IN THE FIRST QUARTER OF 2023, FECON’S NET PROFIT RECORDED NEARLY 3 BILLION VND, MANY TARGETS PROSPERED

According to the newest published consolidated financial statements of the first quarter of 2023, FECON recorded a net profit of VND 2.81 billion. This is a positive result compared to the same result last year.

The FECON’s after-tax profit recorded this result thanks to the increase in net revenue and consolidated profit in period of 107,42 billion VND and 35 billion VND, respectively, an increase of 21,4% and 39,8% respectively over the same period.

Also in this quarter, net revenue from FECON's sales of goods and services recorded 609 billion VND, an increase of 21% over the same period last year. Meanwhile, the cost of goods sold increased by only 17% over the same period. In particular, in this quarter, FECON has significantly reduced sales costs by up to 22% (down more than 1.326 billion VND) compared to last year.

These factors have created a consolidated gross profit of up to 122 billion VND and a consolidated net profit of 3 billion VND above. All are showing positive results after a period of time when the real estate and construction industry fell into depression.

Since 2022, the cost of capital in some projects has increased compared to the initial plan of many real estate and construction enterprises. The reason is that the price of raw materials fluctuates abnormally and labor costs increase due to the impact of the Covid-19 pandemic. It is expected that this development will continue to happen in 2023, so right from the beginning of this year, FECON has developed response scenarios. This is reflected in the bidding price, signing all contracts with investors and contractors of the Group.

Currently, FECON is actively developing an action plan to complete the business plan goal approved at the 2023 Annual General Meeting of Shareholders. FECON builds these goals based on careful calculation, careful and following market developments. In the coming time, with many favorable policies of the Government when supporting businesses, genuine estate-construction enterprises to resume operations, FECON hopes to complete the set goals soon.

As of March 31, 2023, FECON's total assets reached 7.872 billion VND, an increase of 4,03% compared to the beginning of the year, including short-term receivables of 3.939 billion VND, accounting for 43,1% of total assets. Shareholders' equity reached 3.495 billion VND, an increase of 12 billion VND compared to the beginning of the year.