AsemconnectVietnam - Construction Corporation No. 1 - JSC (code CC1 - UPCoM) continues to increase debt to finance capital for key projects in 2024, while planning for strong growth in 2025.

CC1 records record revenue in 2024
Thanks to focusing on the infrastructure construction sector when the Government promotes infrastructure investment, especially continuously winning bids for key national projects in recent years, CC1 has continuously recorded positive business results.
At the end of 2024, in the Audited Financial Report, CC1 recorded an 81% increase in net revenue over the same period, up to VND10,160 billion, this is a record revenue to date for the Company. Of which, construction and installation activities continued to be the mainstay, recording VND7,235 billion, accounting for 71.2% of total revenue. Pre-tax profit reached VND291 billion, after-tax profit reached VND229 billion, up 4%. Of which, revenue increased sharply but profit increased slightly, mainly due to the Company's shortfall in financial revenue. Excluding the extraordinary financial revenue in 2023 from restructuring, CC1 will continue to maintain the expansion of both revenue and profit in 2024.
In 2024, financial expenses decreased by 32%, equivalent to a decrease of VND149.4 billion to VND324.5 billion and business management expenses decreased by 24.8%, equivalent to a decrease of VND 86 billion to VND262 billion, mainly due to taking advantage of the Company's opportunities and position to negotiate and restructure loans with better interest rates, while the construction market showed signs of improvement, and the Company's debt collection also showed more positive signs than the previous year.
Focusing on construction materials to ensure progress of key projects
According to the Financial Statement data, the negative net cash flow from operating activities (2024) mainly came from an increase in receivables and inventories. Despite negative operating cash flow due to increased receivables and inventories, CC1 asserted that this was due to its strategy of focusing resources on important projects. The company advanced raw materials to ensure construction progress and maintain stable prices in the face of market fluctuations. It is known that in recent years, CC1 has continuously won key national projects such as Package 5.10: Construction and installation of passenger terminal equipment and Package 11.5: Construction, installation of equipment and design of construction drawings for parking lots - Long Thanh International Airport Project - Phase 1; Passenger Terminal T3 project - Tan Son Nhat International Airport; Ho Chi Minh City Circus project; Na Duong II Thermal Power Plant; Dai Ngai 2 Bridge project; construction packages for Ring Road 3 in Ho Chi Minh City and Binh Duong; Bien Hoa - Vung Tau Expressway project; North-South Eastern Expressway (Phase 2)…
With key infrastructure projects in the peak stage of accelerated implementation, CC1 has temporarily had to mobilize all resources, from loans, equity and other capital sources to ensure materials and ensure project progress as committed to the investor. However, due to the characteristics of the infrastructure sector, payment according to progress will have a certain delay, so although revenue in 2024 increased, at the same time the Company's operating cash flow is temporarily negative, this cash flow is expected to return to the enterprise when the projects enter the acceptance stage, handing over to the investor in the coming years.
Specifically, as of December 31, 2024, CC1's short-term receivables remained at VND5,822 billion, accounting for 34.8% of total assets; Inventory increased by 60.2% compared to the beginning of the year, equivalent to an increase of VND558.9 billion to VND1,486.8 billion, accounting for 8.9% of total assets ...
In particular, CC1's short-term receivables also increased by VND319 billion, from VND1,608 billion to VND 1,927 billion, mainly due to CC1 having short-term receivables from customers of VND596 billion for MC - HDEC - CC1 Joint Venture, Tan Son Nhat International Airport - Branch of Vietnam Airports Corporation - JSC ..., these are amounts arising from the implementation of key projects.
Similarly, for short-term prepayments to sellers, in 2024, CC1 also recorded an increase of VND209 billion, from VND3,310 billion to VND 3,520 billion, this could be an activity of prepaying raw materials to ensure progress for public investment projects.
In addition, the increase in inventory is related to the acceleration of the implementation of bidding packages such as the T3 terminal project - Tan Son Nhat International Airport, the construction of the entire Can Tho - Hau Giang section (Eastern North-South Expressway phase 2021-2025) and the implementation of other key projects.
It is known that currently, general construction contractors often have to pay in advance for designated sand and stone quarries at a provisional unit price, which is often higher than the unit price stipulated in the signed Contract and requires official approval by the competent authority.
In addition to the bright spots in revenue growth rate and some healthy financial indicators, CC1's Board of Directors expects to continue implementing effective solutions to improve the negative business cash flow situation in the coming time. In particular, it is expected that on April 30, 2025, the Company's projects under construction such as Terminal T3 at Tan Son Nhat Airport and the Ho Chi Minh City Circus project are expected to be put into operation. This is CC1's effort in committing to investors, and is also the basis for the Company to soon settle completed projects and improve cash flow in the following periods.
Entering 2025, CC1 aims for consolidated net revenue of VND12,889 billion, an increase of 27% compared to 2024, and pre-tax profit of VND371 billion, an increase of 27%.
In particular, with CC1 having completed the Board of Directors at the beginning of 2025, and at the same time building a sustainable development model with a focus on people, CC1 has signed a comprehensive cooperation agreement with the University of Technology (Ho Chi Minh City National University) to develop high-quality human resources for the construction industry; at the same time, accelerating digital transformation through the CC1-XBOSS Human Resource Management Software System; launching the program to Build a Professional Competency Framework to optimize resources and enhance competitiveness in the construction industry.
Thus, with a multi-industry ecosystem and a closed value chain that has been developed for many years, CC1 is preparing a solid foundation to prepare to enter the era of national development, especially implementing key national projects.
N.Nga
Source: VITIC/Tinnhanhchungkhoan