The FBRK editorial team continues its series of publications dedicated to the analysis of the financial statements of Kazakhstan's social-entrepreneurial corporations (SEC). Today we examine the financial statements of SEC «Astana» for 2023. The corporation demonstrated a significant growth in revenue while maintaining a stable level of profit.
In 2023, SEC «Astana» achieved impressive growth indicators. According to the separate financial statements, the corporation's revenue amounted to 3.7 billion tenge, which is more than 4.5 times higher than in 2022. At the same time, net profit reached 857.9 million tenge.
A significant portion of income came from proceeds from investment projects – 3.05 billion tenge, which is 10 times more than the figure for 2022. Income from rent remained virtually at the previous level, amounting to 467.1 million tenge. New sources of income have appeared: from conducting auctions (111.6 million tenge) and under trust management agreements (15 million tenge).
Total assets amounted to 97.2 billion tenge, with the main part accounted for by current assets – 82.9 billion tenge. The largest share is occupied by current financial assets – 77.4 billion tenge. Non-current assets amounted to 13.8 billion tenge, among which investment property worth 11.5 billion tenge stands out.
Compared to 2022, the volume of cash and cash equivalents has significantly decreased – from 6.75 billion to 635.5 million tenge. The funds are placed mainly in savings (461 million tenge) and current bank accounts (113.3 million tenge).
The corporation's lending and investment activities are also noteworthy. In 2020-2022, SEC «Astana» issued three large loans to LLP «Yelorda kurylys kompaniasy» totalling 73.17 billion tenge. In 2020, a loan was issued for 19.17 billion tenge at an annual rate of 10.06%, in 2021 — 23 billion tenge at an annual rate of 10.15%, and in 2022 — 31 billion tenge at an annual rate of 10.45%.
All loans were intended to finance construction and installation works to complete problematic housing construction projects under the State Programme for Housing and Communal Development «Nurly Zher» for 2020-2025. A restructuring of these loans is currently expected.
The corporation's financial liabilities in 2023 amounted to 79.1 billion tenge with total liabilities of 80.9 billion tenge. The main part of the liabilities is current (69 billion tenge).
Personnel expenses are of significant interest. According to the separate financial statements, expenses for wages and salaries amounted to almost 900 million tenge. At the same time, remuneration to key management personnel reached 195.7 million tenge, an increase compared to 2022 (125.3 million tenge).
The consolidated statements showed higher figures: total expenses on wages and salaries exceeded 1 billion tenge, and remuneration to key management personnel amounted to 233.2 million tenge.
The share capital of SEC «Astana», which amounted to an impressive sum – 190.98 trillion tenge, deserves special attention. This figure reflects the total value of the company's issued shares less those repurchased.
It is noteworthy that in 2023 and 2022, JSC «Social-Entrepreneurial Corporation «Astana» did not pay dividends to the shareholder, despite positive financial results. Basic and diluted earnings per share amounted to 0.003 tenge.
Comparing the statements, minor differences can be noted: according to the consolidated statements, revenue amounted to 3.86 billion tenge (versus 3.7 billion), and net profit – 853.5 million tenge (versus 857.9 million). In the consolidated statements, income from rent is higher (615.1 million versus 467.1 million tenge).
Overall, the financial statements of SEC «Astana» for 2023 show an organisation in a process of dynamic development. The significant growth in revenue, especially from investment projects, confirms the corporation's reorientation towards more active investment activities.
The question of the effectiveness of using significant financial resources and the expediency of increasing the loan portfolio in the absence of dividend payments remains open.
Earlier we analysed the financial statements of SEC «Tobol» for 2023. In subsequent publications, the FBRK editorial team will examine the financial statements of SECs in other regions, which will allow for a comparative analysis of the effectiveness of regional development institutions and their contribution to the economy of Kazakhstan.
To be continued…