A real estate company 'paralyzed' for two years due to lack of money

Mr. Bui Van Phu - Chairman of the Board of Directors of PVR Hanoi - said "the company does not have the funds to maintain operations".

PVR Hanoi - the investor of the Ha Noi Time Tower project - had to stop operations due to running out of money - Photo: QUANG DINH

The Board of Directors of PVR Hanoi Investment Joint Stock Company has just decided to temporarily suspend business activities in the new year.

The period of temporary suspension of business operations will begin from January 1, 2025 to December 31, 2025.

Mr. Bui Van Phu - Chairman of the Board of Directors of PVR Hanoi - said the reason for the temporary suspension was because "the company does not have the funds to maintain operations".

The company needs to rearrange its personnel and seek new solutions and business directions to overcome the current difficult period, Mr. Phu said.

Along with the decision to temporarily suspend business, PVR Hanoi also agreed to terminate the operation of the transaction office location on To Huu Street, Ha Dong.

Last year, the company also temporarily suspended operations from November 15, 2023 to November 14, 2024. PVR's business situation is quite difficult, from 2022 to now, it has not recorded any revenue. The small profit comes from the reversal of provisions when investing in securities.

In the first 9 months of this year, PVR lost 1.4 billion VND because it did not record any revenue but still had to pay financial and sales management expenses. By the end of September 2024, PVR had an accumulated loss of more than 88.3 billion VND.

Previously, in PVR's 2023 financial report, the company also reported a loss of VND 6.5 billion. Notably, in this report, the independent auditor refused to give many audit opinions.

"Material misstatements that result in the auditor disclaiming an audit opinion," the auditor noted.

It is known that PVR is a real estate company, the investor of the Hanoi Time Tower project, also known as CT10-11 Van Phu (Ha Dong).

However, this project has been behind schedule for many years.

Source: https://tuoitre.vn/mot-cong-ty-bat-dong-san-hai-nam-te-liet-vi-het-tien-20241220164408898.htm