GEE’s consolidated profit before tax in 2022 reached VND 1,119 billion
The recently released report of GELEX Electricity Joint Stock Company (Upcom: GEE) recorded the consolidated net revenue of the enterprise was VND 16,664 billion, down ny 11% compared to 2021; Consolidated profit before tax reached VND 1,119 billion, up by 36.8% compared to 2021.
In 2022, with many fluctuations in the macro economy, the same as other businesses in the market, GELEX Electricity was also affected. The company faced difficulties in both business segments of trading electrical equipment and electricity generation.
In the electrical equipment segment, due to a decrease in market demand and partly influence of the relocation of Thibidi and CFT factories in the first 6 months of 2022, businesses also confronted many challenges.
Among the member units of GELEX Electricity, Vietnam Electric Cable Corporation (CADIVI) still contributed largely to the overall outcomes. In 2022, CADIVI recorded a new milestone: the revenue reached VND 11,334 billion, profit before tax reached VND 482 billion. The company continued to be recognized as the “No. 1 market share in Vietnam” in the segment of electrical cables – a brand has been trusted with a nationwide distribution agent system (according to the market survey results of the Association of High Quality Vietnamese Goods).
In terms of cash flow, in 2022, GELEX Electricity recorded a net cash flow from business activities of VND 1,718 billion. Net cash flow from investing activities was VND 1,191 billion. Financial cash flow was negative VND 700 billion, mainly for reducing debt and paying dividends to shareholders.
Confronting fluctuations in interest rates and exchange rates in the market, according to the general orientation of GELEX Group, GELEX Electricity and its member units reduced the proportion of outstanding loans. As of December 31st, 2022, the ratio of liabilities/equity was 1.90 times, and 2.86 times at the beginning of the year; while the debt/equity ratio was 1.44 times, and 1.92 times at the beginning of the year.
The proactive reduction of payables and debts helped the company and its units in the power group cut financial costs while interest rates increased sharply in the past year. This has led to the fact that the company’s financial situation has become more and more positive and developed.
GEE is one of two sub-holdings of GELEX Group (Ticker Symbol: GEX) established in 2016. On November 15th, 2022, GELEX Electrical Equipment Joint Stock Company officially changed its name to GELEX Electricity Joint Stock Company. According to GEE, this new name covers all segments the Company is operating in instead of focusing on electrical equipment alone. This also shows a shift in business strategy, gradually balancing the proportion in the production segments, developing new business segments to ensure the growth plan of the company.