Vinh Son - Song Hinh (VSH) Q2 profit increased, receivables increased by 500 billion

Vinh Son - Song Hinh Hydropower (VSH) Q2 profit growth

Vinh Son - Song Hinh Hydropower Joint Stock Company (HoSE Code: VSH) has just announced its consolidated financial report for the second quarter with a relatively positive situation.

Specifically, in the second quarter of 2023, VSH achieved revenue of 657.2 billion VND, a slight decrease compared to the same period last year. However, the cost of goods sold also decreased to only 247 billion VND, causing gross profit to increase to 410.2 billion VND.

Vinh Son Song Hinh Hydropower Plant's profit in the second quarter increased but receivables from customers also increased by 500 billion. — Vinh Son - Song Hinh Hydropower Plant (VSH)'s profit in the second quarter increased but customer receivables increased by more than 500 billion (Photo TL)

Financial revenue in the second quarter dropped sharply, from VND3.2 billion to just over VND137 million. Meanwhile, financial expenses still accounted for a large part of the revenue structure, up to VND107.5 billion.

The company did not record any selling expenses, and the business management expenses were reduced from 15.8 billion VND to only 14.3 billion, which was also the driving force for the company's profit to grow in the second quarter. At the end of the second quarter, VSH's after-tax profit reached 261.8 billion VND, an increase of nearly 5 billion compared to the same period last year.

Profits grow again but receivables from customers also double

Regarding the asset structure of Vinh Son - Song Hinh Hydropower, the majority of the company's assets are in the form of fixed assets, accounting for VND 8,285.3 billion, equivalent to 83.3% of total assets. Currently, the accumulated depreciation value has also reached nearly half, accounting for VND 3,961.9 billion.

Current assets are only 1,591.8 billion VND, however, cash and cash equivalents account for 122.3 billion VND, and VSH's bank deposits also account for 35 billion VND.

Notably, in that period, there was a relatively strong increase in short-term receivables. Mainly short-term receivables from customers, accounting for VND 1,317.8 billion, up 65.6% compared to the record at the beginning of 2023. This shows that a large amount of revenue from customers is only in the form of receivables and the company has not actually collected the money.

Meanwhile, Short-term Advances to Sellers increased slightly from VND 14.5 billion to VND 16.4 billion. Inventory was recorded at VND 106.7 billion, an increase of more than VND 6 billion compared to the beginning of the year.

Regarding capital structure, the company recorded payables at VND4,894.8 billion, short-term debt accounted for VND1,052.1 billion. Short-term loans and financial leases increased from VND135.2 billion to VND148.1 billion. In contrast, the company's short-term loans and financial leases accounted for VND3,641 billion. Thus, the company's total debt amounted to nearly VND4,700 billion, almost as high as the company's equity.

Source