Pyn Elite Fund's medical equipment investee deep in loss

JVC’s financial year starts on April 1 and ends on March 31 each year, so the third quarter in JVC’s financial year is actually the last quarter of 2016. In spite of the reduction in production costs in the quarter, JVC suffered a net loss of VND5.7 billion ($251,434) in operating activities. Meanwhile, in the same period last year, they made a profit of nearly VND27 billion ($1.2 million).

Sales and services revenue these three months were VND124.5 billion ($5.5 million), down 38 per cent on-year. Gross profit this quarter was only VND5.56 billion ($245,258). Financial revenues were trivial, while the interest expenses on loans were VND1.1 billion ($48,522).

JVC’s revenue mostly comes from sales and the provision of medical equipment. Total sales in this quarter reached VND83.62 billion ($3.7 million), down 55 per cent compared to last year. However, the segment still helped to earn VND15.5 billion ($683,723) in gross profit. Associated medical supplies were VND15 billion (661,667) in loss, despite a revenue of VND32.47 billion ($1.43 million).

During the period, the sales costs were VND8.3 billion ($366,123), decreasing by more than VND10 billion ($441,112) on-year. Besides, management costs were over VND2 billion ($88,222), dropping VND7 billion (308,778). JVC also had a discount of more than VND4 billion ($176,445) from suppliers and VND1.7 billion ($74,989) from asset liquidation.

During the last three quarters of 2016, JVC achieved VND373.75 billion ($16.5 million) in revenue, down 8 per cent compared to last year, and reported a loss of VND45.35 billion ($2 million).

Earlier, from December 1, 2016 to January 3, 2017, PYN Elite Fund bought 1,172,690 shares issued by JVC, raising its holding to 8,027,890 shares or 7.14 per cent stake.

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