“Billions Poured into Le Méridien Da Nang, Yet Tokin Land Continues to Bleed Red”


Tonkin Land is the developer of a premium eco-tourism project in Quang Nam, known commercially as Le Méridien Da Nang. The company reported that last year, the project completed the technical infrastructure for villas to be sold in a phased handover, while the hotel villas have reached the basic construction stage and are undergoing adjustments based on requests from the Marriott management team. As a result, the project did not generate any revenue or cost of sales in 2023.

For the year, Tonkin Land did not record any revenue from sales and services. Meanwhile, the company incurred over VND 15 billion in interest expenses and VND 15 billion in management expenses, resulting in a loss from business operations of nearly VND 30 billion and a similar amount in post-tax losses. In the previous year, the company had recorded revenue of over VND 1 billion, but this was entirely offset by interest and management expenses, leading to a post-tax loss of more than VND 19 billion.

Tonkin Land, formerly known as MBLand & Tokin Properties JSC, was established in 2017 with a capital of VND 320 billion. The founding shareholders included Ms. Pham Thi Huong Thao with a 71.2% stake, MBLand Corporation with 11%, Golden Field International Investment JSC with 8.9%, and Mr. Ta Duy Cuong with 8.9%.

As of the end of the year, Tonkin Land had total assets of VND 1,286 billion and accumulated losses of over VND 98 billion. Its chartered capital stands at VND 320 billion, with IFF Holdings owning 81.2%, Ms. Nguyen Thi Tuyet holding 17.8%, and Ms. Nguyen Thi Mai owning 1%. It is understood that the stakes of IFF Holdings and Ms. Mai were transferred from Mr. Pham Minh Tien, who held an 11% stake last year.

The company has nearly VND 1,062 billion in payables. This includes short-term loans of nearly VND 334 billion from IFF Holdings and nearly VND 3 billion from other individuals. Long-term debt comprises VND 22 billion in bonds, down from VND 119.5 billion at the beginning of the year, and VND 12 billion from individuals. Additionally, the company has long-term unrealized revenue of nearly VND 208 billion.

Tonkin Land currently has one subsidiary, MBLand Tonkin JSC, in which it holds a 99.5% stake. This company operates in the hotel and accommodation services industry and is headquartered in Dien Ban town, Quang Nam province.

The Le Méridien Da Nang project covers an area of nearly 80,000 square meters and includes 51 villas, 12 shop villas, 16 hotel villas, 153 apartments, and 320 hotel rooms. The total investment capital for the project is VND 2,400 billion. As of the end of the year, the long-term production and business costs incurred for the project amounted to nearly VND 1,172 billion.

Le Méridien Da Nang Project Overview

Thu Minh

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