FLC has a big loss – VnExpress Business

This is the heaviest quarterly loss of FLC Group in the past two years, at the same time, the undistributed profit has been eroded from nearly 2,100 billion VND to 1,600 billion VND.

FLC management said there are four main reasons for this loss. Firstly, the company actively narrows the commercial segment. The next two factors that are related to the epidemic are the affected construction and handover of real estate products and the decline in resort services. Finally, financial expenses jumped as the company increased provisions for investments.

FLC’s financial statements for the first quarter of the year recorded revenue of VND 1,085 billion, less than half of the same period. In which, the two main business segments, selling goods and real estate, both decreased by about 3 times over the same period.

Interest and sales expenses both increased sharply, plus a loss of nearly 265 billion VND recorded from joint ventures and associates (mainly Bamboo Airways) making it impossible for FLC to maintain a profitable business. .

By the end of the period, FLC had total assets of nearly 35,500 billion dong. Liabilities increased by nearly 2,100 billion VND in three months, to 26,140 billion VND. Of these, more than 7,100 billion dong is a bank loan.

The financial report also mentions that the Investigative Police Department of the Ministry of Public Security is in the process of investigating the former Chairman. Trinh Van Quyet and former Vice President Huong Tran Kieu Dung on stock market manipulation. FLC’s management said that this is a personal matter of the two former leaders, but will “assess risks carefully to make a decision that is suitable for the business activities of the enterprise in the near future”.

Eastern