The Bac Ha Thanh urban area project has been granted a construction permit for phase 2 by Binh Dinh province.
PDR's third-quarter profits mainly came from financing activities.
Phat Dat Real Estate Development Joint Stock Company (stock code: PDR) has just announced its consolidated financial report for the third quarter of 2024. Accordingly, amidst the ongoing difficulties in the real estate market, Phat Dat's net revenue from sales and services in this quarter recorded a modest result, reaching only 2.6 billion VND. However, financial revenue reached 194 billion VND, an increase of 352% compared to the same period last year.
The continued strong increase in financial revenue is due to Phat Dat's continued transfer of shares in its affiliated companies, similar to the business results of the previous quarter.
At the end of June, Phat Dat announced its intention to transfer all 111.7 million shares in BIDICI Real Estate Joint Stock Company, equivalent to 49% of the charter capital, with an expected minimum revenue of VND 1,452 billion.
According to Mr. Nguyen Van Dat, Chairman of the Board of Directors of Phat Dat, the real estate market in 2024 will still face difficulties, especially regarding legal issues. Therefore, Phat Dat's top priority is survival and development.
In this context, the company chose to sell assets to maintain its cash flow, prepare for a new cycle, and all strategic decisions were aimed at protecting the interests of shareholders.
"During difficult times, selling assets is necessary to maintain operations and generate cash flow. Importantly, Phat Dat still has valuable assets to sell, and that's a bright spot in the current challenging environment," Mr. Dat shared.
The People's Committee of Binh Dinh province has also officially approved the land prices applicable to the Bac Ha Thanh urban area project.
According to the explanatory report, Phat Dat's leadership stated that the general economic situation, including the real estate sector, remains challenging. Therefore, the company's investment and development were not favorable in the third quarter, leading to a decrease in profits for the quarter.
However, thanks to its asset sale strategy, despite modest business results, this real estate company closed the third quarter of 2024 with after-tax profit exceeding 51 billion VND.
For the first nine months of 2024, Phat Dat recorded net revenue of 173 billion VND and after-tax profit of nearly 154 billion VND.
Many new advancements in the Bac Ha Thanh project.
As of September 30th, Phat Dat's total assets reached VND 22,663 billion, a 7% increase compared to the same period last year. Inventory accounted for the largest share, at nearly VND 12,854 billion, representing over 50% of Phat Dat's total assets.
Inventory is nearly three times the value of Phat Dat's total short-term and long-term debt of VND 4,415 billion, including VND 1,366 billion in short-term debt and VND 3,049 billion in long-term debt.
Notably, the Bac Ha Thanh project was a "highlight" in this real estate developer's Q3 2024 financial report, with its inventory value increasing by 62% compared to Q2 2024, reaching VND 583 billion (an increase of VND 224 billion).
This indicates that the Bac Ha Thanh project is making rapid progress and Phat Dat is focusing its resources on this project to bring it into operation in the fourth quarter as planned.
Previously, on October 9-10, 2024, the Department of Construction of Binh Dinh province granted a construction permit for phase 2, covering a total area of over 16.9 hectares, for the Bac Ha Thanh Urban Area project, with Phat Dat as the investor. Recently, the People's Committee of Binh Dinh province also officially approved the land prices applicable to the Bac Ha Thanh urban area project, marking an important step in the project's legal implementation process.
The three projects, Bac Ha Thanh, Thuan An, and Cadia Quy Nhon, are expected to generate 35,000 billion VND in revenue for Phat Dat over the next three years.
As of the end of the third quarter, Phat Dat's total liabilities amounted to over 11,606 billion VND, showing negligible change compared to the same period last year. In the short-term debt category, the company had prepayments to suppliers totaling 2,777 billion VND, a sharp increase of 313%.
According to the financial statement notes, Phat Dat is focusing on repaying debts to construction partners related to the Bac Ha Thanh project, such as Infrastructure Investment and Development Joint Stock Company 620 (129 billion VND) and TC Binh Dinh Construction Joint Stock Company (118 billion VND).
In Phat Dat's long-term debt portfolio, the outstanding loan balance at MB Bank (MBB) increased by VND 168 billion. According to the explanation, the financing from MBB will help PDR quickly implement the final phases of the Bac Ha Thanh project.
According to the company's leaders, the three projects – Bac Ha Thanh, Thuan An, and Cadia Quy Nhon – will bring Phat Dat 35,000 billion VND in revenue over the next three years. The Bac Ha Thanh and Thuan An projects alone will contribute nearly 20,000 billion VND.
Source: https://tuoitre.vn/phat-dat-lai-sau-thue-51-ti-dong-trong-quy-3-voi-nhieu-tin-hieu-tich-cuc-tu-du-an-bac-ha-thanh-20241012112703364.htm
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