Quarter III / 2020, FTM continued to lose losses and recorded losses for the 7th consecutive quarter. Total accumulated loss as at 30/9 is 147 billion dong.

Duc Quan Investment and Development Joint Stock Company (Ticker: FTM) has announced the financial statements for the third quarter of 2020 with the gloomy business picture.

In Quarter III, FTM reached less than 5 billion VND in revenue, down 99% compared to 360 billion VND in the third quarter of 2019. The company continued to lose more than VND 49 billion in the third quarter, recording the 7th consecutive loss.

Source: H.K compiled from financial statements.

Revenue is low, but in the period FTM has to bear nearly 22 billion VND of interest expenses, up 23% over the same period in 2019.

Notably, in the third quarter, other expenses of FTM surged to nearly 23 billion VND due to the appearance of stopping costs of more than 22 billion VND. This cost of stopping will appear from the first quarter of 2020.

Earlier, around mid-August, FTM said it was taking measures to ensure that one mill was maintained and two plants were maintained to be ready for operation any time when the yarn market recovered.

Source: H.K compiled from the financial statements of quarter III / 2020

Accumulated in the first 9 months of the year, FTM achieved nearly 45 billion VND of net revenue, down 95% compared to the same period in 2019. Loss after tax in 9 months amounted to 150.5 billion VND, up from 43 billion VND of the same period last year. Total accumulated loss as at 30/9 is 147 billion dong.

In 2020, FTM sets a target of 799 billion dong in revenue, nearly 5 billion dong in profit after tax. Thus, after 9 months, FTM has only fulfilled less than 6% of its revenue target and is still far from its profit target.

As of September 30, FTM’s total assets reached VND 1,514 billion, a decrease of VND 29 billion compared to the first quarter’s figure. In which, short-term receivables accounting for half of assets are nearly 770 billion dong. Working capital of FTM as at September 30 is minus 50 billion dong.

FTM’s total borrowing at the end of the third quarter was VND 809 billion and remained unchanged from the beginning of the quarter. This debt comes from banks and is 2.2 times more than equity. According to the explanation, in the third quarter, FTM only paid about 1.7 billion dong of borrowed money.

Details of loans from FTM. Source: Financial statements for the third quarter of 2020

As of September 30, the total interest expense payable by FTM to the Vietnam Development Bank – Thai Binh branch and Vietnam Joint Stock Commercial Bank for Investment and Development (BIDV) was more than VND296 billion. These accrued interest expenses arise from 2014 and will be paid off gradually until 2023, 2025.

Source: vietnambiz.vn – Translated by fintel.vn