In quarter II / 2020, profit of DRH Holdings increased thanks to tax refund
sonnguyen 22-07-2020, 00:08

Business results in the second quarter and the first 6 months of DRH Holdings still grew thanks to the tax refund and profit contributed from KSB (Bimico).

DRH Holdings JSC (Ticker: DRH) has just announced its business results for the second quarter of 2020 with revenue of over 6 billion dong, a decrease of more than half compared to the same period last year.

Quarterly revenue comes from real estate. In the second quarter of last year, the company did not recognize this amount, but in return there were nearly 16 billion dong from service provision.

In quarter II / 2020, profit of DRH Holdings increased thanks to tax refund

Revenue structure for the second quarter of 2020 of DRH Holdings. (Source: Consolidated Financial Statements for Quarter II / 2020)

While the revenue decreased, the cost of goods sold was higher, bringing the gross profit to 634 million dong, only 6% of the same period.


Financial expense of the company improved significantly, from 12 billion dong in the same period to 3.7 billion dong. In contrast, the company incurred an additional selling expense of about VND 800 million and an administration cost nearly three times higher than the second quarter of 2019, recording VND 6.6 billion.

Similar to many previous accounting periods, DRH Holdings continued to earn more than VND 24 billion from the joint venture company, KSB affiliate (Bimico), inching slightly up 8% over the same period.

One point to note, during the period the company was refunded 6.4 billion, while the same period the tax cost accounted for more than 2 billion. Therefore, DRH Holdings’ net profit still increased by 26% in the second quarter of this year.

In the first 6 months of this year, DRH Holdings achieved more than VND 55 billion in revenue and nearly VND 29 billion in net profit, twice as much as revenue and up 43% in profit compared to the same period in 2019.

Accordingly, the company has achieved 20% of the revenue plan and 31% of the annual profit plan.

Business results of DRH Holdings grew thanks to the tax refund. (Source: Consolidated Financial Statements for Quarter II / 2020)

Although the business results are still growing, the net cash flow in the period of DRH Holdings continued to record negative VND 11 billion (the same period of VND 23 billion).

In particular, the net cash flow from operating activities was negative 13 billion dong. Particularly, the net cash flow from financial activities turned from VND 15 billion in the same period to nearly VND 2 billion.

By the end of the second quarter of this year, DRH Holdings’ total assets was nearly 2,348 billion dong, up slightly from the beginning of the year. In particular, the company maintained the amount of cash and cash equivalents of nearly VND 26 billion, down about VND 11 billion compared to the beginning of the year.

At the moment, the company’s inventories are over VND 800 billion, accounting for 34% of the total value of assets and are in progress.

Besides, the company’s short-term receivables were also quite high despite a slight decrease compared to the beginning of the period, over VND 700 billion.

In addition, the value of investment in KSB was recorded nearly VND 600 billion, up 6% compared to the beginning of the year. According to the plan announced at the annual General Meeting of Shareholders on June 25, DRH Holdings will continue to increase the ownership rate in this unit, aiming to increase the percentage of KSB to become a subsidiary of DRH. Holdings.

For liabilities more than 1,518 billion, other short-term payables accounted for nearly 840 billion and short-term prepayers more than 416 billion.

However, all of the investment items as well as the above debt situation are not specifically explained on the financial statements.

Source: vietnambiz.vn

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