Services
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In the quarter, GELEX Electric’s electrical equipment manufacturing units strived to develop sales solutions to increase revenue and maintain market share. As a result, net revenue reached 3,720 billion VND, up 9%. Of which, the revenue from semi-finished products recorded 3,484 billion VND, equivalent to an increase of 16% compared to the same period. Currently, the electrical equipment segment accounts for up to 97.3% of the net revenue structure.
As for the power generation segment, in the first three months of the year, the company recorded revenue of 100 billion VND, down 46% compared to the same period in 2023. The reason was the divestment of the wind power project investment at Gelex Quang Tri Co., Ltd.
Regarding after-tax profit, GELEX Electric recorded an increase of 25.2 billion VND in the first quarter of 2024, equivalent to an increase of 27.7% compared to the first quarter of 2023, mainly due to an increase in net profit from operating activities compared to the same period.
In which, against the backdrop of many market fluctuations, the Company has effectively implemented cost reduction measures. As a result, financial expenses, sales expenses and corporate management expenses decreased by 129.4 billion VND.
However, gross profit from sales and service provision decreased by 109 billion VND due to difficulties in the electrical equipment manufacturing sector in the general market context.
In terms of financial indicators, the debt ratio, debt-to-equity ratio, and debt-to-equity ratio are all maintained at safe levels, equivalent to the previous period.
At the GELEX Electric AGM held in March, the Company’s Board of Directors assessed that 2024 will have many bright spots but also no shortage of challenges for the business system. In particular, the global and regional economic context continues to fluctuate, so creativity and acceptance of change will determine sustainable success.
On that basis, the Company sets a target of consolidated net revenue of 18,381 billion VND, consolidated pre-tax profit of 1,158 billion VND, increasing by 10.7% and 19.7% respectively compared to 2023.
To achieve the target, the Board of Directors has put forward specific orientations and solutions to focus on developing production and business, expanding the market, investing in research on new products with high technology content; at the same time, strengthening control, operational risk management, and promoting digital transformation towards the goal of sustainable development.
