Revealing the reason for First Real Real Estate (FIR) to report mid-year profit 25 times, to VND 57.1 billion

First Real Estate Joint Stock Company (HoSE: FIR) has just announced its consolidated financial statements for the year 2022 with revenue and profit skyrocketing over the same period.

Specifically, net revenue reached more than VND 168 billion, up 153% over the same period last year, mainly coming from the transfer of real estate in projects the Company is implementing for sale.

This is the factor that led to a sharp increase in profit after tax compared to the same period last year on both separate and consolidated financial statements, reaching VND 57.1 billion, up 238% (nearly 25 times).

As of March 31, 2022, First Real’s total assets reached VND 883.8 billion, an increase of nearly 40% over the same period in 2021. Inventories increased by 233% to VND 301.6 billion, short-term revenues reached 423.9 billion VND (accounting for 48% of total assets). Short-term debt increased by 73.5% to 421.6 billion dong.

According to First Real, the increase in inventories mainly comes from the transfer of investment and development of the An Phu and Tam Ky new urban area project phase 1. However, according to FIR, the amount of inventory for businesses is currently At present, it is an advantage, because this is a project with full legal status, modern utilities, synchronous infrastructure, … ready to bring customers attractive investment opportunities.

Besides, real estate prices are still trending up, maintaining a large inventory will help businesses be more proactive in launching the best quality products.

In 2022, FIR sets a target of net revenue of 450 billion dong, profit after tax at 120 billion dong, a sharp increase compared to 2021. Thus, by the end of 6 months of 2022, FIR has completed 37% of its sales target. revenue and 48% profit target.

Regarding First Real, this company recently decided to hire a business that used to be a subsidiary of First Real as a real estate agent. Specifically, FIR signed a brokerage contract with Protech Real Estate Joint Stock Company as a real estate brokerage unit to provide brokerage services and support First Real Real Estate Joint Stock Company.

The cooperation items are to introduce, promote and find customers to transfer real estate products at the investment project to build a house in An Phu Residential Area, An Phu Ward, Tam Ky City, province. Quang Nam.

According to the resolution of the Board of Directors (BOD) of First Real Real Estate, the value of the contract/transaction must not exceed the value under the decision-making authority of the Board of Directors as stipulated in the company’s charter.

The Board of Directors assigned Mr. Ha Than Thuc Luan – General Director of the company, to have full authority to decide on the contents related to the negotiation, negotiation and signing of contracts, documents and documents related to the above work. .

Protech Real Estate Joint Stock Company was formerly a subsidiary of First Real Estate. First Real real estate has divested at Protech, but still holds a recorded investment of VND 1,800 billion in Protech.

However, the fair value of this investment has not been clearly determined because Protech’s shares are not listed on the stock market and First Real has not collected enough information to make a determination. fair value of this investment.

On the stock market, in the morning session of June 1, FIR shares traded around 42,600 VND/share.