Major industrial park developer Kinh Bac suffers setback with $3 mln Q1 loss

Vietnamese industrial park developer Kinh Bac Urban Development Corporation recorded Q1/2024 losses of VND76.7 billion ($3 million), a setback considering its annual profit target of VND4,000 billion ($157.8 million).

Kinh Bac, listed on the HCMC Stock Exchange (HoSE) as KBC, saw its Q1 revenue plunge 93.1% year-on-year to VND152.3 billion ($6 million).

Its profit after tax was VND76.7 billion ($3 million), down from VND1,056.4 billion ($41.7 million) in the same period last year.

Its Q1/2024 performance marked a return to losses after four successive profitable quarters. It had recorded a Q4/2022 loss of VND558.8 billion ($22 million).

The company has attributed the Q1/2024 loss to not receiving expected industrial park rental revenues.

Kinh Bac has targeted revenues of VND9,000 billion ($355 million) this year as well as an after-tax profit of VND4,000 billion ($157.8 million).

The targets were based on the company’s rental revenue from a total of 150 hectares at the Nam Son Hap Linh (Bac Ninh province), Quang Chau (Bac Giang province), Tan Phu Trung (HCMC) and Trang Due 3 (Hai Phong city) industrial parks, as well as industrial clusters in Hung Yen and Long An provinces.

The company management also said that its urban area projects were expected to bring in revenue and profits this year.

Snce the end of 2023, many private corporations and multinational majors have shown interest in locating their facilities in the company’s industrial parks, the management said.

Legal procedures for the Trang Due 3 and Loc Giang IPs, and Phuc Ninh and Trang Cat urban area projects are expected to be completed and approved in the second quarter of this year, they added.

They also said the company was striving to complete legal procedures and obtain approval for projects in other localities including Bac Ninh, Thai Nguyen, Hau Giang, Can Tho, and Ba Ria-Vung Tau, involving almost 3,500 hectares of industrial park and 650 hectares of urban land areas.