Hanoi (VNS/VNA) - The Hanoi Railway Company Limited (Hanoi Metro), the operator of the Cat Linh – Ha Dong urban metro line, announced that in 2023, the company made a profit of over 13 billion VND (510,730 USD), nearly six times more than the previous year.
This marks the second consecutive year the company has reported a positive profit after seven years of losses.
The company’s latest audited financial statements showed that the company’s revenue in 2023 reached over 515 billion VND (20.2 million USD), an increase of nearly 7% compared to 2022. Ticket sales accounted for approximately 74 billion VND (2.9 million USD), a 12.5% increase, with the remainder coming from subsidies.
The cost of goods sold increased more than revenue, causing the gross profit for 2023 to be halved to 7.8 billion VND. Consequently, the gross profit margin fell to around 1.5%.
Financial income surged 12.7 times to nearly 26.6 billion VND (1.04 million USD), all of which came from interest on deposits as the company had over 685 billion VND (26.9 million USD) in idle funds in the bank. Additionally, the company completely cut loan interest expenses, so no financial costs were recorded during the period.
Overall, the company made a post-tax profit of over 13 billion VND (510,730 USD), a 570% increase compared to 2022 and double the planned target.
In 2022, the company had initially reported a profit of nearly 97 billion VND (3.8 million USD) in its first financial report. However, the audit firm required the company to include depreciation costs for 15 specialised maintenance equipment for the Cat Linh–Ha Dong metro line into production costs. As a result, the profit for 2022 was adjusted to over 2 billion VND (78,570 USD).
The company also increased its equity capital from over 39 billion VND to more than 2.68 trillion VND, a 69-fold increase. Conversely, liabilities decreased 8.7 times to nearly 347 billion VND, mainly due to the completion of procedures to receive all assets of the Cat Linh – Ha Dong metro line.
This year, the company aims to transport nearly 11 million passengers and record total revenue of over 529 billion VND (20.7 million USD), an increase of about 3% compared to 2023. The company plans to make profit for the third consecutive year, with a target of over 13.4 billion VND (526,540 USD).
In addition to continuing to develop and operate the existing urban railway line, the company targets to establish the organisation and personnel needed to operate the Nhon – Hanoi Station metro line, including trial operations, management plans, ticket pricing, and subsidy policies for this project.
This urban metro line is more than 13km long and has 12 stations and 13 trains. Each train, whose designed speed is 80 km per hour, has four carriages capable of carrying over 900 passengers.
Currently, ticket prices range from 8,000 VND for a single ride to 15,000 VND for the entire route. A daily pass costs 30,000 VND per ticket, and a monthly pass costs 200,000 VND./.
