AsemconnectVietnam - Business is difficult, SMC Investment Trading Joint Stock Company (code SMC - HOSE) has to continuously sell land use rights and invested shares.

SMC Investment and Trade through the transfer of land use rights and assets attached to land at SMC Da Nang Company Limited at address No. 2, Hoa Cam Industrial Park, Hoa Tho Tay Ward, Cam Le District, Da Nang City, area 27,731.4 m2 and the purpose of land use is industrial park land.
The company said that the expected transfer price is more than VND96 billion (price includes value added tax).
In fact, this is not the first time SMC Investment Trading has planned to sell assets.
Previously, in November 2023, SMC approved the transfer of land use rights, equipment, and architecture on land at SMC Binh Duong - Dong An Industrial Park, Thuan An District, Binh Duong Province with an area of 6,197 m2, with an expected selling price of VND49 billion.
In January 2024, SMC Investment and Trade continued to approve the transfer of land use rights and assets attached to land at SMC Tan Tao 2 - Tan Tao Industrial Park with an area of 9,096 m2, located at Lot 62-64, Road 3, Tan Tao Industrial Park, Tan Tao A Ward, Binh Tan District, Ho Chi Minh City. In which, the expected transfer price is VND126 billion (including VAT).
And on April 11, SMC Investment Trading approved the transfer of the office building at 681 Dien Bien Phu, Ward 25, Binh Thanh District, Ho Chi Minh City. (old address is 396 Ung Van Khiem, Ward 25, Binh Thanh District, Ho Chi Minh City) with an area of 329.5 m2, transfer price of VND170 billion.
In terms of business activities, in the first half of 2024, SMC Investment Trading recorded revenue of VND4,470.72 billion, down 39.9% over the same period, after-tax profit recorded a profit of VND89.22 billion compared to the same period, a loss of VND385.91 billion, an increase of VND475.13 billion. In which, gross profit margin decreased from 1.1% to 0.5%.
During the period, gross profit decreased by 75%, equivalent to a decrease of VND61.37 billion toVND 20.43 billion; financial revenue increased by 241.6%, equivalent to an increase of VND160.28 billion to VND226.61 billion; Financial expenses decreased by 33.3%, equivalent to a decrease of VND60.27 billion to VND120.67 billion; sales and administrative expenses decreased by 70.2%, equivalent to a decrease of VND234.58 billion to VND99.76 billion; other profits recorded a profit of VND88.08 billion compared to the same period with a loss of VND13.82 billion, an increase of VND101.9 billion.
In 2024, SMC Investment and Trade plans to have a revenue of VND13,500 billion, a decrease of 1.5% compared to the same period; after-tax profit is expected to be a profit of VND80 billion compared to the same period with a loss of VND925.3 billion, an increase of VND1,005.3 billion.
Thus, ending the first half of 2024 with a profit of VND89.22 billion, SMC Investment Trading has completed 111.5% of the profit plan of VND80 billion.
In addition, as of June 30, 2024, SMC Investment Trading has an accumulated loss of VND68.34 billion (accumulated loss at the beginning of the year of VND168.9 billion), equal to 9.28% of charter capital (charter capital of VND736.8 billion) and using VND726.9 billion of short-term capital (less than 1 year) to finance long-term assets (term of over 1 year).
N.Nga
Source: VITIC/Tinnhanhchungkhoan