Connect with us

Business

Vietnam Airlines risks stock delisting

Published

on

The Ho Chi Minh City Stock Exchange (HoSE) on Thursday warned that Vietnam Airlines (HVN) could be delisted if an audit proves the company has logged an operating loss for three consecutive years.

In its warning, the HoSE cited the firm’s consolidated financial statement for the last quarter of 2022 in which Vietnam Airlines posted an accumulated loss of nearly VND34.2 trillion (US$1.46 billion) in 2022. 

The carrier also reported that its equity was negative VND10.2 trillion ($435.4 million) last year.

According to the Law on Securities, the stock of a public company must be delisted if it suffers annual operating losses for three consecutive years, if its accumulated losses exceed its charter capital, or if its equity is negative.

As such, if Vietnam Airlines’ audited consolidated financial statement for 2022 shows a loss, it will be the firm’s third consecutive year of operational losses and its ticker will be delisted, the HoSE warned. 

On June 1, 2022, the HoSE issued a decision to put HVN into ‘under control’ status after the firm released a report on its accumulated losses and negative equity. 

In its most recent quarterly consolidated financial statement, Vietnam Airlines attempted to explain its operating losses, noting that it has implemented a series of short- and long-term solutions during the past year to minimize damage caused by the COVID-19 pandemic.

It also declared that it was adding more capital and increasing its operational cash flow.

However, due to the slow recovery of the international aviation market, negative factors such as high fuel prices, ongoing global conflicts, and increased fluctuations in exchange and interest rates, the national carrier continued to suffer losses in both the fourth quarter and the whole of 2022.

Nonetheless, Vietnam Airlines expressed its belief that the global aviation market would gradually recover from the last quarter of 2022 and that the firm will have a better 2023.

Vietnam Airlines has decided to completely restructure itself for the 2021-25 period in a move that was approved by shareholders and relevant agencies. 

“The corporation believes that its business activities have gradually stabilized and is preparing for recovery and development in the near future,” the airline claimed.

HVN now trades at around VND13,200 ($0.56) per share, down 11 percent just this month.

In January 2022, HVN was trading at VND27,300 ($1.16) per share.

Established in 1995, Vietnam Airlines has 19 subsidiaries and two affiliates.

Like us on Facebook or  follow us on Twitter to get the latest news about Vietnam!

The Ho Chi Minh City Stock Exchange (HoSE) on Thursday warned that Vietnam Airlines (HVN) could be delisted if an audit proves the company has logged an operating loss for three consecutive years.

In its warning, the HoSE cited the firm’s consolidated financial statement for the last quarter of 2022 in which Vietnam Airlines posted an accumulated loss of nearly VND34.2 trillion (US$1.46 billion) in 2022. 

The carrier also reported that its equity was negative VND10.2 trillion ($435.4 million) last year.

According to the Law on Securities, the stock of a public company must be delisted if it suffers annual operating losses for three consecutive years, if its accumulated losses exceed its charter capital, or if its equity is negative.

As such, if Vietnam Airlines’ audited consolidated financial statement for 2022 shows a loss, it will be the firm’s third consecutive year of operational losses and its ticker will be delisted, the HoSE warned. 

On June 1, 2022, the HoSE issued a decision to put HVN into ‘under control’ status after the firm released a report on its accumulated losses and negative equity. 

In its most recent quarterly consolidated financial statement, Vietnam Airlines attempted to explain its operating losses, noting that it has implemented a series of short- and long-term solutions during the past year to minimize damage caused by the COVID-19 pandemic.

It also declared that it was adding more capital and increasing its operational cash flow.

However, due to the slow recovery of the international aviation market, negative factors such as high fuel prices, ongoing global conflicts, and increased fluctuations in exchange and interest rates, the national carrier continued to suffer losses in both the fourth quarter and the whole of 2022.

Nonetheless, Vietnam Airlines expressed its belief that the global aviation market would gradually recover from the last quarter of 2022 and that the firm will have a better 2023.

