Property developer Kita’s auto affiliate reports accumulated loss of $13.2 mln

Giai Phong Auto JSC, a firm linked to property developer Kita Group, has recorded accumulated losses of nearly VND336.5 billion ($13.22 million) as of June 30, according to its Q2/2024 financial statement.

The loss exceeded its charter capital of VND294 billion ($11.6 million), resulting in a negative equity of nearly VND42 billion, the statement said.

The company’s Q2/2024 sales revenue increased nearly 30 times year-on-year to more than VND4.3 billion ($169,200). However, after deducting costs, it suffered a loss of more than VND6.1 billion.

In the first half of this year, Giai Phong Auto, registered on the Unlisted Public Companies Market (UPCoM) as GGG, posted revenues of VND5.3 billion ($208,540) and an after-tax loss of more than VND10.2 billion.

With these results, GGG is far away from achieving its 2024 revenue and profit targets of VND1.3 trillion ($51.15 million) and VND60 billion ($2.36 million), respectively.

At the end of Q2, the company's total assets were valued at just over VND39.2 billion ($1.54 million), down 16.2% from the year’s beginning. Of this, inventories accounted for VND15.3 billion and fixed assets, including factories and machinery, for VND22.1 billion. Cash-in-hand was just VND511 million ($20,106).

Its liabilities of VND50.1 billion ($1.97 million) marked a year-on-year increase of more than 7%, with short- and long-term financial lease loans and debt reaching VND23.3 billion and VND30.8 billion, respectively.

GGG's board of directors has issued a resolution approving the signing of a general contractor contract for the construction and repair of BT05 villa area under Hanoi’s Nam Thang Long Urban Area project.

Previously, AMBI Investment Company Limited and Mekong Construction Services Company Limited – respective owners of the project’s BT05 and BT02 land plots – had agreed in principle to appoint the consortium of GGG and Long Giang Foundation Construction JSC as general contractor for the construction and repair of BT02 and BT05 villas areas in the Nam Thang Long Urban Area.

Both AMBI and Mekong are legal entities with many connections with two GGG board members Nguyen Duy Kien and Tran Tan Hong Cuong – the "nuclei" of the Kita group.

In the stock market, GGG lost nearly 44% after hitting its floor price consecutively in the last three sessions. GGG is only traded on Friday sessions as it has been placed on a “warning list.”

It closed the July 12 session at VND5,300 ($0.21) per share, down 14.52% from the reference level. But, since the year beginning, the ticker has gone up by 194.4%.