A representative of Van Phu – Invest Joint Stock Company (stock code: VPI) said that the company recorded more than VND 1,527 billion in revenue in the first 6 months of 2023 – an increase of 41% over the same period last year. Most of the revenue was recorded from the sale of products of the Vlasta - Sam Son project in Sam Son town (Thanh Hoa province), with a scale of 25.59 hectares including 595 villas, garden houses, townhouses and commercial services, with about VND 1,380 billion.
Vlasta - Sam Son coastal urban and resort complex
In addition, the company recorded VND80 billion in revenue from the Oakwood Residence serviced apartment project in Hanoi and VND60 billion from other projects.
After deducting expenses, Van Phu - Invest's pre-tax and after-tax profits in the first 6 months of 2023 reached VND 577 billion and VND 414 billion, respectively, up 67% and 50% over the same period in 2022. Notably, the company's after-tax profit margin improved slightly, reaching 27% of revenue, up slightly from the 25% recorded in the same period last year.
With the above results, the company has completed 75% of the annual after-tax profit target approved by shareholders attending the 2023 Annual General Meeting of Shareholders. According to the company representative, the above results were achieved because the board of directors had prepared the market scenario for 2023 early, focusing on sales from mid-2022 and collecting revenue in 2023.
In terms of asset size, Van Phu - Invest's total assets were VND 11,032.9 billion as of June 30, 2023, almost unchanged from the beginning of the year. Of which, the value of inventories was VND 1,990.7 billion, up 3.38% and accounting for more than 18% of the total asset structure of the unit, mainly concentrated in projects including Vlasta - Sam Son, The Terra - Bac Giang, Song Khe - Noi Hoang project... These projects will bring in revenue of about VND 2,000 billion in 2024, along with the completion of the legal procedures of The Terra - Thuy Nguyen project, these will be the key projects for Van Phu - Invest in 2024 - 2025.
Regarding the scale of capital sources, the company's liabilities were at VND 7,102.8 billion as of June 30, 2023, down 3.18% compared to the beginning of the year. Of which, the value of short-term prepayments from buyers was VND 428.2 billion, down 26.06% because the company recorded and handed over houses at the Vlasta - Sam Son project to customers.
Total corporate debt is at VND4,043.2 billion, up 1.94% compared to the beginning of the year.
Specifically, short-term debt is at 1,840.7 billion VND - an increase of 131.6% compared to the beginning of the year. Of which, the long-term debt due for payment in the next 12 months (converted to short-term debt - PV) of the enterprise is about 1,000 billion VND, of which 806 billion VND is the debt of the BT Pham Van Dong - Go Dua project, the remaining 200 billion VND is all debt of projects being sold.
Long-term debt was VND2,202.5 billion - down 30.55%, due to part of long-term debt being converted into short-term debt.
With changes in short-term and long-term debt on the financial statements, the company's management said these factors were related to debt maturing and interest expense.
The Terra Project – Bac Giang
Specifically, for the BT Pham Van Dong - Go Dua project, on June 24, 2023, the National Assembly issued Resolution No. 98/2023-QH15 on piloting a number of specific mechanisms and policies for the development of Ho Chi Minh City, including solutions to guide the implementation and allocation of counterpart land for BT projects that meet all legal conditions. With the above orientation, Van Phu Bac Ai - the enterprise implementing the project, has worked with the sponsoring banks to restructure the loan term according to the latest state policy. Therefore, the debt due for the BT Pham Van Dong - Go Dua project in the next 12 months will be restructured for appropriate payment terms.
Regarding interest expenses, part of the reason for the increase in interest expenses comes from fluctuations in interest rates and exchange rates that occurred in the third and fourth quarters of 2022, with continuously increasing interest rates and lending rates, causing the cost of accessing capital (interest) for businesses to be high. Next, the progress of land allocation for the BT - Pham Van Dong Go Dua project did not meet expectations, so the company proactively set aside provisions for financial expenses. With a financial safety strategy, the business proactively uses cash flow to reduce debt and pay related financial expenses.
With the debt structure, the business representative said that the business chose a fairly safe financial solution in production and business activities in 2023.
Recently, FiinRatings continued to maintain Van Phu - Invest's long-term credit rating at BB+ in a rating report published in July 2023. FiinRatings also warned that the real estate market will still have many fluctuations and challenges in the coming time. Sharing the same view with FiinRatings, Van Phu - Invest focuses resources on maintaining the progress of highly feasible projects with good profit margins, taking advantage of sales opportunities, and collecting money when macroeconomic policies help recover the real estate market.
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