Golf course tycoon's company reduces debt by billions of dollars at lightning speed.

According to the Hanoi Stock Exchange (HNX), Long Thanh Golf Investment and Business Joint Stock Company has just announced its business results for the first half of 2024, with after-tax profit remaining low at nearly 15 billion VND, compared to approximately 11.3 billion VND in the same period last year.

This is a low profit margin compared to the size of the equity capital, which was nearly VND 6,763 billion at the end of June 2024. The company's total assets are also very large, reaching VND 22,115 billion, of which VND 15,352 billion (approximately USD 614 million) is liabilities.

Golf Long Thanh has thin profit margins and significant debt as of the end of June 2024. Source: HNX.

In 2023, Mr. Le Van Kiem's ​​company recorded after-tax profits of over 242 billion VND. In the previous year, 2022, Long Thanh Golf Investment and Business's after-tax profit was nearly 192 billion VND.

Overall, Golf Long Thanh's return on equity is 0.2-0.4%, compared to a high of nearly 3.2% in 2023.

It is noteworthy that the total debt of Long Thanh Golf Investment and Business as of the end of June 2024 was still approximately $614 million, even though the company's liabilities had decreased significantly in the first six months of the year.

Specifically, as of the end of 2023, Long Thanh Golf Investment and Business recorded total liabilities of over 36,000 billion VND (equivalent to 1.44 billion USD). This figure increased to 15,352 billion VND (approximately 614 million USD) by the end of the second quarter of 2024.

Golf Long Thanh had a very large total debt as of the end of 2023. Source: HNX

Mr. Le Van Kiem's ​​company did not disclose details about the reduced debt. However, as a business in the golf course and real estate sectors, its liabilities could include bank loans, bond debt, customer prepayments, etc.

According to the report, bond debt has not changed significantly. Therefore, it is likely that the debt will decrease or the amount of down payment from buyers will be reduced.

According to HNX, Golf Long Thanh only has one outstanding bond issue, GLTCH2124001, with a total value of VND 1,000 billion, a 3-year term, issued on December 21, 2021, and an interest rate of 9.5% per year.

The decrease in total debt was accompanied by a decrease in assets. By the end of Q2/2024, the total assets of Long Thanh Golf Investment and Business were only VND 22,115 billion, a significant decrease compared to over VND 43,600 billion at the end of 2023.

Mr. Le Van Kiem. Photo: VNN

Golf Long Thanh is a business within the KN Investment Group ecosystem – a conglomerate owned by tycoon Le Van Kiem. KN Investment Group operates in four main areas: golf courses, real estate, mining, and solar energy.

Another notable business owned by Mr. Kiem is KN Cam Ranh Co., Ltd. This company has Long Thanh Golf Investment and Business Joint Stock Company as its main contributing shareholder.

KN Cam Ranh Co., Ltd. has not yet announced its business results for the first six months of 2024.

As of the end of 2023, KN Cam Ranh, owned by Mr. Le Van Kiem, recorded a 15% increase in equity to over VND 7,819 billion. The debt-to-equity ratio remained unchanged at 3.06 times. By the end of 2023, KN Cam Ranh's liabilities totaled over VND 23,926 billion, equivalent to approximately USD 960 million.

KN Cam Ranh also has very large debts to pay. Source: HNX.

KN Cam Ranh Co., Ltd. is the investor of the KN Paradise project, which spans nearly 800 hectares in Cam Ranh with a total investment of nearly 2 billion USD.

Mr. Le Van Kiem (1945) is a businessman from Hue who started his career in 1979 and achieved success during the country's reform period. Initially, Mr. Kiem used rubber seed oil to produce paint and fertilizer, then expanded into garment manufacturing, construction, industrial parks, golf courses, and in the past decade has focused on finance and real estate.

Mr. Kiem was a pioneer in the golf course business with Long Thanh Golf Course (1,200ha) and was also one of the first people involved in establishing VPBank Commercial Joint Stock Bank.

In addition, KN Investment Group has several large projects such as the Long Thanh - Vientiane Special Economic Zone (600ha), KN Van Ninh solar power plant, KN Cam Lam solar power plant, KN Paradise resort and entertainment complex, and The Vista An Phu high-end apartment complexes...

The KN Paradise project is a large-scale resort and entertainment complex located in Bai Dai, Cam Ranh, Khanh Hoa. The project includes a 27-hole golf course, thousands of shophouses, villas and townhouses, along with numerous hotels, spa resorts, and tens of thousands of condotel units.

Golf Long Thanh is the investor of the Long Thanh urban area, golf course, sports and ecotourism project (Bien Hoa, Dong Nai) with a scale of over 333 hectares and the Long Thanh ecotourism urban area project (Long Thanh district) with a scale of 843 hectares. This is one of the largest golf courses in the country.

In addition, Golf Long Thanh is also investing in a 5-star hotel project, a luxury villa complex, and a 560-hectare golf course in Vientiane (Laos).

The Long Thanh Golf tycoon's businesses announce their 2023 financial results, with many noteworthy points. Le Van Kiem, a leading businessman during the country's reform period, owns the Long Thanh Golf ecosystem and KN Paradise. These businesses have just announced their 2023 financial situation, highlighting several key points.

Source: https://vietnamnet.vn/dn-cua-dai-gia-san-golf-le-van-kiem-giam-no-ty-usd-sieu-toc-2318438.html