Thai Nguyen International Hospital (TNH) must extend debt payment to leaders for another year

Thai Nguyen International Hospital (TNH) extends debt with Board of Directors members

The Board of Directors of Thai Nguyen International Hospital JSC (TNH) has just approved the extension of the VND92 billion loan from the members of the company's Board of Directors. The reason given is to give the company more time to issue shares and arrange capital to repay the debt.

This loan has a term of 12 months from August 29, 2022. Thus, the above debt should have matured from August 2023. The Company had agreed to extend it until May 31, 2024 and was further extended until December 31, 2024.

Can't arrange payment for Thai Nguyen International Hospital leader, must delay payment for another year, picture 1 — Thai Nguyen International Hospital (TNH) has not been able to arrange money to pay off debt to leaders, must extend debt payment for another year (Photo TL)

The debt on capital is a loan from the members of the Board of Directors of Thai Nguyen International Hospital, without collateral, the loan interest rate is equal to the 12-month term deposit interest rate at the bank.

The list of members of the Board of Directors who lent money to TNH includes: Mr. Hoang Tuyen, Chairman of the Board of Directors - Chairman (35.6 billion VND); Mr. Le Xuan Tan, General Director - Vice Chairman of the Board of Directors (11.4 billion VND); Mr. Nguyen Van Thuy - Member of the Board of Directors and Deputy General Director (35 billion VND); Mr. Nguyen Xuan Don - Member of the Board of Directors (10 billion VND).

Issue 15.2 million new shares to raise money to pay off debt to leaders

In addition to extending debt repayments to members of the Board of Directors, Thai Nguyen International Hospital is also planning to offer shares to existing shareholders. According to this plan, in 2024, TNH will sell 15.2 million shares at VND10,000/share to shareholders, expected to collect VND152 billion.

The proceeds will be used to pay off the debt of VND92 billion to the members of the Board of Directors. In addition, VND40 billion will be used to supplement working capital and the remaining VND20 billion will be used to pay off debts to other credit institutions.

In early January, TNH also announced the distribution of 14.4 million shares to pay dividends for 2022 to shareholders. The issuance has ended, bringing the total number of TNH shares outstanding on the market to 110.2 million shares.

Quarter 3 recorded extraordinary profits but still had to increase capital to pay off debt

One notable point is that TNH has just reported a sharp increase in profits in the third quarter of 2023, but this hospital still has to issue shares to raise money to pay off debt.

Specifically, in the Q3/2023 financial statements, TNH recorded net revenue of VND 186 billion, up 43% over the same period. Medical examination and treatment activities brought in 70% of revenue. Profit after tax reached VND 49 billion, up 11% over the same period.

By the end of the third quarter of 2023, TNH's accumulated net revenue reached VND 415 billion, profit after tax reached VND 111 billion, an increase of 13% over the same period last year. However, compared to the annual business target, TNH only barely met the plan and achieved 74% of the annual profit target.

At the end of the third quarter of 2023, the hospital's total assets reached VND 1,957 billion, an increase of VND 560 billion compared to the beginning of the year. The increase mainly came from the investment cost of building Viet Yen Hospital in Bac Giang .

In the hospital's capital structure, short-term debt accounts for 169.6 billion VND, long-term debt accounts for 171.1 billion VND. Owner's equity currently accounts for 1,579.1 billion VND. Notably, TNH recorded relatively good net cash flow from business activities, up to 122.6 billion VND. However, the hospital still has to come up with a plan to increase capital to get money to pay off debt to the leaders.

Source