The social housing projects implemented for the police, military, and students of the Technical University of Kenya, with a scale of 3,400 apartments and a total investment of approximately $72 million.
It is known that the project is invested by the Ministry of Land, Infrastructure, Public Works, Housing, and Urban Development of Kenya – the Department of Housing and Urban Development is the project’s investor.
The winning of the above projects is considered a preliminary success of Hoa Binh Construction in its development strategy in the African market in particular and foreign countries in general after the deployment of construction projects abroad has been recently approved by the General Meeting of Shareholders.
In terms of business activities, in Q4/2023, Hoa Binh Construction recorded a revenue of VND 2,190.58 billion, a decrease of 31.9% compared to the same period last year, net profit of the parent company recorded a profit of VND 102.4 billion compared to a loss of VND 1,201.8 billion in the same period, an additional increase of VND 1,304.2 billion.
In the period, there is no business below cost, the gross profit of the Company recorded a positive VND 53.46 billion compared to a negative VND 426 billion in the same period, an additional increase of VND 479.48 billion.
In addition, financial income recorded a positive VND 20 billion compared to a negative VND 112.7 billion in the same period, an additional increase of VND 132.73 billion; financial costs decreased by 17.4% compared to the same period, corresponding to a decrease of VND 28.6 billion, to VND 135.43 billion; selling and management costs recorded a negative VND 206.22 billion compared to a positive VND 510.7 billion in the same period, a decrease of VND 716.92 billion.
Although the gross profit generated in the period is lower than the financial costs, Hoa Binh Construction still recorded a profit of VND 102.4 billion, the main reason is that the selling and management costs of the enterprise are negative.
Hoa Binh Construction attributes the main reason for the increase of VND 310.2 billion in the provision for difficult-to-collect receivables in business management expenses instead of VND 358.7 billion set aside in Q4/2022.
Hoa Binh Construction reduces losses thanks to a strong breakthrough in Q4/2023
Accumulated in 2023, Hoa Binh Construction recorded revenue of VND 7,546.4 billion, a decrease of 46.7% compared to the same period last year, and a net loss of the parent company of VND 777.5 billion compared to a loss of VND 2,566.8 billion in the same period last year.
With continued losses in 2023, as of December 31, 2023, Hoa Binh Construction has increased accumulated losses from VND 2,100.7 billion to VND 2,877.8 billion, equivalent to 105% of charter capital (charter capital of VND 2,741.3 billion).
Accordingly, Hoa Binh Construction officially recognized accumulated losses exceeding charter capital.
In terms of asset scale, as of December 31, 2023, the total assets of Hoa Binh Construction decreased by 16.3% compared to the beginning of the year, equivalent to a decrease of VND 2,539.4 billion, to VND 13,054.8 billion. Of which, the main assets are short-term receivables recorded VND 8,492.2 billion, accounting for 65.1% of total assets; inventory recorded VND 2,285.4 billion, accounting for 17.5% of total assets…
In addition, in terms of capital sources, at the end of 2023, total short-term and long-term debts decreased by 23% compared to the beginning of the year, equivalent to a decrease of VND 1,412.9 billion, to VND 4,718 billion, equivalent to 1,040% of owner’s equity (owner’s equity is only VND 454 billion).
