In 2022, Vinaconex's consolidated revenue increased by 50 per cent, reaching VND8.6 trillion. — Photo Vinaconex

Viet Nam Construction and Import-Export Joint Stock Corporation (Vinaconex or VCG) yesterday announced it had completed the divestment of shares in its affiliate, Vinaconex Electromechanical Joint Stock Company (Vinaconex M&E), reducing its ownership to 500,000 shares.

This share amount is equivalent to 5 per cent of the charter capital of Vinaconex M&E.

According to VCG's Q4 financial statements, Vinaconex's ownership rate in Vinaconex M&E as of December 31, 2022, was 100 per cent. Vinaconex M&E is headquartered at 34 Lang Ha, Dong Da District, Ha Noi, operating mainly in the field of electrical and water system installation.

Vinaconex M&E was established in 2019 with a charter capital of VND100 billion. Vinaconex holds 65 per cent of the capital, and organisations and individuals with suitable capacity would own the rest.

In the second phase, the company will increase its charter capital to VND200 billion when there is a need, according to the plan of the General Director of VCG.

In the fourth quarter of 2022, the company recorded a decrease in net revenue of more than VND200 billion to VND1.93 trillion. However, due to decreased cost of goods sold (COGS) faster than revenue, VCG's gross profit increased by nearly 55 per cent over the same period to VND375.5 billion.

During the period, financial income decreased by 64.6 per cent to VND78 billion while expenses remained high, causing profit after tax to decrease from VND173.74 billion to VND80.16 billion.

In 2022, Vinaconex's consolidated revenue increased by 50 per cent compared to the implementation of 2021 to reach VND8.6 trillion, while profit after tax reached VND1.05 trillion, a double over the same period of 2021. — VNS