Industrial estate developer's profit up 660 pct

By Thuy Tien May 5, 2021 | 12:51 am PT

Trang Due Industrial Park operated by Kinh Bac City in the northern city of Hai Phong. Photo courtesy of Kinh Bac City.

Industrial real estate developer Kinh Bac City has reported its highest quarterly post-tax profit of VND715 billion ($31 million) in Q1, up 658 percent year-on-year.

The company has attributed the skyrocketing profit to surging income from land lease and transfer of real estate projects. Its income from land leasing and property transfer has risen three times year-on-year and accounted for 95 percent of total revenue.

The remaining 5 percent of the revenue came from office and warehouse leasing, electricity and water supply, service fees and wastewater treatment fees.

Its Q1 revenue was VND2 trillion, up 260 percent year-on-year.

The firm has targeted a 2.7-fold increase in revenue to VND6.6 trillion for 2021, and its post-tax profit is expected to rise 6.3 times year-on-year to a record VND2 trillion.

As of Q1, its total assets were valued at VND25.3 trillion, up 6 percent from last year.

The firm operates seven industrial parks in the north and one near Ho Chi Minh City.