Vinaconex ITC reports profit after 5 consecutive years of losses

Vinaconex Tourism Development and Investment Joint Stock Company (Vinaconex ITC, UPCoM: VCR) has just released its consolidated financial statements for the fourth quarter of 2022 with a record of net revenue of more than 117.2 billion dong, up 49% over the same period last year. . Cost of goods sold increased 33% to 98 billion dong, gross profit doubled to 19.2 billion dong.

Main revenue decreased by 19% to nearly 256 million dong while all expenses in the period increased, so selling expenses were recorded at 101 million dong, not recorded in the same period; administrative expenses increased by 32% to 9.4 billion dong.

Notably, other profits of the business increased 4.2 times over the same period to 33.7 million dong and net profit increased by 67% to nearly 9.9 billion dong.

As a result, C4G reported profit after tax in the fourth quarter of 2022, which increased 3 times over the same period, reaching VND 10.2 billion. The company said that due to high revenue in the fourth quarter of 2022, the profit after tax increased higher than in the fourth quarter of 2021.

Accumulated in 2022, Vinaconex ITC recorded a record revenue of 186 billion dong, up 2.4 times over the same period. Deducting expenses, the business earned a profit of 5.4 billion VND. positive growth compared to a loss of 7.1 billion dong last year. In 2022, the business was profitable again after 5 consecutive years of losses.

According to the plan set out at the beginning of the year, C4G’s management has set a target of VND 506 billion in revenue and VND 83.9 billion in profit after tax. Thus, this enterprise has just completed 37% of the revenue target and 6% of the profit target.

Regarding the financial situation, as of December 31, 2022, the total assets of the enterprise reached nearly VND 7,165 billion, an increase of 5% compared to the beginning of the year. Movements mainly in long-term unfinished assets increased by 31% compared to the beginning of the period with 3,552 billion dong. Of which, there are VND 2,023 billion in construction in progress and VND 1,529 billion in long-term unfinished business costs at Cai Gia urban area project, Cat Ba.

Tangible fixed assets accounted for 48% of total assets, recorded at VND3,483 billion, almost flat compared to the same period last year. In addition, the amount of cash and cash equivalents also increased 1.7 times over the same period to nearly 78 billion dong, the increase came from bank deposits with 69.8 billion dong.

In terms of capital structure, liabilities increased by 7% mainly from short-term debt, which increased 2.2 times to VND 1,209 billion. In which, payables to employees increased by 45% to more than 2,596 billion VND and payables to short-term sellers increased 16 times to nearly 520 billion VND.

VCR’s equity reached over VND 1,891 billion, almost flat compared to the beginning of the year. Although profit is recorded again after 5 years, the undistributed profit after tax of the enterprise is still negative 231 billion dong, accounting for 11% of charter capital. In 2022, Vinaconex (HoSE: VCG) increased its charter capital in Vinaconex ITC from 23.47% ownership to 51% and officially became the parent company of Vinaconex ITC.

Business Profile - Vinaconex ITC reports profit after 5 consecutive years of losses

VCR stock price movement (Source: TradingView).

Vinaconex ITC is investing in Cat Ba Amatina project, the project is located on Cat Ba Island, Cat Hai district, Hai Phong city with a scale of 172 hectares and started construction in late November 2020. Total investment is estimated at 10,941 billion VND with the goal of becoming the most modern and classy resort urban project in Vietnam.

The largest creditor of the Cat Ba Amatina project is Sacombank (HoSE: STB), which has disbursed 2,308 billion dong in 2 years. Accordingly, in 2020, Sacombank disbursed 1,140 billion VND and in 2021 it is 1,396 billion VND.

On the stock market, at the end of the trading session on February 9, the VCR code stopped at The price is 23,500 VND/share, nearly half of the peak in December 2021.

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