Phat Dat reports a profit of 65 billion with revenues of 20 billion: “The magic” from a transaction and a mysterious partner established on the day of the deal signing

Phat Dat Real Estate Development Corporation (HoSE: PDR) announced a profit of 65 billion VND in Q2/2025, despite sales revenue reaching only 19.9 billion VND. This profit mainly came from financial revenue of 226 billion VND, including 139.2 billion VND from liquidation of an investment. Phat Dat transferred 100% of its shares in Ngô Mây Real Estate Investment Corporation to Quy Nhơn 68 Investment Company for 435 billion VND, recognizing a profit of 140 billion VND. However, the company only collected 160 billion VND and still has to collect 275 billion VND from this transaction. Notably, Quy Nhơn 68 was established on the same day the transfer took place. Although the company had substantial transactions yielding profits, its report shows a cash flow deficit of 1.33 trillion VND in the first half of the year, leading PDR to increase borrowing by 95% year-on-year. The company is undergoing financial restructuring to alleviate short-term debt pressure. While flexible in its financial strategy, reliance on project sales transactions raises concerns about sustainable growth prospects.