After a great success in 2016 thanks to the M&A strategy of large projects, according to Dat Xanh’s report recently, there was a sharp increase in its business performance in Q1/2017, compared to that in the same period last year.

Specifically, the revenue of Dat Xanh reached 586 billion dongs, an increase of 86%. Not only did the revenue increase, but the profit margin of Dat Xanh also surged remarkably, up to nearly 50% compared to 32% of that in last year.

As a result, the first quarter of this year, Dat Xanh reported a before- tax profit of 232 billion dongs, 6.5 times higher year on year..

Dat Xanh stated that the profit this year rocketed noticeably thanks to the recognition of the revenue from Luxcity project, together with the dividends of secondary investment projects and the growth in real-estate brokerage activities.

In this year's Dat Xanh revenue structure, real estate brokerage services contributed a significant proportion to revenue of 241 billion dongs, short of 3 times as much as that in the previous year. At the same time, revenue of apartments and land lot sales also grows moderately.

Accounting revenue from Luxcity is able to assist to reduce inventories of Dat Xanh markedly. At the end of last year, Dat Xanh had inventories of finished units in Luxcity (219 billion dongs) and An Vien (19.6 billion dongs). By the end of the first quarter of this year, inventories at Luxcity fell sharply to 37.3 billion dongs. Luxcity that is a luxury apartment project in District 7 invested by Dat Xanh. This project has 2 apartment towers with 432 units and 1 office block with 92 units.

Although sales increased, the cash flow from major business activities of Dat Xanh was negative 425 billion dongs, due to large receivables.

Next year, Dat Xanh set a revenue target of 3.300 billion dongs and profit of 700 billion dongs.

Ha My
Theo Tri Thuc Tre