VINACONEX AND ITS ABILITY TO ACCELERATE AFTER THE EPIDEMIC IS CONTROLLED

Vinaconex has just released its 2021 semi-annual reviewed financial report with many quite positive signals. This signals the possibility of a rapid acceleration once the epidemic is under control.

The headquarters of the Hanoi People's Court is being completed by Vinaconex

Foundation from financial health

The audit report was audited by a reputable company in the Big 4 group, Ernst & Young Vietnam, stating its opinion of full acceptance of the semi-annual financial report of Vietnam Construction and Import-Export Joint Stock Corporation. (Vinaconex, code VCG, HOSE exchange).

Vinaconex's specific business results in the first half of 2021 show that net revenue from sales and service provision reached 2,341 billion VND, gross profit from sales and service provision reached 341 billion VND.

Net profit from business activities in the first 6 months of the year reached 414 billion VND. Profit after corporate income tax reached nearly 249 billion VND, down 10.96% compared to the profit after tax before review. The reason is due to a decrease in receivable provision reversal data related to the debt of An Khanh New Urban Development Company Limited and a review of the profits of some subsidiaries and affiliates.

A notable point in Vinaconex's business activities in the first half of 2021 is that the company has reduced most basic costs. Financial expenses, sales expenses, and business management expenses all decreased compared to the same period in 2020, these amounts were recorded at 106 billion VND, 21 billion VND and 40 billion VND respectively.

The first half of 2021 is a period when the economy faces difficulties due to the complicated developments of the Covid-19 epidemic, especially the fourth outbreak from the end of April that has affected most businesses. . In particular, businesses in the real estate construction sector such as Vinaconex are also heavily affected by the sharp increase in input material prices, especially steel prices.

However, Vinaconex has proactively regulated cash flow quite well to optimally meet basic business requirements. Cash flow data for the first half of 2021 shows that net cash flow from business activities still recorded a positive level of 164 billion VND, even progressing better than the first half of 2020.

Vinaconex currently has total assets as of June 30, 2021 of VND 30,186 billion, of which short-term assets are worth VND 21,359 billion. Cash and cash equivalents reached more than 2,828 billion VND, an increase of 833 billion VND compared to the beginning of the year.

Seizing opportunities after the pandemic

A survey by Deloite shows that businesses that are able to recover quickly after the pandemic often have a more positive view of short-term prospects and more confidence in long-term potential. They can even recruit more workers, pursue mergers and acquisitions, restructure investment portfolios, find more partners, evaluate new opportunities, invest in human resources... Activities of Vinaconex shows that they belong to such a group of businesses.

One strength of Vinaconex compared to other simple construction enterprises is that the enterprise operates on a "three-legged stool", the fields effectively complement each other. To prepare for "resilience" after the Covid-19 epidemic passes, even during the current complicated epidemic period, Vinaconex always strives to maintain the construction of a series of key projects without interruption. paragraph.

Typically in Hanoi, during the period of social distancing, some key projects in the city are still allowed to rush construction, speeding up progress before the rainy and stormy season, such as construction investment projects. Vinh Tuy bridge (phase II), Hanoi People's Court Headquarters construction project, project to upgrade and renovate hospital K facilities I and II.

At the Vinh Tuy Bridge construction investment project (phase II), as a joint venture contractor, Vinaconex participated in Package 05, constructing the bridge and access road on Long Bien side, and Package 01 for construction. The main bridge crosses the main stream, including service roads, pontoon bridges, and abutments for construction.

Vinaconex also implemented the "3 on-site" production plan at the Hanoi People's Court Headquarters Construction Project. The project is built on a land area of ​​35,016m2 with a total investment of 711,099 billion VND. The construction area is about 8,400m2, construction density is about 24%. At the project to upgrade and renovate K hospital facilities I and II, workers are also continuously encouraged to work hard, both in production and in epidemic prevention, ensuring the progress and quality of the project.

Some Vinaconex projects in localities with good epidemic control are being accelerated and urgently constructed, typically the urban residential area project at Km3, Km4, Hai Yen ward, Mong Cai city, Quang Ninh may open for sale later this year, or the Cat Ba - Amatina tourist urban area project, Hai Phong, is also gradually completing the villa area...

In particular, the Dak Ba, Quang Ngai hydroelectric project is currently ahead of schedule, with the goal of generating electricity in the fourth quarter of 2022. When completed, the plant will have an installed capacity of 30MW, average annual electricity of 100, 43 million kWh, generating revenue of about 130 billion/year, contributing more than 20 billion to the local budget, contributing to socio-economic development and economic restructuring of Son Tay district, which is a mountainous district. remote and difficult areas of Quang Ngai province./.