Continuously winning "huge" bids with "super low" savings rates
When it comes to bidding activities in Hoa Binh province, we cannot ignore the famous name Hoang Son Energy - Construction - Trade Investment Joint Stock Company (Hoang Son Company). According to the bidding data, Hoang Son Company has won more than 50 bid packages with a total value of up to 12,000 billion VND.
Of which, the total value of the bids won as an independent bidder is more than 2,000 billion VND, the total value of the bid packages participated in and won as a joint venture is more than 10,000 billion VND. Notably, according to the investigation of the Journalist & Public Opinion Newspaper, many bid packages won by this enterprise in Hoa Binh province have a "super low" budget savings rate.
Hoang Son Energy - Construction - Trade Investment Joint Stock Company has won more than 50 bid packages with a total value of up to 12,000 billion VND.
It is known that Hoang Son Company, formerly Hoang Son Company Limited, was established at the end of March 2001, operating in the field of construction and trade in Hoa Binh province. By 2007, the enterprise came into operation under the name Hoang Son Energy - Construction - Trade Investment Joint Stock Company, and at the same time developed an ecosystem with dozens of related companies.
Hoang Son Company is located at Group 01, Tan Thinh Ward, Hoa Binh City, Hoa Binh Province. The founding shareholders include Nguyen Cao Son, Nguyen Nam Chung, Pham Xuan Huy, Pham Van Huyen, Pham Anh Tuan, Tran Khac Dinh, Nguyen Thanh Thanh. In which, businessman Nguyen Cao Son is a familiar name in the business world.
Currently, the charter capital of Hoang Son Company is 680 billion VND and has had many fluctuations. Specifically, the enterprise is currently owned by Nguyen Thanh Thanh with 84.7% of capital; Nguyen Nam Chung owns 13.30% of capital; Pham Van Huyen and Tran Khac Dinh each own 1% of capital. Mr. Nguyen Nam Chung is currently the Director and legal representative.
Winning many big contracts, revenue increased sharply, but business is... bad?
Winning many “huge” contracts, it is not surprising that Hoang Son Company’s revenue is very large, up to hundreds of billions each year and tends to increase. From less than 500 billion VND in 2019, the company’s revenue increased to more than 800 billion VND last year. This is also the highest revenue in many years.
However, it is worth noting that the profit of this enterprise is very thin, only a few billion VND per year. In 2023, Hoang Son Company had the biggest profit in many years, but the after-tax profit was only over 3 billion VND, slightly up from 2.9 billion VND the previous year. The net profit margin was only 0.4%, equivalent to 1,000 VND of revenue being exchanged for nearly 4 VND of profit.
With thin profits, of course, the corporate income tax that Hoang Son Company contributes to the state budget is also very "low". The total corporate income tax in the past 5 years is estimated at only about 4 billion VND, while on average each day in 2023, this company collected more than 2 billion VND.
If you look at the scale, these numbers are even smaller. Continuously increasing year by year, the total assets of Hoang Son Company by the end of 2023 reached more than 2,700 billion VND, an increase of nearly 1,200 billion (equivalent to an increase of 80%) compared to the end of 2019. Most of the assets are financed by debt capital, although equity also continuously increases mainly due to increased charter capital.
By the end of 2023, Hoang Son Company's total liabilities amounted to more than VND2,000 billion, an increase of 62% compared to 4 years ago and 3 times the equity at the same time. Heavy debt may be one of the reasons why this enterprise's after-tax profit has been eroded in recent years.
Expanding into energy and real estate
In fact, the scale of Hoang Son Company has continuously expanded because in recent years, this enterprise has not been limited to the construction and installation sector but has expanded into the real estate and energy sectors. Specifically, in the energy sector, this enterprise is the owner of Suoi Nhap A Hydropower Plant (capacity of 4 MW) and Dong Chum 2 Hydropower Plant (capacity of 9 MW), both in Hoa Binh province.
