Services
Van Phu – Invest ended the first six months of 2024 with a revenue of VND 291.8 billion, an 80% decrease compared to the same period last year. As a result, the company’s profit for the first six months reached VND 96.9 billion, a 76% decrease year-on-year. These results reflect the challenging market conditions in 2023 and the performance in 2024, a year when many businesses in the same industry reported deep revenue declines and low profits, with some even reporting losses.
 The Terra – Bac Giang Project Perspective
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According to Van Phu – Invest’s leadership, a positive aspect of the company’s performance is the continued revenue stream from the accommodation services segment. This not only provides stable cash flow for the company but also indicates a gradual recovery in the tourism industry after several challenging years.
Additionally, with interest rates remaining low and the economy on the path to recovery, the real estate market is expected to warm up following the early application of three new laws: the Real Estate Business Law and the Land Law, which will take effect on August 1, 2024, and the Law on Credit Institutions, effective July 1, 2024.
“The supply and absorption in first-tier cities will continue to drive the recovery, along with a more apparent improvement in the Ho Chi Minh City market and its neighboring areas,” predicted the leadership of Van Phu – Invest.
In terms of asset scale, as of June 30, 2024, the company’s total assets stood at VND 11,970.5 billion, a slight decrease from the beginning of the year. Notably, the value of cash and cash equivalents reached VND 300.3 billion, a 56.9% increase compared to the beginning of the year, mainly due to the recovery of some receivables from loans and the transfer of company assets. This has significantly improved the company’s financial indicators, such as the quick payment ratio and the current payment ratio.
In the coming period, the company expects to further improve its cash flow by recognizing deferred revenue from ongoing projects such as Vlasta Thuy Nguyen in Hai Phong and The Terra in Bac Giang. According to plans, the company will begin handing over low-rise apartments at The Terra – Bac Giang project and focus its resources on developing the Vlasta Thuy Nguyen – Hai Phong project.
 Perspective of the low-rise area, including villas at The Terra – Bac Giang project
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Regarding inventory, the company’s inventory value was VND 3,807 billion as of June 30, 2024, a slight increase from the beginning of the year, mainly concentrated in projects such as The Terra – Bac Giang, Vlasta Thuy Nguyen – Hai Phong, and Song Khe – Noi Hoang. These projects have completed their legal procedures.
According to the company’s leadership, the real estate products in these projects have the potential to generate approximately VND 2,000 billion in revenue for the company in 2024 as the real estate market gradually benefits from the positive impacts of the new policies.
In terms of debt, the company’s total debt as of June 30, 2024, was VND 6,219.2 billion, a 16.6% increase compared to the beginning of the year. The company continues to maintain its orientation towards sustainable financial restructuring by reducing short-term debt and increasing long-term debt.
Specifically, short-term and long-term loans and finance leases were valued at VND 2,157.9 billion and VND 4,061.2 billion, respectively, representing increases of 2.97% and 24.47% from the beginning of the year.
Regarding the convertible bonds issued to the VIAC Limited Fund of the Oman National Investment Committee at the end of 2021, the two parties have agreed to convert the bonds into VPI shares upon maturity. The adjusted conversion price, as per Clause 6.2 of the contract, is VND 23,271 per convertible share, and the number of convertible shares is 29.65 million.
Once the conversion is completed, VOI will become a major shareholder of Van Phu – Invest.
