The positive business outcomes of GELEX Group in 2022 are attributed to the contribution of core segments and growth from the Group’s investment and business segments.

GELEX’s consolidated net revenue in 2022 reached VND 32,090 billion

According to newly announced GELEX information, in 2022, the Group’s consolidated net revenue reached VND 32,090 billion, up by 12% compared to the same period in 2021 and reached 89% of the established plan.

GELEX’s 2022 gross profit reached VND 6,458 billion, up by 48%. Gross profit margin also increased to 20% compared to 15% in the same period last year. Profit before tax of 2022 reached VND 2,093 billion, up by 2% compared to 2021 and reached 80% of the 2022 plan set out by the Group.

In the revenue structure of GELEX in 2022, there was a more balanced contribution among the segments, reducing dependence on the electrical equipment segment compared to the same period in 2021 due to the consolidation of Viglacera from the second quarter of 2021 and other segments such as industrial park, real estate, building materials, and energy which had good growth in 2022.

As of December 31st, 2022, GELEX’s total assets were VND 52,401 billion, down 14% compared to 2021, mainly reducing short-term assets because GELEX actively reduced inventory, short-term receivables and short-term financial investments.

In order to actively deal with fluctuations in the financial market, GELEX actively oriented to reduce debt to reduce costs and financial pressure. The assets structure and capital of GELEX as of December 31st, 2022 was relatively balanced.

GELEX’s financial indicators such as debt ratio, payment ratio, operating efficiency ratio, etc. were all at the right levels and continued to be improved in the fourth quarter of 2022. A healthy financial situation helped GELEX face less risk in the volatile capital and interest markets.

Invest in industries with good growth potential

In 2022, after basically completing the restructuring of capital ownership at the parent company and its subsidiaries, GELEX continued to hold dominant ownership of 2 sub-holdings: Gelex Electric specialized in industrial production (mainly in industrial production) and Gelex Infrastructure specializes in investment and business in the infrastructure segment, including investment and development in the several sectors such as energy, industrial parks real estate, social housing, building materials, clean water production and supply, etc.

Over 30 years of development, GELEX has been known as the leading enterprise in the electrical equipment industry in Vietnam, manufacturing and trading equipment in the value chain of the electricity industry. Up to now, the Group has basically completed investment in expansion and modernization of factories, production technology, capacity management, etc. in production and business units to enhance its position, maintain its scale and market share with some reputable brands such as CADIVI power cables, THIBIDI transformers, EMIC electrical measuring equipment, HEM motors, etc. In the coming period, the rapidly growing electricity demand in Vietnam will contribute to creating favorable conditions for GELEX’s power industry growth.

Besides, starting from the core and traditional industries, GELEX has invested in industries with good growth potential, leading a stable cash flow in the long term. Especially, after raising the ownership rate to the controlling level at Viglacera Corporation – JSC, GELEX’s system has added a member who is a leading industrial real estate and social housing developer in the North, the leading manufacturer of building materials in Vietnam. With the advantage of abundant land bank, favorable location and experience in real estate development for industrial park infrastructure, as well as a long-time brand name in manufacturing business of building materials, Viglacera is expected to grow dramatically, making an important contribution to the Group’s business results.

Viglacera – a member unit of GELEX owns the land bank of the key industrial park in the North.

 

In addition to industrial real estate, renewable energy and clean water are also essential industries with growth potential of GELEX… They are the segments that are mostly assessed to be stable and less volatile compared to other segments that are highly cyclical as commercial real estate.

Along with that, in the coming period, the Group is still looking for M&A opportunities to bring growth in scale, serving its long-term development strategy.

Source: Nhan Dan