Bamboo Capital's subsidiary is forced to pay taxes and stop customs procedures

The Investment Goods Customs Branch under the Ho Chi Minh City Customs Department has just issued a decision to enforce by stopping customs procedures for import and export goods of BCG Land Joint Stock Company.

The tax authority said the company owed tax more than 90 days after the deadline for payment as prescribed, so it had to enforce the payment of nearly VND32 billion. The decision is effective for one year (from September 20) and will expire when the company pays the full amount of tax debt to the budget.

Southern real estate "boss"

BCG Land was established in 2008 and is a key member of the real estate sector of the multi-industry group Bamboo Capital (Code: BCG). This subsidiary is developing projects from high-end to luxury in prime locations in Ho Chi Minh City and some other potential areas.

The company increased its capital very quickly in the period 2018-2022 from 600 billion to 4,600 billion VND as present. Currently, Bamboo Capital is the parent company holding 62.1% of capital and Tracodi Company owns 9.43% of shares, the rest belongs to other small shareholders.

Over the years, BCG Land has cooperated and developed many outstanding large projects such as King Crown Village, King Crown Infinity (Thu Duc City, Ho Chi Minh City), Malibu Hoi An or Hoian d'Or (Hoi An, Quang Nam), Casa Marina Mui Ne (Phan Thiet, Binh Thuan ).

In the near future, the company plans to invest in new projects such as Phoenix Mountain (Binh Dinh), Helios Village (Dak Nong), Hoi An Legacy ( Quang Nam ), My Khe Marina Bay (Quang Ngai), King Crown Village phase 2, Cat Trinh industrial park (Binh Dinh)...

Regarding business activities, in 2022, BCG Land reported a 160% increase in revenue to VND1,132 billion thanks to the handover of the King Crown Village project and part of Malibu Hoi An. However, the profit after tax target decreased sharply by 52% to VND316 billion due to the decline in the real estate industry.

In 2023, this real estate company aims to triple its revenue to VND3,583 billion when it plans to hand over the entire shophouse area and part of the villa area of the Malibu Hoi An project, along with the remaining part of the shophouse subdivision of the Hoian d'Or project. The similar profit target is double that of the previous year, reaching VND685 billion.

Total assets were recorded at nearly VND11,600 billion, mainly in short-term and long-term receivables and inventories. Total financial debt at the end of last year was VND2,867 billion (mainly bonds worth VND2,500 billion), accounting for about 25% of the company's total capital.

At the end of 2021, the prepayment item recorded VND 247 billion. However, the figure by the end of 2022 increased sharply to VND 919 billion and by June 30, 2023 reached VND 1,716 billion. This is considered a "reserve" when the business completes the handover to customers, it will immediately convert into revenue.

Request for bond debt extension

Bond debt is one of the pressures weighing on BCG Land's operations in the context of many fluctuations in the financial market. The company currently has a bond lot of VND 2,500 billion issued at the end of March 2021 with a term of 36 months (i.e. maturing in March 2024).

This capital raising activity aims to cooperate in investing and developing a real estate project in Binh Tan District (HCMC). The bond is secured by shares owned by a third party in the company that owns the above project, as well as land use rights and all revenue arising from the project.

Bonds are paid interest every 3 months. The first four interest periods are subject to a fixed rate of 11%/year, the following interest periods are calculated by the sum of the reference interest rate (12-month deposit interest rate at TPBank ) plus a margin of 4%/year but in no case lower than 11%/year.

However, similar to the cash flow difficulties of parent group Bamboo Capital, BCG Land recently announced that it has completed consulting with bondholders on adjusting the maturity of the above VND2,500 billion bond lot.

Accordingly, investors have approved the plan to adjust the maturity from 36 months to 60 months; which means that the maturity date of the bond lot will be extended to March 31, 2026. All remaining contents of the bond lot remain unchanged.

Bamboo Capital's subsidiary also plans to list its shares on the stock exchange. The Vietnam Securities Depository (VSDC) has granted the first securities registration certificate to BCG Land, giving it the stock code BCR.

Time to receive securities depository from August 23. BCG Land leaders plan to list 460 million BCR shares on UPCoM in the last quarter of this year.

A series of high-level personnel changes at Loc Troi, PNJ, Bamboo Capital, Sasco Many large enterprises in the fields of retail, agriculture, aviation, and real estate have just had important changes in senior leadership positions.

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