“HSG Invests an Additional VND 200 Billion in Yen Bai Hotel Project”

In its recent resolution, the steel giant announced an additional investment of VND 200 billion through the purchase of 20 million newly issued shares of Hoa Sen Yen Bai. With this capital injection, Hoa Sen Yen Bai will utilize the funds for its business operations and have additional resources to initiate the project.

Following this capital increase, HSG will own over 97.26% of Hoa Sen Yen Bai’s capital, equivalent to 604 million shares. Meanwhile, other shareholders hold the remaining 2.74% capital, representing 1.7 million shares.

Hoa Sen Yen Bai Company was established on May 5, 2016, and is headquartered in Dong Tam Ward, Yen Bai City, Yen Bai Province.

It is the investor of the Hoa Sen Yen Bai Trade Center, Hotel, Restaurant, and Event Organization project. This project was initiated in 2016 and covers an area of nearly 9,676 m2. It is envisioned to comprise two components.

The first component includes a trade center, hotel, restaurant, and event organization facility constructed on a land area of over 5,585 m2, leased from the Yen Bai Provincial People’s Committee. The second component involves a commercial housing area built on a land area of over 4,090 m2, allocated by the Yen Bai Provincial People’s Committee. This land was granted a land use right certificate in 2017.

Hoa Sen Yen Bai Trade Center, Hotel, Restaurant, and Event Organization Project Perspective

As of the end of March 2024, HSG recorded uncompleted basic construction costs for the Yen Bai Hotel project totaling VND 393 billion, an increase of VND 7.3 billion compared to the beginning of the year. 

Previously, in the 2022 – 2023 business plan, the Board of Directors discussed and agreed to promote and seek partners interested in transferring the Hoa Sen Yen Bai Trade Center, Hotel, Restaurant, and Event Organization project. However, with this additional investment, HSG appears committed to continuing with the project.

Steel Giant Hoa Sen Aims for a Minimum Profit of VND 400 Billion in the 2024 Financial Year

Achieved 84% of the Profit Plan for the 2023-2024 Fiscal Year

In terms of business performance, the steel giant has demonstrated impressive results. During the first six months of the 2023-2024 fiscal year (October 2023 – March 2024), the company recorded net revenue of over VND 18,300 billion, a 23% increase compared to the same period last year. It achieved a net profit of over VND 420 billion, while in the previous year, it incurred a significant loss of VND 420 billion.

With these results, HSG has surpassed the profit plan in the negative scenario (VND 400 billion) and achieved 84% of the profit plan in the positive scenario (VND 500 billion).

Another notable aspect is that HSG is actively purchasing HRC steel, a key raw material for coated steel production, while prices remain low. As of the end of March 2024, the company held nearly VND 12,000 billion in inventory, an increase of VND 4,000 billion compared to the beginning of 2024.

Vu Hao