In the first quarter of 2024, IPA Investment recorded revenue of VND 85.55 billion, an increase of 34.1% over the same period, and after-tax profit recorded a profit of VND 104.85 billion compared to a loss of VND 136.15 billion in the same period, an increase of VND 241 billion. In particular, gross profit margin decreased sharply from 43.7% to 31.6%.

During the period, gross profit decreased by 3.1%, equivalent to a decrease of VND 0.86 billion, to VND 27.01 billion; financial revenue decreased by 38.2%, equivalent to a decrease of VND 30.36 billion, to VND 49.14 billion; financial expenses decreased by 71%, equivalent to a decrease of VND 193.47 billion, to VND 130.92 billion; profit from joint ventures and associates increased by 198%, equivalent to an increase of VND 86.99 billion, to VND 130.92 billion; sales and administrative expenses increased by 5.7%, equivalent to an increase of VND 0.92 billion, to VND 17.12 billion and other activities fluctuated insignificantly.

Thus, in the first quarter of 2024, although gross profit decreased, profit after tax increased sharply, shifting from loss to profit, mainly due to reduction in financial costs and increase in profit from joint ventures and associates.

IPA's financial costs decreased sharply in the first quarter of 2024. (Source: IPA)

IPA Investment further explained that the decrease in financial expenses was mainly due to the provision for securities depreciation and investment losses of VND163.3 billion last year, but this year it was reversed to VND19.2 billion, a decrease of VND182.5 billion.

New investment of 850 billion VND in Trung Nam Renewable Energy JSC

As of March 31, 2024, IPA Investment's total assets increased slightly by 0.8% compared to the beginning of the year, equivalent to an increase of VND 71.6 billion, to VND 8,907.7 billion. Of which, assets mainly invested in long-term finance recorded VND 5,925.8 billion, accounting for 66.5% of total assets; short-term receivables recorded VND 1,300.1 billion, accounting for 14.6% of total assets...

During the period, assets fluctuated strongly, mainly long-term financial investments increased by 20.3% compared to the beginning of the year, equivalent to an increase of VND 998.1 billion, to VND 5,925.8 billion; short-term receivables decreased by 45.7% compared to the beginning of the year, equivalent to a decrease of VND 1,094.8 billion, to VND 1,300.1 billion...

Regarding investment in joint ventures and associates, as of March 31, 2024, IPA Investment said it had invested VND 4,295.1 billion in VNDirect Securities Corporation (code VND - HoSE), equivalent to owning 25.84% of charter capital; regarding capital contribution investment in other units, for the first time IPA Investment recorded an investment of VND 850 billion in Trung Nam Renewable Energy Corporation (accounting for 9.36% of charter capital), as well as investing VND 928.4 billion in Century Real Estate Corporation (code CRE - HoSE), equivalent to 10.91% of charter capital, and had set aside a provision of up to VND 474 billion in CRE shares, equivalent to a temporary loss of 51.1% of the total investment value.

IPA continues to make provisions for investment in CRE shares at March 31, 2024. (Source: IPA)

It is known that in the 2023 General Meeting of Shareholders, the leaders of IPA Investment Group explained the investment in CenLand to start learning and approaching the real estate service sector.

Among them, there are projects in which IPA Investment Group directly invests, indirectly invests, and financially invests..., but the Group participates in accompanying and creating with CenLand to find the "formula for success" and not simply a financial investment deal.

Regarding the issue of many of the Group's investments being at a loss, IPA Investment Group also affirmed that the loss is mainly due to the blockage of investment activities, all investments are currently in a pending state. The reason is that in 2022, many projects in general were stopped due to legal issues, in order to be able to complete, the company is speeding up the consolidation of legal documents.

Regarding capital sources, by the end of the first quarter of 2024, total short-term and long-term debt of IPA Investment decreased by 9.4% compared to the beginning of the year, equivalent to a decrease of VND 411 billion, to VND 3,981.5 billion and equal to 95.1% of equity (equity is VND 4,187.2 billion).

Chairman Vu Hien's company has divested all of its more than 3.2 million IPA shares.

In addition, another noteworthy point is that IPA Securities Investment Fund Management Company Limited has just sold all 3,209,280 IPA shares to reduce ownership from 1.5% to 0% of charter capital, the transaction was carried out from December 26, 2023 to January 16, 2024.

It is known that IPA Securities Investment Fund Management Company Limited is an organization related to Mr. Vu Hien, Chairman of the Board of Directors at IPA Investment Group.

In addition, as of March 31, 2024, IPA Investment has only two major shareholders, including H&H Investment Management Company Limited, owning 55.45% of charter capital; Ms. Luong Thu Hang owns 5.25% of charter capital; and the remaining 39.3% of charter capital belongs to small shareholders owning less than 5% of charter capital.