Perspective of the Venezia Beach project, developed by Hung Vuong Developer.
Hung Vuong Developer Joint Stock Company (HVD) has just published periodic information on its financial status in 2023 to the Hanoi Stock Exchange (HNX). According to that report, this real estate enterprise recorded a post-tax profit of 1.6 billion VND, a decrease of 66% compared to 2022.
As of December 31, 2023, the enterprise’s equity was 2,010 billion VND, a slight increase of 0.1% compared to the beginning of the year. The debt-to-equity ratio increased from 1.87 times (equivalent to 3,755 billion VND) at the beginning of the year to 2.07 times (equivalent to 4,160 billion VND) at the end of 2023.
In particular, the outstanding bond debt/equity decreased from 1.07 times (equivalent to 2.149 billion VND) at the beginning of the year to 1.06 times (equivalent to 2.130 billion VND) at the end of 2023.
Hung Vuong Developer reported a profit of 1.6 billion VND last year.
It is worth noting that, according to the report that Hung Vuong Developer sent to the HNX on the status of principal and interest payments on bonds in 2023, last year, the investor of the Venezia Beach project delayed the payment of principal and interest on the HVDCH2123001 bond lot by nearly 620 billion VND, due to the reason of “not yet arranged the capital source”. Specifically, this real estate enterprise delayed the payment of the bond principal by 585 billion VND and delayed the payment of bond interest by more than 20 billion VND.
The HVDCH2123001 bond lot was issued by Hung Vuong Developer on August 2, 2021, with a term of 18 months, and the maturity date was February 2, 2023.
The investor of the Venezia Beach project delayed the payment of principal and interest on the HVDCH2123001 bond lot by nearly 620 billion VND, due to the reason of “not yet arranged the capital source”.
Specifically, the HVDCH2123001 bond lot was issued in the domestic market, with a volume of 6,000 bonds, a par value of 100 million VND/bond, and an issuance value of 600 billion VND.
The collateral for this bond lot is “100% of the shares of Co Kim My Nghe Joint Stock Company and 42 land use right certificates for the plots in the Hodota project according to the list attached to the bond issuance information disclosure document”.
In another development, on December 12, 2023, the Inspectorate of the State Securities Commission issued a decision to impose an administrative penalty in the field of securities and the securities market on Hung Vuong Developer.
Specifically, Hung Vuong Developer was fined 92.5 million VND for failing to disclose information in the Periodic Report for 2022 on the use of proceeds from the 2021 bond issuance (with a value of 600 billion VND) audited by a qualified audit organization.
In addition, Hung Vuong Developer disclosed untimely information of the following documents: Information disclosure before the bond offering, financial report for 2021, report on the use of capital from the bond issuance in 2021, and financial report for the first 6 months of 2022.
It is known that Hung Vuong Developer has been a subsidiary of Hoa Phat Textbook Printing Joint Stock Company (stock code HTP – HNX floor) since January 2021.
Information in HTP’s consolidated financial report for the fourth quarter of 2023 shows that Danh Viet Trading and Service Joint Stock Company is an indirect subsidiary of HTP through Hung Vuong Developer, with an indirect voting ratio of 61.9% and an indirect profit ratio of 38.84%.
It is known that Danh Viet Trading and Service Joint Stock Company is the investor of the “Lac Viet High-class Coastal Eco-tourism Resort” project in Thang Hai commune, Ham Tan district, Binh Thuan province (Lac Viet project, commercial name is Venezia Beach – Luxury Residences & Resort project).
According to the introduction, the Venezia Beach – Luxury Residences & Resort project has a total area of 720,184.3 m2, including: commercial – service – tourism land of 385,914.1 m2; green park land of 161,136.3 m2; infrastructure land of 1,769.9 m2; traffic land of 171,364 m2 and hallway land, religious land. The construction density of the whole area is about 25%. The total investment of the project is about 6,589 billion VND.
Regarding this project, in April 2023, the Binh Thuan Department of Construction listed 33 projects that were required to stop sale and transfer due to incomplete legal procedures, including the Lac Viet project.
