Reported big profits but leaders still resign
Tin Nghia Industrial Park Development Corporation (Code: TIP) has just announced that it has received the resignation letter of Mr. Nguyen Quoc Nam - Deputy Director of the company. Mr. Nam has been with TIP for 23 years.
The change in key personnel of Tin Nghia Industrial Park Development took place in the context of the unit's business activities being on the rise. In addition, Tin Nghia is also lending tens of billions of dong to its subsidiaries in the ecosystem.
TIP's leader resigns after 23 years of service. The company still has negative cash flow of 33 billion despite reporting record profits (Photo TL)
Specifically, last September, TIP lent Tin Khai JSC 32 billion VND in unsecured loans with an interest rate of 9%/year for a period of 12 months. Tin Khai JSC is a subsidiary in which Tin Nghia owns 99.88% of shares, established in 2008, operating in the field of construction investment, infrastructure business of residential areas, industrial parks, housing business and factories for rent.
Regarding business activities, in the first half of 2024, TIP recorded net revenue of VND 79 billion, an increase of 13% over the same period. Net profit recorded up to VND 95 billion, nearly 4 times higher than last year.
Explaining the sudden increase in profits, TIP said that revenue from service provision at Tam Phuoc Industrial Park has become more stable. In addition, financial revenue from cooperation contracts with Phuoc An Port Investment and Exploitation Petroleum Joint Stock Company (UPCoM: PAP) and the reversal of financial investment provisions in Olympic Coffee Joint Stock Company also helped increase profits during the period.
Profit increased, business cash flow still negative 33 billion VND
Although TIP's profit increased 4 times compared to the same period last year, its operating cash flow is facing major problems. Specifically, the company brought in 117.5 billion VND but had to spend 74.8 billion VND due to losses from investment activities. The corporate income tax payable during the period also increased from 7.1 billion to 19.5 billion VND. As a result, TIP's operating cash flow was negative by 33.2 billion VND, while in the same period last year it was still positive by 41.9 billion VND.
Net cash flow from investing activities was positive at VND42.2 billion, showing that the company is recovering loans. This means that investment activities are shrinking. Cash flow from financing activities was negative at VND22.3 billion due to dividends and profits paid to owners.
At the end of Q2/2024, TIP's total assets reached VND 2,072 billion, of which the remaining cash amount was VND 45 billion. Most of the assets are in the form of short-term receivables, accounting for VND 1,331.8 billion.
Source: https://www.congluan.vn/dong-tien-am-33-ty-dong-lanh-dao-phat-trien-khu-cong-nghiep-tin-nghia-tip-tu-nhiem-post316362.html
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