REE’s Electrical and Refrigeration Division Suffers Significant Loss for the First Time

Throughout the year, REE accumulated nearly VND 8,600 billion in revenue - a slight decrease of 9% compared to last year, along with VND 2,200 billion in net profit - a decrease of 19%.


CTCP Cơ điện lạnh (REE) has just announced its consolidated financial statements for the fourth quarter of 2023, recording a revenue of over 2,066 billion VND, a decrease of 33% compared to the same period last year. Correspondingly, the company’s profit reached 922 billion VND, a decrease of 32.5%.

During the quarter, other items remained relatively unchanged. Excluding expenses, REE’s net profit was 504 billion VND, a decrease of 30% compared to the fourth quarter of 2022.

According to REE, the main reason for the decrease in profit is the sharp decline in the Refrigeration and Electrical Engineering business segment, with a decrease of 118 billion VND mainly due to the occurrence of provisions amounting to 199.5 billion VND in the fourth quarter of 2023. This is also the first time this segment has incurred a loss of 76.3 billion VND, whereas in the same period last year, it still made a profit of 41.6 billion VND.

In parallel, the electricity segment also decreased by over 98 billion VND compared to the fourth quarter of 2023, mainly affected by the profits of its subsidiary companies as well as affiliated hydroelectric companies, which decreased significantly compared to the same period last year, including Vinh Son – Song Hinh Hydropower, Thac Ba Hydropower…

For the whole year, REE achieved nearly 8,600 billion VND in revenue, a slight decrease of 9%, and 2,200 billion VND in net profit, a decrease of 19% compared to the previous year. Compared to the revenue target assigned by the 2023 Annual General Meeting of Shareholders, REE achieved 78% of the revenue target and exceeded the after-tax profit target by 3%.

REE has not yet recognized revenue from The Light Square residential real estate project (Thai Binh province).

As of December 31, 2023, REE’s total assets amounted to nearly 35,000 billion VND, including 9,500 billion VND of short-term assets and 25,500 billion VND of long-term assets. Notably, cash and cash equivalents at the end of the period increased strongly by 62%, to over 3,400 billion VND. Short-term receivables from customers also increased by 27%, to nearly 3,400 billion VND.

Total liabilities amounted to 14,140 billion VND, with equity of 20,770 billion VND.

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