An apartment project invested by Hancorp in Hanoi - Photo: HC
Risk of losing state capital
The Inspectorate of the Ministry of Finance has just issued a conclusion on the financial inspection at Hanoi Construction Corporation - JSC, according to which in the fiscal year 2023, this enterprise invested financially in 37 subsidiaries and associated companies, many of which were at risk of losing capital.
According to the audited financial report for 2023, Hancorp has total assets and capital of more than 6,770 billion VND, of which the owner's capital contribution at the parent company is about 1,410 billion VND.
As of the end of fiscal year 2023, the Ministry of Construction still holds 98.83% of equity capital at parent company Hancorp, equivalent to about VND 1,393 billion.
The conclusion of the financial inspection at Hancorp shows that despite owning thousands of billions of VND in state assets and holding many advantages in land, the business profits of this state "giant" in 2023 are quite modest, only reaching about 44.6 billion VND.
The Inspectorate of the Ministry of Finance concluded that at the time of inspection, the parent company Hancorp invested capital in 37 subsidiaries, joint ventures and associates, with a total amount of more than VND 992 billion.
Of which, Hancorp invested in 7 subsidiaries about 192 billion VND, 13 joint ventures and associates over 344 billion VND and long-term investment in 17 other companies about 455 billion VND.
Regarding the effectiveness of financial investment in Hancorp's subsidiaries, joint ventures and associates, the Ministry of Finance Inspectorate said that there were 23 profitable companies in fiscal year 2023.
Of these 23 companies, 5 had accumulated losses, including: Hancorp Construction Materials and Equipment JSC lost 17 billion VND, Ho Tay International LLC lost more than 140 billion VND, Phu My Construction Investment JSC lost more than 187 billion VND, PT Gas Urban Investment JSC lost 32 billion VND...
In addition, 4 companies invested by Hancorp have stopped operating, 8 companies are operating at a loss, leading to the need to set aside provisions.
Hancorp headquarters on Quang Trung street, Hanoi - Photo: HC
Many investments are not effective.
Some of Hancorp's investments before equitization as of the end of fiscal year 2023 were ineffective. These were investments in: Hancorp 2 Construction Joint Stock Company, Mechanical and Construction Joint Stock Company, Hung Loi Hydropower Joint Stock Company, Sahabak Joint Stock Company, Bac Ha Noi Urban Development Joint Stock Company, BOT Ground Electric Vehicle Joint Stock Company No. 1.
Regarding the value of Hancorp's real estate investment at the time of inspection at the end of 2023, it was more than 426 billion VND, of which the parent company invested about 350 billion VND, Hancorp Urban Services Joint Stock Company invested about 9 billion VND, and Hanoi Construction Joint Stock Company No. 1 invested about 66 billion VND.
The parent company Hancorp also invested in 4 land lots in Bai No resettlement area, Co Loa commune, Dong Anh district, Hanoi. These land lots only have decisions on land use principles, transfer contracts signed by both parties but no land allocation decisions or construction permits.
Four out of four inspected units under Hancorp had overdue receivables of more than VND475 billion, forcing the corporation to set aside more than VND151 billion in provisions, affecting the efficiency of management and capital use of the enterprise.
The inspection also discovered that two units under Hancorp had incorrectly accounted for increased costs of more than VND24 billion, requiring Hancorp to pay an additional VND7 billion in corporate income tax.
Inspectorate requests capital recovery to avoid loss of state assets
According to the Inspectorate of the Ministry of Finance, the responsibility for the violations lies with the leaders of Hancorp Corporation and the leaders of its member units.
The Ministry of Finance Inspectorate requested Hancorp to divest capital in 4 land lots that it had invested in but could not implement the project because the land lots were part of the planning for the Co Loa Conservation Relic Area.
At the same time, Hancorp is required to review and evaluate financial investments in ineffective businesses and develop specific plans to overcome the businesses' financial difficulties.
Handling divestment, adjusting investment structure, recovering capital for ineffective investments, long-term accumulated losses, ensuring the principle of capital preservation and development, avoiding loss of capital and state assets.
The inspection agency also requested Hancorp to direct the reconciliation of receivables and payables in full, evaluate and analyze debt repayment capacity, debt recovery, prevent further bad debts from arising, and take measures to recover more than VND 475 billion in bad debts.
Source: https://tuoitre.vn/hancorp-om-ngan-ti-von-nha-nuoc-dau-tu-vao-hang-chuc-cong-ty-thua-lo-20250319095531046.htm
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