A company in Ho Chi Minh City finalized a 2,500 billion VND loan from Him Lam: No revenue, only 10 employees left.

Investco (ING), a construction investment and development company, has agreed to borrow capital from Him Lam Joint Stock Company with a maximum limit of VND 2,520 billion and an interest rate of up to 12.1% per year.

Businesses facing difficulties in accessing bank loans will "adapt" to different approaches - Photo: QUANG DINH

How would Investco conduct its business if it wanted to borrow capital from Him Lam?

Investco Construction Investment and Development Joint Stock Company recently announced that its Board of Directors has issued a resolution to borrow capital from Him Lam Joint Stock Company.

This loan is intended to provide Investco with additional working capital for its investment and business operations. The real estate company also agreed to borrow a maximum of 2,520 billion VND at an interest rate of 12.1% per year.

The loan negotiation and signing process was authorized by Investco's legal representative, Mr. Pham Van Danh - the general director.

According to its 2023 annual report, Investco has a charter capital of 208 billion VND and its head office is located in Binh Thanh District, Ho Chi Minh City.

Initially, this company was a subsidiary of Hanoi Construction Corporation (HAN Corp). Investco was later privatized in 2005 with a charter capital of 35 billion VND.

Notably, the company's revenue for both 2022 and 2023 was "blank". This is because the company had completed the handover of projects eligible for handover to customers, such as Investco Babylon and Investco Dong Dieu. Therefore, no revenue was generated from these projects.

In addition, the company has one ongoing project: the Investco Green City residential area project in Binh Hung commune, Binh Chanh district, Ho Chi Minh City. This project is currently in the legal completion phase, so the company is not generating any revenue from it.

Another noteworthy point when looking at Investco's financial report is that while financial revenue is very large, financial expenses "erode" it all.

For example, in 2023, this company recorded financial revenue of 220 billion VND, but financial expenses exceeded 222 billion VND. As a result, the after-tax profit remained negative at 14 billion VND.

Similarly to 2022, Investco recorded a surge in financial income of 661 billion VND, but financial expenses also amounted to 661 billion VND.

According to the financial statement notes, the company's financial income mainly consists of interest on deposits and loans, while financial expenses are interest payments from business cooperation contracts.

Portrait of the "tycoon" who will lend Investco money.

Due to business losses, Investco's undistributed after-tax profit at the end of September this year amounted to 286 billion VND. This resulted in the company's equity being negative 26 billion VND.

The report also shows that as of September 30, 2024, this real estate company in Ho Chi Minh City had only 10 employees left.

In terms of financial resources, Investco only has approximately 1.9 billion VND accounted for under cash and cash equivalents. The majority of assets are in the long-term work-in-progress category, totaling 2,535 billion VND.

Securing funding from Him Lam and the ability to sell off unfinished projects will be crucial factors for this company's recovery.

As for Him Lam Joint Stock Company, this real estate enterprise was once a familiar name in the real estate market, led by Mr. Duong Cong Minh. Currently, Mr. Minh no longer holds the position of Chairman of the Board of Directors of this company.

On its website, Him Lam introduces its predecessor as Him Lam Trading Company Limited, established in 1994 in Ho Chi Minh City.

In 2008, Him Lam transformed its business structure from a limited liability company to a joint-stock company to expand its business development opportunities.

In 2010, Him Lam increased its charter capital to VND 6,500 billion, a 21,000-fold increase compared to its initial capital of VND 100 billion.

Currently, the company claims to have a registered capital of 10,000 billion VND, its headquarters in Binh Thanh District, Ho Chi Minh City, and its Hanoi branch located in the Long Bien building, Long Bien Golf Course, Hanoi. Its core workforce numbers up to 4,500 people.

Source: https://tuoitre.vn/mot-cong-ty-o-tp-hcm-chot-vay-2-500-ti-tu-him-lam-khong-doanh-thu-con-10-nhan-vien-20241225213531155.htm