AsemconnectVietnam - The separate financial report for the fourth quarter of 2023 of Thai Nguyen International Hospital Joint Stock Company (code TNH) shows a quite healthy financial picture of the business.

Specifically, revenue from sales and service provision in the fourth quarter of 2023 reached VND116 billion, down 7% over the same period. After deducting expenses, the Company achieved pre-tax profit of VND30.9 billion, down 29% over the same period. Profit after tax reached VND28 billion, down 33% over the same period.
A closer analysis of the financial statements shows that profit after tax decreased mainly due to gross profit decreasing by 16% when revenue decreased by 7% and cost of goods sold increased by 1%. According to information from the business, the fourth quarter is the end of the year when demand for medical examination and treatment decreases, leading to reduced revenue, while cost prices fluctuate. Financial revenue increased sharply but the value was small, loan interest dropped sharply by 61%, however, the Company made a provision for devaluation of investment in its subsidiary, Lang Son Hospital Joint Stock Company, so financial costs increase. Lang Son TNH Hospital Joint Stock Company is in the process of building new facilities to replace the old hospital, thus incurring costs for dismantling buildings, leading to accumulated losses.
In particular, the corporate management expense item decreased by 2% but corporate income tax increased by 73% because the Company's corporate income tax exemption period at Yen Binh Thai Nguyen General Hospital Branch and ended time to enjoy corporate income tax incentives at Thai Nguyen International Hospital branch.
Cumulatively for the whole year 2023, the Company will reach VND531 billion in revenue, an increase of 15% compared to the previous year, although the cost of goods sold will also increase by 24%, so the Company's gross profit will reach VND218 billion, an increase of 4%. Business management costs reached VND32.5 billion, an increase of 19% over the same period. After deducting expenses, the Company achieved pre-tax profit of VND151 billion, an increase of 4% compared to the previous year.
TNH's consolidated financial statements do not have much difference compared to the separate reports, because this is the first year the Company merged with TNH Lang Son and the business has almost not generated large revenues or expenditures.
A 4% increase in profits is considered a great effort of TNH, because in 2023 the economic situation will be gloomy, inflation will increase, and there will be a shortage of medicine and medical supplies across the country. However, the Company continues to maintain stable operations and growth of its two operating hospitals, Thai Nguyen International Hospital and Yen Binh Thai Nguyen General Hospital, making efforts to improve service quality, deploying specialized techniques and new technical services.
The unfinished construction cost item of VND433 billion on the financial report shows that TNH is making efforts for new investment projects. Specifically, the Company ensures the construction progress of Viet Yen TNH Hospital and continues to invest in the projects of Lang Son TNH Hospital and Hanoi TNH Hospital.
N.Nga
Source: VITIC/Tinnhanhchungkhoan