TDH facing losses again in 2023

In addition to declining revenue from real estate, Thuduc House Development Joint Stock Company (HOSE: TDH) has also had to allocate a large amount of expenses for depreciation and provisions. As a result, the Company incurred a net loss of 48 billion VND in 2023.

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Specifically, TDH’s net revenue in 2023 reached nearly VND 116 billion, a decrease of 33% compared to the previous year. Of which, revenue from real estate business amounted to just over VND 2 billion (a decrease of 98%), but the bright spot was the surge in revenue from service provision, reaching over VND 97 billion (a four-fold increase).

TDH’s net revenue in 2023

Source: TDH

While net revenue declined, cost of goods sold increased by 17%, resulting in a sharp 81% decrease in gross profit, to only VND 17 billion.

Furthermore, TDH faced enterprise management expenses of VND 47 billion, nearly 5 times higher than the previous year. The main reason is the increase in depreciation, amortization, and provision costs of over VND 29 billion in the year, while the company was able to recover over VND 25 billion of these costs in 2022.

With these factors, TDH incurred a net loss of VND 48 billion in 2023, although no additional loss was recorded compared to the previous year’s over VND 26 billion. This loss has brought the company’s accumulated losses to nearly VND 737 billion as of December 31, 2023.

TDH’s business results in 2023

Source: VietstockFinance

The situation in the fourth quarter was similar, with a sharp decline in net revenue and a significant increase in management expenses. As a result, TDH incurred a net loss of nearly VND 36 billion in the last quarter of 2023 (compared to a net loss of nearly VND 32 billion in the same period).

On the balance sheet, TDH’s total assets as of December 31, 2023, amounted to over VND 1.3 trillion, a 5% decrease compared to the beginning of the year. The company only held a little over VND 12 billion in cash (although more than 4 times higher than the end of the previous year).

On the other hand, the largest proportion was short-term accounts receivable of VND 510 billion (a 23% increase). The majority of this amount was temporary payments to state authorities, amounting to nearly VND 366 billion. Additionally, the additional increase mainly came from the VND 91 billion collaboration with Hung Vuong Ben Luc JSC to exclusively develop and operate projects on land in Ben Luc district, Long An province.

As for liabilities, TDH’s payable decreased slightly by 2% compared to the beginning of the year, to 958 billion. The company continues to have no borrowing. On the other hand, the largest proportion was short-term accounts payable of nearly VND 511 billion, mainly related to payments according to the decision of the Ho Chi Minh City Tax Department, totaling over VND 460 billion.

Due to the accumulated loss by December 31, 2022, TDH’s stock was changed from being controlled to being warned from April 13, 2023. Recently, the company has announced its plan to address this situation.

Specifically, TDH stated that it is still monitoring the electronic component case from 2017-2019 (in the process of review at second-instance appeal court), waiting for the appellate judgment to have grounds for recovering the allocated costs. In addition, the company is working with partners to recover debts in order to ensure the rights and interests of the company and shareholders.

* TDH presents plan to rectify warned stock status.

Hà Lễ

SOURCEvietstock
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