The Vinmec Central Park hospital in HCM City (Photo: VNA)
Hanoi (VNA) - Leading business conglomerate Vingroup, one of the nation’s largest real estate developers and a retail sector giant, targets higher revenues but lower net profit this year.

At the group’s annual shareholders meeting held recently in Hanoi, the board of shareholders approved a total revenue target of 80 trillion VND (3.5 billion USD) for the year, and a post-tax income of 3 trillion VND (134.2 million USD).

In 2016, the company earned net revenues of 57.61 trillion VND (2.57 billion USD), up 69 percent over 2015, and a post-tax income of 3.51 trillion VND (157 million USD).

The group’s 2017 targets show a year-on-year drop of 15 percent in post-tax income, but a 40 percent increase in revenues.

The value of real estate transactions was 83 trillion VND (3.7 billion USD), with 15,000 apartments, villas, townhouses and hotel condos sold.

Vingroup Chairman Pham Nhat Vuong said that increase in revenues do not necessarily mean an equally high increase in profits, because of changing market conditions.

Vingroup paid 6.18 trillion VND (276 million USD) in taxes in 2016.

The group informed its shareholders that it would continue to issue new shares and intensify focus on its retail sector operations.

The group’s stocks are publicly traded on the HCM Stock Exchange under the stock code of VIC. On April 27, VIC stock stood at 40,900 VND per share.

Announcing its audited, consolidated earning results for 2016, the group said net profit attributable to the shareholders was 2.43 trillion VND or 1,178 VND per basic and diluted share compared to 1.21 trillion VND or 558 VND per basic and diluted share the year before.

All of Vingroup’s core businesses grew and secured significant market shares last year, the meeting heard.

The retail sector showed the most significant growth last year, as its supermarket chains, convenience stores and other retail outlets posted a 115 percent increase over 2015, earning total revenues of 9.24 trillion VND (413.4 million USD).

Three years after it entered the sector, the group now operates more than 1,000 retail stores across the country, serving more than 56 million customers.

Other areas earning high returns in 2016 included the hotel, travel and recreation business with 4.25 trillion VND (190 million USD) for a 49 percent increase from 2015’s figure; the health and medical care service sector with 1.09 trillion VND (48.77 million USD) for a 42 percent rise; and the education sector with 713 billion VND (31.9 million USD), a 39 percent increase.

Vingroup opened two new hotels and 10 new shopping malls in 2016, bringing the total to nine hotels and 32 malls.

The board’s decisions and future business plans received near unanimous approval of 96 to 100 percent from shareholders.-VNA