Profits of Dat Xanh ‘evaporated’ more than VND 500 billion after auditing
duonghanhnguyen 17-08-2020, 09:19
Profits of Dat Xanh ‘evaporated’ more than VND 500 billion after auditing

According to Dat Xanh semi-annual review report, the company saw a net loss of over 488 billion dong in the first 6 months, while this figure in the self-made financial statement was over 38 billion dong.

According to the semi-annual review report of Dat Xanh Group JSC (Ticker: DXG), which was audited by Ernst & Young (EY), Dat Xanh’s net profit after tax was negative 488 billion in the first 6 months, deviated by more than 500 billion compared to the number of independent companies.

Previously, in the self-contained quarter II / 2020 consolidated financial statements, Dat Xanh only lost more than 29 billion dong in the second quarter, while the first 6 months still saw a profit of 38 billion dong.

The reason for the big change in profit targets in the first 6 months of the year according to Dat Xanh is that during the audit process, the auditing company determined the transfer of all shares in LDG Investment JSC (Code: LDG ) is an event that arises after the year and requires Green Land to make provisions over VND 526 billion.

The divestment deal at LDG was completed by Dat Xanh on 24/7. Specifically, Dat Xanh sold all 63 million LDG shares and earned more than VND 542 billion, while the value of this investment was about VND 1,068 billion (as of June 30, 2020).

By the end of the accounting period of the second quarter of 2020, the total assets of Dat Xanh were approximately 20,479 billion VND, a decrease of 526 billion VND compared to the previous self-made financial statements. Cash and cash equivalents increased significantly from VND 793 billion at the beginning of the period to more than VND 1,266 billion.

In Green Land’s asset structure, items that account for a large proportion include inventory of 8,844 billion VND and receivables 6,660 billion VND. In addition, the company also has 1,664 billion dong of long-term financial investment.

According to the plan given for this year, Dat Xanh targets net revenue of 4,900 billion VND and net profit of 1,034 billion VND, both about 15% lower than the results achieved in 2019.

Accordingly, Green Land will launch and sell projects such as Gem Skyworld in Long Thanh, Gem Riverside and expand industrial land fund.