The company recorded a 13% decrease in pre-tax profit compared to 2022, in the context of a difficult market.
According to a recently released report by Gelex Electric (UPCoM: GEE), in 2023, the company recorded net revenue of VND 16,607 billion, down 0.3% over the same period; pre-tax profit recorded VND 974 billion, down 13% compared to 2022.
The company representative said that Gelex Electric had anticipated the difficult economic situation, so the company had applied many flexible solutions in expanding the market in accordance with the actual situation. Most of Gelex Electric's member companies seized the opportunity to find new customers to maintain market share, while balancing profits, revenue, controlling inventory, and controlling debts.
Contributing to Gelex Electric's results include: Vietnam Electric Cable Corporation (Cadivi) with consolidated net revenue of VND 10,083 billion, pre-tax profit of VND 529 billion; Vietnam Copper Wire Company CFT recorded VND 6,359 billion in revenue, VND 108 billion in pre-tax profit; Emic Electrical Measuring Equipment Corporation recorded VND 1,179 billion in revenue, VND 166 billion in pre-tax profit.
Units continue to promote research and development of new products, aiming at "green" and environmentally friendly products to create spearheads and enhance competitive advantages.
In particular, Cadivi launched THHN and THWN-2 nylon-sheathed flame retardant civil wires that are heat-resistant, water-resistant, and termite-proof; TR XLPE-insulated underground medium-voltage cables that are water-resistant; and airport runway lighting cables certified by the Civil Aviation Administration of Vietnam.
Emic Electrical Measurement Equipment JSC successfully researched and tested the production of AMI meters, along with successfully exporting the first batch of H-PLC technology DCUs to Korea.
Korean partners working at Emic - a member unit of Gelex Electric before the cooperation. Photo: Gelex
At the same time, Gelex Electric orients its member units to come up with many solutions to improve production and business efficiency, optimize operating costs, control inventory, control debt, streamline human resources, strengthen risk management... to enhance competitiveness, maintain position, and support sustainable growth.
In terms of cash flow, in 2023, Gelex Electric recorded a positive net cash flow from operating activities of VND 2,280 billion; positive net cash flow from investment activities of VND 62 billion, and positive net cash flow during the period of VND 416 billion.
Regarding financial indicators, debt ratio, debt to equity ratio, and debt to equity ratio all decreased compared to the previous period.
By proactively reducing inventory, collecting sales debts, and being flexible in using loans according to market interest rate fluctuations, Gelex Electric significantly reduced interest expenses last year. This helped the company's financial situation become more positive and healthy.
Also according to the business representative, although flexible in implementing many Solution: In general, the electrical equipment sector continues to face many difficulties, depending on the recovery of the real estate and construction markets, as well as the implementation of the VIII Power Plan.
Hoai Phong
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