The revenue and profit of Hoa Sen Group (code: HSG) continues reducing sharply despite the closing of a lot of branches. Hoa Sen blamed its bad performance on price fluctuations The financial statement of the second quarter of the company's fiscal year reported VND6.9 trillion ($300 million) in revenue and VND54 billion ($2.35 million) in pre-tax profit, down 10 and 53 per cent on-year, respectively. The revenue and pre-tax profit accumulated during the first six months of the fiscal year were estimated at VND14.48 trillion ($629.56 million) and VND156 billion ($6.8 million), down 7.5 and 70 per cent on-year. In the documents sent to shareholders, HSG’s leaders explained the bad business results that the price of steel in the world and in the country is in constant flux. In fact, the gross profit margin in the first three months was 11.3 per cent, lower than the 13.5 per cent of the same period last year, so gross profit declined by 44 per cent, while revenue reduced by … [Read more...] about Hoa Sen wallowing in debts
Bad debt expense
Healthy domestic banks should focus on improving the transparency in their audited financial statements to attract foreign investors as some banks have recently succeeded with the strategy, experts suggested. Recently, the market has seen the shares of some banks, such as Techcombank and VPBank, draw large interest from foreign investors. At the beginning of June, the stock market witnessed one of the hottest listings in 2018 with great attention by foreign investors when Techcombank (coded TCB) listed on the bourse at VND128,000 (US$5.61) per share. Techcombank CEO Nguyen Le Quoc Anh attributed the deal’s success to the bank’s efforts in improving the transparency in its audited financial statements. According to Anh, Techcombank started to prepare for the listing three years ago, and the bank only targeted major foreign investors. The first thing the bank did to implement the plan was to prepare its financial statements in 2015, 2016 and 2017 in line with the … [Read more...] about Transparency helps VN banks draw foreign investors
The consecutive decrease in profit makes it questionable whether domestic private Hoa Sen Group can develop the $10.6-billion Ca Na steel project in the central province of Ninh Thuan. Hoa Sen Group may not be able to develop the $10.6 billion Ca Na steel complex? According to CafeBiz, steel maker Hoa Sen Group has published a bleak financial statement for the first quarter of 2018 (the second quarter of the 2017-2018 financial year ending in September this year). Accordingly, the firm reported VND7.66 trillion ($336.5 million) in revenue, up 23 per cent on-year. However, its net profit was only VND115 billion ($5.05 million), one-fifth of last year’s figure. The firm’s after-tax profit was only VND87 billion ($3.82 million). The major reason for this plunge is due to the increase of expenditures, including interest payments for debts. Notably, the corporation’s short-term debt increased by VND3.6 trillion ($158.1 million) to VND16.24 trillion ($713.5 … [Read more...] about Bad performance spells doom for $10.6 billion Hoa Sen Group steel complex?
THE GOVERNMENT SOCIALIST REPUBLIC OF VIET NAMIndependence - Freedom - Happiness No. 23/NQ-CP Ha Noi, April 08, 2018 RESOLUTION THE GOVERNMENT’S REGULAR MEETING – MARCH 2018 THE GOVERNMENT Pursuant to the Law on Organization of the Government dated June 19, 2015; Pursuant to the Government’s Decree No. 138/2016/ND-CP dated October 01, 2016 promulgating the working regulation of the Government; Based on the discussion of the Cabinet members and the conclusion of the Prime Minister at the Government’s regular meeting in March 2018, held on April 02, 2018 DECIDES 1. On the socio-economic situation in March and the first quarter of 2018, the implementation of Resolution No. 01/NQ-CP on major tasks and solutions to guiding the implementation of the socio-economic development plan and State budget plan in 2018. The Government unanimously agreed: The socio-economic situation in March and the first quarter of 2018 continued to maintain positive … [Read more...] about The Government’s regular meeting in March 2018
The central bank has instructed commercial banks to maintain credit growth in these sectors within safe limits.— Photo zing.vn Huynh Quang Khanh invests in real estate by leveraging credit. Seventy per cent of his investment comes from banks. He has borrowed VND1 billion at an interest rate of 9.5 per cent from a bank in Tan Phu District and also asked some of his relatives to borrow on his behalf from that bank. Khanh, 54, of HCM City’s Tan Phu District, said he was told by the lender that the interest rate had been increased to 12 per cent. “I am looking to sell some of my land to reduce the loans because I am afraid the interest rates would continue to rise and I will be unable to afford,” he said. While Khanh complains about the increase in the rates, Nguyen Cong Tang of Thu Duc District is unhappy that a bank refused to lend him 70 per cent of the value of a house he wants to buy. He said in the past the bank was always ready to lend him the money but now … [Read more...] about Banks begin tightening screws on property credit