Hanoi General Investment Joint Stock Company is located at Peakview Building, 36 Hoang Cau, Dong Da District, Hanoi - Photo: SHN Website
A business lends more than 10% of its total assets to an individual.
Specifically, the Board of Directors of Hanoi General Investment Joint Stock Company (SHN) has just approved a resolution to lend capital to Mr. Dao Xuan Long.
The total loan amount is expected to be up to 550 billion VND, the purpose of the loan is to serve the needs of business activities. According to the resolution, based on the actual capital needs, Mr. Long can receive the loan once or many times.
The repayment period is clearly stated in the resolution: Within 6 months from the loan date, maximum interest rate is 8%/year. Overdue interest rate is 150% according to the loan contract.
According to the financial report for the third quarter of this year, SHN had a bank deposit of more than 209 billion VND at the end of September 2024. In total, the total assets of this enterprise amounted to 4,423 billion VND.
SHN did not disclose additional information about the borrower, but it can be seen that the limit SHN lent to Mr. Dao Xuan Long was 2.6 times the amount of cash deposited in the bank and equal to nearly 12.5% of total assets at the end of September this year.
The SHN Board of Directors also assigns and authorizes the General Director to decide on the loan timing, specific loan interest rates and other contents, and is responsible for loan recovery...
Currently, the Chairman of the Board of Directors of SHN is Mr. Hoang Trong Diem, the General Director is Mr. Vu Thang.
What is SHN's potential?
According to the 2023 annual report, SHN has a charter capital of VND 1,296 billion, with its head office located at Peakview Building, 36 Hoang Cau, Dong Da District, Hanoi.
Initially, this company was named Business Support Services and Investment Consulting Company Limited.
In 2007, the company changed its name to Inconess Hanoi Investment Joint Stock Company. In the same year, the company merged with Hoang Hai Long Trading Joint Stock Company and changed its name to Hanoi General Investment as it is now.
It should be added that SHN is a business related to the Geleximco ecosystem of tycoon Vu Van Tien.
According to information from the financial report, Geleximco Hoa Binh Company Limited is an affiliated company of SHN. Geleximco Hoa Binh has a charter capital of 135 billion VND, SHN contributed 40.5 billion VND and the ownership and voting ratio is 30%.
Mr. Dao Manh Khang – brother-in-law of Mr. Vu Van Tien (Chairman of Geleximco Group) and Mr. Vu Van Hau – younger brother of Mr. Tien, both served as Chairman of SHN. In April 2022, Mr. Hau will end his term as Chairman of SHN.
Previously, after a period of increasing ownership ratio, in 2017, Mr. Tien successfully sold 5.3 million SHN shares, reducing his holding to 4.76% and is no longer a major shareholder.
SHN's fluctuating business situation - Data: Financial statements, TTO
In terms of business performance, 2015-2017 can be considered the golden period of this enterprise when after-tax profit was several hundred billion VND, then gradually decreased. By 2022 and 2023, SHN's after-tax profit was quite thin, only a few billion VND.
In a related development, the extraordinary general meeting of shareholders of this enterprise has just approved the adjustment of the business plan targets for 2024.
Accordingly, the total revenue according to the initial plan was 4,620 billion VND, after adjustment it was 3,798 billion VND. Profit after tax was also adjusted from 51 billion VND to 12 billion VND.
In terms of actual results, in the first 9 months of 2024, SHN achieved more than VND 2,565 billion in revenue, down 41% over the same period last year. However, after-tax profit still reached more than VND 9 billion, up 60%.
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