Tung Hai incurs Tk237cr loss in five years
The highest Tk102.28 crore loss was in fiscal 2017-18
Tung Hai Knitting and Dyeing – a 100% export-oriented composite sweater factory – has incurred a loss of Tk237.81 crore in the last five fiscal years as its factory remained closed since fiscal 2016-17.
Despite factory closure, the company has to bear the fixed and other costs which dragged it down to losses.
On Wednesday, the company disclosed its financials for the last five years till fiscal 2020-21 that ended on 30 June 2021.
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The sweater manufacturer has disappointed its shareholders for its failure to declare any dividends.
Among the last five years, the highest Tk102.28 crore loss was in fiscal 2017-18 when the loss per share stood at Tk9.59, according to the financials.
The company said on local stock exchanges, its annual general meeting will be held on 29 December.
In FY21, it incurred a loss of Tk3.30 crore, and the loss per share stood at Tk0.31.
The loss stood at Tk21.97 crore in FY20, at Tk65.58 crore in FY19, and Tk44.68 crore in FY17.
Tung Hai Knitting and Dyeing Ltd was incorporated as a private limited company in 2004.
It got listed on the capital market in 2014 and raised Tk35 crore by issuing 3.5 crore shares through an Initial Public Offering.
Mahbubur Rahman, who started Tung Hai Knitting, died in a fire at his company's head office.
After his death, the company fell into a leadership crisis.
Following the failure due to mismanagement, the Bangladesh Securities and Exchange Commission (BSEC) has frozen the bank accounts of the company and its directors to protect the interest of general investors.
Also, for the violation of securities laws and regulations, the BSEC has fined its directors in November 2020.
