LDG is unable to repay the matured principal amount of VND 186.4 billion and 11 interest payments due in 2023 (totalling over VND 27 billion). The company attributes this to prolonged economic difficulties and is working with partners to restructure its assets and cash flow. LDG states that negotiations with bondholders regarding the aforementioned repayment plan are ongoing.
The bond issue, launched on December 10, 2021, had an initial value of VND 400 billion, a 24-month term, and an interest rate of 11.5%/year for the first 12 months, followed by 12% for the remaining period. The purpose of this issuance was to boost the company’s operating capital.
To reduce the outstanding value to the current VND 186.4 billion, LDG repurchased VND 33.6 billion of the bonds ahead of schedule in December 2022 and offset VND 180 billion against receivables from Ba Minh Chau Real Estate JSC.
Despite ambitious business plans and the return of former chairman Nguyen Khanh Hung, LDG incurred a net loss of nearly VND 54 billion in the first half of 2025.
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LDG’s Q2 and six-month financial results for 2025 in VND billion
Source: VietstockFinance
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On a positive note, the company no longer faced negative revenue from returned sales, achieving a gross revenue of nearly VND 81 billion in the first six months, entirely from real estate transfers.
However, with a gross profit of over VND 60 billion, LDG was unable to cover its financial expenses (nearly VND 51 billion) and management expenses (over VND 59 billion), despite a 42% and 57% reduction in these costs compared to the previous year, respectively.
As of June 30, 2025, LDG‘s balance sheet showed total assets of over VND 6,200 billion, unchanged from the beginning of the year. Significant items such as short-term receivables and inventory also remained largely stable, reaching over VND 2,300 billion and VND 914 billion, respectively.
Meanwhile, payables increased by 3% to nearly VND 5,100 billion, mainly due to a 26% rise in customer prepayments to over VND 581 billion. In contrast, loan balances decreased by 27% to over VND 786 billion.
In addition to the aforementioned bond debt, LDG also has overdue payments (principal and interest) of nearly VND 213 billion at VPBank and over VND 52 billion at SeaBank.
– 08:47 02/08/2025
