A series of real estate businesses' profits evaporated, from profit to loss after audit

Many real estate businesses that were once expected to bring high profits have now announced negative audited business results - Photo: QUANG DINH

After the audit, many businesses that were once highly rated for their business efficiency suddenly saw a sharp drop in profits compared to the previously self-announced figures, affecting investor confidence.

Saigon Real Estate Corporation turns from profit to loss

Saigon Real Estate Corporation (Saigonres) has announced its audited consolidated financial statements for the first half of 2024 with many items fluctuating strongly and profits ranging from profit to loss of tens of billions of dong.

Saigonres' net revenue decreased by 21.4% after audit, from 76.6 billion VND in the self-report to 60.2 billion VND. Due to the decrease in revenue, when deducting the cost of goods sold, the gross profit was only 25.4 billion VND instead of 40.5 billion VND as in the previous self-report. Business management costs also increased to 33 billion VND.

After adjusting the above items, Saigonres changed from a profit of VND2.4 billion in its self-made report to a loss of VND23.4 billion after auditing. This enterprise explained that the reason for the profit to loss was due to the adjustment to reduce revenue from real estate transfer, this revenue will be transferred to the next period when it meets the conditions for recognition.

In addition, post-audit business management costs increased sharply due to the implementation of provisions for receivables as requested by the audit.

Compared to the revenue target of 628 billion VND and net profit of 190 billion VND, Saigonres is still far from both revenue and profit targets.

Danh Khoi loss, net revenue decreased sharply

Similarly, after the audit, the business results for the first 6 months of 2024 of Danh Khoi Group Joint Stock Company recorded a net loss of more than 10 billion VND, while in the independent report, this enterprise reported a profit of more than 7 billion VND.

One of the main reasons leading to Danh Khoi's profit-loss results is that net revenue decreased by 78% after audit, to only nearly 3 billion VND.

The company's leaders said the decrease in revenue was mainly due to consulting contracts. Revenue from completed business consulting service contracts will be recorded as additional revenue after issuing value-added invoices.

The second reason for Danh Khoi's loss is that the audit management cost is 2.5 times higher than the self-made report, with nearly 26 billion VND. The company explained that this increase in cost was due to adjusting the provision for bad debts and making provisions for bad debts according to the audit request.

Although it has not yet been able to make a profit, this loss is much less than the same period last year (loss of 35.4 billion VND). In addition, the auditor also emphasized the assumption of continuous operation and the commitment to continuous operation of the group's executive board.

Real estate business loss after loss

Tien Phuoc Group Joint Stock Company (Tien Phuoc Group) has just reported its financial situation for the first 6 months of the year with a net loss of more than 181 billion VND. In the same period last year, this company also reported a loss of hundreds of billions of VND.

By the end of June 2024, Tien Phuoc's equity decreased to VND2,075 billion, causing the company's return on equity (ROE) to fall to minus 8.8%, compared to minus 4.7% in the same period last year. Tien Phuoc's liabilities currently far exceed its equity, reaching 4.1 times, equivalent to VND8,507 billion.

Of which, the company is carrying a bond debt worth nearly 300 billion VND. Tien Phuoc Group is currently the investor of many large-scale real estate projects in Ho Chi Minh City, especially projects with prime locations in Thu Duc City.

LDG Investment Joint Stock Company not only saw its profits decrease, but its auditors also doubted its ability to continue operations in its 2024 semi-annual financial report.

After the audit, the real estate company's profit decreased by more than 100 billion VND compared to the self-made report, corresponding to a loss of 296 billion VND to a loss of 396 billion VND. In which, mainly due to the business management cost increasing by 572% compared to before the audit, corresponding to an increase of 116 billion VND, from 20 billion VND to 136 billion VND.

Vietnam real estate market faces many challenges

Shinhan Securities has just released a report assessing the Vietnamese real estate market, in which this enterprise commented that the real estate industry has begun to show many signs of recovery when the number of apartments for sale has improved compared to the first quarter, the absorption rate and the number of licensed projects have increased sharply. In addition, the corporate bond market has shown signs of recovery.

However, according to Shinhan Securities, the real estate market still faces many challenges as real estate credit has not had positive changes despite favorable interest rates and financial pressure on the corporate bond market, although showing signs of improvement, remains high.

From mid-to-late 2024, the real estate industry will continue to recover when real estate-related laws are implemented synchronously and interest rates remain at attractive levels, which will support the market when the legal process is resolved. However, Shinhan Securities warns that risks still exist related to large corporate bond payments in 2024.

Source: https://tuoitre.vn/loat-doanh-nghiep-dia-oc-boc-hoi-loi-nhuan-tu-lai-sang-lo-sau-soat-xet-20240915172333773.htm