Pomina Steel Joint Stock Company (stock code: POM) recorded a post-tax loss of nearly VND 190 billion in Q1 this year, exceeding the VND 159 billion loss from the same period last year. This brings the company's total accumulated losses to over VND 3,660 billion, pushing shareholder equity into a negative balance of more than VND 800 billion.
According to General Director Do Tien Si, the Q1 financial report revealed a revenue of over VND 465 billion, a 50% decrease compared to Q1 last year. However, selling expenses increased nine times. This surge in costs, explained Si in a recent document to the Hanoi Stock Exchange, stemmed from subsidiaries gradually resuming production and business activities from March, incurring higher selling, transportation, and handling costs. Additionally, the company reclassified fixed asset depreciation costs from the shutdown of its steel billet plant to other expenses, further impacting the bottom line.
Despite the revenue rebound in early March following capital support from Vingroup Group, this income was insufficient to cover expenses, particularly interest and late payment penalties to suppliers, contributing to the substantial loss.
Vingroup's assistance began in late November 2025, when its subsidiary VinMetal announced a partnership to provide Pomina with a working capital loan for up to two years at 0% interest. This preferential capital aims to improve Pomina's cash flow, restore its supply chain, stabilize production, and facilitate financial recovery. Vingroup also committed to prioritizing Pomina as a steel supplier for its ecosystem companies, including VinFast, Vinhomes, and VinSpeed.
Established in 1999, Pomina was Vietnam's largest construction steel enterprise in 2010, holding approximately 29.37% of the market share, as stated in its prospectus for listing on the TP HCM stock exchange. However, the company has faced continuous losses since Q2/2022.
As of the end of Q1, Pomina's total capital stood at over VND 10,200 billion, an increase of approximately VND 1,400 billion from the start of the year. Liabilities also rose by about VND 1,600 billion, reaching over VND 11,000 billion.
Despite the ongoing losses, the Q1 financial report indicates some positive trends in production and business. Inventory value doubled by the end of Q1 compared to the beginning of the year, reaching VND 750 billion.
POM shares reacted strongly to the news, hitting their ceiling price of VND 4,300 and seeing nearly 4 million shares traded within one hour of market opening. The stock is currently under restriction, trading only on Fridays.
The company's leadership has not yet announced its business plan for this year. The annual general meeting of shareholders is scheduled for June, instead of earlier this month as previously announced.
Phuong Dong
