In the periodic business results report sent to the Hanoi Stock Exchange (HNX), S-Homes Real Estate Investment and Trading JSC’s after-tax profit for the first six months reached over 11 billion VND, a 50% increase compared to the same period last year.
With the growth in profit, the after-tax profit margin also increased from 0.045% to 0.068%.
S-Homes Real Estate made a significant profit in 2021 of nearly 379 billion VND, followed by a decline in performance to nearly 5 billion VND in 2022 and over 700 million VND in 2023.
Source: Consolidated
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As of the end of June, owner’s equity remained relatively stable at 16,595 billion VND. The debt-to-equity ratio decreased from 0.634 to 0.419, corresponding to over 6,953 billion VND in payables; of which, bond debt amounted to approximately 1,610 billion VND, a 53% reduction.
The company also spent 626 billion VND to repay interest and principal for two lots of bonds with codes SSHCH2123001 and SSHCH2123002 in the first half of this year.
However, as of June 30, 2024, the company reported that it still owes over 50 billion VND in bond principal and penalty interest (if any) for the lot coded SSHCH2123001. For the lot SSHCH2123002, S-Homes Real Estate owes nearly 81 billion VND in principal, over 10 billion VND in interest, and penalty interest (if any).
Both lots are delayed in payment due to a lack of timely repayment arrangements, and negotiations with bondholders are ongoing regarding extensions for the SSHCH2123001 lot until September 10, 2025, and the SSHCH2123002 lot until October 28, 2025.
 Source: S-Homes Real Estate
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It is understood that the SSHCH2123001 bond was issued on September 10, 2021, with a total par value of 2,400 billion VND, an interest rate of 10%/year, a two-year term, and an initial maturity date of September 10, 2023. The bond was then agreed by the bondholders to be extended for another two years until September 10, 2025. The current outstanding value is over 1,451 billion VND. The collateral includes 42 million shares of Sunshine Group JSC owned by some shareholders of Sunshine Group JSC; 12.25 million shares of SCG Construction JSC owned by some shareholders of SCG Construction JSC; and other assets, including but not limited to real estate and movable assets formed in the future from real estate projects, which can be supplemented at any time (if any).
As for the SSHCH2123002 bond, the remaining value is over 159 billion VND out of the initial issuance of 1,000 billion VND. The interest rate is 11%/year, and it has also been extended for another two years from October 28, 2023, to October 28, 2025. The collateral includes a 40% capital contribution (at the time of bond issuance) of S.I Development Co., Ltd. (investor of Golf Hon Rom project) owned by KSFinance Group JSC; all assets of S-Homes Real Estate related to and arising from the implementation of the Golf Hon Rom project in Mui Ne, Binh Thuan province, according to the contract between Sunshine Saigon Group JSC as the contracting party and Sunshine Homes JSC as the contractor. In addition, there is an unconditional and irrevocable payment guarantee from Sunshine Group JSC for all payment obligations arising from and related to the bonds.
S-Homes Real Estate was established in October 2015 under the initial name of Sunshine Homes JSC. with a charter capital of 15 trillion VND. The General Director and legal representative is Mr. Pham Van Huu.
