DABACO (DBC) Real estate revenue dropped 94%, was named by inspectors

DABACO (DBC) was named by the Bac Ninh province inspector in the Dabaco Lac Ve project.

Recently, the Bac Ninh Provincial Inspectorate issued Inspection Conclusion No. 63 on the compliance with legal policies at the Dabaco Lac Ve Housing Project, in Lac Ve Commune, Tien Du District. This is a project invested by DABACO Group Joint Stock Company (Code: DBC).

Originally a large corporation in the livestock sector, DABACO's shift to real estate investment has attracted much attention, especially in the Dabaco Lac Ve project. The project has an area of ​​62,965.5 m2 with a total registered investment capital of VND 177,082,923,000.

The DABACO Lac Ve project was pointed out by the Bac Ninh Provincial Inspectorate for many violations. Including the transfer of project land when financial obligations regarding the land had not yet been fulfilled (Photo TL)

In the conclusion of the Bac Ninh Provincial Inspectorate, it was discovered that the Department of Planning and Investment had advised the Bac Ninh Provincial People's Committee to issue an investment certificate that lacked information on the project's objectives. In addition, DABACO Group was also behind schedule in implementing the project compared to the investment certificate and investment policy decision that had been issued.

The Inspectorate also concluded that Document No. 1039 dated July 2, 2019 of the Tien Du District Tax Department did not provide information on late payment of land use fees (SDD) of DABACO, which was not in accordance with regulations. This led to DABACO not fulfilling its financial obligations as of July 2, 2019.

This led to a series of errors later. Specifically, on July 9, 2019, the Department of Natural Resources and Environment issued Land Use Right Certificates for 110/110 plots of land in the project to DABACO Company even though this unit had not fulfilled its financial obligations regarding the land (had not paid late payment fees for land use fees).

Along with that, Notice No. 183/TB-STNMT of the Department of Natural Resources and Environment determined that DABACO Company was eligible to transfer land use rights with 104/110 land plots and DABACO's transfer of 104/110 of these land plots in 2019 was also not in accordance with regulations.

Finally, the inspector also discovered that the calculation of the completed volume for settlement had some incorrect works; the settlement of project management costs was not in accordance with regulations, leading to incorrect acceptance and settlement of 183 million VND.

How is the "big guy" in the livestock industry doing in real estate business?

DABACO Group was established in 1996 with the main field of animal feed production. However, in 2018, this unit began to invest in building infrastructure for industrial parks, urban areas and real estate business.

The unit is known as the investor of Que Vo III Industrial Park with a total area of ​​over 600 hectares in Que Vo district, Bac Ninh province. In addition, DABACO is also the investor of many large urban area projects such as: Den Do Urban Area, Huong Mac Industrial Cluster, Dabaco Van An Urban Area, Dinh Bang, Phu Khe...

In the early years, DBC's real estate business had many bright spots but is gradually losing steam, especially in the first half of 2024.

Specifically, in the first 6 months of the year, DABACO brought in revenue of 6,437.3 billion VND, 11.2% higher than the previous year. Most of which came from the semi-finished product segment, accounting for 6,040.3 billion VND. Compared to the same period, this segment grew by 29.6%.

Notably, revenue from real estate transfer and construction services in the period only reached 41.4 billion VND while in the same period it accounted for 753.7 billion VND. Thus, revenue from DBC's real estate segment decreased by 94.5% compared to the same period.

Financial revenue also decreased by 33.1% to 11.9 billion VND. While financial expenses still accounted for 131 billion VND. Interest expenses also increased compared to the same period, accounting for 122.1 billion VND.

As a result, with the strong growth of its core business, DABACO reported a profit of 218 billion VND. However, this result still cannot deny the obvious decline in the real estate business that the unit has been pursuing for the past 6 years.

Source: https://www.congluan.vn/doanh-thu-bds-sut-giam-94-dabaco-dbc-bi-thanh-tra-nhac-ten-vi-ban-dat-khi-chua-hoan-thanh-nghia-vu-tai-chinh-post313854.html