Restructuring assisted tourism companies to recover

Thursday, February 10, 2022

During the Tết holiday, tourists visited Tam Chúc temple in Hà Nam Province. Regardless of the lasting effects of COVID-19, the domestic tourism industry is reviving gradually.

In the last two years, the influence of COVID-19 has impacted the tourism companies’ in an extremely bad way, leading to constant losses and some stocks being given a warning status, and even risk being delisted. However, now as more and more businesses turn to restructured their functions, their results have become more positive.

Restructuring boost
Đông Á Hotel Group (DAH) in its recently released fourth-quarter business result has reported bullish results, in spite of harm caused by pandemic to tourism.

In the fourth quarter of 2021, the net revenue of the company was over VNĐ377.5 billion (US$16.6 million), while in the same period last year it was just VNĐ4.5 billion.

Therefore, in the fourth quarter of 2020, DAH posted a profit after tax of VNĐ24.7 billion, losing VNĐ31.5 billion.

Đông Á said that the flow in revenue happened because of its restructuring of operations and business expansion into other sectors. This helped the company to counterbalance its losses that it incurred from the tourism.

The Board of Directors of the company, at the annual general meeting of shareholders that was held in mid-May 2021, requested for the opinions of the shareholders on expanding into construction, ground filling and building materials. The change clearly had a positive impact on the business activities of the company in 2021.

Thanks to restructuring in the second half of 2021, the company’s profit after tax reached VNĐ39.1 billion last year, while it lost more than VNĐ33.1 billion in 2020.

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