The FBRK editorial team continues its series of publications dedicated to the analysis of the financial statements of Kazakhstan's social-entrepreneurial corporations (SECs). Today we will look at the financial statements of SEC 'Almaty' for 2023, which demonstrates sustained growth in net profit alongside a reduction in total assets and cash, as well as significant investments in subsidiaries and construction projects.
In 2023, SEC 'Almaty' showed positive dynamics in key financial indicators. According to the consolidated financial statements, the company's revenue amounted to 5.97 billion tenge, which is 52.5% higher than the 2022 figure (3.91 billion tenge). Net profit reached 11.13 billion tenge, whereas in 2022 the company recorded a loss of 8.58 billion tenge.
The non-consolidated statements show a similar picture: revenue of 3.87 billion tenge (growth of 54.9% compared to 2.5 billion tenge in 2022), net profit — 11.44 billion tenge (growth of 10.7% compared to 10.34 billion tenge in 2022).
The revenue structure of SEC 'Almaty' according to the non-consolidated statements includes several sources: sales of apartments and parking spaces (3.32 billion tenge), income from the sale of food products (214.18 million tenge), gratuitous transfer of apartments (140.19 million tenge) and income from leasing investment property (196.23 million tenge).
Notably, despite the positive dynamics in revenue and profit, the company's total assets decreased in both the consolidated and non-consolidated statements. According to consolidated data, they fell from 208.45 billion tenge in 2022 to 189.47 billion tenge in 2023 (a decrease of 9.1%), and according to non-consolidated data — from 257.15 billion tenge to 230.68 billion tenge (a decrease of 10.3%).
Particular attention is drawn to the significant reduction in cash and cash equivalents. According to the consolidated statements, they decreased from 103.5 billion tenge in 2022 to 69.73 billion tenge in 2023 (a decrease of 32.6%), and according to non-consolidated statements — from 76.31 billion tenge to 50.6 billion tenge (a decrease of 33.7%).
The structure of funds also underwent changes. Funds in deposit accounts decreased significantly: according to consolidated data — from 36.61 billion tenge to 18.1 billion tenge, according to non-consolidated data — from 10.59 billion tenge to 1.81 billion tenge. Funds in treasury accounts also decreased — from 65.1 billion tenge to 48.8 billion tenge.
At the same time, SEC 'Almaty' placed 11.73 billion tenge in REPO assets, which may indicate a change in liquidity management strategy or a search for more profitable short-term investment instruments.
The investment portfolio of SEC 'Almaty' is concentrated in subsidiaries: LLP 'Capital Construction Enterprise of Almaty' (100% stake, 76.8 billion tenge), LLP 'Almaty Finance' (100% stake, 25.63 billion tenge), LLP 'Industrial Zone — Almaty' (100% stake, 10.94 billion tenge), as well as minority stakes in LLP 'Innovation Safety Center' (49%, 151 million tenge) and PF 'Sunkar' (49%, 70.82 million tenge). The total value of investments amounted to 110.96 billion tenge.
SEC 'Almaty' actively participates in financing construction projects. Between 2020 and 2023, the company entered into several investment agreements for the development of housing construction in the city. These include: the construction of a multi-apartment residential complex with LLP 'Rusalding Line' (5.26 billion tenge at 12% per annum until June 2024), the 'Altyn City' residential complex with LLP 'Star Land' (2 billion tenge at 12% per annum), the 'Medeu City' residential complex with LLP 'Domus Qazaqstan' (5 billion tenge at 14% per annum, debt fully repaid in 2023), and the 'Four Seasons Villa' cottage settlement with LLP 'RBest Home' (1.2 billion tenge at 16% per annum).
In 2023, project agreements were concluded with LLP 'Ask Prestige', LLP 'Sensata Construction' and LLP 'KazSpetsEnergoService' for the development of Almaty's polycentric infrastructure and the construction of the new 'Eastern Gate' district in the Turksib district (Kairat microdistrict). The project implementation period is until 2027-2028. Under these agreements, the SEC transferred land plots, and the counterparties ensure the project's implementation.
The company's personnel expenses show moderate growth. According to the consolidated statements, the annual payroll for administrative expenses increased from 1.75 billion tenge in 2022 to 2.28 billion tenge in 2023 (growth of 30.3%).
According to the non-consolidated statements, this figure increased from 866.57 million tenge to 1.01 billion tenge (growth of 16.5%).
Remuneration for management personnel in 2023 amounted to 191.13 million tenge, which is 71.4% higher than the 2022 figure (111.5 million tenge).
It should be noted that in 2023, as in 2022, no dividends were paid, and the company's share capital increased from 185.36 billion tenge to 193.35 billion tenge due to a share issue worth 7.99 billion tenge.
Analysing the financial statements of SEC 'Almaty' for 2023, it can be concluded that the company demonstrates a stable financial position with positive dynamics in revenue and net profit. However, the reduction in assets and cash along with increasing personnel expenses requires careful monitoring in terms of resource efficiency.
The corporation's investment activity is focused on the