Home Enterprise Industrial Land Rental Revenue Plummets, KBC Loses Nearly 80% of 2024 Profits

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Industrial Land Rental Revenue Plummets, KBC Loses Nearly 80% of 2024 Profits

1 February, 2025

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KBC’s fourth-quarter net revenue stood at over VND 781 billion, a 5% decrease year-on-year, while financial revenue reached nearly VND 158 billion, marking a significant 108% surge. Additionally, the company profited from joint ventures, earning over VND 71 billion, a remarkable turnaround from the previous year’s loss of over VND 7 billion.

However, total expenses rose by 16% to VND 280 billion, primarily due to soaring business management costs of more than VND 190 billion (double that of the previous year), which ate into KBC’s profits. Ultimately, the company’s net profit was nearly VND 75 billion, reflecting a 29% decline.

KBC attributed the profit decrease to unrecorded revenue from signed lease contracts during this period.

In 2024, KBC experienced a downturn in its financial performance compared to the previous year. Both revenue, at nearly VND 2,776 billion, and net profit, at over VND 426 billion, witnessed decreases of 51% and 79%, respectively. This downturn was largely due to a significant 77% drop in land and industrial park infrastructure lease revenue, totaling nearly VND 1,195 billion.

Source: KBC

With ambitious plans for 2024, targeting VND 9,000 billion in revenue and VND 4,000 billion in after-tax profits, KBC has accomplished only 31% and nearly 12% of these goals, respectively.

Currently, KBC is developing six real estate projects, the most notable being the Tràng Cát Industrial Park and Urban Area project in Hai Phong. This project encompasses a planned area of 585 hectares, with 282 hectares of commercial space, and a total infrastructure investment of over VND 11,329 billion. The project has received land handover, approval for land leveling, and compensation for 582 hectares.

KBC’s Ongoing Projects

As of the end of 2024, KBC had invested over VND 8,448 billion in this project. The company’s total assets, those of a major industrial park developer in Northern Vietnam, increased by 34% from the beginning of the year to over VND 44,765 billion. Notably, cash and cash equivalents witnessed a substantial surge, climbing to over VND 6,566 billion, 7.8 times higher than at the start of the year, and accounting for 15% of capital sources. Inventories stood at nearly VND 13,867 billion, a 14% increase, making up 31% of total assets.

Meanwhile, payables also rose sharply by 83% to nearly VND 24,084 billion, mainly due to financial borrowings, which doubled from the beginning of the year to over VND 10,100 billion, constituting 42% of total debt. This included over VND 967 billion in bonds. Additionally, KBC had long-term payables of VND 5,761 billion in customer deposits, a remarkable 210-fold increase from the beginning of the year, accounting for 24% of total debt.