Trung Minh New Urban Development Co., Ltd. (Trung Minh Company) has just announced its periodic financial report for 2023. Accordingly, the company reported a very bleak business result, with the second consecutive year of loss. Specifically, Trung Minh reported a loss of VND 6.7 billion in 2023, compared to a loss of VND 9.1 billion in 2022.
As of December 31, 2023, the company’s equity was VND 156.8 billion, while at the end of 2022 it was VND 163 billion. In addition, the debt-to-equity ratio increased sharply from 6.8 times (corresponding to VND 1,113 billion) at the end of 2022 to 27.54 times (corresponding to VND 4,320 billion) as of December 31, 2023. Thus, in 2023, Trung Minh’s outstanding debt increased by over VND 3,200 billion.
Regarding outstanding bond debts, at the end of 2022, the company had no outstanding bond debts, but that figure was VND 1,900 billion at the end of 2023.
It is known that in 2023, the company successfully issued 5 bond lots with a total issuance value of VND 1,900 billion. The term of these 5 bond lots is 60 months from the date of issuance, with the issuance interest rate for all 5 lots at 12.5%/year.
According to data from HNX, from June to December 2023, Trung Minh Company has consecutively successfully issued 5 bond lots including: TMCCH2328001, TMCCH2328002, TMCCH2328003, TMCCH2328004 and TMCCH2328005. While the first 4 bond lots have a value of VND 300 billion/lot, the TMCCH2328005 bond lot has a value of VND 700 billion.
According to the investigation, Trung Minh Company was established on February 21, 2020. The head office address is at Xom Rut Hamlet, Tan Vinh Commune, Luong Son District, Hoa Binh Province. The company mainly operates in the field of real estate business.
At the time of its establishment, the company had a charter capital of VND 186 billion. Of which, Vietnam Finance Investment Group Joint Stock Company (VFI) owns 40% and New House Trading Joint Stock Company (New House) owns 60% of shares.
Currently, the company’s legal representative is General Director Nguyen Thu Thuy (born in 1986). Trung Minh Company is known to arrive in the role of the investor of the Trung Minh A new urban area project (commercial name is Casa Del Rio resort urban complex) located near the Ky Son junction, National Highway 6, Trung Minh ward, Hoa Binh city. Casa Del Rio is a component project of the Trung Minh New Urban Area, with an area of 83.54ha, total investment of VND 1,126 billion; the rest belongs to Trung Minh B New Urban Area (58.87ha).
By 2022, the Hoa Binh Provincial People’s Committee issued Decision No. 1316/QD-UBND on changing the purpose of land use and land allocation (phase 1) for Trung Minh New Urban Development Co., Ltd. to implement the Trung Minh A New Urban Area project.
In which, the purpose of using 16ha of land phase 1 is converted to the following land types: 8.6ha of urban residential land; 3.4ha of traffic land; 0.4ha of land for building educational and training facilities; 0.8ha of land for public entertainment areas; 2.6ha of land with specialized water surface.
By May 2023, the Hoa Binh Provincial People’s Committee agreed to extend the time for implementing the contract to implement the Trung Minh A New Urban Area project, with an extension period of 24 months from May 11, 2023.
By November 2023, the Hoa Binh Provincial People’s Committee adjusted and allocated over 20 hectares of land to Minh Trung Company, including 10.8 hectares of land use fee collection and 9.5 hectares of land use fee exemption.
