Constantly suffering losses and a trillion Vietnamese dongs worth of assets disappearing like smoke were the main reasons behind local steel giant Nam Kim Group's (code: NKG) selling of Nam Kim Corea Ltd.

NKG’s Board of Directors has just approved the decision to transfer all of the company's shares in Nam Kim Corea to China-based Chinasia Textile Ltd. The move took place as the parent company suffered VND173 billion ($7.52 million) and VND101 billion ($4.4 million) in losses in 2018’s fourth quarter and 2019’s first quarter. In addition, these losses also caused the firm to lose more than VND1 trillion ($43.48 million) of its total assets.
To resolve its ailing performance, NKG plans restructuring its manufacturing and investment activities.
Specifically, the steel company decided to transfer the right of land use of Nam Kim-Korea projectlocated at the VISIP Binh Duong industrial park with the surplus value of VND23 billion ($1 million). The firm also did the same with Nam Kim 1 factory in Binh Duong province, making a profit of VND180 billion ($7.83 million), and its other project in My Xuan B IP in Ba Ria-Vung Tau with the surplus valueof VND250 billion ($10.87 million).
During the first quarter of this year, the firm earned VND2.943 trillion ($127.96 million) in net revenue, down 18 per cent on-year because the export revenue fell by 35 per cent.
As of March 31, 2019, NKG's total asset value shrank by VND1.053 trillion ($45.78 million) due to a 33 per cent cut down on stockpiles.
Notably, its debts accounted for nearly 60 per cent of its total assets, equaling VND4.199 trillion ($182.57 million), including VND2.040 trillion ($88.7 million) in short-term and VND1.225 trillion ($53.26 million) in long-term debts.
NKG will organise its annual shareholders' meeting on June 29, 2019.