Coteccons, a leading construction company in Vietnam, reported after-tax profits of VND1.9 billion ($76,000) in the first nine months of the year, down 97% year-on-year.
The company, listed on the Ho Chi Minh Stock Exchange as CTD, earned net revenues of VND8,307 billion ($334 million) in the period, up 34%.
In the first nine months of the year, Coteccons's cash flow from business activities was negative VND1,989 billion ($80 million) due to the company's sharp increase in inventories, receivables and securities investment.
In Q3/2022, its net revenues reached VND3,113 billion ($125.2 million), up 190% year-on-year. CTD lost VND3.5 billion ($141,000) in Q3, while it loss nearly VND12 billion in the same period last year.
According to Coteccons, high costs of raw materials and labor and the board of management's provisioning for high-risk projects were the major reasons behind its decrease in gross profit margin.
By September 30, 2022, CTD's total assets hit VND17,757 billion ($714 million), up 18% compared to the beginning of the year, mainly due to an increase in receivables and inventories.
In August, Coteccons secured a contract to build a modern manufacturing facility in Binh Duong province for Lego Group in which the Danish toymaker will invest more than $1 billion.
Earlier in the same month, the company announced the appointment of Vo Hoang Lam as its new general director after leaving the position vacant for 18 months.
At the closing session on Tuesday, CTD shares were priced at VND41,900 ($1.69) per unit.