LISTED company Millennium Global Holdings Inc. (MGHI) said on Monday its plan to undergo equity restructuring to wipe out or lessen its deficit or retained earnings.
In a regulatory filing with the local bourse, it said the par value of P1 per share will be decreased to P0.10 each share.
As of December 2014 the company has incurred a deficit of P2.841 billion. With this amount, minus the P765,455 net income (loss) during the first half of this year, the deficit has stood at P2.84 billion as of June 2015.
Retained earnings represent the cumulative balance of periodic net income or loss; dividend distribution; prior period adjustments; effect of changes in accounting policy; and other capital adjustments.
When retained earnings account has a debit balance, it is called “deficit,” and presented as a deduction from equity.
Revenue-wise, the company generated P875.6 million for the six-month period ended June 30, 2015, as compared to P778.4 million during the time last year.
This could be attributed to subsidiaries Cebu Canning Corp. (C3) and Millennium Ocean Star Corp.’s (MOSC) import/export, and processing of marine goods and other related products for P124.7 million and P750 million, respectively
Formerly IPVG Corp., MGHI was incorporated and registered with the Philippine Securities and Exchange Commission on May 19, 1964, and has since then focused on growth areas, such as information technology and telecommunications, online computer games and business-process outsourcing.
While it has held numerous businesses under its name, one of its more recognized units is MOSC that serves as an operating company.
It exports most known seafood and aquaculture products from the Philippines to different areas in Asia, Europe, the United States, South America and Canada; as well as imports seafood products from clients globally for local distribution.
Early this year MGHI fully acquired C3 for P6.7 million to further expand its interest in the seafood business.