Gem Sky World investor's profit increased sharply

In the first half of 2023, Ha An (belonging to Dat Xanh Group), the investor of the Gem Sky World project, reported a profit of VND 240 billion, an increase of 74% over the same period in 2022.

The information has just been announced by Ha An Real Estate Investment Joint Stock Company. This figure is 4 times higher than the total profit of the whole year 2022.

Currently, this enterprise has equity of more than 10,200 billion VND, an increase of 8% compared to the end of 2022. Liabilities are about 13,800 billion VND, a slight decrease. The debt to equity ratio is at a relatively low level compared to the general level of many real estate enterprises, about 1.35 times.

Of which, Ha An recorded a bond debt balance of about VND1,000 billion, down compared to the same period in 2022. In the first half of last year, the company spent more than VND30 billion to pay interest on two matured bond lots. The Hanoi Stock Exchange (HNX) did not record Ha An's delay in fulfilling its financial obligations.

To date, according to data from HNX, this enterprise still has in circulation a batch of bonds issued from July 2022 with a term of 4 years. The batch of bonds is worth 210 billion VND with an interest rate of 11% per year.

Abandoned townhouses during the unfinished construction at the Gem Sky World project at the end of August 2023. Photo: Phuoc Tuan — Abandoned townhouses during the unfinished construction at the Gem Sky World project at the end of August 2023. Photo: *Phuoc Tuan*

Ha An is a member company 99.99% owned by Dat Xanh Group (DXG). This is the company mainly responsible for DXG's real estate business, in addition to real estate services, industrial park real estate and construction materials.

In 2019, this enterprise became the investor of the Gem Sky World project (Long Thanh, Dong Nai ) after successfully auctioning a 92.2-hectare land lot worth VND3,060 billion. The project has more than 4,000 land plots and housing products, Dat Xanh announced that it had sold nearly half. After many controversies about slow transfers and failure to fulfill its commitment to support bank interest, at the end of October 2023, Gem Sky World was allowed to transfer more than 2,300 land lots.

However, in November, the Dong Nai Provincial People's Committee required Ha An to complete the infrastructure and resolve customer complaints. Previously, this enterprise was also administratively fined 900 million VND for illegal capital mobilization, and was forced to return the money to investors within 360 days.

Ha An representative said that the company is facing many financial difficulties and hopes that investors will share. They will build social infrastructure and complete it in 2024 as committed. Regarding the townhouse product, the investor said that construction will start in the first quarter and the project will be completed and handed over to customers in the fourth quarter of 2024.

In addition to Gem Sky World, DXG also assigned Ha An to take charge of the projects Opal Boulevard, Opal Skyline, Opal Luxury ( Binh Duong ) and Gem Riverside (HCMC).

Meanwhile, after two consecutive quarters of losses, Dat Xanh Group returned to profit from the second quarter of 2023 with a large contribution from the sale of apartments and land. In the third quarter, DXG was still profitable but decreased by 57% compared to the same period due to the impact of real estate brokerage services. In the first 9 months, operating revenue from the sale of apartments and land reached more than 1,700 billion VND, accounting for three-quarters of Dat Xanh Group's total revenue and decreased by 30% compared to the same period.

Siddhartha

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