Samland will not pay dividends in 2023 as it continues to lose money for the second consecutive year

Sacom Real Estate Joint Stock Company (Samland) announced documents for the 2024 General Meeting of Shareholders, the meeting is scheduled to be held on April 15 in Lam Dong province.

In 2024, Samland plans to increase total revenue by 460% year-on-year to VND29.6 billion and pre-tax profit is expected to be VND1.17 billion compared to a loss of VND15.62 billion in the same period.

Commenting on the market, Samland said that in 2024, businesses will continue to face difficulties in investing and developing real estate projects. The economy in general is still difficult to predict, but there will likely not be too much fluctuation, but mainly recovery.

Regarding business activities, in 2024, Samland will focus on completing legal procedures and site clearance for the Samland Riverside project and Nhon Trach project (55.2 hectares).

In addition, the Company also said it will approach financial institutions and investment funds to mobilize new capital sources at reasonable costs to finance future projects.

It is known that in 2023, at two key projects, Samland Nhon Trach Residential Area (55ha) and Samland Riverside Apartment project, the Company said it also faced similar difficulties in the real estate market when legal procedural issues have been affecting project progress.

Regarding the profit distribution plan, with continued losses in 2023, Samland presented shareholders with a plan to not pay dividends in 2023.

Loss for the second consecutive year, increasing accumulated loss to 48 billion VND, equal to 6.1% of charter capital

In terms of business activities, in the fourth quarter of 2023, Samland Company recorded revenue of 12 million VND, down 99.6% over the same period, profit after tax reached 3,786.7 million VND compared to the same period, a loss of 20,458 million VND, an increase of 24,244.7 million VND.

During the period, gross profit decreased by 38.1% compared to the same period, equivalent to a decrease of VND 25.4 million, to VND 41.2 million; financial revenue decreased by 74.4%, equivalent to a decrease of VND 1,943.2 million, to VND 667.5 million; unexpected financial expenses were negative VND 6,577.7 million compared to the same period, positive VND 24,873.1 million; sales and administrative expenses decreased by 29.2%, equivalent to a decrease of VND 1,244.4 million, to VND 3,013.3 million and other activities fluctuated insignificantly.

Thus, in the fourth quarter, gross profit was only 41.2 million VND, lower than sales and administrative expenses of 3,013.3 million VND. Samland Company only escaped losses due to recording negative financial expenses of 6,577.7 million VND.

Explaining the negative financial expense, the Company said it was due to negative loan interest of VND 6,577.7 million.

Accumulated in 2023, Samland Company recorded revenue of VND 3,801.4 million, down 52.2% over the same period and profit after tax continued to be negative VND 15,619.5 million compared to the same period of negative VND 61,785.9 million.

Thus, Samland Company has experienced two consecutive years of negative profits, with continued losses in 2023. As of December 31, 2023, the total accumulated loss amounted to more than 48 billion VND, equal to 6.1% of charter capital.

In addition, in terms of capital, in addition to business losses, 2023 also recorded a sharp decrease in the asset size of Samland Company.

Specifically, as of December 31, 2023, Samland Company's total assets decreased by 22.3% compared to the beginning of the year, equivalent to a decrease of VND 257.7 billion, to VND 898.2 billion. Of which, the main assets were long-term unfinished assets recorded at VND 665.3 billion, accounting for 74.1% of total assets; short-term receivables recorded at VND 161.8 billion, accounting for 18% of total assets; and other items.

During the period, short-term receivables unexpectedly decreased by 61.6% compared to the beginning of the year, equivalent to a decrease of VND 259.4 billion, to VND 161.8 billion. In which, mainly due to investment cooperation receivables decreasing from VND 145.5 billion to VND 89.6 billion; other receivables decreasing from VND 249.4 billion to VND 49.5 billion...

In addition, during the period, long-term unfinished assets fluctuated insignificantly, increasing by VND 18.9 billion to VND 665.3 billion. Of which, long-term unfinished assets were mainly VND 530.7 billion for the Nhon Trach Residential Area project and the remaining VND 134.6 billion for the Samland Riverside apartment project.

In addition, also in 2023, for the securities investment portfolio, Samland Company reduced the investment value from VND 56.9 billion to VND 22.4 billion, a decrease of VND 34.5 billion. Of which, the entire investment portfolio of SJS, HPG and SSI shares was sold, currently holding only VND 22.4 billion of DNP shares, setting aside a provision for price reduction of VND 1.59 billion.

Cancelled HoSE listing plan due to not meeting requirements

Another notable content, in 2023, Samland Company approved the plan to cancel listing registration on the Ho Chi Minh City Stock Exchange (HoSE) as previously approved.

The reason given is that the listing plan on HoSE is no longer suitable for Samland Company's orientation in the coming time.

In fact, SamLand Company is quite an interesting case when in 2022, the Company reported a loss of 61.79 billion VND compared to the same period last year with a profit of 5.96 billion VND. Entering 2023, the Company continued to lose money for the second consecutive year.

It is known that SamLand is the investor of two projects, Nhon Trach 55.2 ha in Dong Nai and SamLand Riverside project in Binh Thanh (HCMC), these are two major projects of the Company that are behind schedule. In particular, the SamLand Riverside project is entangled with land law regulations and cannot continue to be implemented.

At the annual general meeting of shareholders of SAM Holdings (code SAM - parent company owning 85.71% of capital at SamLand Company) every year, the leaders promise to overcome difficulties and accelerate the implementation of the two above-mentioned projects, which are considered "valuable and valuable" assets of the enterprise that have not been exploited. However, for many years, the enterprise has missed the favorable time to do business in the two above-mentioned projects.

Returning to the story of listing on the HoSE, the current regulation requires that a company must have a profit for at least 2 consecutive years. With SamLand Company making a loss in 2022 and continuing to make a loss in 2023, if the Company makes a profit for two consecutive years, 2024 and 2025, the earliest it can be listed is 2026.

Thus, it can be seen that when not meeting the listing conditions, as well as business activities declining and showing no signs of improvement, Samland Company proactively stopped the listing plan on HoSE.

Source