AsemconnectVietnam - AAV Group Joint Stock Company (AAV - HNX) has just announced its consolidated financial report for Q2/2024 with sales and service revenue reaching VND1.6 billion, up 273% over the same period last year.

In addition, financial expenses decreased by 101% and business management expenses decreased by 56%, so AAV's after-tax profit in Q2 reached VND246.7 million, while in Q2/2023, it lost VND 4.6 billion after tax.
Although the results in Q2 were somewhat more positive, in the first half of the year, AAV's business efficiency has not improved. In the first half of 2024, the Company's sales and service revenue reached VND2.8 billion, while in the same period last year it reached VND68.6 billion, a decrease of 95.9%; after-tax profit was negative VND3.3 billion, while in the same period it lost VND8.2 billion.
Currently, AAV shares are still in the securities warning category because after-tax profit in 2023 was negative by nearly VND17 billion. Presenting business activities and the recovery roadmap in the latest announcement, AAV said that in the second quarter of 2024, the Company's business activities continued to face difficulties such as the frozen real estate market, real estate products in the projects of the Eastern Residential Area of Yet Kieu Street (Chi Linh City), the Eastern Residential Area Project of Tran Hung Dao Street (Chi Linh City), and the Con Son Resort Project (Chi Linh City) did not meet the conditions for sale according to regulations.
“In the third quarter of 2024, the Company will seek to invest in new potential and effective business activities to increase revenue and thereby increase profits to compensate for 2023,” AAV said.
In addition, the Company will closely monitor and regularly approach to grasp the production and business situation, especially when the legal procedures of the Residential Area project on the East of Yet Kieu Street are fully supplemented, and complete the construction of some remaining items so that the product is eligible to mobilize capital according to regulations. At the same time, it will complete the procedures for applying for a mineral exploitation license for the Residential Area project on the East of Tran Hung Dao Street to get revenue to compensate for profits.
“It is expected that by the end of the fourth quarter of 2024, the Company will strive to exceed the business plan targets set out to compensate for all losses,” AAV said.
The projects mentioned above by AAV have been stuck in a difficult situation for many years. As of June 30, 2024, the long-term unfinished production and business costs at Yet Kieu, Con Son, Tran Hung Dao and other projects of AAV reached VND204.6 billion, an increase of 24.3% compared to the beginning of the year. Of which, Yet Kieu project is deployed on an area of 199.5 m2, with a total investment of VND214.6 billion, has completed part of the technical infrastructure, is clearing the remaining area, and completing procedures to fulfill land use fee obligations as a basis for being granted a land use right certificate. However, because the competent authorities have not yet decided on the land use fee collection plan, the Company has not been able to record the amount of land use fee payable. In 2021, Hai Duong province announced an adjustment to the project progress with the content of completing the entire project before March 30, 2024. However, AAV could not complete the project according to this schedule, so it requested an extension.
Other projects including Con Son Project and Eastern Residential Area Project have been approved for investment and planning since 2017-2018 but have not been completed yet.
In terms of credit risks, as of June 30, 2024, AAV has VND 285.2 billion in receivables from customers and other receivables, while the Company owns VND 1.7 billion in cash and cash equivalents. Notably, loans and debts, payables to suppliers and other payables with a term of less than 1 year are at VND 81.5 billion, over 1 year are at VND 11.8 billion.
However, the Company believes that the level of risk concentration for debt repayment is controllable. The Company is able to pay due debts from operating cash flows and proceeds from maturing financial assets.
N.Nga
Source: VITIC/Tinnhanhchungkhoan