Vietnam Airlines has decided to completely restructure itself for the 2021-25 period in a move that was approved by shareholders and relevant agencies. 

“The corporation believes that its business activities have gradually stabilized and is preparing for recovery and development in the near future,” the airline claimed.

HVN now trades at around VND13,200 ($0.56) per share, down 11 percent just this month.

In January 2022, HVN was trading at VND27,300 ($1.16) per share.

Established in 1995, Vietnam Airlines has 19 subsidiaries and two affiliates.

Like us on Facebook or  follow us on Twitter to get the latest news about Vietnam!

Source: https://tuoitrenews.vn/news/business/20230203/vietnam-airlines-risks-stock-delisting/71286.html

Business

CapitaLand Ascott’s gross profit in Vietnam up 31% to $10 mln in 2022

CapitaLand Ascott Trust, the management agency of five Somerset hotels in Vietnam, posted a revenue of S$27.6 ($20.63 million) from its Vietnam operation in 2022, up 33% year-on-year.

Published

on

Amid the country’s post-Covid-19 reopening, the revenue per available unit (REVPAU) grew 52% year-on-year to S$62 ($46.3) per day. The agency also attributed the growth to the acquisition of Somerset Central TD Haiphong City on November 30 last year.

As a result, the group earned a gross profit S$14 million ($10.46 million) in Vietnam, up 31% year-on-year.

On a global scale, CapitaLand Ascott recorded a revenue of S$621.2 million ($464.21 million) in 2022, up 58% year-on-year, with a REVPAU of S$120 ($89.67) per day, up 74%. Gross profit increased 63% year-on-year to S$282.8 million ($211.33 million).

CapitaLand Ascott Trust now manages five hotels in Vietnam, namely Somerset Hoa Binh Hanoi and Somerset Grand Hanoi in the capital city, Somerset Chancellor Court Ho Chi Minh City and Somerset Ho Chi Minh City in the southern economic hub, and Somerset Central TD Haiphong city.

The total valuation of the five hotels with 893 available units reached S$221.9 million ($165.82 million) as of end-2022, according to CapitaLand Ascott.

Source: The Investor

Source: https://e.nhipcaudautu.vn/companies/capitaland-ascotts-gross-profit-in-vietnam-up-31-to-10-mln-in-2022-3351413/

Continue Reading

Business

Bamboo Airways has new investor

Published

on

Bamboo Airways is negotiating a deal with a new investor, showing its latest move one year after former chairman Trinh Van Quyet was arrested in March 2022 on charges of stock market manipulation, a representative of the airline told Tuoi Tre (Youth) newspaper on Thursday.

The air carrier and the new investor are in the process of completing a part of investment procedures. Who the investor is remains unclear.

The airline has found a new investor to replace former chairman Trinh Van Quyet and some relevant shareholders, said Bamboo Airways CEO Nguyen Manh Quan.

The air carrier also actively helped the investor with relevant procedures of stake acquisition. The transferred stake was mortgaged at banks from 2020 by old shareholders.

Apart from the stake purchase, the new investor agreed to take responsibility for all payments for the previous loans taken out by the old shareholders who used their stakes in Bamboo Airways as collateral at banks.

Over the past few months, Bamboo Airways has faced financial distress due to the COVID-19 pandemic and upheavals in senior personnel. As such, the airline has cried for help from major investors to relieve the hardship.

Him Lam Corporation lent Bamboo Airways VND8 trillion (US$338 million). Him Lam is a real estate firm run by Duong Cong Minh, who is a senior advisor to Bamboo Airways.

The airline’s recent moves are considered a solution to its restructuring and operation stabilization.

Speaking at its annual general shareholder meeting in early March, Le Ba Nguyen, chairman of FLC Group, said that the firm was considering selling its stake in Bamboo Airways.

FLC Group’s total investment in the air carrier stands at VND4.015 trillion ($170 million), or a 21.7-percent stake.

