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SD7: QII/2011 Operating results explanation
According to the Financial Statement QII/2011, operating result decreased over 10% in compare to QII/2010. Song Da No.7 JSC (HNX: SD7) explained the decrease in operating result in QII/2011 as follows:
1. Revenue of QII/2011 decreased of VND billion 123 compared to QII/2010
- Son La Hydroelectricity has been nearly completed, the production reduced, especial concrete dam completed at the end of 2010. This cause the decrease of industrial income
- The Government’s credit tight and credit growing limit gave hard time for the project owners in payment (Lai Chau Hydroelectricity of EVN Corporation) or the Company’s disbursement (Son La Hydroelectricity and Nam Chien Hydroelectricity)
2. Banking interest was up to 21 – 22% in QII/2011, but only 14 – 15% in QII/2010, the expenses of banking borrow increased of VND billion 27.6 compared to QII/2010. Besides of the liquidation of projects have not completed. Therefore, although financial income was VND billion 15.1 (Increase of VND billion 14.1) has not enough to level for expenses, the profit decreased of 62% compared to QII/2011
3. Administration expenses increased of 29.7% compared to QII/2010
- The increase of minimum salary;
- The prices materials and fuel went up significally.
HNX
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