The company of "reclusive mountain tycoon" Le Phuoc Vu wants to do real estate again

Hoa Sen Group (stock code: HSG), chaired by Mr. Le Phuoc Vu, has just approved the establishment of Hoa Sen Saigon Joint Stock Company with a charter capital of 100 billion VND. Hoa Sen Group will own 40% of the charter capital, the remaining 60% will be held by other founding shareholders. Mr. Tran Ngoc Chu - Member of the Group's Board of Directors - will be the representative of the capital contribution in this real estate company.

The newly established company will operate in the real estate business, headquartered at 22-24 Nguyen Co Thach, Sala Urban Area (Thu Duc City, Ho Chi Minh City). This company will carry out the task of searching for real estate worth 1,000-3,000 billion VND to develop office - commercial center - housing projects; arrange offices for the group, lease or consider transferring if conditions are suitable.

The expected investment implementation time is January 2024. In case other shareholders of Hoa Sen Saigon have not arranged capital in time to invest in the projects, the group will advance funds or guarantee loans of shareholders at the bank. Shareholders are obliged to pay principal and interest (if advanced) or pay interest and costs related to the loan at the bank (if the group guarantees the loan).

Mr. Le Phuoc Vu - Chairman of Hoa Sen.

Hoa Sen Group once considered doing real estate in addition to its traditional steel and corrugated iron business, but it did not yield any results. In 2009, with the orientation of becoming a multi-industry corporation, Hoa Sen simultaneously invested in real estate with 4 apartment and office projects in Ho Chi Minh City. 2 years later, the group announced its withdrawal from the subsidiary business and focused on its core business.

By 2016, the group returned to this field by establishing 4 subsidiaries specializing in real estate investment including Hoa Sen Yen Bai , Hoa Sen Hoi Van, Hoa Sen Van Hoi and Hoa Sen Quy Nhon.

To date, 3 companies have been dissolved, leaving only Hoa Sen Yen Bai in operation. In February, Hoa Sen contributed an additional 81 billion VND to increase Hoa Sen Yen Bai's capital to 421 billion VND, used for production and business activities and project implementation.

During the 2021-2022 annual shareholders' meeting, Mr. Le Phuoc Vu - Chairman of Hoa Sen - said that he had taken refuge in the Three Jewels since mid-July 2020, lived in the mountains, returned once a month, and discussed work with Vice Chairman Tran Ngoc Chu every day. He announced that he would withdraw from the company in 2026, on the occasion of Hoa Sen's 25th anniversary, and then become a monk, living the celibate (pure, pure) life of a monk.

In the 2022-2023 fiscal year, Hoa Sen Group achieved revenue of more than VND 31,650 billion, down 36% compared to the previous fiscal year. Profit after tax was about VND 30 billion, down 88%.

Source: https://dantri.com.vn/kinh-doanh/cong-ty-cua-dai-gia-len-nui-o-an-le-phuoc-vu-lai-muon-lam-bat-dong-san-20231228072255862.htm