Company LO5, a state-owned enterprise, is deeply in loss with a cumulative loss of over 192 billion VND as of the end of 2024. The company recorded a loss of nearly 6 billion VND in 2024, with negative equity exceeding 117 billion VND, mainly due to ineffective investment in a welding rod plant. With annual revenue being low, only 49 billion VND in 2024, LO5 has incurred continuous losses for 7 years from 2018-2024. LO5’s shares are restricted from trading on UPCoM due to negative equity, plummeting more than 90% in value from a peak of 14,500 VND/share to 1,200 VND/share. LO5 is seeking support from its parent company LILAMA to improve liquidity and find new contracts. Additionally, the company is also selling its headquarters assets to repay bank debts. The financial report also faces challenges as the auditing unit could not fully verify several financial items, especially unfinished costs and overdue receivables.
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