Audited report turns Hiep Phuoc Industrial Park smile up-side down

Hiep Phuoc Industrial Park has just announced VND788 billion ($34.26 million) in audited losses while its unaudited report showed a pre-tax profit of VND188 billion ($8.17 million).

Hiep Phuoc Industrial Park JSC (HIPC, UPCoM: HPI), has just announced its 2019’s financial statement with bad results.

In the previous unaudited report, HIPC calculated VND188 billion ($8.17 million) in pre-tax profit and VND7 billion ($304,350) in gross profit. However, the audited report pointed out VND788 billion ($34.26 million) in losses.

The increase in losses was caused by a 195 per cent rise in costs. HIPC had to raise the cost price of Hiep Phuoc industrial zone to VND712 billion ($30.96 million) in accordance with the payment that HIPC transferred to the state, as well as left VND275 billion ($11.96 million) for backup.

With these losses from last year, accumulated after-tax profit was a negative VND745 billion ($32.4 million), exceeding the charter capital and bringing equity down to a negative VND4 billion ($173,910).

HIPC is located in Nha Be district on an area of 1,686h hectares and is the largest industrial zone in Ho Chi Minh City. HIPC was founded by Tan Thuan Industrial Promotion Co., Ltd. (IPC – which is invested by Taiwanese group CT&D) and a state-owned enterprise in Ho Chi Minh City.

The charter capital of HIPC is VND600 billion ($26.1 million) of which IPC holds 30.5 per cent, only second to Tuan Loc Construction Investment Corporation (33.3 per cent).

At its recent annual shareholders' meeting, all three members of the Board of Management have been replaced with Ho Thi Hong Hanh appointed as new chairwoman.

However, shareholders did not approve the 2020 business plan which would have set an after-tax profit target of VND54 billion ($2.35 million) for this year, even after HIPC was VND17 billion ($39,130) in the red in the first quarter.