HA NOI (VNS) — Real estate giant VinGroup (VIC) posted envy-inducing business results for the year of 2012, despite the lacklustre property market.
According to their 2012 consolidated income statement, the group's total revenue hit a record of more than VND7.904 trillion (US$378.2 million), a surge of 242 per cent from the previous year.
This result was attributed to rising rental income from Vincom Centre A in HCM City and Vincom Centre Long Bien in Ha Noi, sales of office space in Vincom Centre Ba Trieu and additional revenue from hospitality, beauty and health care services after acquiring Vinpearl.
Sales, whose service revenue totalled almost VND2.84 trillion ($135.9 million).
The group's net profit reached VND1.847 trillion ($88.4 million), up 72 per cent over the previous year.
At the end of 2012, its total assets were valued at VND55.825 trillion ($2.67 billion), an increase of more than VND20.3 trillion ($971.3 million) over 2011.
The increase came from new real estate projects such as Vincom Centre A in HCM City, Royal City, Times City and Vincom Village in Ha Noi as well as other properties acquired from Vinpearl and other subsidiary companies after merger and acquisition (M&A) deals.
However, loans also increased with the issue of $300 million international convertible bonds and additional loans from Vinpearl during the second and third quarters. The group borrowed more than VND21.8 trillion (over $1 billion) from banks and other credit institutions – an increase of VND11.7 trillion ($559.8 million) over 2011.
Based on its total capital of VND55.825 trillion ($2.67 billion), the group's ratio of debt to total capital was 39.1 per cent.
While the market was constrained by both domestic and global economic difficulties, VinGroup's general director Le Thi Thu Thuy said, the situation would gradually stabilise and the company's business would continue to develop this year.
In 2013, VinGroup projects will hand over nearly 8,000 apartments in the Royal City and Times City to customers and put Vincom Megal Mall Royal City, the biggest trade center in Viet Nam, into operation in July.
This year, the group also expects to debut shares on the Singapore Stock Exchange, becoming the first Vietnamese company to list shares overseas. — VNS