A steel company unexpectedly adjusted its financial statements from losses of hundreds of billions to profit

SMC Joint Stock Company (code: SMC) has announced an adjustment to its financial statements for 2024, resulting in profit after tax shifting from a loss of 287 billion VND to a profit of 48 billion VND. The adjustment is mainly due to a reduction in the value of the provision for difficult-to-collect receivables from 663 billion to 328 billion VND. This is good news for SMC after two consecutive years of losses, as continuing losses could lead to mandatory delisting. At the end of 2024, SMC’s total assets reached 4.847 trillion VND, down 22% from the beginning of the year, with receivables accounting for 32%. The total liabilities stand at 4 trillion VND, with more than 2.4 trillion VND in short-term loans, and even with profits, the cash flow from operations remains negative. For 2025, SMC targets a net profit of 30 billion VND and aims to sell 620,000 tons of steel. Currently, SMC’s stock is on alert due to late submission of audited financial reports and reporting losses for the previous two years.