In a recent announcement, the Board of Directors of Vinhomes Joint Stock Company (VHM) stated that it had passed a decision to participate in capital contribution to establish two subsidiary companies in the real estate field.
The first company is Truong Loc Investment and Development Real Estate Limited Liability Company, headquartered in the Dream City Ecological Urban Area (Hung Yen). This enterprise has a charter capital of over VND 4,400 billion, and Vinhomes’ capital contribution rate is 99.9%.
The other enterprise is Phat Dat Investment and Development Real Estate Limited Liability Company, with a charter capital of over VND 7,000 billion, and Vinhomes’ ownership rate in this new unit is 99.9% of the charter capital. The headquarters of Phat Dat Real Estate is located in Dai An urban area, Van Giang district, Hung Yen.
As of December 31, 2022, Vinhomes had 34 subsidiaries, including two companies in the process of dissolution, namely Ecological Business and Development Joint Stock Company and Phu Gia Real Estate Business Limited Liability Company.
In another development, Vinhomes recently announced the transfer of its entire legal entity shares in Investment and Development Village Van Joint Stock Company to Vingroup. This enterprise is the owner of the Van Resort and Entertainment Tourism Project with a total investment capital of about USD 1.5 billion. The company said that after the transfer, Vinhomes would continue to implement the project as planned.
Regarding its business operations in 2022, Vinhomes recorded nearly VND 62,400 billion in net revenue, a decrease of 26% compared to the previous year. The company stated that if combined with revenue from business cooperation contracts and real estate transfers recorded as financial income, the total consolidated revenue of the company last year was about VND 81,406 billion, still exceeding the plan set.
However, the gross profit margin of the subsidiary company of Vingroup also decreased last year, while financial expenses and selling expenses increased significantly, resulting in the company’s expenditure of billions of VND.
As a result, after deducting expenses, the net profit of this real estate developer for the whole year was over VND 29,000 billion. It still belongs to the group of companies with billion-dollar profits last year, but compared to the previous year, Vinhomes’ profit decreased by 26%, equivalent to a net decrease of nearly VND 9,950 billion.
Source: Vietnam Insider