The handover of high-rise apartments in The Terra – An Hung project has leveraged the Van Phu – Invest Investment Joint Stock Company (code: VPI) to reach VND1.982 trillion (US$87.5 million) in revenue and VND255.6 billion (US$11.28 million) in profit during the fourth quarter of 2021, helping the real estate developer complete 85 percent of its revenue target set for the year and 105 per cent of the yearly profit.
The Van Phu – Invest Investment Joint Stock Company (Van Phu – Invest) has just released its financial report for the fourth quarter of 2021. Of note, its net revenue from sales and services aggregated VND1.982 trillion (US$87.5 million) in the fourth quarter, a year on year hike of 59 percent while the cost of goods sold peaked at VND1.541 trillion (US$68 million), up 73.5 percent.
Van Phu – Invest’s profit margin in the fourth quarter stood at 22.3 percent, down 6 percentage points on year as the real estate developer’s quarterly revenues mainly came from the handover of high-rise apartments in The Terra – An Hung project, a commercial and residential complex located in Hanoi.
As real estate transactions in the previous quarters were conducted amid the complicated developments of Covid-19, Van Phu – Invest top executives set a moderate profit target for 2021 with the hope of attracting more customers, ensuring good liquidity, and giving high priority to collecting money from sales transactions. As a result, the company’s gross profit amounted to VND440.7 billion (US$19.45 million) in the fourth quarter.
As per financial activities, Van Phu – Invest saw its financial revenues and expenses in the reviewed quarter respectively decrease by 29 percent and 52.6 percent on year, to VND29.8 billion (US$1.315 million) and VND29.7 billion (US$1.311 million).
Meanwhile, the real estate company witnessed its selling and administrative expenses jump by 85.5 per cent and 154.6 per cent respectively over the same period of 2020, to VND105.2 billion (US$4.64 million) and VND60.6 billion (US$2.67 million).
In short, the company’s net profit from business activities reached VND276.7 billion (US$12.2 million), surging by 11.2 percent on year. Its profit after tax and the profit after tax of the parent company reached VND255.6 billion (US$11.28 million) and VND 258 billion (US$11.39 million), up 18.6 percent and 19.4 percent, respectively.
The fourth-quarter results enabled Van Phu – Invest to make its respective full-year net revenue and profit after tax at VND2.622 trillion (US$115.76 million) and VND362.5 billion (US$16 million), increasing by 23.3 percent and 18.1 percent on year. This allowed the firm to complete 85 percent of the yearly revenue and 105 percent of the profit target approved by the 2021 annual general meeting of shareholders.
Explaining why the firm realized 85 percent of the annual revenue target, a Van Phu – Invest representative noted that the company has yet to add the revenue of VND400 billion (US$17.66 million) from constructing items of the build – transfer (BT) project of Pham Van Dong – Go Dua to its full year revenue as the revenue from the BT project will be added to the total only when the company is paid for land funds.
Regarding the 2022 investment and profit outlook, Van Phu – Invest focuses on developing the Vlasta – Sam Son project in the central province of Thanh Hoa which covers a total of 28.4 hectares with 594 townhouses, villas, and shophouses. The project is expected to open for sale in the first quarter of 2022.
Another priority is given to implementing the Vlasta Thuy Nguyen project in the northern city of Haiphong. This project covers 30 hectares in Thuy Nguyen district, with 1,019 villas, townhouses, and shophouses. The firm expects to begin construction in the third quarter of 2022.
In addition, the Hanoi-based real estate developer looks to develop the Con Khuong new urban area project in the Mekong Delta city of Can Tho with an area of 53.3 hectares and 115 high-class detached villas, 951 shophouses and townhouses. The project is scheduled to start construction in the fourth quarter of 2022 and open for sale in the first quarter of 2023.
Van Phu – Invest top executives asserted that the firm, with its inventories worth VND3 trillion (US$132.4 million) as of December 31 2021, and its current land funds and upcoming projects, will definitely continue to maintain its revenue and profit growth in 2022.
Last year, Van Phu – Invest bagged a string of awards and noble titles at prestigious domestic and foreign competitions, including the top 500 largest enterprises in Vietnam as well as the top 20 famous brands and the top 10 real estate developers in the country.