I.P.A Investment (IPA): Profit decreased by 53.3% in the first 9 months of 2023Thursday, November 2,2023
AsemconnectVietnam - I.P.A Investment Group Joint Stock Company (code IPA - HNX) recorded a profit of VND133.05 billion in the third quarter, accumulated in the first 9 months of 2023 recorded a profit of VND149.9 billion, down 53.3% over the same period.
In the third quarter of 2023, I.P.A Investment Group recorded revenue of VND96.49 billion, an increase of 36.3% over the same period, profit after tax recorded VND133.05 billion, a decrease of 5.2% compared to the same period. Of which, gross profit margin improved from 48% to 50.2%.
During the period, gross profit increased by 42.8% over the same period, corresponding to an increase of VND14.52 billion, to VND48.47 billion; Financial revenue decreased by 19.6%, equivalent to a decrease of VND18.98 billion, to VND78.02 billion; Financial expenses increased by 29.4%, equivalent to an increase of VND26.28 billion, to VND115.6 billion; Profit from joint ventures and affiliates increased by 23%, equivalent to an increase of VND27.05 billion, to VND144.51 billion; Sales and corporate management expenses decreased by 5.8%, equivalent to a decrease of VND1 billion, to VND16.31 billion and other activities did not fluctuate significantly.
Accumulated in the first 9 months of 2023, I.P.A Investment Group recorded revenue of VND209.46 billion, down 5.2% over the same period and profit after tax reached VND149.9 billion, down 53.3% compared to the same period.
It is known that in 2023, I.P.A Investment Group sets a business plan with total revenue of VND1,000 billion and pre-tax profit of VND348 billion. Thus, at the end of the first 9 months of 2023 with a pre-tax profit of VND153.6 billion, I.P.A Investment Group has only completed 44.1% of the year's plan.
Sold the entire bond portfolio and is making an allowance of VND495.77 billion to invest in CRE shares
As of September 30, 2023, the total assets of I.P.A Investment Group increased by 6% compared to the beginning of the year, equivalent to an increase of VND522.3 billion, to VND9,296.6 billion. Of which, assets mainly invested in long-term financial investments recorded VND4,732.9 billion, accounting for 50.9% of total assets; Short-term receivables recorded VND3,450.99 billion, accounting for 37.1% of total assets and other items.
During the period, assets fluctuated strongly, mainly short-term receivables increased by 51.9% compared to the beginning of the year, corresponding to an increase of VND1,179.84 billion, to VND3,450.99 billion; Long-term financial investment increased by 9.5% compared to the beginning of the year, corresponding to an increase of VND410.4 billion, to VND4,732.9 billion; Short-term financial investment decreased from VND979.9 billion to 0 billion dong.
It is known that at the end of the third quarter, the main receivables of VND3,102.1 billion were from short-term loans at Trustlink Investment and Services Joint Stock Company; Long-term financial investment mainly invests VND3,969.7 billion in VNDirect Securities Joint Stock Company (code VND - HoSE), equivalent to owning 25.84% of charter capital...
I.P.A Investment Group added that, as of January 1, 2023, the Group invested VND511.7 billion in bond code TNGCB2224003 of Trung Nam Construction Investment Joint Stock Company; invested VND404.2 billion in bond TNGCB2124001 of Trung Nam Construction Investment Joint Stock Company; and invested nearly VND64 billion in bonds of Sunbay Ninh Thuan Joint Stock Company.
However, as of September 30, 2023, the total bond outstanding balance has reached 0 billion dong, meaning that the Company has sold all of the invested bonds. It is known that these bonds mature in 2024 and 2027.
Thus, in just the first 9 months of 2023, I.P.A Investment Group sold all 916 billion VND of bonds of Trung Nam Construction Investment Joint Stock Company, the buying partner was not announced.
In addition to selling the entire bond portfolio, as of September 30, 2023, the Company also said that the investment in another unit suffered a large loss, Century Real Estate Joint Stock Company (CenLand, code CRE – HoSE) with an investment value of VND928.4 billion (owning 10.91% of charter capital), a remaining value of VND432.63 billion and a reserve value of VND495.77 billion, equivalent to Temporary advance loss of 53.4% of total investment portfolio. In particular, at the beginning of 2023, the Company only set up a provision of VND407.22 billion.
During the 2023 General Meeting of Shareholders, I.P.A Investment leaders explained the investment in CenLand to start learning and accessing real estate services.
Among them, there are I.P.A Investment projects with direct investment, indirect investment, financial investment..., but I.P.A Investment all participate in accompanying and creating with CenLand to find a "success formula" and not simply a financial investment deal.
Regarding the issue of many of the company's investments being at a loss, I.P.A Investment also confirmed that the loss is mainly due to congested investment activities, all investments are currently in a waiting state. The reason is because in 2022, many projects in general will be stopped due to legal issues. In order to complete, the company is accelerating the consolidation of legal documents and documents.
Returning to the Financial Report of the third quarter of 2023, in terms of capital sources, as of the end of the period, the total short-term and long-term debt of I.P.A Investment Group increased by 4.4% compared to the beginning of the year, corresponding to an increase VND200.9 billion, up to VND4,788 billion and accounting for 51.5% of total capital. Of which, short-term debt is VND1,424 billion and long-term debt is VND3,364 billion.
A notable development is that as of June 30, 2023, I.P.A Investment Group owned 99.75% of the capital at Nam Can Tho Investment and Development Joint Stock Company, but by September 30, 2023, it only owned 48.6% of charter capital, transferred from recording investment in subsidiaries to affiliated companies.
I.P.A Investment Group said it transferred 20.46 million shares, equivalent to 51.15% of capital at Nam Can Tho Investment and Development Joint Stock Company at a transfer price of 11,000 VND/share to Hai Phong Investment Joint Stock Company, Total transfer value is VND225.06 billion, loss of 6.71 billion.
It is known that the transferee of Hai Phong Investment Joint Stock Company was established on April 25, 2007, located at 69 Dien Bien Phu, Minh Khai ward, Hong Bang district, Hai Phong City and by Ms. Phan Thi Men as the legal representative. In addition, Ms. Men is also a representative at Anvie Hoi An Real Estate Joint Stock Company.
In addition, as of September 30, 2023, I.P.A Investment Group owns 100% of the voting rights at Anvie Hoi An Real Estate Joint Stock Company.
According to research, Nam Can Tho Investment and Development Joint Stock Company is the investor of the Nam Can Tho new urban area project (trade name Riverine Can Tho City) in Hung Phu, Hung Thanh, Phu Thu wards, Cai Rang district, Can Tho. Of which, the project scale is 103.05 hectares.
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