SIMCO Song Da posts significant 2024 losses amid provisions, divestments

SIMCO Song Da Joint Stock Company announced its 2024 audited financial statements, revealing a consolidated net loss after tax of VND -100,142,622,762. This represents a significant decline from the Q4/2024 profit and a 242% decrease compared to the audited 2023 net loss of VND -29,258,003,127. The primary reasons for the losses include increased provisions for financial investments in subsidiaries and associates, as well as additional provisions for doubtful debts from unsecured loans.

Key divestments and provisions in 2024 include a 100% provision for the VND 37,050,000,000 investment in Cat Tuong Thien Tan Lac Joint Stock Company, subsequently divested in 2025. Additionally, a 100% provision was made for VND 58,163,618,000 in other short-term receivables and VND 3,200,000,000 from Mr. Nguyen Quang Hoan, due to lack of payment guarantees. The company also disclosed VND 11,891,456,085 in outstanding receivables from sales in 2024, with VND 2,506,253,320 recovered as of the reporting date.

The company's board of management approved further divestments and capital contributions in 2025, including divesting all 1,900,000 shares of Cat Tuong Thien Tan Lac JSC and contributing capital to An Vien Lac Son JSC. Total remuneration for the board of management and supervisors decreased from VND 879,594,500 and VND 84,347,000 in 2023 to VND 660,037,200 and VND 14,641,000 in 2024, respectively.