Ho Chi Minh City, on 30 April 2023, Hung Thinh Incons Joint Stock Company (HoSE: HTN, “Hung Thinh Incons” or “Company”) published the Financial Statements in Quarter I/2023.
Ending Quarter I, 2023, Hung Thinh Incons earned VND 429 billion of net income, of which construction contracts made up the highest proportion with more than VND 423 billion (98.7%) from projects of Q7 Saigon Riverside Complex, MerryLand Quy Nhon, Grand Center Quy Nhon, New Galaxy and Bien Hoa Universe Complex; and other services reached VND 5,4 billion. In the face of the real estate freezing from the end of 2022, along with the increase in interest rates, despite great efforts in cutting operating costs and other expenses, HTN’s profit after tax still recorded VND -17.6 billion. This reflects the generally difficult situation faced by not only Hung Thinh Incons but also all construction enterprises.
As of 31 March 2023, total assets gained by the Company is nearly VND 9,198 billion, increased by 0.26% in comparison with that at the beginning of the year, mainly from short-term assets. Specifically, inventories obtained VND 2,118 billion, increased by VND 296 billion (+16.2%), mainly thanks to the increase in the expense of construction in progress. In addition, other short-term assets grew VND 47 billion, growing by 28.4% over the same period. A bright spot in the structure of short-term assets at the end of Q1/2023 was the decrease in short-term trade receivables. Compared to the beginning period, short-term trade receivables reduced by nearly VND 644 billion to VND 2,795 billion.
A change in the capital structure in Q1/2023 was recorded when the Company re-structured the payables, gradually converting short-term to long-term loans. Specifically, the Company’s short-term loan reduced more than VND 511 billion while the long-term loan grew by VND 400 billion. This helped the Company improve its capital resources sustainably and reduce the financial burden in the short-term. As a result, operating cash flow as of 31 March 2023 was positive at VND 66 billion.
In facing challenges, Hung Thinh Incons carried out many methods of restructuring its operating model, tightening management, following the market demand to flexibly give adaption solutions to overcome such struggling period of the market.
In the first months of the year, Hung Thinh Incons and the MerryLand Quy Nhon project management team speeded up the construction progress and basically completed the road system, the Bizhouse in the Canal District center and other outstanding utility items, including: The longest and largest musical square in Vietnam, the longest canal system in Vietnam, Chamm Legacy - one of the symbols of the peninsula city - is about to enter into the topping-out phase. Other projects such as Vung Tau Pearl, New Galaxy, etc. have also been focused on, speeding up the construction progress to meet the handover schedule.
Besides, with the orientation of developing product lines focusing on quality and sustainability based on scientific and technological advancement, Hung Thinh Incons has actively worked with partners such as KONE - the top Elevator Corporation and AkzoNobel - the world’s leading paints and coatings Corporation to discuss opportunities for cooperation, quickly carrying smart solutions in project development so as to enhance the users’ experience, accelerating the searching for advanced building materials with the aim of minimizing impacts on the environment, meeting the increasing requirements of large projects.
During 16 years of proving capacity as one of the leading general contractors in Vietnam, Hung Thinh Incons has built a solid confidence in the market by meeting the schedule and ensuring technical, artistic, quality standards of existing works. The Company’s management and construction capacity is clearly demonstrated through a portfolio of various projects in provinces and cities across the country. In the future, Hung Thinh Incons is ready to access more and more large scale and diversified projects which require high-quality and standards; this will form a base for the Company to strongly develop in the future.