Da Nang House (NDN) escaped warning status from August 23
Yesterday, August 21, 2023, the Hanoi Stock Exchange (HNX) announced that the shares of Danang Housing Development Investment Joint Stock Company (NDN) will be removed from the warning list from August 23, 2023. The reason is that the audited semi-annual financial statements of 2023 of NDN have received a fully accepted opinion from the auditing company.
Thus, a total of 71.6 million NDN shares currently circulating on the market of Danang House will be allowed to be traded on margin again by HNX.
Danang House (NDN) cash flow in the first half of the year was negative 116 billion, stocks just escaped warning (Photo TL)
The removal of Nha Da Nang from the warning list took place in the context that the company was recovering and had escaped losses in the first and second quarters of 2023.
In the first quarter, NDN shares were put on warning status due to the 2023 financial statements having an exception opinion from AAC Auditing and Accounting Company. In which, the auditing company gave an exception opinion on the recorded amount of VND 454.2 billion due to the sale of apartments at the Monarchy B resort complex project.
Business recovers, completing annual profit plan in just Q2
The business situation in the second quarter of Nha Da Nang has recovered after a long series of consecutive quarters of losses. Net revenue reached 97.3 billion VND while in the same period it was only 1.1 billion VND. Cost of goods sold accounted for 45.3 billion, gross profit reached 52 billion VND.
Financial revenue increased slightly to VND13.3 billion while financial expenses accounted for VND9.7 billion. Selling expenses increased to VND2.9 billion as business activities began to recover. Business management expenses remained at VND1.4 billion.
NDN's total after-tax profit reached 61.2 billion VND, a fairly good recovery compared to the loss of 114.3 billion VND in the same period. However, compared to the previous Q1/2023, the after-tax profit of Q2 is decreasing by nearly 40%.
NDN's accumulated revenue in the first 6 months of the year reached 312.6 billion VND, profit after corporate income tax reached 167.4 billion VND. Compared with the plan set for 2023, NDN has currently completed 80.6% of the revenue plan and exceeded 5% of the annual profit plan.
Debt structure declines, business cash flow negative 116.5 billion VND
By the end of the second quarter of 2023, Nha Da Nang's total assets reached VND 1,384.5 billion, down 7.5% compared to the beginning of the year. Of which, the company is recording a nearly double in cash, up to VND 145.8 billion.
In addition, NDN has VND304.9 billion in cash deposited in the bank. The company also owns VND368.2 billion in trading securities. However, this securities investment is temporarily recording a loss provision of VND21.3 billion.
Accounts receivable from customers increased slightly from VND82.8 billion to VND99.8 billion. The company's inventories tended to decrease sharply from VND400.8 billion to VND230.9 billion. Currently, the company has not recorded any provisions for inventory devaluation.
Notably, in the capital structure of Nha Da Nang, payables account for a very low proportion, only 336.5 billion VND. In which, the company has not recorded any long-term or short-term loans. The main source of capital comes from equity. In which, equity capital accounts for 716.6 billion VND. Undistributed profit after tax currently accounts for 314.2 billion VND.
However, despite recording positive business results, NDN's operating cash flow in the first 6 months of 2023 is still negative at 116.5 billion VND. Mostly because the company had to pay its partners providing goods and services up to 230.3 billion VND in the first 6 months of the year. While this amount in the same period only accounted for 126.9 billion VND.
Meanwhile, revenue from sales and service provision only reached VND123.5 billion. Net cash flow from operating activities recorded a negative VND116.5 billion, showing that the company is not earning enough to cover expenses, leading to a cash shortage for daily business operations.
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