Vingroup targets profit of VNĐ6.5 trillion

Saturday, May 25, 2019 07:04

Photo shows the entrance of Times City, the urban area built by real estate, retail and tech conglomerate Vingroup. — Photo

Leading real estate and retail conglomerate Vingroup plans to earn VND140 trillion (US$6 billion) in net revenue and VND6.5 trillion in post-tax profit in 2019.

The information was released during the group’s 2019 annual general meeting of shareholders on Thursday in Ha Noi.

In 2018, the company's net revenue reached nearly VND122 trillion, up by 36 per cent compared to 2017 due to the increase in revenue of all sectors, especially in the transfer of real estate.

Real estate transfer revenue increased by 33 per cent in 2018 from VND62.5 trillion to VND83.3 trillion.

The rise came from the handover of key projects in Ha Noi and HCM City, including the Landmark 81 building in Vinhomes Central Park, Vinhomes Golden River, Vinhomes The Harmony, Vinhomes Green Bay and Vinhomes Metropolis.

In 2018, revenue from real estate leasing grew 26 per cent from VND4.4 trillion to VND5.6 trillion due to the growth of the commercial centre system nationwide.

The group currently owns and operates 66 shopping centres across the country.

Tourism, entertainment and hotel services revenue reached VND7.36 trillion in 2018, up by 35 per cent, thanks to the increasing number of tourists and the expansion of resorts, reaching a total of 16,400 rooms across the country.

Retail service revenue soared by 48 per cent from VND13 trillion in 2017 to VND19.3 trillion in 2018 as the retail network continued to be expanded and retail sales per square metre rose sharply.

Revenue from production activities reached VND556 billion thanks to the sale of electric motorbikes and smartphones.

Vingroup’s 2018 post-tax profit grew 9 per cent from VND5.65 trillion in 2017 to VND6.2 trillion in 2018.

In 2018, the group put into operation some real estate complexes that included both commercial centres and accommodations such as Vinhomes Central Park, Vinhomes Metropolis, Vinhomes Imperia Hai Phong, Vinhomes Marina Project and Vinhomes Star City Thanh Hoa.

Last year, the group implemented three large urban projects in Ha Noi and HCM City: Vinhomes Grand Park, Vinhomes Ocean Park and Vinhomes Smart City.

Vingroup successfully issued 84 million dividend preference shares. The mobilised capital was used in the implementation of real estate projects, social infrastructure projects (including via direct investment or co-operation with other partners) and other activities.

Vingroup’s short-term assets rose by VND35 trillion, from VND100.2 trillion in 2017 to VND135.3 trillion in 2018. Long-term assets recorded growth of 34 per cent compared to the same period of 2017, reaching VND152.7 trillion as of the end of 2018.

The value of fixed assets climbed from VND35.6 trillion in 2017 to VND49.4 trillion in 2018, up by 38 per cent, due to the strong development of real estate investment projects.

During the period, the value of real estate investment increased by VND8.5 trillion by the end of 2018, from VND18.2 trillion to VND26.7 trillion, as Vincom Retail expanded its retail network nationwide with the addition of 20 shopping centres.

Total liabilities in 2018 were estimated at VND189 trillion. Long-term debt increased as the group raised more capital to finance real estate projects as well as production activities. — VNS

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