In the context that many real estate businesses in the South faced many difficulties due to the COVID-19 epide...
In the context that many real estate businesses in the South faced many difficulties due to the COVID-19 epidemic, TTC Land's business results in the last quarter of the year were also negatively affected. However, the whole year profit of the business still grew and exceeded 5% of the year plan.
According to the recently announced consolidated financial statements of the fourth quarter of 2021, the business results of Saigon Thuong Tin Real Estate Joint Stock Company (TTC Land, Code: SCR) dropped sharply in the last quarter of the year. In which, net revenue decreased from 576 billion dong in the same period to 112.5 billion dong.
Revenue from the financial segment of the business also decreased because no transfer activity was recorded at Tin Nghia Asia Joint Stock Company as in the same period. Besides, the business had another loss of nearly 8 billion dong (the same period, another profit was more than 104 billion dong).
However, TTC Land's gross profit margin in the period improved significantly from minus 33.5% in the same period last year to 18.5%. At the same time, the expenses of the enterprise in general decreased over the same period, especially selling expenses. On the other hand, the enterprise recorded a profit of more than 20 billion dong from the associate company, while the same period lost 2.7 billion dong.
As a result, in the fourth quarter, TTC Land's net profit was 3.3 billion dong, down 96.6% over the same period last year. The business side said that the COVID-19 epidemic had negatively affected business results. In the difficult context, TTC Land has reviewed and reduced costs to enhance operational efficiency.
In 2021, TTC Land achieved more than VND 1,683 billion in net revenue and VND 187 billion in net profit, an increase of 83% in revenue and a slight decrease of 1% in profit compared to 2020. Revenue grew strongly thanks to handover and sales. recorded projects with good profit margins such as Carillon 7. With this result, TTC Land exceeded 12% of revenue target and 5% of annual profit target.
TTC Land business results. (Source: Consolidated financial statements of the fourth quarter of 2021).
TTC Land's total assets at the end of 2021 are over VND 9,797 billion, down 14% compared to the beginning of the year. Short-term and long-term receivables account for the majority of assets with more than VND 4,291 billion.
Besides, the business has over 2,976 billion dong of inventory, mainly in 11 projects such as Jamona City (1,160 billion dong), Charmington Dragonic (575 billion dong), Charmington Tamashi Da Nang (490 billion dong), Jamona Cau Tre (196 billion dong), Jamona Home Resort (110 billion dong),... Particularly, the value of inventory at the Carillon 7 project dropped sharply from 544 billion dong to 6 billion dong because TTC Land has handed over it to them. customer.
In parallel with existing projects, TTC Land has expanded its land bank in the past year. In which, the enterprise bought 11% more capital at Long An Construction Investment Joint Stock Company - IDICO (the unit has a land bank of more than 130 hectares in Long An), raising the ownership rate in this unit to 40.62%.
TTC Land has cooperated to develop a new 160-hectare project in Bien Hoa, Dong Nai through the transfer of 20% of shares in Phuoc Tan Company and expansion of industrial land in Binh Duong through a competition. member company prices. TTC Land's liabilities recorded over VND 4,764 billion, down 27% compared to the beginning of the year. In which, total outstanding loans accounted for more than 1,566 billion VND. During the period, TTC Land paid the principal of over 2,100 billion dong. In addition, the business has nearly 1,356 billion dong prepaid by buyers, up 54% compared to the beginning of the period. This amount will be recognized in revenue when the project is handed over to the customer and is eligible for recognition. According to the business plan in 2022, TTC Land aims to grow net revenue and pre-tax profit by at least 10% compared to the performance in 2021, which is mainly contributed from the handover of the remaining 189 apartments in the area. Carillon 7 project and new projects in 2022. TTC Land will continue to implement and complete legal projects of Panomax River Villa, Charmington Tan Son Nhat, Charmington Dragonic,.... and looking for partners to transfer projects that are not suitable with the direction of the business. At the same time, the enterprise continues to promote the search and development of new land funds in the market of Dong Nai, Long An, ...
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