Vingroup subsidiary's 9-month profit surpasses year's target

Vietnam Exhibition Fair Centre JSC, a subsidiary of conglomerate Vingroup, posted an after-tax profit of VND264 billion ($10.49 million) in the first nine months of 2024, exceeding the year's target of VND250 billion, despite a year-on-year decrease of 23%.

In its Q3/2024 financial statement, the company, listed on the Unlisted Public Companies Market (UPCoM) as VEF, said its total net revenue reached VND4.5 trillion ($178.82 million) in the nine-month period, nearly double the figure in the same period last year.

In Q3 alone, the firm’s net revenue from service provision hit VND4 billion ($158,951), a sharp rise from the VND247 million recorded one year ago. Its financial revenue reached VND129 billion ($2.13 million), a 14% year-on-year drop.

Due to financial expenses of over VND11.2 billion and other costs, VEF reported a net profit of VND84.6 billion ($3.36 million) in the quarter, a decline of 27% compared to the same period in 2023.

As of September 30, VEF's total assets reached nearly VND35.6 trillion ($1.4 billion), increasing over VND24 trillion in just one quarter and VND25.7 trillion compared to the beginning of the year. Of this, VND22 trillion ($874.23 million) came from inventory, up over VND20 trillion from the year-beginning, while short-term receivables were VND11.58 trillion.

The inventory includes costs for ongoing business operations, including expenses related to the implementation of the Vinhomes Global Gate urban area project in Co Loa, Hanoi’s outlying district of Dong Anh.

The company recorded construction costs for the Ba Dinh Service Trade Center in Hanoi’s Ba Dinh district (VND150.8 billion); the National Exhibition Center in Dong Anh district (VND829.2 billion), and Vinhomes Global Gate (VND833.4 billion).

Its short-term receivables reached nearly VND11.6 trillion ($461 million) by the end of September, an increase of over VND7.3 trillion compared to the beginning of the year. Of this, receivables related to real estate activities with affiliated company Vinhomes totaled nearly VND11.4 trillion.

By the end of Q3, advance payments from buyers for Vinhomes Global Gate project approximated VND12.17 trillion ($483.6 million), as compared to only VND402 million on June 30.

Vinhomes Global Gate or Vinhomes Co Loa, spanning 385 hectares, has created a buzz in the real estate market. After breaking ground at the end of August, the project officially opened for sale in September.

The adjoining villas here are being offered for VND17-200 billion ($675,543-7.95 million) per unit, with the main product - adjacent houses - comprising 93% of the total offerings, primarily priced from VND17-36 billion, while the villas are being sold for VND40-200 billion.

According to a recent draft resolution seeking shareholders' opinions, VEF is collaborating with Vinhomes to implement the Vinhomes Global Gate new urban area project, where the former will receive 95% of all benefits generated, while the latter 5%.

In the stock market, VEF closed Friday at VND208,200 ($8.27) per share.