“DIG’s Q2 Profits Soar 12-fold Post-CSJ Phase 1 Transfer”

In particular, DIG’s net revenue in the quarter recorded more than VND 821 billion, five times higher than the same period last year. Notably, revenue from real estate business and construction installation recorded VND 259 billion and VND 493 billion, respectively, 7.7 times and 15.2 times higher than Q2 last year.

According to the explanation, revenue from the real estate business mainly came from the transfer of apartments in the Cap Saint Jacques (CSJ) project, the transfer of unfinished houses in the Dai Phuoc and Hau Giang projects (Vi Thanh project).

DIG transfers Cap Saint Jacques commercial service area – phase 1

While net revenue “exploded”, the company’s financial revenue decreased by 45% to nearly VND 16 billion due to no income recognition from investments.

In terms of expenses, thanks to a 36% reduction in interest expenses and a reversal of VND 20 billion in financial provisions, DIG reversed more than VND 8 billion in financial expenses for the period. However, selling and management expenses still increased by 45% and 31%, respectively, to over VND 13 billion and VND 45 billion.

With the above net revenue, DIG recorded a net profit of over VND 126 billion, 12 times higher than the same period last year. However, due to a loss of more than VND 117 billion in Q1, the company’s cumulative profit for the first six months was just over VND 9 billion, down 90%.

On the other hand, DIG’s net profit for the first half of the year reached only VND 4 billion, a decrease of 95%, and this result was just 0.5% of the target of VND 760 billion set for 2024.

On the balance sheet, DIG’s total assets were recorded at over VND 18,400 billion, up 10% from the beginning of the year. In particular, cash increased by 19% to nearly VND 3,000 billion. Inventories also increased by 17% to nearly VND 7,700 billion, mainly due to the increase in unfinished construction costs for the Dai Phuoc eco-tourism urban area project from VND 1,300 billion to VND 2,100 billion.

On the other side, payables increased by 18% to nearly VND 10,600 billion. Notably, borrowings increased by 39%, exceeding VND 4,300 billion.

This was due to DIG’s bond issuance to HDBank, which exceeded VND 1,550 billion at the end of March 2024, while it was only over VND 250 billion at the beginning of the year. Explaining this item, DIG stated that this was the company’s fundraising from HDBank through two bond lots with a total value of VND 1,600 billion, with the same term of 36 months. The interest rate for the first two interest calculation periods (12 months) is 11.25%/year, and the interest rate for the remaining periods is calculated as the sum of 4%/year + HDBank’s 12-month term deposit interest rate.

Ha Le

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