The value of compensation for damages has not been determined.
As Lao Dong Newspaper reported, at the end of 2023, a shipping vessel of Vinafco Shipping Joint Stock Company dropped 37 containers of cars into the sea, among which were more than 10 tons of batteries. The Vietnam Maritime Administration requested the Ho Chi Minh City Maritime Port Authority to preside over the incident, coordinate with the Da Nang Maritime Port Authority and other relevant agencies and units to investigate and verify the incident.
Regarding the above incident, in the audited consolidated mid-year financial statements of Vinafco Joint Stock Company (UPCoM: VFC - the parent company owning over 90% of the capital of Vinafco Shipping Joint Stock Company), AASC Auditing Company Limited, the audit unit of Vinafco's financial statements, raised the following issue: On December 22, 2023, the Morning Vinafco ship with registration number 715HD/HS, managed by Vinafco Shipping Joint Stock Company (abbreviated as VTB Vinafco - a subsidiary with 90.12% capital owned by Vinafco Joint Stock Company), was operating on the HPH-DNA-HCM route when 37 containers fell into the sea due to bad weather.
“Currently, VTB Vinafco continues to coordinate with shippers, insurance companies and competent authorities to resolve the above incident in accordance with current procedures and laws. Accordingly, the compensation value that the Company may have to bear will depend on the results of the dispute resolution by the competent authority,” AASC Auditing Company stated in its review report of Vinafco’s mid-year financial information.
Profits plummeted to below 3 billion VND
In the first 6 months of the year, Vinafco's net revenue reached VND564 billion, down 7.8% compared to the same period last year. Of which, revenue from providing transportation services reached VND498 billion, revenue from warehouse services and office rentals was nearly VND70 billion.
After deducting cost of goods sold, Vinafco's gross profit reached VND28.3 billion, down 48% year-on-year. Gross profit margin fell to 5%, compared to 8.9% in the same period last year.
Revenue from financial activities also decreased sharply by 35%, to VND10.3 billion. During this period and the same period last year, the company did not incur any selling expenses. Meanwhile, business management expenses decreased by 9.8%, to VND26.4 billion.
As a result, in the first 6 months of the year, Vinafco reported a profit of only 2.8 billion VND, a sharp decrease of 90.5% compared to 29.5 billion VND in the same period last year.
As of the end of June 2024, Vinafco's total assets reached VND1,001 billion, down 6.7% compared to the beginning of the year. Of which, cash and bank deposits reached VND425.7 billion, down slightly by 0.5% compared to the beginning of the year.
Receivables from customers also decreased by 15%, to VND247 billion. Of which, short-term receivables were VND214.3 billion, long-term receivables were VND33.1 billion; inventories during the period also decreased sharply by 35.9%, to VND12.5 billion, mainly raw materials and materials (oil...) with VND10.7 billion. The company set aside a provision for inventory devaluation of VND283 billion.
As of June 30, 2024, Vinafco's total liabilities were VND304.9 billion, down 12.9% compared to the beginning of the year. The majority of which was short-term payables to suppliers at VND165.7 billion, down 24.8%; loans at VND66.1 billion, up 20%. Owners' equity as of the end of the second quarter of 2024 reached VND696.9 billion, down 3.5%.
Regarding the cash flow statement, Vinafco's net cash flow from operating activities during the period was positive at VND 13.3 billion, a significant decrease compared to the positive figure of VND 87.4 billion over the same period last year.
Cash flow from investing activities was positive at VND 22 billion, a significant improvement compared to the negative VND 126 billion in the same period in 2023; financial cash flow was negative at VND 17.4 billion, and negative at VND 16.5 billion in the same period last year. Cash receipts from borrowings during the period reached VND 69.3 billion, the company paid off the principal of VND 57.5 billion.
