Industrial park developer Kinh Bac's 2022 profit up 18%

Kinh Bac City Development Holding Corp., one of Vietnam's leading industrial real estate developers, reported an after-tax profit of VND1,596 billion ($68 million) in 2022, up 18% year-on-year and fulfilling 35.5% of its target.

The company, shortly known as KBC, earned net revenue of VND957 billion ($40.81 million), down 77%. Of this, revenue from leasing land and infrastructure dropped by more than 78% to VND665 billion ($28.36 million).

A company report said it leased out 107 hectares of industrial land in 2022 with a total value of nearly VND3,540 billion ($150.96 million). In Quang Chau Industrial Park (IP), the total area for lease earned KBC VND2,460 billion ($104.91 million).

Quang Chau, one of the outstanding IPs in Bac Giang, is on the way to becoming a modern IP with plants and facilities, an urban area, and service areas. An expansion project will enlarge its total area from 426 to 516 hectares.

The existing IP of 426 hectares has been fully occupied, attracting 41 investment projects, including 37 FDI and four domestic investment projects with a total investment capital of up to $2.8 billion, creating jobs for about 67,000 workers.

In particular, the company has leased around 50 hectares of land for the Fulian Precision Technology Factory project to Singapore firm Ingrasys under Foxconn, an Apple supplier, with a total price of VND1,624 billion ($69.25 million).

As of December 31, 2022, KBC's total assets were more than VND34,900 billion ($1.49 billion), up 11% compared to the beginning of the year. Short-term receivables reached more than VND11,000 billion ($469.09 million), accounting for 32% of total assets. Inventories hit VND12,254 billion ($522.57 million), accounting for more than 35% of total assets.

Trang Cat urban area and industrial park in Hai An district, Hai Phong city, still accounts for the largest proportion of revenue with more than VND7,800 billion ($332.63 million); followed by Tan Phu Trung Industrial Park in Ho Chi Minh City; Phuc Ninh urban area and Nam Son Hap Linh Industrial Park in Bac Ninh province; Trang Due urban area in Hai Phong, Quang Chau IP, and the company's social housing project in Bac Giang's Nenh town.

As of the end of 2022, liabilities stood at VND17,067 billion ($727.82 million), up 18% compared to the beginning of the year and nearly equal to equity. Of this, the total outstanding bond debt was nearly VND3,900 billion ($166.31 million), while due bond debt hit VND2,900 billion ($123.67 million).

On the Ho Chi Minh Stock Exchange, the KBC share price was VND24,300 ($1.04) per unit at Wednesday's closing session.

In December, KBC chairman Dang Thanh Tam completed his purchase of 25 million shares of the developer. With the purchase, conducted from November 15 to December 13, his holding in Kinh Bac increased from 14.81% to 24.91% of the company’s charter capital.