Business Today: Golf Tycoon’s Resort Project Reports Profit Despite High Debt
Introduction
In a recent financial report, the company known as KN Cam Ranh, owned by the golf tycoon Le Van Kiem, announced a profit of over 170 billion VND ($7.3 million) for the year 2023. However, the company also revealed a significant debt of nearly 1 billion USD.
Financial Overview
As of December 31, 2023, KN Cam Ranh had a total equity of 7.819 trillion VND ($337 million), a 15% increase compared to the previous year. However, their outstanding debts amounted to 23.926 trillion VND ($1 billion), which is three times their equity. The company’s total assets reached 31.745 trillion VND ($1.4 billion), representing a 16% increase from the beginning of the year.
Bonds Issuance and Debt
In 2021, KN Cam Ranh issued two series of bonds with a total value of around 2 trillion VND ($86 million). By the end of 2023, the remaining bond debt stood at 1.4 trillion VND ($60 million).
KN Paradise Resort Project
KN Cam Ranh is the investor behind the KN Paradise project, an expansive 794.5-hectare resort development located in Bai Dai, Cam Ranh, Khanh Hoa province. The project features a 27-hole golf course, 3,292 shophouses, 900 villas, 5,049 townhouses, 23,335 condotels, and 12 four to five-star hotels and spa resorts. The total investment for this project amounts to 46.266 trillion VND ($2 billion).
Ownership and Capital
Established in 2015, KN Cam Ranh is currently led by Ms. Tran Cam Nhung as the legal representative and Chairperson of the Board of Directors. As of April 2023, the company’s charter capital increased from 7 trillion VND to 7.9 trillion VND ($339 million). Investment and Business Golf Long Thanh Joint Stock Company holds a 90% stake, with Le Van Kiem holding the remaining shares.
KN Investment Group
Both KN Cam Ranh and Golf Long Thanh Joint Stock Company are part of the KN Investment Group ecosystem, owned by the Le Van Kiem family. This group is renowned for its diverse business activities in real estate, infrastructure construction, resort tourism, and renewable energy.
Golf Long Thanh and Other Projects
Golf Long Thanh, known for being one of the largest golf courses in the country, is the developer of the Long Thanh Urban Area, Golf Course, Sports, and Ecotourism project in Bien Hoa, Dong Nai province, covering over 333 hectares. They also have another project called the Long Thanh Ecotourism Urban Area in Long Thanh district, which spans 843 hectares.
Golf Long Thanh has also invested in a 5-star hotel, luxury villas, and a golf course in Vientiane, Laos, covering nearly 560 hectares. In 2021, this project was transformed into the Long Thanh – Vientiane Economic Zone, with a total investment of over 1 billion USD and a 99-year land lease.
The company is also active in the renewable energy sector. During the 2019-2020 period, Golf Long Thanh successfully operated the KN Cam Lam and Cam Lam VN solar power plants, with a combined capacity of 200 MW, as well as the KN Van Ninh solar power plant.