Another project implemented by Hoang Son Company is the 24 MW Bo Sinh Hydropower Plant, built on the Ma River in Song Ma District, Son La Province and Dien Bien Dong District, Dien Bien Province. The plant's annual electricity output is about 87 million kWh. The project has a total investment of over VND788 billion and is scheduled to be completed by the end of 2022.
In addition to hydropower, Hoang Son Company also participated in investing in renewable energy development when owning shares in My Son 1 Solar Power Company Limited and My Son 2 Solar Power Company Limited, thereby owning the My Son 1 Solar Power Plant Project (capacity of 50 MW), My Son 2 Solar Power Plant Project (capacity of 50 MW) in Ninh Thuan province. However, this enterprise later transferred its shares to BB Power Holdings JSC and related individuals.
In addition, Hoang Son Company was also a founding shareholder of Hoang Son 2 Energy Investment JSC, established in March 2019 with an initial charter capital of VND 50 billion. By October 2020, this enterprise increased its capital to VND 227.75 billion and continued to increase to VND 262.75 billion in November 2022, the shareholder structure was not disclosed. According to the change registration in August 2023, Mr. Vu Quang Bao (born in 1970) is the Chairman of the Board of Directors of Hoang Son 2 Energy.
On July 12, 2024, Hoang Son 2 Energy announced unusual information about changing the maturity date, interest payment date, settlement date and interest rate for the HS2.H.2023.001 bond lot. Accordingly, the bond maturity date was adjusted from 3 years from the date of issuance (due on December 25, 2023) to 51 months from the date of issuance (due on March 25, 2025).
In addition, according to the bondholder resolution, Hoang Son 2 Energy is allowed to extend the bond buyback period as soon as possible but no later than the longest payment schedule, which is the maturity date of March 25, 2025. Notably, the adjusted bond interest rate has been reduced from 13%/year to 8%/year.
In the first half of 2024, Hoang Son 2 Energy had a loss after tax of more than 27 billion VND. Continuous losses caused the company's equity to continuously decline, down to just nearly 37 billion VND as of June 30, 2024. The debt to equity ratio jumped from 6.92 times to 15.61 times; correspondingly, the total debt to equity at the end of the second quarter of 2024 was nearly 572.9 billion VND, mainly bond debt.
In the real estate sector, Hoang Son Company is also famous for owning many notable projects such as Son Anh Ecological Urban Project (area of 150 hectares, total investment of nearly 800 billion VND); Song Da Ecological Urban Project (400 hectares, 1,780 billion VND); South Hoa Binh Square Urban Area Project (about 78.37 hectares, 1,600 billion VND). In Hoa Binh City, Hoang Son Company also owns Grand Hotel - Diamond Palace through its member, Tuoi Tre Trading Company Limited.
In addition, at the end of November 2020, STC Golden Land Real Estate JSC - an enterprise whose charter capital is held by shareholders of Hoang Son Company, won the auction of a land lot of more than 23.4 hectares in Binh Son commune, Long Thanh district, Dong Nai province with a price of more than 1,626 billion VND, 1.8 times higher than the starting price.
Notably, the legal representative of STC Golden Land Real Estate is also Mr. Nguyen Nam Chung. This businessman is currently the legal representative for many other legal entities such as Bo Sinh Hydropower JSC, Suoi Hoa Tourism Development Investment JSC, Suoi Hoa Tourism JSC, Nam Quang Truong So 1 LLC and Nam Quang Truong So 3 LLC. Details about this ecosystem will be informed in the following issues.
In the next article, Journalist & Public Opinion Newspaper will inform readers in more detail about the winning bid packages with "super low" savings rates, thereby helping Hoang Son Company earn hundreds of billions each year.
Source: https://www.congluan.vn/trung-thau-hang-nghin-ty-voi-ty-le-tiet-kiem-sieu-thap-nhung-lai-mong-nhu-to-cong-ty-hoang-son-dong-thue-ca-nam-2023-chua-bang-tien-thu-hai-ngay-post310525.html
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