Dragon Capital is no longer a major shareholder of Kinh Bac.

Operating at a loss in the first quarter of 2024, foreign funds have reduced their ownership to below 5% of charter capital at Kinh Bac Urban Development Corporation (code KBC - HoSE floor).

On May 10, the Dragon Capital-related fund group sold 300,000 KBC shares, reducing its ownership from 5.02% to 4.98% of charter capital and officially no longer being a major shareholder at Kinh Bac. Of which, the fund that sold 300,000 shares was DC Developing Markets Strategies Public Limited Company.

Previously, on April 2, the Dragon Capital-related fund group bought 1.39 million KBC shares, increasing its ownership from 4.84% to 5.02% of charter capital and officially becoming a major shareholder of Kinh Bac.

Thus, in just over a month, Dragon Capital is no longer a major shareholder of Kinh Bac.

Regarding stock price movements, from October 31, 2023 to May 15, 2024, KBC shares increased by 18.6%, from VND 25,500 to VND 30,250/share.

Loss of 76.73 billion VND in the first quarter of 2024

In terms of business activities, in the first quarter of 2024, Kinh Bac recorded revenue of VND 152.33 billion, down 93.1% over the same period, after-tax profit recorded a loss of VND 76.73 billion compared to the same period of profit of VND 1,056.36 billion, a decrease of VND 1,133.09 billion. In which, gross profit margin decreased from 69.8% to 48.5%.

It is known that according to data on SSI Securities' iBoard, Kinh Bac recorded its most recent loss in the fourth quarter of 2022 with a loss value of VND 558.8 billion.

Thus, Kinh Bac went through 4 profitable quarters and then returned to losses.

During the period, gross profit decreased by 95.2% compared to the same period, equivalent to a decrease of VND 1,470.93 billion, to VND 73.91 billion; financial revenue decreased by 56.4%, equivalent to a decrease of VND 87.66 billion, to VND 67.81 billion; financial expenses decreased by 59.1%, equivalent to a decrease of VND 78.06 billion, to VND 54.13 billion; sales and business management expenses decreased by 53.4%, equivalent to a decrease of VND 131.18 billion, to VND 114.44 billion and other activities fluctuated insignificantly.

In terms of core business activities (gross profit - financial expenses - sales and administrative expenses), in the first quarter of 2024, Kinh Bac recorded a loss of VND 94.66 billion compared to the same period with a profit of VND 1,167.03 billion, a decrease of VND 1,261.69 billion.

Kinh Bac further explained that the first quarter revenue decreased mainly due to not recording land and infrastructure rental revenue compared to the same period of VND 2,068.4 billion.

Thus, in the first quarter of 2024, the gross profit generated by Kinh Bac was not enough to cover financial costs, sales and business management costs. The Company reduced losses thanks to financial revenue recorded at VND 67.81 billion.

It is known that in 2024, Kinh Bac plans to have total revenue of 9,000 billion VND and expected after-tax profit of 4,000 billion VND.

Thus, with a loss in the first quarter of 2024, Kinh Bac is still far from its ambitious plan to make a profit of VND 4,000 billion in 2024.

Advance payment of 1,575.9 billion VND to employees

As of March 31, 2024, Kinh Bac's total assets increased by 17.7% compared to the beginning of the year, equivalent to an increase of VND 5,903.2 billion, to VND 39,337.4 billion. Of which, the main assets were inventories, accounting for VND 12,684.9 billion, accounting for 32.2% of total assets; short-term receivables were VND 9,573.3 billion, accounting for 24.3% of total assets; cash and short-term financial investments were VND 8,095.06 billion, accounting for 20.6% of total assets; long-term financial investments were VND 4,770.2 billion, accounting for 12.1% of total assets and other items.

Notably, at the end of the first quarter of 2024, it was reported that it had advanced VND 1,575.9 billion to employees. Of which, VND 956.8 billion was advanced to Mr. Mai Nho Truong, VND 200.1 billion to Mr. Phan Minh Toan Thu and other advances.

Regarding capital sources, as of the end of the first quarter of 2024, total short-term and long-term debt increased by 9.4% compared to the beginning of the year, equivalent to an increase of VND 344 billion, to VND 4,068.9 billion and equal to 19.9% ​​of equity (at the beginning of the year, it was 18.1% of equity).

Source: https://baodautu.vn/dragon-capital-khong-con-la-co-dong-lon-cua-kinh-bac-d215236.html