Hanoi (VNS/VNA) – Vietnam Construction and Import-Export JSC ( Vinaconex ) posted higher profit after tax in the first quarter of 2021 despite losses in revenue.
In its first quarter financial report , the company’s net revenue fell 4.8 percent over the same period last year to 951.9 billion VND.
However, thanks to lower cost of goods sold, which was down 10.7 percent, its gross profit still rose 44.4 percent year-on-year to over 154.02 billion VND.
During the period, revenue from financial activities also fell by 26.8 percent against last year to 496.46 billion VND, despite a sharp decrease of 41.2 percent in expenses for financial activities.
A big decline of 79.4 percent year-on-year in general and administrative expenses resulted in a jump in Vinaconex’s profit after tax. Its profit after tax was 441.2 percent higher to 345.3 billion VND in the first quarter of this year.
The company had to make a provision of over 495.3 billion VND for bad receivable debts in the same period of last year.
At the recent General Meeting of Shareholders, Vinaconex approved this year’s business plan with consolidated revenue of 12.23 trillion VND, up 41 percent over 2020, and profit after tax of over 1 billion VND, down 40 percent.
VCG will also issue a value of 2 trillion VND in non-convertible bonds without warrant and collateral assets, and a value of 2 trillion VND of convertible bonds.
At the same time, the company offers nearly 58.29 million shares, equivalent to nearly 14.5 percent of its total shares as of December 31, 2020. The plan of issuing shares and bonds is expected to help Vinaconex raise around 5 trillion VND.
In 2021, the property developer is expected to obtain revenue from 93 Lang Ha Street project and a shop house in Mong Cai City (Quang Ninh Province) that is still under construction, Dao Ngoc Thanh, Chairman of the Board of Directors of Vinaconex, said at the meeting.
A part of two other projects in Cat Ba Island (Hai Phong City) are also planned for trading, including villas and townhouse projects that have been contracted with customers previously.
Vinaconex has tried to gain big from Cat Ba’s projects.
Vinaconex shares, which are registered on the Ho Chi Minh Stock Exchange (HoSE) with ticker symbol VCG, have been fluctuating and traded in a range of 43,000 – 49,700 VND per share since the beginning of the year.
On May 5, VCG was stable at 47,000 VND per share after falling nearly 2 percent in the previous session./.