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BAS: Explanation for business activities in 9 months of 2008
HOSE on November 6, 2008 received an official letter from Basa Joint stock company to explain for their business activities in 9 months of 2008 and their adjustment of profit, dividend of 2008, with details as follows:
1. A loss of VND743,354,650 on net profit of first 9 months of 2008 due to following reasons:
- Banking interest rates increased sharply (from 0.95%/month to 1.75%/month), thus the company had to pay for loan interest from 600 million dongs to 1.5 billion dongs per month
- Tighten credit policies by commercial banks
- Fluctuation of US dollar and dong exchange rate
- High inflation, increase of production material prices
- Long duration of power cut has increased company of cost by using generator as a substitute.
2. Forecast business activities in quarter 4/2008
- Banking lending rates are still at high lever, though they have been cut down; the prices of raw material decreased just a little, so the company decided to re-plan its operation to reduce operation cost.
- The global crisis also affected to company consumer markets, so the company is trying its best to find more clients in another markets.
- The company targeted the result of quarter 4/2008 as follows:
+ Turnover: 70 billion dongs
+ Profit: 3 billion dongs
3. Adjustment of predetermined profit and dividend plan.
- As per the minutes of Board of Directors’ meeting on September 5, 2008, BODs approved the adjustment of company’s profit and dividend plan in 2008 as follows:
+ Turnover: 230 billion dongs
+ Profit: 10 billion dongs
Payment of dividend 2008: since the company profit is much lower than its target, so the BODs decided to bring this plan to the company’s 2009 General Shareholders Meeting.
HoSE
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