Enterprise

“Searefico’s Net Profit Nearly Doubles: What’s the Secret?”

"In its recently published reviewed consolidated financial statements for the first half of 2025, Searefico Joint Stock Company (HOSE: SRF) reported a remarkable surge in profits. The company's net profit after tax stood at VND 5.5 billion, a 75% increase, while its net profit rose to VND 4 billion, reflecting a significant 92% jump compared to the self-prepared financial statements. Searefico has issued an explanation for this notable discrepancy."

Administrator

13 September, 2025

A review of SRF‘s performance reveals the following insights:

Image source: VietstockFinance

A closer look at the numbers shows that SRF’s revenue increased by 10% after the review, with cost of goods sold also rising but at a lower rate of 8%. This resulted in a reduction in gross loss from 36 billion VND to 32 billion VND.

There was a notable 15% surge in financial income, amounting to 192 billion VND, even as financial expenses climbed 46% to 32 billion VND, and management expenses rose 20% to 93 billion VND. Additionally, the company recognized a 1-billion VND profit from its joint venture, which was not present in the initial report. Consequently, post-tax profit and net profit witnessed substantial growth, reaching 5.5 billion VND and 4 billion VND, respectively—translating to increases of 75% and 92% compared to the self-prepared report.

According to SRF, the significant rise in post-tax profit can be attributed to adjustments made during the consolidation process, which involved the divestment of a subsidiary and its subsequent recognition as a joint venture.

In comparison to the previous year, SRF’s performance displayed robust growth, as net profit for the same period last year stood at only 200 million VND. However, when measured against the company’s targets for the year, which include a revenue goal of 2,200 billion VND and a post-tax profit target of 39 billion VND, SRF has achieved only 20% and 14% of these goals, respectively, in the first half of the year.

Notably, the company faces certain challenges, as indicated by the external auditor’s qualified opinion. The auditor noted their inability to obtain sufficient confirmation of accounts receivable and documentation for assessing the collectability of these receivables. As a result, there remains uncertainty regarding the need for additional provisions and the potential impact on related account items.

SRF provided explanations for these issues, attributing them to objective reasons. They also highlighted significant improvements made in addressing previously noted concerns, including: the complete settlement of payables, a substantial reduction of nearly 71% in a large accounts receivable (from 114 billion VND to 33.6 billion VND), and the full resolution of inventory issues.

Furthermore, SRF has made provisions of nearly 96 billion VND for inventory and doubtful debts, which could potentially be reversed and recognized as profit in the future. The company is determined to address all audit concerns within the next six months to avert any potential delisting risks.

Chau An