In the second quarter of 2024, Viet Real Estate Investment JSC had a negative profit after tax of VND 316 million, marking the fifth consecutive quarter of net loss. The Linh Tay Tower project was the main cause of the decline in profits in the last quarter.
In the second quarter of 2024, Viet Real Estate Investment Corporation (PVL) had a net revenue of only 185 million VND, down 3 times compared to the same period last year. The company's financial revenue also dropped sharply from 204 million VND in the second quarter of 2023 to 82 million VND, when there was no more profit from securities investment.
Ultimately, the company recorded a negative after-tax profit of VND316 million. The reason for this loss was that the company had not yet leased the commercial floor of the Linh Tay Tower project and had no revenue from other business activities.
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| PVL is looking for partners to transfer the commercial and office area of the Linh Tay project. Photo: PVL |
Linh Tay project is oriented to be an apartment complex combined with a commercial center. The project is located in Linh Tay ward, Thu Duc district, Ho Chi Minh City. The land use scale of the project is about 8,000 m2, with a total investment of 535 billion VND.
However, the loss of the last quarter was still relatively “modest” when compared with the negative figure of 79 billion VND in the same period last year. This was the result of the investment in the Nam Dan Plaza project. Since Mr. Le Hoa Binh , Chairman of the Board of Directors of 1/5 Company and also a major shareholder of the project, was arrested, the project has been in a “frozen” state until now.
Considering the cumulative first 6 months of 2024, Nha Dat Viet had net revenue of 427 million VND, down nearly 3 times compared to the same period last year. Profit after tax was negative 1.7 billion VND, down 48 times compared to the same period last year.
According to the annual business target set out in the shareholders’ meeting, the company will have to achieve a revenue of 5 billion VND and a profit after tax of about 500 million VND. If based on the current “performance”, Nha Dat Viet will need a big leap forward to complete the above target.
In 2023, the company will only achieve 29% of its revenue plan. Meanwhile, its after-tax profit will be negative VND88 billion.
As of June 30, the company's total assets were VND216 billion, down VND2 billion compared to the beginning of the year. Of which, equity decreased slightly from VND164 billion to VND162 billion. Liabilities were VND53 billion, equivalent to the beginning of the year.
In the long-term unfinished assets category, the company is still focusing on the cost of the CV4 cultural and sports service trade center project. Currently, the cost of this project is nearly 41.8 billion VND. According to the direction of the board of directors, from now until the end of the year, the company will continue to negotiate with partners to mobilize capital to implement this project.
In addition to the above plan, Nha Dat Viet is also renovating and repairing Linh Tay Tower apartment building and searching for partners/customers to transfer/lease commercial and office space.
In addition, the company will continue to develop an exploitation plan to generate revenue or find customers to transfer 2 land lots in Hoa Thach commune, Quoc Oai district, Hanoi on the principle of preserving capital.
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