Top steelmaker Hoa Sen's 2022 profit drops 94% to $11 mln

Hoa Sen Group, Vietnam's leading steel sheet producer, reported after-tax profit of VND251 billion ($10.7 million) in the fiscal year 2021-2022 from October 1, 2021 to September 30, 2022, down 94% year-on-year and fullfilling 10% of its target.

The group's net revenue reached VND49,710 billion ($2.12 billion), up 2% and fullfilling 16.7% of the target, according to its consolidated financial statement.

In the fourth quarter of the fiscal year 2021-2022, Hoa Sen recorded net revenue of VND7,939 billion ($338.04 million), down 49.7%, and a loss of nearly VND887 billion ($37.77 million), while it posted a profit of VND940 billion ($40.02 million) in the same period last year.

As of December 31, 2022, Hoa Sen's total assets decreased by 6.2% compared to the beginning of the year to VND15,964 billion ($679.73 million). Of this, inventory hit VND5,981 billion ($254.65 million), accounting for 37.5%.

The group's total short-term and long-term loans were VND2,694 billion ($114.69 million), down 35.7% compared to the beginning of the year, accounting for 16.9% of total capital.

In the first quarter of fiscal year 2022-2023, Hoa Sen posted net revenue of VND7,917 billion ($337.12 million), down 53.2% year-on-year and a loss of VND680.2 billion ($28.96 million), while the same period last year saw a profit of VND638.3 billion ($27.18 million).

Hoa Sen explained that it recorded a loss in Q1 of the fiscal year 2022-2023 due to the decrease in gross profit margin.

On the Ho Chi Minh Stock Exchange, the HSG share price hit VND14,550 ($0.862) at Monday's closing session.

On December 22, 2022, the group issued a notice on extending the time for holding the annual general meeting of shareholders of financial year 2022-2023 latest on March 31, 2023.

The group believes that the current socio-economic and market situations are complicated and unpredictable. Therefore, its business plan of the financial year 2022-2023 and the orientation and strategy for the subsequent financial years must be outlined to fit such contexts.

Meanwhile, Hoa Phat Group, the largest Vietnamese steelmaker, recorded a post-tax profit of VND8.4 trillion ($358 million) in 2022, down 76% year-on-year. The group, listed on the Ho Chi Minh Stock Exchange (HoSE) as HPG, posted a revenue of VND142 trillion ($6.06 billion), falling 5% year-on-year, after recording a Q4 revenue of VND26 trillion ($1.11 billion), down 42%.

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.

Vietnam Steel Corporation (Vnsteel), Vietnam's leading steelmaker, reported a loss of VND822 billion ($35 million) in 2022, while its profit hit VND859 billion ($36.63 million) in the previous year. The company recorded revenue of VND38,732 billion ($1.65 billion), down 5% year-on-year.