Sovico Group's semi-annual financial report for 2024 shows that equity at the end of June 2024 jumped to VND70,049 billion, an increase of nearly 38% over the same period last year.
Ms. Nguyen Thi Phuong Thao, Chairwoman and General Director of Sovico Group - Photo: VGP
With a huge debt, Sovico Group once said "no bank loans"
Sovico Group Joint Stock Company (Sovico Group) - a multi-industry business enterprise chaired by billionaire Nguyen Thi Phuong Thao - has activities ranging from banking and finance, aviation, digital transformation, energy to urban development, resorts...
According to Sovico's report, in the first half of 2024, the group recorded after-tax profit of more than VND 1,799 billion, an increase of 16% over the same period in 2023.
Previously, in 2023, Sovico's reported after-tax profit reached VND1,406 billion, down 66% compared to 2022.
Sovico Group's growth last year was largely contributed by Sovico Holdings. In the first 6 months of 2024, Sovico Holdings reported a profit after tax of VND654 billion, up 31% over the same period.
Notably, Ms. Thao's group recorded a sharp increase in equity of nearly 38% after one year, from more than VND 50,789 billion to VND 70,049 billion as of June 30, 2024.
Data: Sovico Group's basic financial statements
Increasing equity will reduce pressure on the debt/equity ratio. Accordingly, Sovico Group's debt/equity ratio has decreased from 2.15 times to 1.69 times, but in fact, the absolute value has increased from over VND 109,000 billion to over VND 118,300 billion.
According to Sovico Group's affirmation in a statement on 2023 business results, the group "does not borrow from banks", other payables mainly include debts to shareholders and payments to partners corresponding to receivables.
Sovico Group's report also said that total assets by the end of 2023 reached VND187,408 billion. Cash and cash equivalents (including available-for-sale securities) by the end of 2023 were VND4,814 billion.
Previously, the increase in the asset size of billionaire Thao's enterprise was recorded from the end of 2022 when merging business, finance, insurance, aviation, and urban development activities that had been held by Sovico Holdings for many years.
Many units in the Sovico ecosystem increase bond debt
According to information from the Hanoi Stock Exchange (HNX), Vietjet Aviation Joint Stock Company has successfully issued a bond lot coded VJCH2429007 worth VND 2,000 billion on the last day of 2024, with an interest rate of 11%/year. With a term of 60 months, this bond lot will mature at the end of 2029.
The report on some basic financial indicators in the 3 consecutive years before the year of Vietjet Air's bond issuance shows that in the first 6 months of 2024, the company recorded 20,300 billion VND in debt from bond issuance (not including outstanding bonds issued in the second half of 2024). This figure has increased significantly compared to the level of more than 8,373 billion VND in 2021. In addition to bonds, Vietjet Air has bank loans and other payable debts.
Therefore, the debt/equity ratio of this low-cost airline also gradually increased from 1.26 times (2021) to 3.07 times in the second half of 2024.
HDBank, along with HDBank Debt Trading and Asset Management Joint Stock Company or Sovico Holdings... are also familiar names in the bond market.
According to MBS's statistics, among the banks with the largest bond issuance value in 2024 is HDBank with more than VND 30,900 billion, interest rates of 4.8% - 7.47%.
According to information from HNX, HDBank Debt Trading and Asset Management Joint Stock Company has just successfully issued a bond lot of VND 2,000 billion on December 31, 2024, with an interest rate of 11%. Previously, the company's 2024 semi-annual report also showed that the outstanding bond balance was nearly VND 1,700 billion.
At Sovico Holdings, the 2024 semi-annual report stated that the company's equity as of June 30, 2024 was VND10,733 billion, with debt/equity ratio of 0.74 times. Sovico is also a founding shareholder of Vietjet Air.
Source: https://tuoitre.vn/von-chu-tang-vot-vi-sao-tap-doan-sovico-tung-noi-khong-vay-ngan-hang-nhung-lai-no-lon-20250107185611712.htm
Comment (0)