Hoa Sen Group Joint Stock Company has just announced the financial report of the fourth quarter of 2022 (which is the first quarter of the financial year 2022/2023 of Hoa Sen, because the fiscal year starts from October 1 of the previous year and ends on October 1 of the previous year) on September 30 of the following year).
Accordingly, Hoa Sen’s net revenue reached VND 7,917 billion, down more than 50% compared to the same period last year, and was the second consecutive quarter of revenue below VND 8,000 billion.
Gross profit was only 160 billion dong, equal to 1/13 of the same period. Deducting all kinds of expenses (in which selling expenses alone amounted to VND 668 billion), Hoa Sen reported a loss of VND 680 billion.
Previously, Hoa Sen also reported a loss of VND 887 billion in the third quarter of 2022, making the business result for the fiscal year 2021/2022 only a profit of VND 251 billion, down 94% compared to the previous year and only completing 17% of the plan.
Mr. Le Phuoc Vu, Chairman of Hoa Sen said, 2022 is a year of many changes and difficulties for the global business environment. In the context of world socio-economic turmoil and difficulties from the challenges of the recovery journey after the Covid-19 pandemic, worldwide geopolitical instability and the tightening monetary policy of a In some countries, Vietnam’s steel industry is not outside the affected area.
Domestically, businesses in the industry have to face fierce competitive pressure when the demand for construction materials products decreases deeply.
Outside the country, China’s Zero Covid policy caused the country’s domestic steel demand to decrease, forcing China to export steel abroad at cheap prices, steel prices also fell sharply in a short time. In addition, the conflict between Russia and Ukraine caused an oil price crisis, causing international freight rates to rise. The above factors make a gloomy picture of the steel industry in 2022.
Entering 2023, Mr. Le Phuoc Vu forecast that the market is expected to have many unpredictable fluctuations. The company will implement a number of solutions to improve business results, such as technical improvements to reduce costs, transforming the operating model towards specializing in each separate business area, focusing on developing Developing Hoa Sen Home system, taking advantage of 3 main products: Steel – Steel pipes – Plastic pipes…
Source: CafeF
Source: Vietnam Insider