9-month profit down 81% year-on-year
In the Q3/2023 financial statement, Saigontel recorded net revenue of VND 270.8 billion, an increase of 33% over the same period last year. Cost of goods sold accounted for VND 235.5 billion, gross profit brought in VND 35.2 billion, only slightly increased over the same period. Gross profit margin therefore decreased from 17% to only 13%.
Financial revenue in Q3/2023 reached VND4.6 billion, down 6%. Financial expenses accounted for VND15.4 billion, up 5.4%. Almost all of which was interest expense. Profit from the operations of affiliated companies decreased by 73% to only VND1.7 billion.
Saigontel (SGT) 9-month profit plummets 81%, increases debt to invest in Nam Tan Tap Industrial Park (Photo TL)
Sales expenses and administrative expenses both decreased, accounting for VND400 million and VND18.5 billion, respectively. As a result, net profit from SGT's core business activities decreased by 26.5%, down to VND7.2 billion.
After deducting corporate income tax, Saigontel's after-tax profit was VND2.6 billion, down 61.8% over the same period last year.
Saigontel's accumulated revenue in the first 9 months of the year reached VND 752.6 billion, down 3.4%. Profit after tax reached VND 24.8 billion, down 81% over the same period. Compared to the 2023 business target, SGT has only completed 27.4% of the revenue plan and 6% of the annual profit plan.
Increase debt by 1,000 billion, most of the money is focused on Nam Tan Tap Industrial Park project
By the end of the third quarter of 2023, Saigontel's total assets had grown by 18% compared to the beginning of the year, reaching VND 6,492.6 billion. However, the increase in assets was mainly from borrowed money.
Cash and cash equivalents accounted for VND 136.4 billion. In addition, the company also has VND 88 billion in short-term financial investments.
Currently, Saigontel's short-term receivables account for VND1,830.8 billion with a provision for short-term doubtful receivables of nearly VND43 billion. Inventory during the period nearly doubled, from VND1,348.2 billion to VND2,299.1 billion. The increase was mainly recorded from unfinished production and business costs at the Nam Tan Tap Industrial Park Project, accounting for VND910.4 billion.
Regarding capital structure, payables currently account for VND4,546.7 billion, equivalent to 70% of the company's capital. Of which, short-term loans and financial leasing debts account for VND1,662.9 billion. Notably, Saigontel's long-term financial debt increased from VND369.1 billion to VND1,362 billion, equivalent to an increase of nearly VND1,000 billion in just the first 9 months of the year.
Saigontel's cash flow from operating activities during the period was negative VND895.2 billion. The reason came from the increase in inventories during the period, showing that the company is focusing on the new Nam Tan Tap Industrial Park project that will arise in 2023.
Investment in subsidiary implementing Nam Tan Tap Industrial Park project temporarily lost 5.5 billion VND
The Nam Tan Tap Industrial Park Project has a total area of 244.74 hectares with a total investment of VND 2,590.4 billion, located in Tan Tap Commune, Can Giuoc District, Long An Province. The project is invested by Saigontel Long An Company Limited, a unit established in February 2021 with Mr. Dang Thanh Tam as Chairman of the Board of Directors.
Saigontel Long An's charter capital when it was first established was 450 billion VND. By June 2023, the company had increased its capital to 700 billion VND with shareholders including: Saigon Telecommunications - Technology Joint Stock Company (Saigontel - SGT) holding 75%; Saigon - Hai Phong Industrial Park Joint Stock Company holding 25% of the charter capital.
Regarding the investment in Saigontel Long An Company Limited, on the parent company's financial statements for the third quarter of 2023, Saigontel is temporarily recording the original cost of the investment at VND 525 billion, with a provision for price reduction of VND 5.5 billion, leaving the net value of the investment at only VND 519.5 billion.
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