Tín Nghĩa’s net profit for 2023 declines by over 11% post-audit.

After the audit, despite the unchanged revenue, the total cost increased by over 21.8 billion VND, resulting in a net profit decrease of over 21.6 billion VND to nearly 174 billion VND, corresponding to a decrease of over 11% compared to the standalone report. TIP revealed that there was a missing adjustment entry for the consolidated dividend from Phuoc Tan Trading and Construction Joint Stock Company – a joint venture affiliate of TIP.

With the above adjustment, the net profit decreased from nearly 196 billion VND (a 95% increase compared to the previous year) to nearly 174 billion VND after the audit, only a 74% increase compared to the previous year. However, 2023 still remains the year with the highest net profit for TIP since its listing.

In 2023, TIP’s revenue decreased by 29% compared to the previous year, reaching around 158 billion VND, mainly due to the non-recognition of revenue from the transfer of factories and machinery at Bien Hoa 2 Industrial Park, while the previous year brought in nearly 47 billion VND.

In the context of declining core activities, the financial sector has become a bright spot, bringing in a profit of 164 billion VND, 5.5 times higher than the previous year, thanks to the recognition of new cooperation profit of nearly 123 billion VND, arising from a cooperation contract with Phuoc An Port Investment and Exploitation Petroleum Joint Stock Company (UPCoM: PAP), with the purpose of investment, construction, operation, and management of a part of the land in Phuoc An Industrial Park project. At the same time, the dividend and profit share amounted to nearly 33 billion VND, 3.4 times higher than the previous year, also actively supporting the profit of the financial sector.

After deducting expenses, TIP’s net profit is 174 billion VND as mentioned above, the highest since its listing.

Receiving nearly 53 billion VND from the cooperation deal with PAP, TIP reports historic profit

Huy Khai