Vietnam Construction And Import-Export JSC (Vinaconex) posted higher profit after tax in the first quarter of 2021 despite losses in revenue.
In its first quarter financial report, the company’s net revenue fell 4.8 per cent over the same period last year to VND951.9 billion.
However, thanks to lower cost of goods sold, which was down 10.7 per cent, its gross profit still rose 44.4 per cent year-on-year to over VND154.02 billion.
During the period, revenue from financial activities also fell by 26.8 per cent against last year to VND496.46 billion, despite a sharp decrease of 41.2 per cent in expenses for financial activities.
A big decline of 79.4 per cent year-on-year in general and administrative expenses resulted in a jump in Vinaconex’s profit after tax. Its profit after tax was 441.2 per cent higher to VND345.3 billion in the first quarter of this year.
The company had to make a provision of over VND495.3 billion for bad receivable debts in the same period of last year.
At the recent General Meeting of Shareholders, Vinaconex approved this year’s business plan with consolidated revenue of VND12.23 trillion, up 41 per cent over 2020, and profit after tax of over VND1 billion, down 40 per cent.
VCG will also issue a value of VND2 trillion in non-convertible bonds without warrant and collateral assets, and a value of VND2 trillion of convertible bonds.
At the same time, the company offers nearly 58.29 million shares, equivalent to nearly 14.5 per cent of its total shares as of December 31, 2020. The plan of issuing shares and bonds is expected to help Vinaconex raise around VND5 trillion.
In 2021, the property developer is expected to obtain revenue from 93 Lang Ha Street project and a shop house in Mong Cai City (Quang Ninh Province) that is still under construction, Dao Ngoc Thanh, Chairman of the Board of Vinaconex, said at the meeting.
A part of two other projects in Cat Ba Island (Hai Phong City) are also planned for trading, including villas and townhouse projects that have been contracted with customers previously.
Vinaconex has tried to gain big from Cat Ba’s projects.
Vinaconex shares, which are registered on the Ho Chi Minh Stock Exchange (HoSE) with ticker symbol VCG, have been fluctuating and traded in a range of VND43,000 - 49,700 per share since the beginning of the year.
On Wednesday, VCG was stable at VND47,000 per share after falling nearly 2 per cent in the previous session. — VNS