The Ultimate Guide to Investing in the Most Profitable and Desirable Property in Binh Phuoc: Unveiling Mr. Dung “Lò Vôi”‘s Exclusive Project

In mid-June, Danh Khoi Joint Stock Group (stock code: NRC) attracted attention with its proposal to issue private shares to secure capital for business operations. The company plans to offer 100 million shares, totaling VND 1,000 billion in value. Notably, a portion of this capital will be allocated to acquire a section of the Dai Nam Residential Area project, a 100-hectare fully-developed site in Binh Phuoc province, formerly owned by real estate tycoon Huynh Uy Dung, also known as “Dung lo voi.” This project was once hailed as the most desirable and profitable place to live in Binh Phuoc.

Danh Khoi Group, established in 2014, traces its roots to the Netland Real Estate Information Joint Stock Company. Over the years, the company has undergone several changes in its chartered capital, culminating in a chartered capital of VND 1,293.9 billion as of the end of 2023. The largest individual shareholder is Ms. Ha Thi Kim Thanh, who owns over 14.2 million shares, equivalent to 15.34% of the company’s shares.

The company recently released its reviewed consolidated semi-annual financial statements, revealing an increase in revenue from sales and services, climbing from VND 1.93 billion in the same period last year to VND 2.56 billion in the first six months of this year. However, financial revenue witnessed a significant drop, falling to VND 135,000 from VND 1.27 million last year.

The company’s cost-cutting measures yielded positive results, as evidenced by a substantial reduction in selling expenses and management fees. This led to an improvement in the net profit indicator, narrowing the loss from VND 75 billion in 2023 to VND 50.3 billion in 2024.

Despite these efforts, Danh Khoi still incurred a loss of over VND 10 billion in the first half of this year, a stark contrast to the positive figure of VND 7 billion reported in their self-prepared financial statements. While the company continues to face losses, the situation has improved compared to the same period last year, when they reported a loss of VND 35.4 billion. Danh Khoi attributed this improvement to successful cost-cutting measures, including restructuring their personnel organization and implementing effective cost-saving policies. Additionally, the company recognized compensation from contract terminations.

The company further elaborated on the challenges they faced in the first half of 2024, acknowledging the significant impact of macroeconomic conditions on their business. While the real estate market is showing signs of recovery, it still faces difficulties. Government policies aimed at alleviating these challenges have not yet reached businesses, and the corporate bond market remains unstable, with rising interest rates. Moreover, the market’s liquidity recovery is primarily focused on apartments, while the land market remains sluggish, forcing businesses to operate intermittently to maintain their operations.

For 2024, Danh Khoi sets ambitious targets, aiming for a consolidated total revenue of VND 380 billion and a post-tax profit of VND 40 billion, representing increases of 4.3 times and 3.3 times, respectively, compared to the results achieved in 2023. However, with the performance in the first six months, these goals remain a distant challenge.

Beyond its financial challenges, Danh Khoi also faces issues with tax debt and overdue bond payments. As of June 30, the company had short-term financial debt of over VND 342 billion and long-term financial debt of over VND 46 billion. Of this, VND 256 billion was in bond debt, with VND 139.5 billion in overdue bonds and nearly VND 24 billion in interest.

Additionally, the company owed VND 102.2 billion in taxes as of June 30, with late payment interest on taxes amounting to VND 25.6 billion. They also had payable amounts to employees totaling over VND 6.8 billion.

Regarding debt repayment, Danh Khoi has been actively negotiating with bondholders to address the overdue bond principal and interest. The company plans to prioritize the repayment of bond principal and interest using proceeds from escrowed brokerage fees, capital recovery, and profits from joint venture projects, as well as revenue from private share issuances.

In terms of tax debt, NRC is working closely with tax authorities to negotiate a staggered payment schedule. The company intends to utilize the proceeds from the approved private share issuance to settle the entire amount of enforced tax debt.