Real estate giant DIC Corp notches biggest quarterly loss since listing

Development Investment Construction JSC (DIC Corp), among Vietnam’s top real estate developers, incurred a loss of VND117.2 billion ($4.62 million) in the first quarter of this year, marking its largest quarterly loss since floating shares in 2009.

The firm, listed on the Ho Chi Minh Stock Exchange as DIG, earned a net profit of VND78.9 billion ($3.11 million) in Q1/2023.

DIC Corp recorded VND186 billion ($7.34 million) in sales and service revenues in Q1/2024. However, its net revenue plummeted to VND489 million ($19,294) after a significant portion of its products were returned, according to the firm’s consolidated financial statements.

DIG reported that its revenue primarily stemmed from real estate business. This was largely attributed to apartment transfers within the CSJ project, located in the southern province of Ba Ria-Vung Tau, as well as the sales of unfinished pre-sold home units in the Dai Phuoc and Hau Giang projects, situated in the respective southern provinces of Dong Nai and Hau Giang.

In addition, revenue from financial activities plunged to VND12 billion ($473,470) from VND170 billion ($6.71 million) in Q1/2023 because of zero income from investments.

Similarly, financial costs decreased to VND12.4 billion from VND67 billion ($2.64 million). Meanwhile, sales and administrative costs saw considerable increases of 37% and 72.2% year-over-year, respectively.

At its 2024 AGM on Friday, DIG general director Nguyen Quang Tin shared that the corporation had overcome a payment crisis. It expected revenue of VND2.3 trillion ($90.75 million) in 2024, up 72% year-on-year, while targeting a profit of VND1.01 trillion ($39.85 million), a sixfold jump.

The firm has set profit goals for specific projects, such as the Dong Nai-based Dai Phuoc ecotourism and urban area project with a projected profit of VND881 billion ($34.76 million); and the Lam Ha Center Point housing project in the northern province of Ha Nam with an estimated profit of VND129 billion ($5.1 million).

As of end-Q1, DIG had total assets of VND17.77 trillion ($701 million), rising by nearly VND900 billion ($35.5 million) from early this year. This increase was mostly driven by a sharp hike in held-to-maturity securities to VND1.02 trillion ($40.3 million) from VND197 million ($7.7 million).

Its long-term liabilities rose from VND961 billion to VND2.3 trillion ($91 million) as of end-Q1 due to the issuance of two batches of bonds for HDBank (HoSE: HDB), totaling VND1.6 trillion ($63.1 million) with a three-year term and an annual interest rate of 11.25%.