Newly released financial reports from Kinh Bac City Development Corporation (KBC) revealed significant growth across multiple metrics. Specifically, revenue in last year's final quarter reached nearly 1,650 billion VND, and after-tax profit hit 664 billion VND, representing a twofold and 25-fold increase respectively compared to the same period.

For the entire year, cumulative revenue was approximately 6,690 billion VND, a 140% increase over the previous year. After-tax profit soared to 2,226 billion VND, a fivefold increase over the same period, marking the second-highest level in the company's operating history.

According to management, thriving industrial park land and infrastructure leasing operations contributed significantly to the year's growth. Additionally, the company generated revenue from capital transfers at affiliated units and increased interest from deposits and loans.

Despite this, these results fell short of the planned targets of 10,000 billion VND in revenue and 3,200 billion VND in after-tax profit approved by shareholders. This marks the sixth consecutive year the company has failed to meet its key financial targets.

Last year, Kinh Bac saw significant changes in its asset scale and capital structure. Total assets increased by over 25,000 billion VND, reaching nearly 70,000 billion VND.

Inventory accounted for a significant portion, nearly 27,000 billion VND, doubling from the beginning of the year. The inventory value primarily stemmed from the Trang Cat, Loc Giang, and Nen Town projects. The Khoai Chau (Hung Yen) complex, eco-tourism, and golf course project also generated an inventory value of 775 billion VND. This project is part of a strategic partnership between the company and the Trump Organization (US).

The company currently holds 43,000 billion VND in debt, an increase of 19,000 billion VND from the start of the year. Of this, 15,000 billion VND is short-term debt, with the remainder primarily long-term loans. VPBank is currently the largest creditor, with long-term outstanding debt exceeding 13,500 billion VND. Some loans carry interest rates of up to 12.5% annually, secured by assets from urban area projects invested in by the company.

In recent reports, many analyst groups commented that companies holding large land banks in key industrial regions, such as Kinh Bac, will benefit from infrastructure development policies and regional connectivity. Industrial park leasing prices in last year's Q3, according to KBSV Vietnam, increased by approximately 4-5% in both the northern and southern regions.

Additionally, foreign direct investment (FDI) — a main growth driver for industrial real estate businesses — is forecast to recover better this year. After the US announced new reciprocal tariffs, some businesses reported that clients have returned to negotiations and resumed the land handover process.

Phuong Dong