Ricons’ second-quarter net revenue exceeded VND 2,003 billion, a slight 5% decrease from the previous year. This was due to a 9% decline in the Company’s main business segment, construction contracts. However, the real estate sector remained a bright spot, generating VND 97 billion in revenue, nearly seven times more than the previous year.
Source: Riconsdiv>
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As the cost of goods sold decreased more significantly than revenue, Ricons’ gross profit reached VND 96 billion, more than four times the amount from the previous year. This resulted in an increase in the gross profit margin from 1% to 5%.
Additionally, financial revenue surged to nearly VND 113 billion, quadrupling the amount from the same period last year. This was attributed to a late payment fee of nearly VND 106 billion, which was not recorded in the previous year.
However, total expenses rose to VND 174 billion, nearly triple the amount from the previous year. This increase was primarily due to a significant rise in provisions for doubtful accounts, which climbed to VND 138 billion, nearly eight times higher than the previous year. This expense eroded most of Ricons’ profits.
 Source: Riconsdiv>
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Ultimately, this construction company recorded a net profit of over VND 26 billion, a 50% decrease from the previous year. For the first six months of the year, Ricons’ net profit reached nearly VND 41 billion, a 40% decline compared to the first half of 2023.
Source: VietstockFinance
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For the year 2024, Ricons set a target of VND 7,000 billion in net revenue and VND 60 billion in after-tax profit. As of the first six months, the company has achieved 52% and 68% of these targets, respectively.
As of the end of June, Ricons’ total assets amounted to nearly VND 7,518 billion, a 4% decrease from the beginning of the year. Bank deposits accounted for VND 1,100 billion, or 15% of total assets. Short-term receivables exceeded VND 4,600 billion, an 11% increase, with the majority coming from short-term customer receivables of over VND 4,198 billion. Ricons has set aside nearly VND 248 billion in provisions for short-term difficult-to-collect receivables, and Coteccons (CTD) remains at nearly VND 323 billion.
Source: Riconsdiv>
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Inventory, consisting of construction work-in-progress costs, decreased by 17% to over VND 546 billion. The majority of this inventory is concentrated in the Long Thanh Airport project (over VND 82 billion), the SLP Park Xuyen A warehouse project (nearly VND 88 billion), the Eco Central Park Vinh project (approximately VND 81 billion), and the Kim Dung Di Trach project (over VND 67 billion). The remaining inventory is spread across various other projects.
Ricons’ total liabilities stood at nearly VND 5,043 billion, a 7% decrease from the beginning of the year. Short-term financial borrowings amounted to nearly VND 520 billion, a 15% reduction from the start of the year, accounting for 10% of the company’s total debt.
Aspiring to Expand into Infrastructure
According to the minutes of the 2024 Annual General Meeting of Shareholders held on June 15, 2024, Ricons’ representatives shared that the outlook for work in the latter part of this year and the next looks positive, with several large projects likely to be secured in July and August.
Addressing the issue of debt collection, a pressing concern in the construction industry, Ricons asserted that they have implemented various aggressive strategies and solutions. In 2024, the company intends to intensify these efforts, including legal avenues, to recover outstanding payments.
“We must take decisive action to recover debts in the coming year (2025) to minimize difficult-to-collect debts for the company,” shared a Ricons representative.
Furthermore, this construction company also strategizes to participate in key national infrastructure projects. While this domain is not new, it is a trend that most other contractors in the market have already embarked upon.
Coteccons’ Bold Move: Acquiring Two Infrastructure Companies
