Nam Kim Steel records first loss in 10 years

Nam Kim Steel, a major steelmaker in Vietnam, made a loss of VND66.7 billion ($2.84 million) in 2022, its first loss in 10 years, with net revenue reaching VND23,071 billion ($983.8 million), down 19% year-on-year.

The firm's most recent loss was more than VND105 billion ($4.48 million) in 2012.

Its net revenue in Q4/2022 was VND4,299 billion ($183.3 million), a 51% drop against the same period in the previous year, while profit after tax was negative VND356.3 billion ($15.19 million).

By December 31, 2022, NKG's total assets stood at VND13,522 billion ($576.6 million), down 12.2% compared to the beginning of the year. Of this, 52% is inventories totalling VND7,061 billion ($301 million), down 15% compared to the beginning of the year.

Short-term receivables decreased 20% compared to the beginning of the year to VND1,517 billion ($64.69 million), while cash and cash equivalents reached more than VND1,000 billion ($42.64 million), up nearly 34%.

NKG's liabilities dropped to VND8,109 billion ($345.8 million), down 16% compared to the beginning of the year. NKG's debts are mainly short-term, accounting for 99.6% of liabilities.

On the Ho Chi Minh Stock Exchange, the price of NKG shares is anchored at VND15,500 ($0.66) per share, only one fourth of what it was on December 31, 2021.

Vietnam's steel sector in 2022 was negatively impacted by the real estate market depression. From April 2022, the property market fell into a state of reduced supply, declined demand, and plummeting liquidity. Domestic steel demand plunged due to the property market stagnation and tightened monetary policy.

Vietnam Steel Corporation (Vnsteel), Vietnam's top steelmaker, reported a loss of VND822 billion ($35 million) in 2022, while its profit hit VND859 billion ($36.63 million) in 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.