Why did tycoon Dang Thanh Tam's company suddenly increase its profit 20 times?

(Dan Tri) - Kinh Bac Urban Development Corporation had a profit after tax of VND849.1 billion in the last quarter, a reversal from a loss of VND76.7 billion in the same period last year.

Kinh Bac Urban Development Corporation - JSC (stock code: KBC) has just announced its financial report for the first quarter of 2025 with extraordinary figures. Specifically, the company's net revenue recorded VND 3,116.9 billion, more than 20 times higher than the same period.

This increase in revenue mainly came from land and infrastructure leasing activities, about VND2,483.7 billion, while this source of revenue was not recorded in the same period last year. Real estate transfer revenue also skyrocketed from VND14.7 billion to VND411.8 billion in the last quarter.

After deducting the cost of goods sold, Mr. Dang Thanh Tam's business had a gross profit of VND 1,208.8 billion, more than 20 times higher than in the first quarter of 2024. However, the gross profit margin decreased from 49% to nearly 39%.

Kinh Bac's financial revenue increased sharply to VND135 billion, double the same period, thanks to interest on deposits, loans and business cooperation.

After deducting expenses, this real estate company's after-tax profit was VND849.1 billion, while in the same period last year it lost VND76.7 billion.

At the 2025 extraordinary shareholders' meeting held in March, the company approved its 2025 business plan with consolidated revenue of VND10,000 billion and after-tax profit of VND3,200 billion. Thus, the company has achieved 31% and 27% of its plan, respectively.

Increase bank debt

As of March 31, Kinh Bac's total assets reached about VND54,203.4 billion, an increase of 21% compared to the beginning of the year. The reason is that inventories increased from VND13,849.7 billion at the beginning of the year to VND20,277.4 billion; short-term receivables increased from VND13,308.8 billion to VND16,349.4 billion.

The company's inventory was recorded at VND20,277.4 billion, up 46% compared to the beginning of the year. This item increased mainly due to the increase in unfinished production and business costs at the Trang Cat urban and service area project, from VND8,442.6 billion to over VND15,463 billion.

The company's liabilities also reached VND32,709.4 billion, up 36% compared to the beginning of the year. Of which, financial debt (including long-term and short-term loans) reached nearly VND17,589 billion, up 74% compared to the beginning of the year. The company's long-term debt increased from VND9,741 billion to VND17,146.4 billion, mostly due to an increase in long-term bank loans.

Business loans at the end of the first quarter and the beginning of 2025 (Screenshot).

Regarding investment projects, on April 25, Kinh Bac's Board of Directors approved the participation in proposing investment policies and approved the investor of the Khoai Chau urban and eco-tourism complex project. The investor's capital contribution is nearly 6,000 billion VND.

Previously, on April 23, the Board of Directors of this company also approved the investment project to build and operate the infrastructure of the 675-hectare Phu Binh Industrial Park located in Phu Binh district, Thai Nguyen province.

Source: https://dantri.com.vn/kinh-doanh/vi-sao-cong-ty-cua-dai-gia-dang-thanh-tam-lai-dot-bien-gap-20-lan-20250505134552587.htm