CMC Technology (CMG) Q2 profit drops 21%, divests from CMS

CMC Technology (CMG) offers CMS shares, pays dividend at 12% rate

CMC Technology Group (code CMG) has just announced its complete divestment from CMC Manufacturing and Services Company Limited (CMS). Accordingly, CMC Technology will sell all shares at CMS at a price not lower than the net asset value of VND33 billion.

The company also authorized the Chairman of the Board of Directors, Mr. Nguyen Trung Truc, to search for parties interested in purchasing CMS shares to carry out the offering transaction.

Currently, CMC Technology owns 100% of the charter capital of CMS, a subsidiary operating in the field of manufacturing electronic components, computer components...

CMC Technology (CMG) is planning to divest from its subsidiary CMS (Photo TL)

In addition to divesting from CMS, CMC Technology is also finalizing the shareholder list to pay 2022 dividends in cash and shares. Accordingly, the company will pay a dividend of 6% in cash and 6% in shares. Accordingly, shareholders owning 100 shares will receive 6 additional shares, and each share will receive a dividend of 600 VND.

In addition, the company is also planning to issue bonus shares to shareholders at a rate of 20.2%. Correspondingly, each shareholder owning 1,000 shares will receive 202 newly issued shares.

Second quarter profit down 21%

Regarding business performance, in the second quarter (from July 1 to September 30), in the fiscal year from April 1, 2023 to March 31, 2024, the company achieved net revenue of VND 1,790 billion, gross profit of VND 308 billion, gross profit margin of 17.2%. Profit after tax was nearly VND 81 billion, down 21% over the same period, profit after tax of parent company shareholders reached VND 68 billion.

In the second quarter, CMC Technology's total assets did not fluctuate much, reaching VND6,948 billion. Of which, liabilities accounted for VND3,708 billion, equivalent to 53.4% of total capital. Owner's equity accounted for VND3,240 billion.

In the debt structure, short-term debt accounted for VND841 billion, an increase of 45.5% compared to the beginning of the year. Meanwhile, long-term debt increased slightly from VND709 billion to VND789 billion, equivalent to an increase of about VND80 billion.

Equity did not fluctuate much with undistributed profit after tax in the period reaching VND 398 billion. The company did not set aside a development investment fund at the end of the second quarter of 2023.

Source: https://www.congluan.vn/cong-nghe-cmc-cmg-lai-quy-2-sut-giam-21-thoai-von-khoi-cong-ty-con-cms-post273176.html