Thaiholdings profits from financial activities

Thaiholdings recorded VND200 billion from profit from selling investments in the third quarter, helping profit increase more than 60% compared to the same period last year.

Thaiholdings Joint Stock Company (THD) has just announced its third quarter financial report with a sharp increase in profits thanks to financial activities.

In the last three months, the company recorded consolidated net revenue of more than VND210 billion, down more than 70% compared to the same period last year. Due to operating below cost price, the gross loss was recorded at more than VND23 billion. However, high growth in financial activities helped the company turn things around.

Profit from financial activities brought in more than VND224 billion, a sharp increase compared to the previous year thanks to the divestment of investments and no longer recording interest expenses due to having paid off all debts since the second quarter.

This profit helped Thaiholdings offset the costs incurred during the period, even though the business management costs increased to more than VND115 billion. As a result, the company earned a pre-tax profit of more than VND100 billion, up 62% compared to the third quarter of last year.

According to the financial statement, on July 3, Thaiholdings transferred 2 million shares in Binh Minh Group Joint Stock Company, the company that owns the 11A Cat Linh project, with a transfer value of VND220 billion. Thaiholdings' ownership in Binh Minh Group by the end of the third quarter decreased to 18.55%, with a voting ratio of 22.73%.

In the first 9 months of the year, Thaiholdings' core business activities also decreased sharply. Revenue was less than half of the same period last year. The high cost of goods sold caused the company to record a gross profit of just over 9 billion VND, while in the same period last year it reached over 263 billion.

Similar to the third quarter, financial and other activities became the main growth drivers.

Financial revenue increased dramatically thanks to the divestment of Binh Minh Group in July, helping the 9-month result record more than 250 billion VND, while financial expenses were only nearly 38 billion. Other profits also brought in nearly 267 billion VND. This result helped Thaiholdings' net profit after 9 months reach nearly 162 billion VND.

At the end of the third quarter, Thaiholdings' total assets decreased by more than VND1,600 billion compared to the beginning of the year. The sharpest decrease was in short-term receivables, long-term financial investments and other long-term assets. On the capital side, Thaiholdings' liabilities decreased by more than VND1,700 billion, mainly because the company had paid off all its loans.

Minh Son

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