Rock wool manufacturer “Mongol basalt” JSC went public with an IPO in May this year and was listed in the Tier 2 board of the MSE. This week the company introduced its semiannual financial report to the public and held an extraordinary shareholder meeting.

The company’s revenue were MNT 639.5 million and cost of sales reached MNT 281 million resulting in a Gross income of MNT 358.3 million. Looking at the financials, the company paid all of its long-term debt from the IPO proceedings in June, and made no equipment purchases resulting in interest income of MNT42.6 million. Sales and marketing costs increased greatly due to MNT 423.8 million associated with IPO listing costs noted CEO of “Mongol Basalt” Mr.Ariunbold. All in all, the reporting period had a net loss of MNT 190.7 million.

Inventory reached MNT 979.1 million by the first half of 2018. According to the company, the rock wool industry demand increases significantly in the second half of the year, and thus inventory needs to be stocked in the first half.

“Mongol basalt” JSC claims that they’ve already signed two sales agreements amounting to MNT 1.2 billion, and another two sales agreements amount to MNT 1.2 billion has been made but not signed. Furthermore, sales contracts amounting to MNT 2.3 billion is being discussed and the company indicated that many tender offers have become available.

The company will focus on marketing and will increase marketing costs. “Mongol basalt” JSC is planning to open a showroom for customers from September to October at “Misheel expo” center.The company also plans to participate in “International Basalt Forum 2018” in Russia in October, and “TIM Expo Shanghai” in China in November. The company plans to open branches in Darkhan and Erdenet cities in the future.

Source: TDB Capital SC