By the end of 9 months of 2020, CEO Group has a loss of nearly 103 billion dong, while the same period last year profit is more than 435 billion dong.

Sonasea Van Don Harbor City Project in Ha Long Commune, Quang Ninh Province. (Photo: CEO Group)

C.E.O Group Joint Stock Company (CEO Group – Code: CEO) has just announced consolidated business results for the third quarter of 2020 with net revenue of 264 billion dong, down 59% over the same period.

In which, revenue from the main business segment, real estate, recorded a decrease of 60% to over 191 billion dong. Service provision revenue also dropped by 45% to more than 72 billion dong. This quarter, the company has no revenue from commercial activities.

In the quarter, COGS decreased by 67% YoY to nearly 148 billion dong. As a result, the gross profit of CEO Group reached more than 116 billion, down 41%.

Although finance revenue increased by more than 5 billion dong to nearly 20 billion dong and all expenses decreased year-on-year, it was still not enough to offset the decline in gross profit. As a result, CEO Group’s net profit dropped by 55% to over 35 billion dong.

As a result, in the third quarter, after-tax profit (EAT) of CEO Group fell sharply by 86% year-on-year, recording more than 7 billion dong. In which, parent company EAT is nearly 16 billion dong, down by 59%.

According to the enterprise’s explanation, Q3’s profit after tax dropped sharply due to the impact of COVID-19, resulting in a decrease in net sales of goods and services.

Accumulated from the beginning of the year until now, CEO Group has lost nearly 103 billion dong, while the same period last year profit is more than 435 billion dong. At the end of 9 months, the business only generated 682 billion dong in revenue, while the same period saw more than 3,166 billion dong.

According to the plan, CEO Group aims to achieve 3 trillion dong in revenue and 200 billion dong in profit after tax this year.

By the end of the accounting period of the third quarter of 2020, the total assets of the business were nearly VND 7,543 billion, down 6% compared to the beginning of the year. Accounted for the largest proportion of the asset is construction in progress (2,094 billion VND), followed by receivables (1,085 billion VND), investment property (nearly 859 billion VND).

Inventory decreased 22% to nearly 795 billion with mainly production costs in progress.

In addition, the company has three major projects with construction in progress over VND 2,061 billion, including: utility houses at Sonasea Villas & Resort 2 project (VND 124 billion), Sonasea resort complex. Van Don Harbor City (VND 1,893 billion) and Green Hotel & Resort (VND 44 billion).

(Source: Q3 / 2020 consolidated financial statements of CEO Group)

In 2020, CEO Group said it will focus on implementing key projects such as Sonasea Van Don Harbor City, River Silk City, CEO Me Linh, Sonasea Villa & Resort. In addition, the company continues to complete procedures to prepare for other projects.

In 2019, this unit issued 1,029 billion dong of bonds. The Group said it used 20.4 billion VND to contribute capital to CEO Construction JSC and 405 billion VND to contribute capital to Van Don Investment & Development Tourism JSC (investor of Sonasea Van Don Harbor Resort. City).

By the end of the third quarter, CEO Group’s liabilities decreased by 8% compared to the beginning of the period to nearly 3,999 billion dong. In which, short-term finance lease loans and liabilities decreased by 25% to nearly 803 billion dong. In contrast, long-term finance lease and loan increased 16% to nearly VND 1,477 billion.

Source: vietnambiz.vn – Translated by fintel.vn