SMC STEEL MECHANICAL COMPANY LIMITED (CÔNG TY TNHH MỘT THÀNH VIÊN CƠ KHÍ THÉP SMC): A Risk Warning as the Steel Maker Faces Deep Losses

SMC STEEL MECHANICAL COMPANY LIMITED (CÔNG TY TRÁCH NHIỆM HỮU HẠN MỘT THÀNH VIÊN CƠ KHÍ THÉP SMC), headquartered in Phu My 1 Industrial Park, Phu My Ward, Phu My City, Ba Ria - Vung Tau Province, is entering a critical financial stage. Established in November 2008, this one-member limited liability company is a subsidiary fully owned by SMC TRADING INVESTMENT JOINT STOCK COMPANY (Mã số doanh nghiệp: 0303522206). The firm specializes in manufacturing hot-rolled steel plates, galvanized steel sheets, and other non-standard metal products.

As of 2024, SMC Steel Mechanical is reeling from one of its worst financial years yet. With total sales plunging by nearly 49% year-over-year to USD 95.33 million, and a net loss of USD 2.58 million, the company’s decline appears steep and structural. Even more concerning, its total assets dropped 47.8%, shrinking to USD 23.06 million, and equity halved to just USD 2.72 million, signaling significant erosion of shareholder value.

These trends point to an urgent liquidity crisis. Working capital stands at a modest USD 583,950, while net worth has also declined by nearly 50%. This deterioration comes despite previous signs of recovery in 2023, when the firm temporarily returned to profit. Under the current leadership of Mr. NGUYEN HUU KINH LUAN (Director) and Ms. LE THI PHONG LAN (Chief Accountant), the company's performance in 2024 reflects external pressures in the steel market, including input cost volatility, oversupply in the region, and tightening construction demand.

From a credit risk perspective, VANGUARD BUSINESS INFORMATION LLC (VBI) flags SMC STEEL MECHANICAL COMPANY LIMITED as a high-risk counterparty, particularly for lenders, suppliers, and logistics partners. The company's shrinking capital, deepening losses, and deteriorating asset base raise concerns about its near-term solvency unless there is restructuring or capital infusion.

For stakeholders seeking in-depth risk assessments, legal exposure, or credit limits, VBI offers detailed Company Financial Reports, Credit Risk Ratings, and Monitoring Services. Learn more or purchase the full report at vnbis.com.