According to the financial report for the third quarter of 2023, HUD4 Investment and Construction Joint Stock Company (HUD4) recorded a sharp decrease in revenue and profit after tax compared to the same period last year.
Accordingly, in the third quarter, HUD4 recorded only 6.4 billion VND in revenue and only 47 million VND in profit after tax. In the first 9 months, the company recorded 12.3 billion VND in revenue and 106 million VND in profit after tax. This result is equivalent to a decrease of 99.5% compared to 18.2 billion VND in profit after tax in the first 9 months of 2022.
HUD4's Song Do urban area project in Sam Son City.
The main reasons for the sharp decline in HUD4's business results after the first 9 months of 2023 are said to come from a sharp decline in revenue, while items such as financial expenses and business management expenses did not have a corresponding decrease.
Specifically, in the first 9 months, HUD4 recorded revenue of VND12.3 billion, down 95% compared to VND252 billion in the same period last year. Meanwhile, financial expenses increased by 75% from VND6 billion to VND10.5 billion in this period, while business management expenses only decreased by 50%, despite a sharp decrease in revenue.
However, in this period, the company was refunded unused sales expenses at the end of the sales cycle, causing sales expenses to record a negative VND 15.7 billion. This result helped the company's accumulated net profit for the first 9 months to record VND 852 million. After continuing to deduct VND 746 million in deficit from other profit items, HUD4's pre-tax profit recorded only VND 106 million, down 99.5% compared to the same period in 2022.
This situation was also recorded similarly in the business results report for the first 6 months of the year, when after-tax profit also recorded a decrease of 99.6% compared to the same period in 2022.
According to Nguoi Dua Tin's research, in Thanh Hoa province, HUD4 Joint Stock Company is the investor of many real estate projects with large land use areas such as: Trung Son residential area project, Nguyen Duc Canh project, Song Do new urban area project, Thanh Hoa officers and soldiers housing project... In which, Song Do new urban area project is considered a typical project of this enterprise, with an investment capital of nearly 1,000 billion VND, on a land use area of 68.7 hectares, in Truong Son ward, Sam Son city, Thanh Hoa. In this project, HUD4 invested in building an infrastructure system, and at the same time transferred hundreds of land lots of many types such as adjacent land, unfinished adjacent land and villa land.
Phu Son Apartment, one of HUD4's projects in Thanh Hoa City.
In the overall financial picture, as of September 30, HUD4 recorded total assets of 699.5 billion VND. Of which, short-term assets were 696 billion VND, accounting for 99.5%. Of which, receivables were recorded at 165 billion VND, down 2 billion compared to the beginning of the year; inventories were 520 billion VND, up nearly 20 billion compared to the beginning of the year, mainly unfinished production and business costs of more than 414 billion VND. The remaining value of fixed assets was recorded at nearly 3.5 billion VND.
Regarding capital, at the end of the third quarter, HUD4 recorded more than VND508 billion in payables. Of which, short-term and long-term loans and financial leases were VND175 billion and VND168 billion, respectively, accounting for 71.5% of total payables. Of which, the main debts were from major financial partners such as: short-term loans from BIDV Thanh Hoa Bank VND32 billion; Agribank - Hanoi 1 VND18.5 billion; personal loans VND125.2 billion. Long-term loans from Tien Phong Bank VND148 billion; Agribank - Hanoi 1 VND20 billion. In addition, there were payable items related to sellers and buyers of more than VND70 billion.
At the time of reporting, HUD4 recorded equity of VND 191.3 billion, of which owner's contributed capital was VND 150 billion; equity surplus was nearly VND 32 billion; development investment fund was VND 11 billion; undistributed profit was negative VND 2 billion.
According to the 2023 semi-annual management report, HUD4 Investment and Construction Joint Stock Company is a unit owned by State shareholders with a ratio of 51%, this ownership is through the number of shares held by the Housing and Urban Development Investment Corporation.
Viet Phuong
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