Leading real estate and retail conglomerate Vingroup plans to earn 140 trillion VND (6 billion USD) in net revenue and 6.5 trillion VND (278.5 million USD) in post-tax profit in 2019.

Photo shows the entrance of Times City, the urban area built by real estate,
retail and tech conglomerate Vingroup (Photo: cafeland.vn)

The information was released during the group’s 2019 annual general meeting of shareholders on in Hanoi this week.

In 2018, the company's net revenue reached nearly 122 trillion VND (5.23 billion USD), up by 36 percent compared to 2017 due to the increase in revenue of all sectors, especially in the transfer of real estate.

Real estate transfer revenue increased by 33 percent in 2018 from 62.5 trillion VND to 83.3 trillion VND.

The rise came from the handover of key projects in Hanoi and HCM City, including the Landmark 81 building in Vinhomes Central Park, Vinhomes Golden River, Vinhomes The Harmony, Vinhomes Green Bay and Vinhomes Metropolis.

In 2018, revenue from real estate leasing grew 26 percent from 4.4 trillion VND to 5.6 trillion VND due to the growth of the commercial centre system nationwide.

The group currently owns and operates 66 shopping centres across the country.

Tourism, entertainment and hotel services revenue reached 7.36 trillion VND in 2018, up by 35 percent, thanks to the increasing number of tourists and the expansion of resorts, reaching a total of 16,400 rooms across the country.

Retail service revenue soared by 48 percent from 13 trillion VND in 2017 to 19.3 trillion VND in 2018 as the retail network continued to be expanded and retail sales per square metre rose sharply.

Revenue from production activities reached 556 billion VND thanks to the sale of electric motorbikes and smartphones.

Vingroup’s 2018 post-tax profit grew 9 percent from 5.65 trillion VND in 2017 to 6.2 trillion VND in 2018.

In 2018, the group put into operation some real estate complexes that included both commercial centres and accommodations such as Vinhomes Central Park, Vinhomes Metropolis, Vinhomes Imperia Hải Phòng, Vinhomes Marina Project and Vinhomes Star City Thanh Hoa.

Last year, the group implemented three large urban projects in Hanoi and HCM City: Vinhomes Grand Park, Vinhomes Ocean Park and Vinhomes Smart City.

Vingroup successfully issued 84 million dividend preference shares. The mobilised capital was used in the implementation of real estate projects, social infrastructure projects (including via direct investment or cooperation with other partners) and other activities.

Vingroup’s short-term assets rose by 35 trillion VND, from 100.2 trillion VND in 2017 to 135.3 trillion VND in 2018. Long-term assets recorded growth of 34 percent compared to the same period of 2017, reaching 152.7 trillion VND as of the end of 2018.

The value of fixed assets climbed from 35.6 trillion VND in 2017 to 49.4 trillion VND in 2018, up by 38 percent, due to the strong development of real estate investment projects.

During the period, the value of real estate investment increased by 8.5 trillion VND by the end of 2018, from 18.2 trillion VND to 26.7 trillion VND, as Vincom Retail expanded its retail network nationwide with the addition of 20 shopping centres.

Total liabilities in 2018 were estimated at 189 trillion VND. Long-term debt increased as the group raised more capital to finance real estate projects as well as production activities.