Declared-bankrupt plastic firm (SPP) records $30.5m of loss in 2019

Involuntarily-bankrupted firm Saigon Plastic Packaging JSC (Saplastic) has reported a net loss of VND720 billion (US$30.5 million) in 2019.

 

The company earned VND255 billion in total net revenue last year, down sharply from VND1 trillion recorded in 2018.

2019 was the first year Saplastic suffered losses since 2007.

According to the company, it lost its market share in 2019, leading to the steep decline in net revenue.

Saplastic claimed that products were sold at a price level that was lower than production cost, making the firm suffer a gross loss of VND369 billion.

In addition, management costs rose sharply to VND325 billion, including VND248 billion worth of material purchases.

TTTP Auditing Co Ltd, which gave a qualified opinion on Saplastic’s financial report, said the plastics firm had not fully reported its interest liabilities worth VND56.4 billion in 2019.

The company responded by saying it had been in talks with creditors about the loans and no decisions had been made about interest liabilities.

At the end of 2019, short-term liabilities exceeded short-term assets and the combined loss was more than VND690 billion while its equity capital was negative VND439 billion.

Overdue outstanding loans were worth VND707.6 billion, including VND386.5 billion owed to the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV).

The HCM City People’s Court on November 26, 2019 declared an involuntary bankruptcy on Saplastic as the firm unable to pay back loans. The decision makes Saplastic the first listed company to be declared bankrupt.

Sen Viet Management and Liquidation of Assets Partnership Company was assigned to administrate the bankruptcy at Saplastic.

Sen Viet has recently sent a letter to the Ha Noi Stock Exchange, which states that Saplastic is undertaking a bankruptcy process, therefore its shares should be monitored strictly by the market regulator.

Saplastic debuted on the Ha Noi Stock Exchange in 2008 with code SPP. Its shares tumbled 11.1 per cent to end Wednesday at only VND800 apiece.

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