Industrial park operator Phnom Penh SEZ, a publicly listed company, yesterday released its financial results for the second quarter of the year, which show a robust increase in revenue.
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PPSEZ, which trades on the Cambodia Securities Exchange (CSX) as PPSP, achieved nearly 14 billion riel (about $3.4 million) in revenue, a 60.8 percent hike compared to the same quarter last year.
Net profit rose to just over 1.6 billion riel (about $391,893), a staggering 173 percent rise.
At the end of June PPSEZ’s total assets were worth nearly 364.5 billion (about $89 million), the report indicates.
Tan Kak Khun, PPSEZ non-executive chairman, remarked in the report that the company is committed to doing business responsibly to ensure the economic zone grows sustainably.
“Our goal remains to be the leading industrial zone developer in Cambodia, growing sustainably and with stability to satisfy our stakeholders,” he was quoted as saying.
Hiroshi Uematsu, CEO of PPSEZ, said, “To ensure sustainability, we are following a strategy based on investment diversification in our economic zone, the expansion of related services and the creation of new sources of revenue.”
In Q2, PPSEZ established three subsidiary companies – PPSEZ II Co.,Ltd, Sahas Properties Co.,Ltd, and Gomi Recycle (Phnom Penh) Co.,Ltd, a firm that focuses on solid-waste management, according to the report.
The report notes that PPSEZ is one of the largest special economic zones in the Kingdom, with a land area that covers more than 357 hectares.
According to the Council for the Development of Cambodia, 18 special economic zones are active in the country. Of these, PPSEZ is the second largest, with 90 projects.
Sihanoukville SEZ is number one with 1,113 hectares of land and 109 projects.
PPSEZ, however, has the largest combined capital investment, over $562 million, the report says, noting that that investment comes from 14 countries, including Japan, Malaysia, Taiwan, China, the United States, and Korea. It is funneled into a myriad of industries such as automotive parts, food and beverage, textile, plastics, and electronics manufacturing.
Japan has the largest number of projects inside the park, 47, the report adds.
“PPSEZ is growing quickly due to the inflow of local and international investment.
“The special economic zone model in the Kingdom is still in an infant stage. However, we expect that PPSEZ will continue to experience strong growth in years to come together with the country’s economic expansion.”