In the first quarter of 2023, Saigon Thuong Tin Real Estate Joint Stock Company (TTC Land) barely recorded revenue from core activities, gross profit was not enough to pay financial expenses, selling and administrative expenses. However, TTC Land escaped losses thanks to financial revenue of up to 65.15 billion VND.

TTC Land has just announced the financial report for the first quarter of 2023, the summarized revenue of the first 3 months of the year was recorded at 81.02 billion VND, decreased 79.5% and profit after tax recorded at 1.96 billion VND, decreased 96.6% compared with the same period last year.

During the period, gross profit decreased by 78.9% over the same period, equivalent to a decrease of 79.32 billion dong, to 21.16 billion dong; financial revenue decreased by 15.9%, equivalent to a decrease of 12.28 billion dong, to 65.15 billion dong; financial expenses increased by 7.8%, equivalent to an increase of VND 3.94 billion, to VND 54.65 billion; selling and administrative expenses decreased by 60%, down 32.97 billion dong, to 21.98 billion dong and other activities did not change significantly.Thus, the core business of the enterprise in the first quarter (gross profit - financial expenses - selling and administrative expenses) was negative 55.47 billion dong compared to negative 5.18 billion dong of the last same period.

However, TTC Land escaped losses thanks to financial revenue of up to 65.15 billion VND. This revenue mainly comes from business cooperation activities 34.5 billion and income from loan interest 26.6 billion.

Notably, in the first quarter of 2023, TTC Land did not record any revenue from real estate transferring compared to 273.9 billion dong of the last same period and no revenue from construction services was recorded. 

In 2023, TTC Land sets a business plan with a revenue of 540 billion VND, down 39.5% over the last same period and expected profit before tax of VND 20 billion, down 74.7% compared to the implementation in 2022. Thus, by the end of the first quarter of 2023, with a pre-tax profit of 1.33 billion dong, TTC Land has only completed 6.7% of the year's profit plan.

In the financial situation of 2022, TTC Land recorded revenue of VND 893 billion, down 46.9% over the same period and completing 42% of the revenue plan; pre-tax profit was recorded at VND 79 billion, down 67.4% compared to the implementation in 2021 and only completing 26% of the profit plan.

To March 31, 2023, TTC Land's total assets decreased slightly compared to the beginning of the year to 9627.5 billion VND. In which, the main assets are short-term receivables recorded at 3,038 billion VND, accounting for 31.6% of total assets; inventory recorded at 2842.5 billion VND, accounting for 29.5% of total assets; long-term receivables were recorded at 1129.2 billion VND, accounting for 11.7% of total assets; long-term financial investment recorded 1001.6 billion VND, accounting for 10.4% of total assets and other items.

According to TTC Land, they have to collect short-term loans: 1,125 billion VND of Tien Phat Garment Joint Stock Company; 23.7 billion VND of Toan Hai Van Joint Stock Company; 8.58 billion VND of Thanh Thanh Cong Investment JSC. In addition, the Company also began business cooperation contracts worth 1,076.5 billion VND.

This money was mainly invested in business cooperation contracts with Toan Hai Van Joint Stock Company to develop the Vinh Dam Complex project at group 11, Suoi Lon hamlet, Duong To commune, Phu Quoc district, Kien Giang province and Dang Huynh Industrial Park Management and Exploitation Joint Stock Company on the development of Open Tan Kim Industrial Park project in Can Giuoc town, Can Giuoc district, Long An province.

Regarding the debt, by the end of the first quarter of 2023, total short-term and long-term debt was 1957.2 billion VND and accounted for 20.3% of total capital. In which, short-term debt is 1096.9 billion VND and long-term debt is 860.3 billion VND. Since going public in 2016, TTC Land has only issued shares to raise capital and pay dividends in stock, not paying dividends in cash to shareholders.

Closing the trading session on May 4, TTC Land shares were priced at VND 7,400/share.

Source: Taichinhdoanhnghiep