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TDW: Explanation for business results in quarter 3/2010
Thu Duc Water Supply Joint Stock Company (Thu Duc Wasuco.J.S.C) (HOSE: TDW) has explained profit in quarter 3/2010 beside quarter 3/2009 as follows:
• Features of its business: People’s Committee of HCMC decides prices of pure water and cost is counted by Saigon Water Corporation (SAWACO) on real expenses of last period.
• In 2010, People’s Committee of HCMC increased price and SAWACO adjusted the cost in quarter 3/2010. However, increase of revenue was lower than increase of cost. Therefore, revenue in quarter 3/2010 increased 52.94% and cost increased 73.61% with variable cost up 20%. Beside, the company increased volume of water-meter from 85,763 in September 2009 to 96,965 in September 2010 (13.06%). Thence, the company had to increase personnel. Salary for counting allowance and insurance increased form 650,000 dongs to 730,000 dongs and deduction on salary increased from 19% to 22%. Those made increased 2.3 billion dongs of selling expenses (17.92%) and 1.7 billion dongs of administration expenses (76.93%).
• Because cost for its business is balanced and adjusted by SAWACO. Therefore, the company has waited for balance of SAWACO.
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