Shark Hung’s real estate company’s profit in 2023 will decrease by nearly 99%

Century Real Estate Joint Stock Company (Cen Land – stock code: CRE) has just released a report finance consolidated in the fourth quarter of 2023 with a sharp decline in results.

Last quarterenterprise reached 3,306 billion VND in net revenue, 21 times higher than the same period in 2022. Revenue in the fourth quarter of 2023 increased sharply, but the cumulative net revenue of 2023 only reached 9,326 billion VND, down 732% compared to with 2022.

Revenue from financial activities in the fourth quarter of 2023 reached 138 billion VND, down 62%. Other income also decreased sharply from 82 billion VND to 656 million VND while other expenses in the last quarter amounted to 37 billion VND, double the same period in 2022.

After deducting expenses and benefits Profit after corporate income tax in the last quarter was at 12 billion VND, an improvement compared to last year’s loss of 626 billion VND.

Activity business is having difficulty, so Cen Land’s 2023 profit for the whole year is 25 billion VND, down to 987 % compared to 2022.  

At the end of 2023, the total assets of the enterprise were at VND 7,1085 billion, down 67% compared to the beginning of the year. Of which, short-term receivables were at VND 4,1019 billion, accounting for 577% of total assets, down 39% compared to the beginning of the year. Long-term receivables were also at 1.7637 billion VND, accounting for 248%.

Thus, the total value of receivables accounted for 825% of Cen Land’s total assets at the end of the year. This proportion at the beginning of the year was at 837%.

The notes to the financial statements show that the majority of these receivables mainly consist of deposits to ensure the performance of contracts that the company The company has paid investors to perform the role of general agent distributing real estate products formed from projects.

Although profit in 2023 decreased sharply compared to 2022, it reported The enterprise’s financial statements show that net flow from business activities improved from negative VND 2,3643 billion to VND 376 billion. The reason is that Cen Land increases receivables in 2023.  

However, increasing receivables due to deposits for partners is also risky for businesses. The report shows that the business’s bad debt at the end of 2023 has an original cost of VND 1,075 billion coming from receivables that are difficult to recover. But the recoverable value is only 119 billion VND.

These difficult-to-collect receivables come from partners such as Le Phong Investment and Development Company Limited, Investment and Development Joint Stock Company. Soleil hotel service (business related to the Van Thinh Phat case) Phuc Son Group Joint Stock Company.

Company This company maintains a low leverage ratio. As of December 31, 2023, liabilities were at VND 1,489 billion, down 256% compared to the beginning of the year. Equity at 5.6195 billion VND, unchanged from the beginning of the year.