In 2023, ASM plans to reach 15,250 billion VND in revenue, an increase of 10.9% over the same period and a profit following tax of 545 billion VND, a decrease of 43.4% compared to 2022. Thus, with the results As a result, Sao Mai has only achieved 77% of revenue and 50.3% of the year’s profit plan.

Regarding revenue structure, revenue from exported fish reached 2,950 billion VND, down 20%, real estate revenue decreased 76% to 89.5 billion VND, revenue from providing services decreased slightly to 233.5 billion VND. , commercial revenue decreased 11.5% to 2,983 billion VND, fish food revenue decreased 9.7% to 4,983 billion VND, solar power revenue increased 22% to more than 744 billion VND…

As of December 31, 2023, ASM’s total assets increased by 6.4% to VND 20,315 billion. Of which, cash and equivalents increased by 60.8% to VND 1,365 billion, held-to-maturity investments increased slightly to VND 977 billion. Inventories increased sharply by 43% to VND 4,556 billion.

Total liabilities increased by 10.8% to VND 12,466.3 billion. Total debt is at 10,782 billion VND, an increase of nearly 10% compared to the beginning of the year. Taxes and other payables to the State also increased by 137.3% compared to the beginning of the year.

Continuously wants to divest all capital in subsidiaries

On January 23, Sao Mai Board of Directors issued a Resolution on divesting all capital contributions at International Financial Investment and Communications Joint Stock Company.

Accordingly, the Company plans to transfer 100% of capital at International Finance and Communications Investment and Consulting Joint Stock Company (MIF). The corresponding number of shares transferred is 1,151,000 with a value of more than 11.5 billion VND.

The expected selling price is not lower than 10,000 VND/share. The subjects transferring shares will be partners (including organizations or individuals, whether or not related to Sao Mai Group), with financial capacity and a culture suitable for MIF Company. This deal is expected to take place in the first quarter of 2024.

It is known that MIF Company was established on August 18, 2010 with headquarters in My Long ward, Long Xuyen city, An Giang province. The representative and General Director is Mr. Le Quoc Truong (born 1987). As of September 30, 2023, Sao Mai Group holds 63.94% of voting rights and 63.94% of interests at MIF.

A month earlier, Sao Mai also approved a plan to divest its capital contribution at Financial Investment and Consulting Joint Stock Company (Astar). Specifically, Sao Mai will divest all 866,000 shares at Astar at a selling price no lower than 10,000 VND/share in December 2023. Accordingly, Sao Mai Group is expected to collect a withdrawal amount of no less than VND 8.66 billion and is expected to deploy in December 2023.

It is known that the transferees are partners (including organizations or individuals related or not related to Sao Mai Group) with financial capacity and business culture consistent with Astar Company. .

As of September 30, 2023, Sao Mai Group owns 53.83% of the interest rate and owns 91.95% of the voting rate at Astar Company, and is accounted for as an investment in the company. child.

According to research, Astar Company was established on October 12, 2000, located at 254/1, Hung Vuong, My Long ward, Long Xuyen city, An Giang province and operates mainly in the field of architecture and consulting. related techniques.

General Director and legal representative of Astar at the time of divestment is Mr. Le Thanh Thuan (born 1958). Mr. Thuan used to be General Director of ASM. The Board of Directors of Sao Mai Group decided to dismiss Mr. Thuan from his position on May 1, 2023 and appoint Mr. Le Tuan Anh (born 1994), Mr. Thuan’s son, as General Director of the Group.