According to the Financial Statement Quarter III/2011, profit before tax is VND (6,378,413,621) with a decrease of VND (9,023,901,773) equaling to 341% compared to Quarter II/2010. IDJ Financial JSC (HNX: IDJ) explained the decrease in operating result in QIII/ 2011 as follows:
- In 2009 and early 2010, the Company signed a long-term contract to hire 8 floors of Grand Plaza and 3 office floors of Hanoi Plaza Hotel Company Limited invested by Chamrvit Corporation. Then, the Company offered tHNX departments to secondary investor for hire in the long-term. Hence, the Company had sudden revenue and profit from quarter III/2009 to quarter III/2010 by transferring rights of hire. In 2011, due to the decline of economy, inflation, the increase of bank’s interest and credit tightening of banks, operations of the Company was influenced considerably. In Quarter I, Quarter II, Quarter III/2011, the Company didn’t have revenue from transferring rights of long –term hiring; it only had revenue from leasing the rest area of the Company in the short time. Besides, because of the crisis of economy, demand for extending offices and hiring price also decreased. Therefore, revenue of Quarter III/2011 decreased by 94% year on year
- In Quarter III/2011, although revenue didn’t increase, the Company still had to pay expenses for operations of Trading Center and depreciation of remaining land, which made cost of goods sold higher than revenue.