Hanoi (VNS/VNA) - Vietnam Construction and Import-Export JSC (Vinaconex)posted higher profit after tax in the first quarter of 2021 despite losses inrevenue.

Inits first quarter financial report, the company’s net revenue fell4.8 percent over the same period last year to 951.9 billion VND. 

However,thanks to lower cost of goods sold, which was down 10.7 percent, its grossprofit still rose 44.4 percent year-on-year to over 154.02 billion VND.

Duringthe period, revenue from financial activities also fell by 26.8 percent againstlast year to 496.46 billion VND, despite a sharp decrease of 41.2 percent inexpenses for financial activities. 

Abig decline of 79.4 percent year-on-year in general and administrative expensesresulted in a jump in Vinaconex’s profit after tax. Its profit after tax was441.2 percent higher to 345.3 billion VND in the first quarter of thisyear. 

Thecompany had to make a provision of over 495.3 billion VND for bad receivabledebts in the same period of last year. 

Atthe recent General Meeting of Shareholders, Vinaconex approved this year’sbusiness plan with consolidated revenue of 12.23 trillion VND, up 41 percentover 2020, and profit after tax of over 1 billion VND, down 40 percent. 

VCGwill also issue a value of 2 trillion VND in non-convertible bondswithout warrant and collateral assets, and a value of 2 trillion VNDof convertible bonds.

Atthe same time, the company offers nearly 58.29 million shares, equivalentto nearly 14.5 percent of its total shares as of December 31,2020. The plan of issuing shares and bonds is expected to help Vinaconexraise around 5 trillion VND.

In2021, the property developer is expected to obtain revenue from 93 Lang HaStreet project and a shop house in Mong Cai City (Quang Ninh Province)that is still under construction, Dao Ngoc Thanh, Chairman of the Board of Directorsof Vinaconex, said at the meeting.

Apart of two other projects in Cat Ba Island (Hai Phong City) are also plannedfor trading, including villas and townhouse projects that have beencontracted with customers previously. 

Vinaconexhas tried to gain big from Cat Ba’s projects. 

Vinaconexshares, which are registered on the Ho Chi Minh Stock Exchange (HoSE) withticker symbol VCG, have been fluctuating and traded in a range of 43,000 -49,700 VND per share since the beginning of the year. 

OnMay 5, VCG was stable at 47,000 VND per share after falling nearly 2 percent inthe previous session./.