Danh Khoi Group will only earn more than 5 billion in 2024, losing up to 137 billion VND

Danh Khoi had another difficult year in business when revenue was recorded at only a few billion VND - Photo: DK

Danh Khoi Group Joint Stock Company (NRC) has just sent a document to the State Securities Commission and Hanoi Stock Exchange explaining the after-tax profit on the audited financial statement for 2024.

Danh Khoi's revenue is sluggish, suffering a loss of 137 billion VND

At the end of 2024, Danh Khoi recorded net revenue of only over 5.1 billion VND while having to bear a sharp increase in after-tax loss, up to 137 billion VND. In 2023, this enterprise recorded revenue of only over 4.6 billion VND, with a loss of over 63 billion VND.

Explaining this heavy loss, Danh Khoi said there were three reasons for the decline in profits.

Firstly, in 2024, the real estate market continues to face many difficulties due to fluctuations in macro policies, low liquidity and declining demand. This affects the company's sales progress, resulting in revenue not reaching the set plan.

Second, the company is not yet eligible to recognize revenue from investment cooperation contracts.

According to Danh Khoi, due to difficulties in legal progress, the company has many investment cooperation contracts that have been and are in the process of implementation, but because they have not met the conditions for revenue recognition according to accounting standards or have not reached the deadline for profit allocation, they cannot be accounted for in business results.

Third, the company had to make additional provisions in the context of a sluggish market. The reason was that the company's partners were having difficulty in payment, the company had to make provisions for some partners showing signs of slow payment or financial difficulties, leading to increased business management costs.

Auditor notes on debts and breach of commitments

According to Danh Khoi's financial report, this real estate enterprise's total assets by the end of 2024 were more than 1,929 billion VND, a slight decrease compared to the same period (2,083 billion VND). Of which, short-term assets were nearly 400 billion VND, but cash was only less than half a billion VND.

Danh Khoi has a debt of up to 773 billion VND, of which 565 billion VND is short-term debt, and short-term loans and financial leases alone amount to more than 300 billion VND.

The auditor noted the going concern assumption and the commitment of the company's leaders to going concern when the company had a post-tax loss of VND137 billion and short-term debt exceeding short-term assets by more than VND166 billion.

In addition, the auditor noted that the enterprise had violated a number of commitments regarding the deadline for paying principal and interest on the bonds, as well as not fully paying tax debts and debts payable to suppliers.

Danh Khoi once planned to spend 195 billion VND to buy back part of the Dai Nam residential area project in Binh Phuoc province from Mr. Huynh Uy Dung (Dung "lime kiln").

However, Danh Khoi's financial situation in 2024 is facing many difficulties, so the plan to buy back part of the Dai Nam residential project has not been implemented yet.

Instead, to improve cash flow, Danh Khoi planned to offer 100 million shares at a par value of VND10,000/share, expecting to raise VND1,000 billion to pay off overdue tax debts, settle bonds and invest in real estate projects.

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Source: https://tuoitre.vn/tap-doan-danh-khoi-chi-thu-ve-hon-5-ti-trong-nam-2024-lo-den-137-ti-dong-20250402183103993.htm