Nam Long Company (HoSE: NLG) announced the consolidated financial statements for the second quarter with revenue and profit after tax of the parent company’s shareholders decreased over the same period. Revenue decreased by 60% and profit decreased by 43%, reaching VND 242 billion and VND 68 billion, respectively.

The company said the reason for the decline is that the projects are under construction. The second quarter revenue mainly came from the general contractor, construction services, accounting for 64%; while revenue from product handover accounts for only 31%.

In the first 6 months, Nam Long’s net revenue is 658 billion dong, down by 30% and parent company EAT is nearly 179 billion dong, down by 33%. As such, the company has fulfilled 43% of its revenue plan and 22% of its annual profit plan.

Business results for the second quarter and the first 6 months. Unit: VND billion

This year, Nam Long plans to continue to deploy 3 urban areas of Mizuki Park (Ho Chi Minh City, 37 ha), Akari City (Ho Chi Minh City; 8.5 ha) and Phase 1 Waterpoint (Long An, 165 ha). According to the update from the company, up to the present time, nearly 500 products of single villas, semi-detached houses, townhouses, high-class villas at Waterpoint have been sold with sales of more than VND 2,000 billion, In July alone, it is VND 1,500 billion. The company expects to deliver nearly 300 products to this project in the third quarter and more than 200 products in the fourth quarter. With Akari City, the company has sold more than 130 apartment products with sales of about VND 340 billion.

As of June 30, Nam Long has more than 1,417 billion dong of idle cash, equivalent to 17% of short-term assets. Inventories increased by 14% compared to the beginning of the period, reaching VND 4,913 billion, mainly of unfinished real estate such as Paragon Dai Phuoc, Akari City, Phase 1 Waterpoint Long An.

Buyers pay in advance of nearly 1,713 billion dong, up about 300 billion dong in 6 months. This is a prepayment of customers under contracts to buy apartments, townhouses, villas and land but have not yet been handed over.

One of Nam Long’s plans this year is to conduct mergers, acquisitions (M&A) to expand its land bank. As of June 30, the company has advanced 456 billion dong to buy land use rights in some companies in Hai Phong, Can Tho and Ho Chi Minh City. In addition, the company also paid a deposit of land worth VND 168 billion.

In June, Nam Long issued 500 billion bonds to invest in the project with the interest rate of 10.5% / year, maturing in 2023. This loan pushed up financial debt by 89% to VND 1,573 billion. The ratio of debt / equity reached 0.25 times.

The undistributed after-tax profit at the end of the period was VND 1,845 billion on charter capital of VND 2,597 billion. The company also had 988 billion dong of equity surplus.

Source: ndh.vn