Pumping trillions of bond loans into real estate projects, Khang Dien has just had to dissolve 2 subsidiaries.
The Board of Directors of Khang Dien Housing Investment and Trading JSC (Code: KDH) has just passed a resolution to dissolve two subsidiaries in the real estate sector, namely Nguyen Thu Real Estate Development JSC and Lien Minh Real Estate Investment and Trading LLC. Both of these units are subsidiaries and Khang Dien owns 99% of the charter capital.
It is worth mentioning that the two subsidiaries that have just been dissolved operate in the real estate sector, Khang Dien’s main business. The company also borrowed thousands of billions of dong in bonds to invest in its real estate projects before.
Khang Dien (KDH) continued to have negative cash flow of another 1,000 billion in the first quarter, the company just had to dissolve 2 subsidiaries. (Photo TL)
In a previous report, Khang Dien announced the capital usage situation for the bond lot KDHH2125001 worth 400 billion VND and KDHH2225001 worth 800 billion VND.
Of which, the KDHH2125001 bond lot was issued in June 2021 with a value of 400 billion VND. Up to now, Khang Dien House has bought back 100 bonds before maturity and has 300 bonds remaining, equivalent to a value of 300 billion VND. The total amount of Khang Dien House bonds remaining in these 2 lots is 1,100 billion VND.
Regarding disbursement progress, according to Khang Dien, the KDHH2125001 bond lot worth 400 billion VND is used according to the structure: 240 billion VND to increase capital for Vi La JSC, 160 billion VND for Binh Trung Real Estate Investment and Trading Company Limited to borrow.
Binh Trung Real Estate was established in 2014, is the investor of the Clarita project in Thu Duc City, Ho Chi Minh City. The project is planned on a total area of 5.8 hectares and is expected to expand, including two types of products: villas and townhouses.
Profit "evaporated" by 1/3, first quarter business cash flow is negative by another 1,000 billion VND
Khang Dien's business situation in 2022 was a much-discussed story when the company only recorded revenue of VND 2,912 billion, down 22% compared to the previous year. The year's profit also only reached VND 1,082 billion, down 10% compared to the same period.
Entering the first quarter of 2023, Khang Dien continued to record a sharp decline in revenue, bringing in only 425 billion VND, although higher than the same period, it also decreased by 2/3 compared to the previous quarter.
Regarding after-tax profit, Khang Dien brought in 201 billion VND in profit in the first quarter, down 1/3 compared to the same period last year.
At the end of the first quarter of 2023, Khang Dien's total assets reached VND 20,747 billion. Most of which were short-term assets, accounting for VND 19,721 billion.
The inventory in Khang Dien's assets accounts for 12,656 billion VND, most of which are real estate projects under construction. Specifically, the largest inventory project is Tan Tao Ward Residential Area - Khang Phuc with 5,405 billion VND. Following is the Doan Nguyen - Binh Trung Dong project with 3,300 billion VND, the Binh Trung - Binh Trung Dong project also has an inventory of up to 1,134 billion VND.
In addition, Khang Dien also recorded other short-term receivables of VND2,199 billion along with short-term prepayments to sellers of up to VND2,909 billion. These are all assets in the form of receivables and have only been recorded "on paper".
One issue that continues to appear in Khang Dien’s periodic financial reports is negative operating cash flow. In recent quarters, Khang Dien has continuously recorded negative cash flow ranging from several hundred billion to thousands of billions of VND.
In the first quarter of this year, Khang Dien's net cash flow from business operations was negative VND1,017 billion. This shows that the company is facing a huge problem in managing cash flow for business operations.
Source
Comment (0)