Audit doubles major steel maker Nam Kim's loss to $5 mln in 2022

Nam Kim Steel made a loss of nearly VND125 billion ($5.32 million) in 2022, two times more than previously reported.

The company explained that the fluctuation was due to increased capital costs, as well as additional provisions for inventory and losses at its subsidiary Nam Kim Steel Pipe One Member Co., Ltd.

At the end of 2022, the company's inventory stood at more than VND7.3 trillion ($310.83 million), with finished products accounting for VND3.4 trillion ($144.77 million).

It's net revenue reached VND23.07 trillion ($982.36 million) in 2022, down 18% year-on-year.

Nam Kim Steel, listed on the Ho Chi Minh Stock Exchange as NKG, was traded for VND15,700 ($0.67) per share at Thursday's close.

At the end of last year, NKG's total assets stood at VND13.52 trillion ($576.6 million), down 12.2% compared to the beginning of the year. Of this, inventory totalled VND7.06 trillion ($301 million), down 15% compared to the beginning of the year.

Short-term receivables decreased 20% compared to the beginning of the year to VND1.52 trillion ($64.69 million), while cash and cash equivalents reached more than VND1 trillion ($42.64 million), up nearly 34%.

NKG's liabilities dropped to VND8.11 trillion ($345.8 million), down 16% compared to the beginning of the year. NKG's debts were mainly short-term, accounting for 99.6% of liabilities.

Another steel maker Vietnam Steel Corporation (Vnsteel) reported a loss of VND822 billion ($35 million) in 2022, while its profit hit VND859 billion ($36.63 million) the previous year.

Hoa Phat Group (HPG), the largest Vietnamese steelmaker, recorded a post-tax profit of VND8.4 trillion ($358 million) in 2022, down 76% year-on-year.