“Hải Phát Invest” Faces Pressure to Repay Debts Worth Nearly 4.71 Trillion VND
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Hải Phát Invest, a prominent company in the finance and real estate industry, is currently facing significant challenges in completing several ongoing projects. As a result, the company is under immense pressure to repay debts amounting to nearly 4.71 trillion VND.
Positive Financial Performance in 2023
In 2023, Hải Phát Invest recorded a net profit of approximately 135 billion VND, a significant improvement compared to the loss of nearly 60 billion VND in the previous year. The company’s total revenue reached over 1,680 billion VND, showing an impressive growth rate of 38.8% compared to the previous year.
Project Delays and Cost Overruns
However, the company is currently facing challenges related to unfinished projects, leading to significant cost overruns. As of December 31, 2023, the unfinished business operations costs amounted to 2,347 billion VND, accounting for nearly 80% of the value of inventory, which stands at 2,980 billion VND.
Among the unfinished projects, the costs incurred include 200 billion VND for the Tuy Hoà project in Phú Yên, 345 billion VND for the Đề Thám New Urban Area project in Cao Bằng, 558 billion VND for the South Urban Area project in Bắc Giang, 365 billion VND for the Phú Hải project in Bình Thuận, and 732 billion VND for the Commercial Housing project in Lào Cai.
Acquisition of Đảo Ngọc Xanh Project
In December 2023, Hải Phát Invest successfully completed the acquisition of the Đảo Ngọc Xanh project in Hoà Bình, valued at over 404 billion VND. The project covers an area of more than 35 hectares and includes 450 villas and a 7-storey high-rise hotel.
Seeking New Opportunities
Hải Phát Invest is actively seeking new projects to enhance its portfolio. According to the company’s annual report for 2023, they are exploring opportunities such as the Mường Thanh Airport Urban Area – Pedestrian Street project and the Northwest Urban Area project in Điện Biên Phủ. Additionally, the company is seeking investors for capital transfers in its subsidiary companies.
Project Updates
Hải Phát Invest has provided updates on the progress of its projects. The Cao Bằng project has completed 95% of technical infrastructure, building construction, and landscape development on a 1.4-hectare area. The low-rise construction has undergone acceptance testing, while the high-rise phase is yet to be implemented.
The Bắc Giang project has completed acceptance testing and is ready for handover with 72 out of 117 low-rise houses. The Mai Pha – Lạng Sơn project has cleared 5 hectares of land and is temporarily paused due to adjustments in land use planning.
The Lào Cai project has received investment approval and is eligible for sales.
The Vinaconex Hải Yên 1 and 2 projects have essentially completed the transfer of land plots and are currently undertaking procedures to transfer part of the project from Vinaconex. Adjustments in the design of shophouse infrastructure are being finalized.
Challenging Revenue Targets
According to the company’s planned agenda for the next shareholders’ meeting, it is expected that in the fourth quarter of 2023, the wholesale sale of products from the Hải Yên project will be completed. If all contracts are executed, the company anticipates revenue of over 2,500 billion VND and a post-tax profit of approximately 120 billion VND. However, due to customers’ delay in completing the credit allocation procedures from financial institutions, the company was unable to meet its revenue and profit targets in 2023 as planned.
Future Outlook
Hải Phát Invest is scheduled to hold its annual shareholders’ meeting on April 26th. In 2024, the company aims to achieve a revenue target of 2,800 billion VND and a post-tax profit of 105 billion VND. The expected dividend distribution ratio for the parent company is 5%.
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