The real estate market is still in a state of stagnation, projects with long-term legal delays have caused inventories and receivables of real estate businesses to increase sharply. This is one of the reasons why businesses are having difficulty with cash flow, and operating cash flow is continuously negative.

Accordingly, at Construction Development Investment Joint Stock Corporation (DIC Corp - code: DIG), consolidated net revenue in the second quarter of 2024 reached VND 821.2 billion, 5 times higher than the same period last year.

DIC Corp's interest expense during the period decreased sharply, while recording a reversal of financial expenses, but financial revenue also decreased sharply. As a result, the company reported a sudden profit of 125 billion VND, while in the same period last year, DIC Corp only made a profit of 9 billion VND, this is also the highest profit of the enterprise in the last 10 quarters.

In the first 6 months of the year, DIC Corp recorded revenue 2.2 times higher than the same period, with VND 822 billion. However, due to a sharp decrease in revenue from financial activities, after-tax profit was only nearly VND 4 billion, down 95% compared to the first half of 2023.

Although business was positive in the second quarter, DIC Corp's financial picture showed that the company still faced difficulties with cash flow when it continued to record a negative operating cash flow of more than VND 1,210 billion, a sharp increase compared to the negative VND 108.4 billion in the same period. In addition, the company's investment cash flow was negative VND 659 billion and financial cash flow was positive VND 1,162 billion, mainly due to increased borrowing to offset the operating cash flow deficit.

Similarly, at Century Real Estate Joint Stock Company (Cenland - code: CRE), consolidated net revenue in the second quarter of 2024 reached VND 333.5 billion, down 17% over the same period, mainly from real estate brokerage and investment.

In the second quarter, Cenland reported a net profit of VND8.6 billion, down 13% year-on-year. In the first half of the year, the company's net revenue was VND827 billion, up 82%, and after-tax profit was VND16 billion, 11.5 times higher than the same period last year.

Cenland's cash flow report also noted that the company is still facing cash flow difficulties. In the first 6 months of the year, Cenland recorded a negative net cash flow from operating activities of VND50.4 billion, compared to VND55.6 billion in the same period last year.

At Saigon Thuong Tin Real Estate JSC (TTC Land - code: SCR), consolidated net revenue in the second quarter of 2024 reached VND 75.2 billion, up 9.6% over the same period; profit after tax this period was only VND 944 million, down 76% compared to the low level of the same period last year.

In the first half of the year, TTC Land achieved VND144 billion in revenue, down 3.7% year-on-year. Pre-tax profit reached VND16.1 billion, up 15.8% year-on-year, but after-tax profit decreased 3.4% to VND5.7 billion.

Operating cash flow at TTC Land continued to record a negative VND 15.5 billion, a significant improvement compared to the negative VND 1,150 billion in the same period last year.

Taseco Real Estate Investment Joint Stock Company (Taseco Land - code: TAL) also recorded net revenue in the second quarter of 2024 reaching VND 599 billion, double that of the same period last year. However, due to a sharp decrease in other profits, while tax expenses increased, Taseco Land's after-tax profit in the second quarter only reached VND 6.4 billion, while the same period last year was VND 17.2 billion.

In the first 6 months of the year, the company's net revenue reached VND908 billion, up 81% over the same period last year; after-tax profit reached VND16.6 billion, down 4.6% over the same period last year.

Notably, Taseco Land's net cash flow from operating activities in the first 6 months of the year was negative 178 billion VND, compared to negative 426 billion VND in the same period last year.

Nam Long Investment Corporation (Nam Long Group - code: NLG), a real estate giant in the South, recorded a not-so-positive business situation. In the second quarter of 2024, the company's net revenue reached 252 billion, after-tax profit reached 160 billion, down 73.5% and 31% respectively compared to the same period last year.

In the first 6 months of the year, Nam Long recorded VND457 billion in revenue and VND94.8 billion in profit after tax, down 61.5% and 62% respectively compared to the same period last year. With the achieved results, this real estate company has only completed 7% of the revenue plan and 11.5% of the profit plan for the whole year.

Although the business is profitable, Nam Long is facing a big problem with negative net cash flow from business operations of nearly VND851 billion in the first half of the year, compared to VND1,127 billion in the same period last year.

In addition, a series of other real estate businesses also encountered cash flow difficulties when recording negative net cash flow from business activities in the first 6 months of the year, such as: Khai Hoan Land Group Corporation (Code: KHG) recorded negative 93 billion VND; Tu Liem Urban Development Corporation (Code: NTL) recorded negative 128 billion VND; Khang Dien House Investment and Trading Corporation (Code: KDH) recorded negative 2.5 billion VND...