In early April this year, TNG Land, the real estate subsidiary of textile giant TNG Corporation (HNX: TNG), broke ground on the Dai Thang residential project (commercially known as Peace Village), marking one of the first major projects of the company.
TNG Chairman, TNG Land Nguyen Van Thoi (second from right) and TNG Land General Director Nguyen Manh Linh (far right) at the Peace Village groundbreaking ceremony – Source: TNG
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The real estate subsidiary operates with independent capital
TNG is a major textile manufacturer in Thai Nguyen province, a comprehensive strategic partner of one of the world’s leading sportswear brands, Decathlon. In the context of the textile industry which has been struggling after the COVID-19 pandemic, TNG has proven to be a resilient company, with revenue growing steadily and profit almost always maintained at 220-290 billion VND during the 2019-2023 period, except for 2020 due to the direct impact of COVID-19.
| Some of TNG’s key business indicators 2018-2023 |
TNG’s 2022 annual general meeting of shareholders decided to establish TNG Land JSC, which is responsible for investing and developing the Company’s real estate sector. All real estate projects will be implemented by TNG Land with independent capital.
The business registration certificate shows that TNG Land was established on June 30, 2022 with a charter capital of 300 billion VND. The founding shareholders include TNG contributed 140 billion VND, equivalent to a nearly 47% ownership ratio; Mr. Nguyen Van Thoi – Chairman of TNG contributed more than 97 billion VND (32.5% ratio), Mr. Nguyen Duc Manh (Mr. Thoi’s son) – Member of the Board of Directors and General Director of TNG contributed 1.67%; in addition, there are 87 individuals with capital contribution ratios ranging from 0.017% to 0.1%, equivalent to a few hundred million VND each. The company is chaired by Mr. Thoi, who is also the legal representative.
| TNG’s 2023 financial statements recorded an ownership ratio of 51.7%, the value remained at 140 billion VND at TNG Land at the end of the year. |
In November 2022, TNG Land reduced its charter capital to 162.47 billion VND when Mr. Thoi and some founding individuals withdrew all capital. TNG’s ownership ratio increased to 86.17% although the capital contribution remained at 140 billion VND; the list of individual shareholders decreased to 77 people. In September 2023, TNG Land continued to change its charter capital by increasing it to more than 205.3 billion VND, TNG’s capital contribution ratio decreased to 68.19%. In November of the same year, the capital increased again to more than 246 billion VND.
And most recently, in January of this year, TNG Land increased its capital to 270.8 billion VND. Mr. Thoi is still Chairman of the Board of Directors and legal representative, the position of Vice Chairman is held by Ms. Luong Thuy Ha – Vice Chairman of TNG’s Board of Directors, and the position of General Director is held by Mr. Nguyen Manh Linh (Mr. Thoi’s son). Mr. Linh holds a Bachelor of Science degree from the New York Institute of Technology (USA); Bachelor of Science – International Business, Pacific University, Forest Grove, Oregon (USA), and has over 5 years of experience as Deputy General Director and Member of the Board of Directors.
At TNG, Mr. Linh also holds more than 665.8 thousand shares (0.59% ratio); and Mr. Thoi (according to the management report for 2023) owns more than 21 million shares (18.53% ratio), Ms. Do Thi Ha (Mr. Thoi’s wife) owns more than 2 million shares (1.79%), Mr. Manh owns nearly 9.1 million shares (8.01%).
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Mr. Linh’s working history
Source: TNG
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How is TNG Land doing?
After more than a year of establishment, TNG Land has achieved a profit of several billion VND in its business results. In 2023, the company achieved a revenue of 13.8 billion VND and a profit of 3.8 billion VND, up by 142% and 443% compared to the previous year, respectively.
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Revenue and profit of TNG Land
Source: Author’s compilation
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Transactions between TNG Land and TNG in 2023
Source: TNG’s audited financial statements for 2023
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TNG Land is favored by its parent company in real estate when it transferred the entire TNG Village commercial housing project in Thai Nguyen city in November 2023. The total land use area of the project is 3,689m2, including a commercial housing area according to the plan of 2,841m2; investing in the construction of a building with 1 basement, 17 upper floors, and 1 attic floor on an area of 1,117m2; with a low-rise commercial housing area of 848m2. The total investment value is more than 170 billion VND, the total product includes 182 apartments, 4 penthouses, and 9 shophouses.
The project is invested by TNG, the commercial building was started in 2018, the commercial housing area was launched in 2019, with an area of 2,841m2 and a land use term until March 2067. According to the initial schedule, the project will be put into operation in the fourth quarter of 2019. However, in July 2023, TNG sent a document to the People’s Committee of Thai Nguyen province requesting an adjustment to the schedule to the third quarter of 2023 to put the 848m2 commercial service building into operation. As of the end of 2023, the infrastructure of the commercial housing area has been completed and 133 apartments have been sold, while the 848m2 low-rise housing area has not yet been invested and the company has continued to send a document to the provincial People’s Committee requesting to postpone the progress to the third quarter of 2025. TNG did not disclose the transfer price but authorized Mr. Thoi to decide the price.
It is unclear whether TNG has completed the transfer of the project to its subsidiary to date.
 TNG Village project
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