Bamboo Capital (BCG) Phu My solar power output increased by 28%

Revenue highlight comes from renewable energy sector

According to the Business Results Report for the third quarter of 2023, Bamboo Capital recorded net revenue of VND 1,017.9 billion, down 13.5% year-on-year. Profit after tax reached VND 9.1 billion, down 76.9% compared to the third quarter of 2022.

BCG's accumulated revenue in the first 9 months of 2023 reached VND 2,833.5 billion, accumulated profit after tax reached VND 184.8 billion. This result completed 40.9% and 28.4% of the revenue and profit plan for 2023, respectively.

bamboo capital bcg solar power phu my increased 28 solar power networks but phap hinh 1 — BCG's revenue structure shift, the energy segment is experiencing a significant increase (Source: Bamboo Capital's business results)

The revenue structure in Q3 shows a shift between BCG's key sectors. Specifically, real estate revenue decreased to only 22.6% (same period 30.9%). The company explained that the reason was due to the unfavorable trend of the real estate market in general.

However, the revenue proportion of the energy sector increased from 28.7% to 31.9%. The construction - infrastructure sector also increased its proportion from 27.8% to 31.7%. The financial services - insurance sector increased its proportion from 6.8% to 9%.

The bright spot in BCG's business report comes from the electricity sector with electricity output in the third quarter reaching 197.5 million kWh, up 28.3% over the same period. The growth momentum comes from the Phu My Solar Energy Field project. The project has a scale of 330 hectares, a capacity of 330MW with a total investment of 267.3 million USD.

BCG still holds control at Tracodi, reducing debt structure in capital sources

Also in Q3/2023, a subsidiary in the BCG ecosystem - Tracodi recorded revenue of VND 354 billion, down 48.2% year-on-year. Profit after tax, on the contrary, increased by 37.2% to VND 58 billion.

The decline in revenue is explained by the general impact of the real estate market, with customers paying late, leading to a decrease in the volume of project acceptance. However, thanks to a reduction in sales costs of nearly 40% and financial revenue from dividends received at subsidiaries, Tracodi's profits still grew compared to the same period.

In June 2023, BCG transferred more than 21 million shares at Tracodi Industrial Development and Transport Investment Joint Stock Company (Code TCD) to a strategic partner through an agreement.

After the above transaction, BCG still holds control of Tracodi with a holding ratio of 50.08% through re-authorization of personal shares of Chairman Nguyen Ho Nam and Vice Chairman Nguyen Thanh Hung.

At the end of Q3/2023, Bamboo Capital's total assets were recorded at VND42,977 billion, down slightly by 1.9% compared to the beginning of the year. Total debt in BCG's capital structure tended to decrease compared to the beginning of the year. Total liabilities decreased by 5.7% with total loans decreasing by 5.2%. The debt-to-equity ratio decreased to 1.9 times.

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