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|Long fall of Hanoimilk - Vietnamese once famouse milk brand|
The Hanoi Stock Exchange has just announced plans to delist 20 million HNM stocks on June 12 with the reason that it has delayed submitting the audited financial reports for the past three years (2017-2019). Previously, the company was suspended from transactions since last October for violating the disclosure requirements of the stock exchange.
Indeed, Hanoimilk has been ailing for more than 10 years. In 2008, the firm reported losses of VND40 billion ($1.74 million) although its revenue rose to VND350 billion ($15.2 million). Since then, it has been falling deeper in the doldrums.
In the latest three years, Hanoimilk reported about VND160-190 billion ($6.96-8.26 million) in net revenue. In 2017, it saw a deficit of VND19 billion ($826,090). In 2018-2019, the company earned tiny profit of less than VND1 billion ($43,480) while local milk giant Vinamilk made a daily profit of nearly VND30 billion ($1.3 million).
As of the end of 2019, Hanoimilk's after-tax profit was minus VND23 billion ($1 million). Shareholders' equity in Hanoimilk is about VND200 billion ($8.7 million), equaling 1.1 per cent of Vinamilk’s charter capital.
At last year's shareholders' meeting, Hanoimilk’s leaders said that the firm has yet to agree on operating fees, leaving it unable to submit its audited financial reports for three years. “We will try to resolve the problem as soon as possible,” the leaders said.
In the first quarter of 2020, Hanoimilk continued to post weak business results with VND38 billion ($1.65 million) in net revenue and VND4 billion ($173,910) in net losses.
Founded in 2001 and officially coming into operation in 2003, Hanoimilk JSC used to be one of Vietnam’s leading dairy enterprises with branded dairy products IZZI, Yotuti, and Hanoimilk 100 per cent fresh milk.