Tin Nghia Industrial Park Development Joint Stock Company (code TIP) has announced its audited consolidated financial statements for 2023, with net revenue reaching VND 158 billion, a gross profit margin of 55% equivalent to a gross profit of VND 87 billion, unchanged from the standalone report and a 30% drop from the previous year 2022.
The decrease in TIP’s revenue was mainly due to the non-recognition of revenue from the transfer of factories and machinery at Bien Hoa 2 Industrial Park. The revenue from land sales is also no longer recorded. Other areas such as water supply, wastewater collection fees, waste collection fees, and office kiosk rentals have also decreased compared to the previous year.
Financial income amounted to VND 178 billion, nearly 6 times the figure in 2022. Of which, nearly VND 123 billion came from cooperation profit generated from the cooperation contract with PetroVietnam-Phuoc An Port Investment and Exploitation Joint Stock Company. The remaining nearly VND 33 billion was dividends and profit sharing, and VND 22 billion was interest income. Financial expenses amounted to over VND 13 billion, all of which were investment loss provisions.
Notably, TIP recorded a loss of over VND 1 billion in the joint venture company, while the standalone financial statement recorded a profit of VND 21 billion. This increased the costs and reduced TIN Nghia’s net profit for 2023 by 11% compared to the standalone report, to VND 178 billion.
In explaining this, Tin Nghia stated that the company had failed to record the adjustment entry for consolidated dividends from Phuoc Tan Trading and Construction Joint Stock Company – a joint venture and associate company of TIP.
Although it decreased by 11%, the net profit for 2023 is still the highest since the listed real estate and industrial park company was established.
In the previous year 2022, TIP had to explain to investors due to significant changes in the audited financial statements. However, there was a contrast when net profit unexpectedly increased significantly after the review. Specifically, according to the audited financial statements for 2022, TIP’s consolidated net profit reached over VND 103.5 billion, an increase of 11.5% compared to a 6% decrease in the standalone report.
According to the explanation, in 2022, Olympic Coffee Joint Stock Company is no longer a joint venture or associate company of TIP, but has become an investment company. Additionally, it was not included in the financial results consolidation. However, TIP still consolidated it in the standalone financial report. Furthermore, in the audited financial statements, TIP recorded a tax refund of over VND 15.5 billion for deferred corporate income tax, while the standalone financial report only showed VND 1.3 billion. This also contributed to the difference in post-tax profit after the review.
In the market, TIP shares closed at VND 28,100 per share on March 15.
