Saigonres Real Estate Corporation’s Revenue Plummets by Almost 85%, Decreasing by 555 Billion VND
In the latest financial report from Saigonres, the company’s gross revenue for the year 2023 only reached over 99 billion VND, a decrease of 85% compared to the same period in 2022 (over 654 billion VND). This translates to a significant drop of 555 billion VND in revenue over the course of one year.
Decrease in Gross Profit and After-Tax Profit
The gross profit of Saigonres in 2023 was approximately 48 billion VND, a decrease of 86% compared to the previous year (almost 336 billion VND), equal to a decline of 288 billion VND. The after-tax profit reached over 103 billion VND, a decrease of 52% compared to 2022 (almost 216 billion VND).
Factors Impacting Profitability
The after-tax profit of Saigonres was not significantly reduced due to an increase in financial activities, other sources of income, and a decrease in business management expenses.
According to a letter sent by Mr. Dang Van Phuc, the Deputy General Director of Saigonres, to the State Securities Commission and the Ho Chi Minh City Stock Exchange regarding the business performance, the decrease in gross revenue was primarily caused by a sharp decline in revenue from various projects. Additionally, high financial costs were attributed to increased interest expenses.
However, Saigonres experienced an increase in revenue from financial activities, including interest income, investment cooperation income, lending income, delayed payment income, and increased dividends received. The company also reduced business management expenses by reducing provisions for doubtful accounts and other service costs.
Furthermore, the increase in other income was attributed to higher penalties and compensation for contract violations, as well as increased revenue from mineral water and other sources.
Saigonres Background
Founded in 1999 based on the Prime Minister’s decision on the equitization of the Construction and Real Estate Trading Company Gia Dinh, Saigonres operates in the construction and real estate business sector. Their headquarters is located on Dien Bien Phu Street, Ward 15, Binh Thanh District, Ho Chi Minh City.
Saigonres is chaired by Mr. Pham Thu, who is also the legal representative, with Mr. Dang Van Phuc serving as the Deputy General Director and temporarily filling the position of General Director.
As of the end of 2023, Saigonres’ total assets reached over 2,047 billion VND, with equity capital exceeding 918 billion VND. Currently, Saigonres has eight subsidiaries, one indirectly-owned subsidiary, and three associated companies with ownership stakes ranging from 42% to 100%.
Recent Developments and Investment Projects
In recent times, Saigonres has successfully completed the acquisition of a 90% stake in Duc Nhi Construction, Trade, and Import-Export Co., Ltd., officially becoming the owner of a 7,700 square meter land plot located on both sides of Le Sat – Tan Huong streets in Tan Phu District, Ho Chi Minh City.
Moreover, the company is currently implementing a large-scale high-end apartment project consisting of 1,100 units in Cai Rang District, Can Tho City, with a total investment of over 2,000 billion VND.
In the northern region, Saigonres has decided to invest in several major projects, including the Viet Xanh – Hoa Binh ecological urban area with an area of 50 hectares and a total investment of nearly 1,300 billion VND. They are also involved in projects related to the exploitation, protection, and development of forests in Tien Yen District, Quang Ninh Province, as well as various projects in the center of Pho Yen Town, Thai Nguyen Province.
To learn more about Saigonres and their business activities, visit Business Today.