Illustrative image (Photo: VNA) Hanoi (VNS/VNA) - Many businesses have experienced losses for the first time or after many years due to disruptions caused by COVID-19 in the third quarter of 2021. Their target is now making efforts to revive in the fourth quarter to complete the yearly plan.
Losses after years of gaining
In its third-quarter financial report, Pha Lai Thermal Power JSC (PPC) reported a drop of 33 percent year-on-year in net revenue to over 1 trillion VND (45.7 million USD), resulting in a loss of 35.4 billion VND.
This marked its first quarterly loss since 2016. In the third quarter of 2020, the company posted profit of 90 billion VND.
The loss was mainly due to higher cost of goods sold, making the gross profit negative 44.4 billion VND.
For the first nine months of the year, Pha Lai Thermal Power recorded revenue of more than 3.3 trillion VND, with profit after tax of 223.3 billion VND, down 44.8 percent and 55.6 percent, respectively. Therefore, as of September 30, the company completed 59 percent of 2021’s revenue target and 54 percent of the profit target.
After reporting very positive business results with a profit of 65.4 billion VND in the third quarter of last year, Haxaco (HAX) experienced a loss of 33.3 billion VND.
Accordingly, its consolidated revenue fell 59.3 percent year-on-year to 708.89 billion VND in the third quarter. For the first nine months, Haxaco’s consolidated revenue declined 9.1 percent to nearly 3.4 trillion VND, with profit after tax of 34.3 billion VND, down 45.1 percent over the same period last year.
The company’s business activities were seriously affected by the fourth outbreak of the pandemic, Do Tien Dung, Chairman of the Board of Directors of Haxaco told tinnhanhchungkhoan.vn.
Two of its branches in Ho Chi Minh City had to close for the whole third quarter, while two branches in Hanoi were closed until September 21. Sales dropped sharply, while it still had to pay for depreciation expenses, salary costs and other fixed costs, causing Haxaco to witness a loss in the last quarter.
Located in the centre of the COVID-19 hotspot, Thanh Cong Textile Garment Investment Trading JSC (TCM) carried out the “three-on-site” model throughout September, resulting in big drops in output and production capacity.
Meanwhile, the higher costs due to expenses to test workers twice a week, resulting in losses for Thanh Cong Textile in September. This was also the second monthly loss of the company.
Of which, its net revenue slid by 20 percent over last year to 782.9 billion VND, with a loss of 2.5 billion VND.
However, as of September 30, Thanh Cong Textile’s revenue was mostly unchanged compared to the same period of 2020 at 2.7 trillion VND, while its profit after tax was 118.6 billion VND, down 41 percent. With the results, the company fulfilled 63.5 percent of its whole year’s revenue plan and 39.5 percent of profit after tax plan.
Thanh Cong Textile exports textiles to many countries around the world. In September, its export revenue to the US market accounted for the highest proportion, with 36.63 percent of total export value. It was followed by the Republic of Korea, accounting for about 31.8 percent, while Japan and China were among the largest markets with market shares of over 9 percent.
Of securities companies, while many posted record third-quarter profits like SSI Securities and VNDIRECT Securities, Bao Minh Securities (BMS) saw a net loss of nearly 38.2 billion VND. This was also its biggest loss recorded since the first quarter of 2020.
The third-quarter financial statement showed that Bao Minh Securities’ revenue decreased by 11.4 percent over the same period last year to 54.5 billion VND. The drop was due to the inefficiency of the securities trading division, which accounted for a large proportion of its revenue.
Besides some businesses reporting losses for the first time or after many years, there are businesses whose losses were expected. For example, Vinasun (VNS) announced its revenue of nearly 23 billion VND in the third quarter, down 90 percent over last year.
The company was also heavily affected by the social distancing orders due to COVID-19 during the period, causing a net loss of more than 90 billion VND.
In the first nine months of 2021, Vinasun lost 185.4 billion VND. It posted a loss of more than 182.6 billion VND in the same period last year.
Efforts to revive in the fourth quarter
In the fourth quarter, Haxaco leaders said that they had carefully prepared to carry out business plans when the country’s economy entered the new normal phase.
All employees had been vaccinated, ensuring safety for operations. The company also worked with the Mercedes-Benz Vietnam factory and partners to ensure a balance between supply and demand during the peak business season at the end of the year.
Meanwhile, at Pha Lai Thermal Power, Le The Son, Chief Financial Officer, said that the third quarter was normally a low period in operation. And given the impact of the pandemic and problems that occurred at the Pha Lai 2, the consumption output was much lower than the same period last year.
The return of Pha Lai 2 in the fourth quarter was expected to help the company improve profit and complete its whole year target.
Meanwhile, Tran Nhu Tung, Chairman of Thanh Cong Textile’s Board of Directors, said that the company was trying to boost its operating capacity to meet export orders.
Currently, it had received orders until the end of 2021 and the first quarter of 2022. The company was speeding up the construction of Vinh Long 2 plant to keep up with orders for 2022./.
VNA
