Ricons’ second-quarter net revenue exceeded VND 2,003 billion, a slight 5% decrease from the previous year. This decrease was due to a 9% decline in the Company’s main business segment, which is construction contracting. However, the real estate sector remained a bright spot, generating VND 97 billion in revenue, nearly seven times higher than the same period last 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 higher than the previous year. As a result, the gross profit margin increased from 1% to 5%.
Additionally, financial revenue surged to nearly VND 113 billion, four times higher than the same period, thanks to a late payment fee of nearly VND 106 billion, which was not present in the previous year.
However, total expenses rose to VND 174 billion, nearly three times higher than the previous year, due to a significant increase in provisions for doubtful accounts, which rose to VND 138 billion, nearly eight times higher than the same period last year. This expense eroded most of Ricons’ profits.
 Source: Riconsdiv>
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Finally, this construction company recorded a net profit of over VND 26 billion, a 50% decrease from the previous year. For the first six months, Ricons’ net profit reached nearly VND 41 billion, 40% lower than the first half of 2023.
Source: VietstockFinance
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For the full year 2024, Ricons set a target of VND 7,000 billion in net revenue and VND 60 billion in after-tax profit. The company has achieved 52% and 68% of these targets, respectively, in the first six months.
As of the end of June, Ricons’ total assets were 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 being short-term customer receivables of over VND 4,198 billion. Ricons has made provisions for short-term difficult-to-collect receivables of nearly VND 248 billion, and Coteccons (CTD) remains at nearly VND 323 billion.
Source: Riconsdiv>
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Inventory, which consists 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 (VND 82 billion), the SLP Park Xuyen A warehouse project (nearly VND 88 billion), the Eco Central Park Vinh project (nearly VND 81 billion), and the Kim Dung Di Trach project (over VND 67 billion), with the remainder in other projects.
Ricons’ total liabilities were nearly VND 5,043 billion, a 7% decrease from the beginning of the year. Short-term financial borrowings were nearly VND 520 billion, a 15% decrease from the beginning of the year, and accounted 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 stated that the company has a good workload for the end of this year and the next, with several large projects likely to be won in July and August.
Regarding the issue of debt collection, a hot topic in the construction industry, Ricons has shared that they have many solutions and aggressive strategies in place. In 2024, the company will need to intensify these strategies, including legal options, to ensure effective debt recovery.
“We must be aggressive in collecting debts in the coming year (2025) to minimize difficult-to-collect debts for the company,” Ricons’ representative emphasized.
In addition, this construction company also has a strategy to participate in key national infrastructure projects. While this field is not new, it is a trend that most other construction companies in the market have already embarked upon.
Coteccons’ “Bold Move” in Acquiring Two Infrastructure Companies
