Transferring a part of the housing project in Vung Tau, Hodeco reported profit in the second quarter of 2020
In the second quarter of this year, Hodeco recorded positive business results thanks to a partial transfer of housing projects and land use rights in Vung Tau.
The residential area at West 3/2 is located on the front of Hang Dieu Street, adjacent to Mega Market (the old Metro) and 5 minutes from Chi Linh beach. The project has a scale of 63,348 m2, including 96 adjacent houses and 114 villas. The total investment is nearly 359 billion dong. Phase 1 includes 51 adjacent houses and 60 villas. (Photo: Hodeco)
According to the consolidated financial statements of Quarter II / 2020 of Ba Ria – Vung Tau Housing Development Joint Stock Company (Hodeco, Code: HDC), the net revenue in the quarter reached nearly VND 208 billion, an increase of 8% over the same period.
In particular, the company has recorded a part of Project West 3/2 and transferred the land use right of the concrete station land area of nearly 7,592 m2, in ward 12, Vung Tau City.
Hodeco said that the land use rights received by the company were transferred at low cost prices, so the profit margin was high.
The expenses during the period have increased but not significantly. Accordingly, in the second quarter, Hodeco has a net profit of nearly 38 billion dong, up by 31% YoY.
Hodeco’s business results for the second quarter of 2020. (Source: Consolidated Financial Statements for Quarter II / 2020)
In the first 6 months, Hodeco reached nearly 359 billion dong of net revenue and 80 billion dong of net profit, an increase of 17% in revenue and 2 times in profit compared to the first half of 2019.
According to the plan approved by the Annual General Meeting of Shareholders, Hodeco expects this year’s revenue to reach VND 1,030 billion and profit after tax of VND 200 billion. Thus, the company has achieved 35% of revenue plan and 40% of profit plan.
Despite high growth in business results, Hodeco’s cash flow in the first half of the year was nearly 13 billion dong, while the same period was 43 billion dong. Particularly, the business cash flow was positive at 348 billion dong, while the investment and financial cash flow were negative 298 billion dong and 63 billion dong respectively.
As of June 30, 2020, Hodeco’s total assets exceeded 2,681 billion dong, up 9% compared to the beginning of the year. In particular, inventory accounted for 967 billion, up more than 3% and accounted for 36% of total asset value.
Besides, the company’s tangible fixed assets soared from VND 43 billion at the beginning of the year to over VND 337 billion, bringing the total value of fixed assets to over VND 852 billion, equivalent to 32% of the total assets due to building new Fushion.
Details of Hodeco’s unfinished projects. (Source: Consolidated Financial Statements for Quarter II / 2020)
In addition to 9 projects and unfinished land area of more than VND 848 billion, Hodeco has nearly VND 114 billion of real estate goods in 5 projects, including: Fusion Suites Vung Tau (VND 59 billion), investment real estate CC Lo A, 199 Nam Ky Khoi Nghia (39 billion VND), Binh Gia Apartment (11 billion VND), Phu My New Urban Area (5 billion VND), the remaining is a foundation of Nam Ky Khoi Nghia.
At the end of the second quarter of 2020 accounting period, Hodeco’s liabilities increased by 13% to VND 1,472 billion. Particularly, total outstanding loans accounted for VND 860 billion.
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