Vinaconex suddenly gained more than 1,000 billion VND after tax in the third quarter thanks to selling shares of Bac An Khanh project

Vietnam Construction and Import-Export Joint Stock Corporation (Vinaconex) has just announced business results in the third quarter of 2020 with a sudden profit of VND 1,037 billion after tax, 4 times higher than the same period last year thanks to the sale of shares in a series of projects. including Bac An Khanh.

Revenue from core business decreased. Financial expenses and selling expenses both decreased, but general and administrative expenses were nearly VND 1,106 billion due to provisioning for bad receivables, an increase of 685% over the same period last year.

Vietnam Construction and Import-Export Joint Stock Corporation (Vinaconex) has just announced business results in the third quarter of 2020 with a sudden profit of VND 1,037 billion after tax, 4 times higher than the same period last year thanks to the sale of shares in a series of projects. including Bac An Khanh.

Accordingly, the main business activities of Vinaconex all decreased sharply during the period. Revenue from sales and service provision in the third quarter decreased by nearly 45% over the same period last year, reaching 1,270 billion, accumulated in 9 months reached more than 3,800 billion, down 39% in the same period in 2019.

Gross profit margin improved significantly, reaching 22.5% in the 3rd quarter and 15.2% in 9 months, this figure in the same period in 2019 reached 18.6% and 14.8% respectively.

Due to the sale of a series of sales during the period, most notably the transfer of 50% of shares in the joint venture An Khanh JSC helped Vinaconex to record financial revenue in the period of 2,185 billion VND, accumulating 2,922 billion VND in 9 months. 18 times higher than the same period last year.

Financial expenses and selling expenses both decreased, but general and administrative expenses were nearly VND 1,106 billion due to provisioning for bad receivables, an increase of 685% compared to the same period last year.

As a result, Vinaconex's consolidated pre-tax profit in the third quarter of 2020 reached 1,274 billion, up 336% over the same period last year, in nine months reached 1,812 billion, up 166%.

Profit after tax reached 1,037 billion, 4 times higher than the same period last year, accumulated in 9 months reached 1,450 billion, up 157%.

Notably, Vinaconex set aside more than 1,220 billion VND of provision for short-term bad debts in the third quarter, raising the provision as of September 30, 2020 to 1,582 billion.

On the same day of announcing Q3 business results, Vinaconex has just announced that it will buy back up to 10% of its outstanding shares as treasury shares, equivalent to buying more than 44.17 million shares from the share capital surplus.

As of September 30, 2020, Vinaconex's total assets reached 19,356 billion, a slight increase compared to the beginning of the year. Equity is 4,417 billion, undistributed profit after tax is 2,048 billion, an increase of 1,100 billion compared to the beginning of the year, equity surplus of 355 billion.

Total cash and cash equivalents reached more than 3,157 billion, an increase of 856 billion compared to the beginning of the year. Short-term receivables amounted to nearly VND 6,800 billion, down more than VND 500 billion compared to the beginning of the year due to an increase in provisioning of VND 1,200 billion, most receivables are short-term receivables from customers (3,157 billion) and prepaid for sellers (2.327 billion).

According to Tri thuc tre