Samland does not pay a dividend in 2023 as it continues to lose money for the second consecutive year
Sacom Real Estate Joint Stock Company (Samland) announced the 2024 General Meeting of Shareholders documents, the meeting is scheduled to be held on April 15 in Lam Dong province.
In 2024, Samland plans to increase total revenue by 460% over the same period, to 29,6 billion VND, and pre-tax profit is expected to gain 1,17 billion VND compared to a loss of 15,62 billion VND 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 it is likely that there will not be too big fluctuations, but recovery will be the main thing.
For business activities, in 2024, Samland will focus on drastically completing legal procedures and site clearance for the Samland Riverside project and the Nhon Trach project (55,2 hectares).
In addition, the Company also said that it will approach financial institutions and investment funds to mobilize new capital sources at reasonable costs to finance upcoming 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 will also face similar difficulties in the real estate market. assets when legal procedural issues have been affecting the 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, bringing accumulated losses 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 of loss. 20.458 million VND, an increase of 24.244,7 million VND.
During the period, gross profit decreased by 38,1% over the same period, corresponding to a decrease of 25,4 million VND, to 41,2 million VND; Financial revenue decreased by 74,4%, equivalent to a decrease of 1.943,2 million VND, to 667,5 million VND; Unexpected financial expenses recorded negative 6.577,7 million VND compared to positive 24.873,1 million VND in the same period; Sales and corporate management expenses decreased by 29,2%, equivalent to a decrease of 1.244,4 million VND, to 3.013,3 million VND 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 financial expenses. negative to 6.577,7 million VND.
Explaining the recording of negative financial expenses, the Company said it was due to recording loan interest of negative 6.577,7 million VND.
Cumulatively in 2023, Samland Company recorded revenue of 3.801,4 million VND, down 52,2% over the same period and profit after tax continued to be negative 15.619,5 million VND compared to the same period of negative 61.785,9 million dong.
Thus, Samland Company has experienced two consecutive years of negative profits, with continued losses in 2023. As of December 31, 12, the total accumulated loss amounted to more than 2023 billion VND, equal to 48%. Authorized capital.
In addition, in terms of capital, in addition to business losses, 2023 also recorded a sharp decrease in the asset scale of Samland Company.
Specifically, as of December 31, 12, Samland Company's total assets decreased by 2023% compared to the beginning of the year, corresponding to a decrease of 22,3 billion VND, to 257,7 billion VND. Of which, the main assets, long-term unfinished assets, were recorded at 898,2 billion VND, accounting for 665,3% of total assets; Short-term receivables recorded 74,1 billion VND, accounting for 161,8% of total assets; and other items.
During the period, short-term receivables unexpectedly decreased by 61,6% compared to the beginning of the year, corresponding to a decrease of 259,4 billion VND, to 161,8 billion VND. Of which, mainly due to investment cooperation receivables, it decreased from 145,5 billion VND to 89,6 billion VND; Other receivables decreased from 249,4 billion VND, to 49,5 billion VND...
In addition, during the period, long-term assets in progress did not fluctuate significantly, increasing by 18,9 billion VND, to 665,3 billion VND. Of which, long-term unfinished assets are mainly 530,7 billion VND for the Nhon Trach Residential Area project and the remaining 134,6 billion VND for the Samland Riverside apartment project.
Additionally, also in 2023, for the securities investment portfolio, Samland Company has reduced the investment value from 56,9 billion VND, to 22,4 billion VND, a decrease of 34,5 billion VND. In particular, selling the entire investment portfolio of SJS, HPG and SSI shares, currently only holding 22,4 billion VND of DNP shares, making a provision for devaluation of 1,59 billion VND.
Cancellation of listing plan on HoSE due to ineligibility
Another notable content, in 2023, Samland Company approved a plan to cancel its 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 consistent with Samland Company's orientation in the near future.
In fact, SamLand Company is a quite interesting case when in 2022, the Company has just reported a loss of 61,79 billion VND compared to a profit of 5,96 billion VND in the same period. Entering 2023, the Company continues to lose money for the second consecutive year.
It is known that SamLand is the investor of two projects, Nhon Trach 55,2 hectares in Dong Nai and SamLand Riverside project in Binh Thanh (HCMC), these are two large projects of the Company that are behind schedule. In particular, the SamLand Riverside project is entangled with land laws and cannot continue to be implemented.
At the Annual General Meeting of Shareholders of SAM Holdings (code SAM - Parent company owns 85,71% of capital at SamLand Company), every year, leaders promise to overcome difficulties and accelerate the implementation of the two above projects. and considered a "precious and valuable" asset of the untapped enterprise. However, for many years, the business has missed the favorable time to do business in the two above mentioned projects.
Returning to the story of listing on HoSE, current regulations require businesses to be profitable for at least 2 consecutive years. With SamLand Company losing money in 2022, and continuing to lose money in 2023, if the Company has profits for two consecutive years in 2024 and 2025, the earliest it can be listed must be 2026.
Thus, it can be seen that, when not meeting the listing conditions, as well as business activities plummeting and showing no signs of improvement, Samland Company proactively stopped its plan to list on HoSE.
