What did Danh Khoi say about the cause of the loss of 137 billion in 2024?

3 basic causes

According to the representative of Danh Khoi Group, there are 3 main reasons leading to the decline in profits during the period.

First, the real estate market is sluggish. Specifically, in 2024, the real estate market continues to face many difficulties due to fluctuations in macro policies, low liquidity and declining demand. This affects the company's sales progress, causing revenue to fall short of the set plan.

Second, the company has not met the conditions to recognize revenue from investment cooperation contracts. Due to difficulties in legal progress, the company has many investment cooperation contracts that have been and are in the process of implementation. However, because they have not met the conditions to recognize revenue according to accounting standards or have not reached the deadline for profit allocation, they cannot be accounted for in business results.

Finally, the company had to make additional provisions in the context of a sluggish market. The reason was that the company's partners were also having difficulty in payment, the company had to make provisions for some partners showing signs of slow payment or financial difficulties, leading to increased business management costs.

According to NRC representative, the main reason is that the real estate market has not improved, sales have not met expectations and the company has not met the conditions to record revenue from investment cooperation contracts.

“ However, the company believes that with the market recovery, partners will be able to make payments, and the company will reverse these provisions into the company's income, ” said Mr. Nguyen Huy Cuong, General Director of NRC.

Specifically, according to Mr. Nguyen Huy Cuong, starting from the first quarter of 2025, along with signs of recovery in the real estate market, Danh Khoi is also taking promising steps towards recovery. In the immediate future, the company will speed up negotiations with lenders and bondholders to restructure principal and interest debts that have come due and will come due in the short term.

At the same time, speed up the collection of money from loans, exclusive brokerage contract deposits, principal and profit sharing from business cooperation contracts. In addition, liquidate the contract for the sale and purchase of the commercial area of ​​the Saigon Metro Mall project with Saigon 5 Real Estate Development Joint Stock Company and collect money for reinvestment and payment of debts that are due and will be due in the short term, make efforts to work with the tax authorities on tax payment progress and remove tax enforcement...

“The company also received commitment of support from the Board of Directors and major shareholders to ensure continuous operations in the coming time...”, said the CEO of NRC.

Expand your business

Also according to the NRC representative, in the context of the difficult real estate market, this enterprise has decided to expand its operations into the high-tech agricultural sector through strategic cooperation with three potential agricultural enterprises.

Specifically, on March 21, 2025, NRC held a strategic cooperation signing ceremony with three partners: Vien Phu Trading and Production Company Limited, a unit that owns a large organic agricultural growing area (more than 300 hectares) in the Mekong Delta that meets EU and USDA standards and a system of diverse organic agricultural products certified for export standards to international markets; Ea H'leo Forestry Two-Member Company Limited and Buon Ja Wam Forestry Company Limited. These two units own large growing areas (nearly 8,000 hectares and 4,000 hectares) in the Central Highlands region, which are favorable for developing medicinal resources, industrial crops and high-tech agriculture, and participating in green economic activities.

According to Mr. Nguyen Huy Cuong - General Director of NRC, this cooperation aims to effectively promote the advantages and potential of a real estate development corporation with many large projects being implemented in localities in the country.

“ NRC is gradually realizing the orientation of developing a sustainable ecosystem through expanding operations in potential fields such as high-tech agriculture, pharmaceuticals , medical and healthcare products... This event marks an important premise in NRC's sustainable development strategy in the field of high-tech agriculture ...”, shared the General Director of NRC.

According to Mr. Nguyen Huy Cuong, this cooperation not only affirms NRC's commitment to sustainable development but also contributes to enhancing the position of the companies in the agricultural economic development strategy of the locality and Vietnam.

"We believe that this strategic cooperation will bring practical benefits to all parties. NRC and its partners will together create outstanding values, contributing to promoting the sustainable development of the agricultural sector and the economy," said NRC CEO.

Along with expanding its business activities, in the core field of real estate, NRC also focuses on building a high-quality human resource team. At the same time, it focuses on developing a variety of product types such as resort real estate, housing and industrial parks.

Through mergers and acquisitions (M&A), NRC has acquired many strategically located land funds, which have been quickly invested and developed. For example, the Ky Co Gateway project (Binh Dinh), The Welltone Luxury Residence (Khanh Hoa)...

According to the NRC representative, in order to optimize operational efficiency, the unit has also implemented a digital transformation program, applying an enterprise resource planning (ERP) system to improve management and operations. This helps businesses improve control, reduce costs and increase interaction with customers.

Advance Room

Source: https://congthuong.vn/danh-khoi-noi-gi-ve-nguyen-nhan-lo-137-ty-nam-2024-380930.html