The People’s Committee of Ha Tinh province has recently decided to place Ha Tinh Lottery Company Limited under special financial supervision until the end of 2025. This decision was made due to indications of financial distress and a total cumulative loss exceeding 50% of the owner’s investment capital by the end of 2023.
The Ha Tinh Lottery Company Limited, a state-owned enterprise, has been asked to develop a financial recovery plan within 30 days, addressing the causes of their business losses and proposing solutions regarding organization, labor, agent network, and investment strategies to increase revenue and reduce costs.
The company’s explanation for the financial losses attributes them to high payout rates to winning customers. This is not the first time the company has faced special financial supervision, indicating a recurring issue that needs addressing.
Previously, in 2016, the company underwent similar supervision due to consecutive years of inefficient operations and continuous losses. The primary cause of the losses back then was attributed to excessively high payouts, mainly for lotto tickets, the company’s most popular product.
Ha Tinh Lottery Company Limited, established in 1993, transitioned to a limited liability company model in 2007 under the decision of the Ha Tinh People’s Committee.
