Vietnam real estate major DIC Corp sees 33% post-audit net profit plunge

Top real estate developer DIC Corp has seen its 2023 net profit drop 33% to VND112 billion ($4.49 million) after the audit of its consolidated financial statements.

Its revenue of nearly VND1.03 trillion ($41 million) last year was the same as the audited statement.

This is not the first time that Development Investment Construction JSC (DIC Corp), listed on the Ho Chi Minh Stock Exchange as DIG, has recorded discrepancies between its preliminary financial reports and audited financial statements. Its post-audit net profit in 2021 and 2022 went up by VND38 billion ($1.52 million) and VND47 billion, respectively.

At the end of 2023, DIC Corp had three affiliates - DIC Holdings, DIC Resco and DIC Phuong Nam, with ownership ratios of 36-43%.

It had more than VND2.5 trillion ($100.14 million) in cash and deposits.

Last year, the enterprise earned VND166 billion ($6.6 million) in pre-tax profits and VND119 billion in net profit, down 16.5% and 18% year-on-year, respectively, due to the sluggish real estate market.

This year, DIC Corp has targeted VND1.01 trillion ($40.7 million) in pre-tax profits, up 508.9% year-on-year. It plans to invest a total of VND7.2 trillion ($290.6 million) this year - VND811 billion for financial investments and VND6.4 trillion for projects including the Long Tan-Dong Nai tourism urban area in Dong Nai province and the Nam Vinh Yen new urban area in Vinh Phuc province.

To finance its investments, DIC Corp plans to issue 410.4 million shares for VND6.5 trillion ($262 million), increasing its charter capital to VND10.2 trillion ($411 million) from the current VND6.09 trillion.