BII: Explanation for the share under alert

BII: Explanation for the share under alert

On 12/04/2018, Bao Thu Industrial Development and Investment Joint Stock Company explained the share under alert as follows:
The share of the Company was put under alert because the operating result of 2017 of Holding Company was a loss.
Explanation for the loss in operating result of 2017 in the Consolidated FS
- Tuynel Brick Factory has just been put into operation. This Factory has not been stable, the capacity reached only 50% of the design. Therefore, the cost increased significantly while the quality of the product was not stable. Additionally, the Company stopped capitalizing the borrowing expenses for the source that the Company used to build Factory and the production line. Therefore, the borrowing expenses increased significantly. The Tuynel Factory had a loss of VND (8,880,034,391) in 2017
- The remaining loss was caused by the arising expenses of projects and subsidiaries which were not put into operation and interest from late tax payment.
Solution:
- Stabilize the tuynel brick factory, push the capacity to reach 5,000,000 bricks/month and improve the product’s quality in the first stage. Additionally, the Company also has to deploy the second stage of the brick factory to reach the capacity of 10,000,000 bricks/month.
- Finish the bidding for clay mine so that the Company will have a stable source
- Complete the ground compensation for Tan Phuoc White Sand Mine to supply the input material to sand factories in 2018
- Divest a part of or entirely the capital at subsidiaries or projects that have low efficiency
- Find new partners to cooperate and develop incomplete projects which have high profitability

HNX