Hoan My hospital chain owner reports loss

Business

Wednesday, May 3, 2023 15:00 (GMT+7)
24 hours ago

After a year of reporting large profits, Hoan My Medical Joint Stock Company has just witnessed a negative after-tax profit of nearly 50 billion VND in 2022.

Hoan My Medical Joint Stock Company has just sent a document to the Hanoi Stock Exchange (HNX) with information about the company's financial situation in 2022.

Accordingly, Hoan My recorded a loss after tax of nearly 50 billion VND . While in 2021 - the peak of the Covid-19 pandemic, this enterprise had a profit of more than 285 billion VND .

The loss in 2022 caused equity to decrease slightly by VND 50 billion compared to the end of 2021, down to VND 1,388 billion , and the return on equity (ROE) also dropped to negative 3.6%, compared to nearly 20% in the same period.

Regarding liabilities, Hoan My has a total of more than VND 3,485 billion , an increase of about 7% compared to 2021. Therefore, the debt/equity ratio increased from 2.26 times at the end of 2021 to 2.51 times at the end of 2022.

Hoan My's bond debt to equity ratio also increased slightly from 1.6 times to 1.66 times in 2022.

Hoan My Medical Joint Stock Company was established in 2007 and is currently led by Ms. Nguyen Thi Chau Loan as General Director. This enterprise is operating Hoan My Saigon Hospital - the first private hospital in Vietnam and is currently the leading unit with nearly 3,000 beds in a chain of 15 hospitals and 6 clinics.

Initially, Hoan My Medical System was founded by Dr. Nguyen Huu Tung in 1997. After a period of over-investment with 6 hospitals in the provinces and cities, and completely depending on loans, Hoan My System was at risk of bankruptcy. That was also the time when VinaCapital appeared, opening up capital opportunities but also imposing the rules of the game to maximize profits.

VinaCapital needed a partner to invest in Hoan My, so they invited Duxton Asset Management Pte Ltd. of Deutsche Bank. The two funds invested $20 million and owned 44%.

After nearly 2 years, the parties began to have conflicts and decided to sell Hoan My to Fortis Healthcare (India) for 64 million USD for 65% of the shares. Thus, just 2 years later, VinaCapital earned 24 million USD from selling its shares in Hoan My to the Indian partner.

However, two years later, Fortis Healthcare decided to transfer 65% of Hoan My shares to Richard Chandler - an investment group based in Singapore, earning a profit of 16 million USD .

After being acquired by Richard Chandler (now Clermont Group), Hoan My continuously expanded its scale, actively buying and merging hospitals in many other provinces and cities into the system.

In 2018, Hoan My Medical raised VND2,330 billion in bonds with a fixed interest rate of 6.64% for a 5-year term and 6.74%/year for a 7-year term. These two lots are considered the first bond issuances in the healthcare sector.

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Lien Pham

Perfect Hospital Perfect Hospital Nguyen Huu Tung Richard Chandler