Lotus Joint Stock Company (Lotus Corp) has just announced periodic information about its financial situation in 2023. Accordingly, the company continued to report a post-tax loss of VND 668 billion while in 2022 after losing VND 478.6 billion. Previously, the company also reported a loss of VND 186 billion in 2021.
As of December 31, 2023, equity reached VND 5,695 billion, down 11% compared to the end of 2022. The debt-to-equity ratio is 1.4 times, equivalent to debts payable at VND 7,973 billion. Of which, outstanding bonds are more than VND 4,784 billion.
Source: HNX
Currently, Lotus is only offering the BSECH2126003 bond code with a total value of VND 4,800 billion, issued on October 15, 2021, and maturing on October 15, 2026. The interest rate is announced at 10.5%/year, Tan Viet Securities Company (TVSI) is the registered depository agent.
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As of December 31, 2023, Lotus’s interest payable balance amounted to VND 150.5 billion, while the penalty interest from November 1, 2022 to December 31, 2023 was VND 910.9 billion.
At the extraordinary general meeting of shareholders (EGM) of Lotus held at the end of August 2023, Lotus’s leaders said that among the assets contributed as collateral in the bond issuance dossier, there are secured assets in the form of shares in Daeha Joint Stock Company (the entity that owns the Hanoi Daewoo Hotel). This is the ownership interest of Hop Thanh 1 Joint Stock Company, and Lotus has a controlling interest in this company.
The purpose of issuing VND 4,800 billion worth of bonds is to invest in the 152 Tran Phu project, up to August 2023, the interest of 3 terms has been paid.
According to the investigating agency, Lotus is on the list of 762 companies related to Van Thinh Phat. Therefore, this company had its account frozen.
During the recent first-instance trial, Ms. Truong My Lan – Chairman of Van Thinh Phat Group – confirmed that the Lotus Company is her family business. The Hanoi Daewoo Hotel is 73.4% owned by her family. According to Ms. Lan, this asset cannot be sold due to legal issues as it was previously used to issue bonds.
Lotus Corp was once a member company of Saigon Tourist Corporation, and has been operating as a joint stock company since January 2005, with a charter capital of VND 130 billion. After more than 15 years of development, the charter capital of the Lotus Company has increased to about VND 5,000 billion.
This entity owns and manages a series of hotels and restaurants in prime locations around the center of Ho Chi Minh City such as: Palace Sai Gon hotel, Lotus Sai Gon hotel, Lotus Annex hotel, Lemongrass restaurant, Buffet Ganh restaurant, Lion restaurant, Vegetarian restaurant, Café Brodard…
