Huge property, owner of 'Shark Jaws' building earns big, surprisingly modest profit

The unit managing and operating the most prime building around Hoan Kiem Lake is Transerco - a large passenger transport company in Hanoi. This company's revenue in 2023 is up to several thousand billion VND, but the profit is still 'modest'.

The rental price of premises at the Shark Jaw building is up to several hundred million VND with a rental area of ​​75m² - Photo: PHAM TUAN

'Jaws' Operator: The Building Has Completed Its Mission

Regarding the information that Hanoi will demolish the Shark Jaw building to comprehensively renovate Dong Kinh Nghia Thuc square, Hanoi Transport Corporation (Transerco) - the operating and managing unit - has officially spoken out.

Mr. Nguyen Thanh Nam - General Director of Transerco - confirmed that this unit is an enterprise under the City People's Committee, and is leased land by the city and manages the Shark Jaw building for commercial activities.

Up to now, the city has a policy to reclaim and demolish the above building, plan and reorganize the space of Dong Kinh Nghia Thuc square. The Corporation completely agrees.

"We see this as both an honor and a responsibility for Transerco to contribute to the city's development in the new period," he said.

After more than 30 years of construction and commercial exploitation, Mr. Nam said the Shark Jaw building has completed its development mission.

Specifically, according to Mr. Nam, the original purpose was to serve public transport by means of a tram system with iron and pneumatic wheels, but when the tram sector at that time was discontinued, the land was converted to commercial business by the owner (Hanoi Tram Company) and was effective.

Shark Jaw Building is also a destination for domestic and international tourists every time they come to Hanoi.

"Now the city has a policy to reclaim the entire land area at the Shark Jaw building. We see that the building has completed its historical mission by contributing to the overall development of the city over the past 30 years," he added.

Huge property, earning thousands of billions of dong

Transerco is a state-owned enterprise under the Hanoi People's Committee, established in 2004. Initially, the enterprise had a charter capital of 700 billion VND and more than 6,000 employees.

By 2014, the company increased its charter capital to 1,200 billion VND, assets of over 2,500 billion VND with 12 units under the parent company, 10 subsidiaries, joint ventures and more than 10,000 employees.

Currently, Transerco is a large unit in Hanoi in many fields: public passenger transport services by bus (Hanoibus brand), parking management and public parking services in the capital.

In particular, Hanoi Bus Enterprise, Thang Long Bus, Cau Buu, 10-10 Bus or Hanoi BRT... are all units under Transerco. In addition, Transerco also operates the City Tour double-decker bus route to serve tourists...

According to a report from Transerco, the corporation operated more than 3.4 million vehicles in 2024, with total passenger transport estimated at over 234 million, an increase of 4.5% compared to 2023, accounting for about 58% of the city's total transport output.

Regarding business results, the total revenue of parent company Transerco in 2023 is 2,700 billion VND, and profit after tax is 24.8 billion VND.

The total revenue of the parent company Transerco and its subsidiaries reached VND3,387 billion, with a profit after tax of VND74.5 billion. This level is equivalent to a net profit margin of less than 2.2%.

In the revenue structure of more than 708 billion VND in 2023 from subsidiaries in which Transerco holds controlling shares, Hanoi Electric Vehicle Joint Stock Company contributed the highest with 309.4 billion VND.

Although the revenue is large, the pre-tax profit of Hanoi Electric Vehicle Joint Stock Company is only 0.3 billion VND, the profit paid to the parent company is 0 VND. This is also the owner of the Shark Jaw building. The net profit margin of this enterprise is also at a "modest" level.

Source: https://tuoitre.vn/co-ngoi-khung-chu-toa-ham-ca-map-thu-lon-lai-khiem-ton-bat-ngo-20250312194110027.htm