Seafood processing business Hùng Vương has cut its revenue target by 8 per cent from the last projection to more than VNĐ11.5 trillion (US$495 million) for the 2020 financial year.— Photo vietnamnet.vn

HÀ NỘI — Seafood processing business Hùng Vương has cut its revenue target by 8 per cent from the last projection to more than VNĐ11.5 trillion (US$495 million) for the 2020 financial year.

The figure jumped from VNĐ4.1 trillion earned in financial year 2019, which spanned from October 1, 2018 to September 30, 2019.

Post-tax profit is forecast at VNĐ350 billion, a big reverse from the loss of VNĐ1.07 trillion made in the last financial year.

This year’s earnings forecasts are lower than previous projections, which were VNĐ12.5 trillion in total revenue and VNĐ790 billion in post-tax profit.

The company also plans to change its financial year for 2020, which lasts from January 1, 2020 to December 31, 2020.

Before 2020, its financial year lasted from October 1 to September 30 the following year.

The company would return its focus back onto aquaculture and leave pig-farming division to Thadi, a member of Trường Hải Auto Corporation (Thaco) that signed a strategic partnership pact with Hùng Vương in early January 2020, chairman Dương Ngọc Minh said at the firm’s annual shareholder meeting on Friday.

Under the partnership agreement, Thadi will hold 35 per cent of Hùng Vương’s capital. The two firms will set up a pig-farming joint venture, in which Thadi holds a 65 per cent stake.

The change was made because banks had been hesitant to provide full support for the company, therefore, the board had to make the decision, Minh said.

Hùng Vương had troubles developing pig farms, he said, adding the number of pigs had fallen sharply and it would take the joint venture about two years to recover.

The company in 2020 would concentrate on its core business activities, which are tra fish processing, fishery feed and storage, the chairman added.

A frozen warehouse with total capacity of 60,000 tonnes was being constructed and it was planned to open in August, Minh said.

It was a tough year for the fishery sector in 2019 and early 2020 as market demand in China, the biggest trade partner that accounts for 30 per cent of Viet Nam’s total exports, was significantly down due to COVID-19, he said.

Seafood companies in the Cửu Long (Mekong) Delta had stalled for the last three months as global demand had been slashed by half, he said.

Private share issuance

Hùng Vương on Friday proposed shareholders approve Thadi to increase its ownership to more than 25 per cent of the capital without making a public offer.

Thadi now holds 24.28 per cent in Hùng Vương, equal to 53.9 million shares.

The seafood firm also planned to issue 20 million shares to Thaco and related investors in a private deal at VNĐ10,000 per share.

Income raised from the share issuance would be added into the firm’s working capital for 2020.

Hùng Vương shares (HoSE: HVG) plummeted 5.6 per cent to end Friday at VNĐ6,800 apiece. — VNS