The company of the 'Beer Street' tycoon lost more than 100 billion in 2 years

Duong Man Joint Stock Company has just announced the financial situation of the enterprise and the payment of interest and principal of bonds to the Hanoi Stock Exchange (HNX). In particular, the financial report provided by Duong Man is for the fiscal year 2021, along with information disclosure on the late payment of bond interest arising in the same year.

Specifically, according to this report, Duong Man said that the company's business activities in the period of 2020-2021 were all in a state of loss. In particular, the loss in 2020 of this enterprise was nearly 92 billion VND and in 2021, it lost an additional 51.5 billion VND. In total, in the 2 years of announcing the above financial information, Duong Man lost nearly 144 billion VND.

With the above loss, the equity of this malt beer producer also decreased from nearly VND 210 billion in 2020 to VND 158.3 billion in 2021.

As of the end of 2021, Duong Man's debt/equity ratio was 8.42 times, equivalent to the company's debt of about VND 1,332 billion. Of which, the bond debt/equity ratio was 1.26 times, equivalent to the bond balance at the same time being nearly VND 200 billion.

The company of the 'Beer Street' tycoon lost more than a hundred billion in 2 years - 1 — Duong Man's financial situation in the period 2020-2021. (Source: HNX)

Notably, this is the bond balance with code DMBOND2017 issued by Duong Man on November 20, 2017, 7-year term (due November 2024), total issuance value of 200 billion VND.

At the time of issuance, the collateral for the bond lot was Duong Man's gold-plated chain system with a total value of nearly VND160 billion. However, the guarantee obligation was changed in 2018 with the assets being machinery, equipment, means of transport and office equipment.

Also related to this bond lot, Duong Man said that the company was late in paying interest in the payment period of November 30, 2021. The total amount to be paid was nearly VND 5.5 billion, but it was not until December 9 of the same year that the company was able to pay the bondholders and only now announced the information to HNX. The reason for the late payment was that the company had not arranged enough money to pay as planned.

Duong Man Joint Stock Company is a member of Hoa Binh Company Limited ( Hoa Binh Group), with a charter capital of 277 billion VND since the end of 2014 and introduces itself as a business supplying beer malt to beer factories, including Sabeco.

Regarding the shareholder structure, Duong Man's largest shareholder is Mr. Nguyen Huu Duong - the "Duong Bia" tycoon - contributing 244 billion VND, equivalent to 88% of the company's charter capital.

Since September 2021, the "Beer Road" tycoon has transferred the position of Chairman of the Board of Directors and Legal Representative of the company to Mr. Tran Minh Thong.

In addition to Duong Man Joint Stock Company, Mr. Nguyen Huu Duong currently owns 47.7% of capital at Hoa Binh Group, and is also the largest shareholder of this company. At the same time, this tycoon also holds 70% of capital at Hoa Binh Social Housing Investment and Construction Joint Stock Company (Hoa Binh Social House); owner of the gold-plated hotel Dolce by Wyndham Hanoi Golden Lake...

Recently, the Hanoi People's Committee has decided to approve the investment policy and the investor for the Vinh Hung high-rise social housing project. The project belongs to two units: Vinh Hung Real Estate Investment and Trading Company and Hoa Binh Company Limited, both owned by the "Beer Road" tycoon.

The project has a total investment capital of about 1,183.4 billion VND, built at No. 4-6-8, Lane 321, Vinh Hung Street, Thanh Tri Ward, Hoang Mai. The land use scale of the project is about 4,516 m2 with a height of 31 floors. The project implementation progress will last from the second quarter of 2023 to the fourth quarter of 2025.

(Source: Zing News)

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