Real estate development joint stock company Nhật Quang has just released regular financial information for 2022, in which the company recorded a loss of VND 5,573 billion, compared to only VND 267 billion in the same period.
The billion-dollar loss resulted in the company’s owner’s equity being negative VND 3,959 billion, compared to positive VND 1,615 billion in the same period.
Before announcing the billion-dollar loss, in early February, Nhật Quang real estate development joint stock company unexpectedly announced the delay in paying the principal of bond series NQRB2124001. Accordingly, the aforementioned bond series has a value of VND 2,150 billion, a term of 36 months, and an interest rate of 11% per year. According to the plan, this bond series will be paid on January 22, 2024. Therefore, until now, the company has been delayed in paying the bond for more than a month due to insufficient arrangement of capital sources.
Bond series NQRB2124001 of Nhật Quang Real Estate Development Joint Stock Company has collateral assets that arise from contracts, documents, agreements to transfer a portion of assets belonging to The Spirit of Saigon project, with Saigon Glory Limited Company as an investor; assets related to a portion of The Spirit of Saigon project.
Spirit of Saigon is a project of office area – commercial area – service area – apartment area – 6-star hotel, located in a prime location in the center of Ho Chi Minh City, right in the Ben Thanh square with 4 fronts including Pham Ngu Lao, Pho Duc Chinh, Le Thi Hong Gam, Calmette and opposite Ben Thanh market. To implement this project, in 2020, Saigon Glory Company has issued bonds worth VND 10,000 billion with a term of 3 – 5 years to mobilize capital.
Due to difficulties in cash flow, Saigon Glory has repeatedly delayed paying interest, principal of bonds. By early February 2024, the company has reached agreements to extend the due date of 10 bond series for an additional 1-2 years.
Returning to Nhật Quang Real Estate Development Joint Stock Company, the company was established on October 27, 2014, with its head office at Khu pho 2, Binh An Ward, District 2, Ho Chi Minh City. The company’s main business is in the real estate industry. Initial charter capital of Nhật Quang Real Estate was VND 500 billion, with founding shareholders including Infrastructure and Real Estate Development Joint Stock Company Saigon Star (49%), Nguyen Thi Minh Hai (25.5%), and Do Phuong Nam (25.5%). Until now, Nhật Quang Real Estate has also increased its charter capital to VND 1,950 billion.
