Long Hau (LHG) revenue decreased by 37%, mainly due to financial investment

Long Hau (LHG) revenue decreased 37% compared to last year

Regarding the financial situation, in the fourth quarter of 2023, Long Hau (Code LHG) recorded revenue of VND 145 billion, an increase of 40.4% over the same period. Gross profit reached VND 77.1 billion, an increase of 75% over the same period. Correspondingly, gross profit margin increased from 42.6% to 53.1%.

During the period, financial revenue increased by VND24 billion, equivalent to an increase of about 76.2%. Financial expenses were recorded at VND4.1 billion, sales expenses and business management expenses accounted for VND19.3 billion, down 3.3% over the same period. Profit after tax was recorded at VND61.6 billion, up nearly 90% over the same period last year.

Long Hau LHG revenue decreased by 37% mainly financial investment picture 1 — Long Hau's (LHG) revenue in 2023 decreased by 37%, most of its assets are financial investments (Photo TL)

Long Hau's accumulated revenue in 2023 reached 394.9 billion VND, down 37.2% over the same period. Profit after tax reached 166.5 billion VND, down 17.7%. Compared to the annual business plan, the target revenue was 902.1 billion VND, profit after tax was 127.1 billion VND, the company exceeded the plan by 31%.

However, it should be noted that Long Hau's revenue and profit plans are 37.2% and 17.7% lower than in 2022, respectively.

Financial investments account for nearly 40% of total assets.

By the end of 2023, Long Hau's total assets reached VND 3,055.7 billion, a slight increase compared to the beginning of the year. Notably, short-term investments recorded VND 1,190.3 billion, equivalent to 39% of total assets.

Inventory accounts for VND647.1 billion, equivalent to 21.2% of the asset structure. The company also has short-term receivables recorded at VND307.8 billion, equivalent to 10.1% of total assets.

In the list of short-term receivables, it is worth noting that there is a receivable from Tan Thuan Industrial Development Company Limited accounting for 60 billion VND. According to the explanation, this is an advance payment for Tan Thuan Company to repay the resettlement costs for the Long Hau 1 Industrial Park project with an amount of 59.18 billion VND (excluding VAT) as required by the principle agreement signed between the two parties. Long Hau is working with Tan Thuan Company on the entire resettlement costs of the project.

Regarding capital structure, at the end of 2023, Long Hau's total long-term and short-term debt was recorded at VND 181 billion, equivalent to 5.9% of total capital. Mainly, long-term debt was VND 126.7 billion, short-term debt accounted for VND 54.3 billion.

Source