SMC has announced the release of collateral to liquidate assets, including over 10 million HBC shares and a 10 billion VND deposit. They are also releasing 62 billion VND in deposits, real estate, and machinery from SMC Mechanical Steel Company, along with 29.5 billion VND from SMC Steel Company. All proceeds from these liquidations will be used to pay off debts with Vietinbank, where SMC owes over 2.3 trillion VND, four times its equity. In the first half of 2025, SMC recorded a loss of 102 billion VND, resulting in a cumulative loss of 242 billion VND, with negative cash flow of 129 billion VND. Current liabilities now exceed current assets by 971 billion VND, raising doubts about the group’s ability to continue operating. Once a leading steel company in Vietnam with revenues of 21 trillion VND in 2021, SMC’s financial results have deteriorated since 2022 due to falling steel prices.
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