CTCP Lotus recently released some financial indicators for 2023, including a post-tax loss of VND 668 billion, compared to a loss of VND 479 billion in 2022.
As of December 31, 2023, the company’s equity was VND 5,695 billion, a decrease of 11% compared to the end of the previous year. The ratio of liabilities to equity is 1.4 times, equivalent to a debt of nearly VND 8,000 billion. Of this, Lotus’s bond debt is close to VND 4,800 billion. The company’s total assets reached nearly VND 13,700 billion.
According to information from HNX, the company still has a bond in circulation with the code BSECH2122003 with a total value of VND 4,800 billion. The interest rate was announced at 10.5% per year and is held by TVSI Securities Company.
However, due to the account being frozen, the company has continuously delayed payment of interest on the aforementioned bond. As of December 31, 2023, the amount of interest payable by Lotus was nearly VND 151 billion, with the penalty interest amounting to VND 911 billion.
At Lotus’s General Meeting of Shareholders (GMS) in August 2023, the company informed its shareholders of new developments regarding the repayment of the bond. The company stated that the bond issuance documents were in accordance with legal regulations.
The company’s purpose in issuing the aforementioned VND 4,800 billion bond was to fund the 152 Tran Phu project. Lotus has so far paid interest for three periods. However, after that, due to the failure of the partner with whom the company was investing, the payment of interest on the bond to bondholders was disrupted.
Currently, the Investigation Agency is working on the contents of the bonds, including Lotus’s bonds. Also, the entire cash flow related to the above bonds is being reinvestigated by the Ministry of Public Security. Therefore, the company’s executives have requested the approval of shareholders to liquidate assets to deal with the bonds. This will be done after the Investigation Agency has come to a conclusion and proposed a solution, because currently, the company is not allowed to make any changes to the transfer of assets.
The company also commits that all issues related to the disposal of assets, if approved by the GMS, must be carried out in accordance with the conclusions of the Ministry of Public Security.
In recent documents of the Investigation Agency, Lotus is included in a list of 762 companies related to Van Thinh Phat. However, this information has not been officially concluded.
During the meeting, Lotus’s management also sought shareholders’ approval to transfer money to an account designated by the Investigation Agency to remedy the consequences. The company has recently been required to report all income, expenditure, and operating cash flow to the Ministry of Public Security for inspection. Any excess cash flow must be transferred to the designated account so that business operations can continue as usual.
Palace Hotel Saigon
Lotus is known to own several valuable properties in both Ho Chi Minh City and Hanoi. Lotus’s predecessor was a member of the Saigon Tourist Corporation (Saigontourist). On December 27, 2004, Lotus officially transitioned to a joint-stock company model with an initial charter capital of VND 130 billion.
After more than 15 years of development, the company’s charter capital has increased to approximately VND 5,000 billion, with a series of high-end hotels and restaurants in Ho Chi Minh City. These include the Palace Hotel Saigon, Lotus Hotel Saigon, Lotus Annex Hotel, Lemongrass Restaurant, Buffet Ganh Restaurant, Lion Restaurant, and Vegetarian Restaurant.
Of these, the Palace Saigon Hotel is located at 56-66 Nguyen Hue, one of the most expensive streets in the country. The hotel has 144 rooms that meet international 4-star standards. The Lotus Hotel Saigon chain also extends over 117-123 Dong Khoi, in District 1, Ho Chi Minh City, with the Bier Garden restaurant at 125 Dong Khoi and the Brodard cafe at 131-133 Dong Khoi.
Café Brodard
In the F&B sector, Lotus also owns the well-known Café Brodard restaurant, located at the corner of Dong Khoi and Nguyen Thiep streets, replacing the old Lotus restaurant.
Daewoo Hotel
In Hanoi, in 2015, Lotus spent more than VND 3,600 billion to acquire 51% of Daeha, a company that owns the Daewoo Hanoi Hotel complex and Daeha office building, located at 360 Kim Ma, Ngoc Khanh, Ba Dinh, Hanoi. This is one of the first international 5-star hotels in Hanoi and has also been a symbol of the development of the capital for over two decades.
On the afternoon of April 11, the Ho Chi Minh City People’s Court sentenced Truong My Lan (Chairwoman of the Board of Directors of Van Thinh Phat Group) and 85 other defendants in the case taking place at Van Thinh Phat Group, Saigon Commercial Joint Stock Bank (SCB), and its related organizations.
Applying the principle of benefit to the accused Lan, after deducting the value of the assets securing the loans, it was determined that Truong My Lan embezzled more than VND 304,000 billion in outstanding principal and caused more than VND 129,000 billion in interest arising from the above embezzled principal.
After concluding the conduct of the defendants, the Trial Panel sentenced the defendant Truong My Lan to a total sentence of death.
The Trial Panel ruled that there was sufficient basis to determine that the defendants had committed the crimes charged in the indictment. Defendant Lan and her accomplices had caused serious consequences and major damage to SCB. As a result, the bank has become illiquid
