The increase in the sale of vehicles and mobile phones contributed to offsetting a plunge in revenue in the other sectors of Vingroup.
According to the accumulated financial report for the fourth quarter of 2020 of Vingroup, the group acquired VND35.81 trillion($1.56 billion) in accumulated net revenue, down 4 per cent on-year.
The group acquired VND4.38 trillion ($190.43 million) in net profit in 2020, equaling 88 per cent of its initial expectation.
The group’s gross profit in decreased in almost all sectors due to the impact of the COVID-19 pandemic. For example, the revenue from the tourism and amusement sectors in the final quarter decreased by 40 per cent to VND1.05 trillion ($45.65 million).
The financial revenue increased by 36 per cent on-year thanks to handing over some investment projects.
However, there was still growth in the real estate sector. Notably, in the final quarter of last year, Vingroup earned VND22.15 trillion ($963 million) from this sector, up 47 per cent on year.
For the whole year 2020, the group’s net revenue declined by 15 per cent on-year to VND110.46 trillion ($4.8 billion). Its pre-tax profit was VND13.96 trillion ($606.96 million) while its after-tax profit was VND4.38 trillion ($190.43 million), dropping 11 and 43 per cent, respectively.
The group had yet to recoup its investment in the manufacturing sector. However, the revenue from this sector increased from VND9.35 trillion ($406.5 million) in 2019 to VND19.56 trillion ($850.43 million) in 2020 thanks to increasing sales of vehicles and mobile phones. Notably, last year, the group sold 31,500 automobiles. In the first quarter of 2021, Vingroup announced three brand new self-driving electric SUV models, using AI with many outstanding smart features.
The group targets increasing the revenue ratio of the technology and manufacturing sectors from the existing 20 per cent to 50 per cent in the upcoming time.