Hanoi Metro posts $500K profit

By VNA   May 17, 2024 | 04:17 pm PT
Hanoi Metro posts $500K profit
A worker examines a train of the Cat Linh – Ha Dong Metro Line in Hanoi. Photo by VnExpress/Giang Huy
The Hanoi Railway Company Limited (Hanoi Metro), the operator of the Cat Linh – Ha Dong urban metro line, said it made a profit of over VND13 billion ($510,730) in 2023, nearly six times more than the previous year.

This marks the second consecutive year the company has reported a positive profit after seven years of losses.

The company’s latest audited financial statements showed that the company’s revenue in 2023 reached over VND515 billion, an increase of nearly 7% compared to 2022. Ticket sales accounted for approximately VND74 billion ($2.9 million), a 12.5% increase, with the remainder coming from subsidies.

The cost of goods sold increased more than revenue, causing the gross profit for 2023 to be halved to VND7.8 billion. Consequently, the gross profit margin fell to around 1.5%.

Financial income surged 12.7 times to nearly VND26.6 billion, all of which came from interest on deposits as the company had over VND685 billion in idle funds in the bank. Additionally, the company completely cut loan interest expenses, so no financial costs were recorded during the period.

Overall, the company made a post-tax profit of over VND13 billion, a 570% increase compared to 2022 and double the planned target.

In 2022, the company had initially reported a profit of nearly VND97 billion in its first financial report. However, the audit firm required the company to include depreciation costs for 15 specialized maintenance equipment for the Cat Linh–Ha Dong metro line into production costs. As a result, the profit for 2022 was adjusted to over VND2 billion.

The company also increased its equity capital from over VND39 billion to more than VND2.68 trillion, a 69-fold increase. Conversely, liabilities decreased 8.7 times to nearly VND347 billion, mainly due to the completion of procedures to receive all assets of the Cat Linh – Ha Dong metro line.

This year, the company aims to transport nearly 11 million passengers and record total revenue of over VND529 billion, an increase of about 3% compared to 2023. The company plans to make profit for the third consecutive year, with a target of over VND13.4 billion.

In addition to continuing to develop and operate the existing urban railway line, the company targets to establish the organisation and personnel needed to operate the Nhon – Hanoi Station metro line, including trial operations, management plans, ticket pricing, and subsidy policies for this project.

This urban metro line is more than 13km long and has 12 stations and 13 trains. Each train, whose designed speed is 80 km per hour, has four carriages capable of carrying over 900 passengers.

Currently, ticket prices range from VND8,000 for a single ride to VND15,000 for the entire route. A daily pass costs VND30,000 per ticket, and a monthly pass costs VND200,000.

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