Century Real Estate Joint Stock Company (Cen Land - stock code: CRE) has just announced its consolidated financial report for the fourth quarter of 2023, showing a sharp decline in results.
In the last quarter, the company achieved net revenue of VND 330.6 billion, 2.1 times higher than the same period in 2022. While revenue in Q4/2023 increased significantly, cumulative net revenue for 2023 only reached VND 932.6 billion, a decrease of 73.2% compared to 2022.
Revenue from financial activities in the fourth quarter of 2023 reached VND 13.8 billion, a decrease of 62%. Other income also decreased sharply from VND 8.2 billion to VND 656 million, while other expenses in the past quarter amounted to VND 3.7 billion, double that of the same period in 2022.
After deducting expenses, the net profit after corporate income tax in the last quarter was VND 1.2 billion, an improvement compared to the loss of VND 62.6 billion last year.
Due to business difficulties, Cen Land's profit for the whole year of 2023 was only 2.5 billion VND, a decrease of 98.7% compared to 2022.
At the end of 2023, the company's total assets amounted to VND 7,108.5 billion, a decrease of 6.7% compared to the beginning of the year. Of this, short-term receivables totaled VND 4,101.9 billion, accounting for 57.7% of total assets, a decrease of 3.9% compared to the beginning of the year. Long-term receivables also stood at VND 1,763.7 billion, accounting for 24.8%.
Thus, the total value of accounts receivable accounted for 82.5% of Cen Land's total assets at the end of the year. This proportion was 83.7% at the beginning of the year.
The financial statement notes indicate that the majority of these receivables primarily consist of performance bond deposits paid by the company to developers to fulfill its role as the general distributor of real estate products from these projects.
Although profits in 2023 decreased sharply compared to 2022, the company's financial report shows that net cash flow from business operations improved from a negative VND 2,364.3 billion to VND 37.6 billion. This was due to Cen Land increasing its accounts receivable in 2023.
Thanks to an increase in accounts receivable, Cen Land's net cash flow from business operations recorded a positive value in 2023 (Image: Financial statements).
However, the increase in receivables due to deposits from partners also poses risks to the business. The report shows that the company's bad debt at the end of 2023 had a cost of VND 107.5 billion, stemming from receivables that are unlikely to be recovered. But the recoverable value was only VND 11.9 billion.
These uncollectible receivables come from partners such as Le Phong Investment and Development Co., Ltd., Soleil Hotel Investment and Services Joint Stock Company (a company involved in the Van Thinh Phat case), and Phuc Son Group Joint Stock Company.
Non-performing loans from receivables that are unlikely to be collected at the end of the year amounted to VND 107.5 billion (Image: Financial statements).
This company maintains a low leverage ratio. As of December 31, 2023, liabilities amounted to VND 1,489 billion, a decrease of 25.6% compared to the beginning of the year. Equity stood at VND 5,619.5 billion, unchanged from the beginning of the year.
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