In 2021, Bamboo Airways missed earnings, so FLC made a provision for its investment of over VND373 billion ($15.7 million). The provision jumped to VND3.64 trillion ($154 million) in 2022.

A flight attendant is at work on a Bamboo Airways plane. Photo: Cong Trung/ Tuoi Tre

A flight attendant is at work on a Bamboo Airways plane. Photo: Cong Trung/ Tuoi Tre

Bamboo Airways has sought for a new investor for more than one year, as aviation is a highly competitive industry and is regarded as a ‘cash-burning industry’ in airspace.

The airline has a fleet of 30 planes. For its strong growth, the carrier is set to expand its fleet to 100 aircraft.

Other local airlines, Pacific Airlines and Vietravel Airlines, are also looking for investors to make their financial health better to overcome market challenges.

FLC Group set up Bamboo Airways in late May 2017, with its initial charter capital of VND700 billion ($29.6 million).

In April 2022, FLC became the airline’s largest shareholder, with capital contribution totaling over VND3.58 trillion ($151.4 million), or a 51.24-percent stake in the air carrier.

FLC former chairman Quyet poured over VND2.8 trillion ($118.4 million) into the airline, or a 40.03-percent stake, while other shareholders injected more than VND610 billion ($25.8 million), an 8.73-percent share.

In its recent financial statement, FLC’s ownership in Bamboo Airways fell to 21.7 percent of the latter’s total charter capital of VND18.5 trillion ($782.3 million).

Bamboo Airways’ board of directors has five members, including Nguyen Ngoc Trong, chairman of the airline; Doan Huu Doan and Le Ba Nguyen, vice-chairs of the carrier; Le Thai Sam; and Nguyen Manh Quan.

Like us on Facebook or follow us on Twitter to get the latest news about Vietnam!

Bamboo Airways is negotiating a deal with a new investor, showing its latest move one year after former chairman Trinh Van Quyet was arrested in March 2022 on charges of stock market manipulation, a representative of the airline told Tuoi Tre (Youth) newspaper on Thursday.

The air carrier and the new investor are in the process of completing a part of investment procedures. Who the investor is remains unclear.

The airline has found a new investor to replace former chairman Trinh Van Quyet and some relevant shareholders, said Bamboo Airways CEO Nguyen Manh Quan.

The air carrier also actively helped the investor with relevant procedures of stake acquisition. The transferred stake was mortgaged at banks from 2020 by old shareholders.

Apart from the stake purchase, the new investor agreed to take responsibility for all payments for the previous loans taken out by the old shareholders who used their stakes in Bamboo Airways as collateral at banks.

Over the past few months, Bamboo Airways has faced financial distress due to the COVID-19 pandemic and upheavals in senior personnel. As such, the airline has cried for help from major investors to relieve the hardship.

Him Lam Corporation lent Bamboo Airways VND8 trillion (US$338 million). Him Lam is a real estate firm run by Duong Cong Minh, who is a senior advisor to Bamboo Airways.

The airline’s recent moves are considered a solution to its restructuring and operation stabilization.

Speaking at its annual general shareholder meeting in early March, Le Ba Nguyen, chairman of FLC Group, said that the firm was considering selling its stake in Bamboo Airways.

FLC Group’s total investment in the air carrier stands at VND4.015 trillion ($170 million), or a 21.7-percent stake.

In 2021, Bamboo Airways missed earnings, so FLC made a provision for its investment of over VND373 billion ($15.7 million). The provision jumped to VND3.64 trillion ($154 million) in 2022.

A flight attendant is at work on a Bamboo Airways plane. Photo: Cong Trung/ Tuoi Tre

A flight attendant is at work on a Bamboo Airways plane. Photo: Cong Trung/ Tuoi Tre

Bamboo Airways has sought for a new investor for more than one year, as aviation is a highly competitive industry and is regarded as a ‘cash-burning industry’ in airspace.

The airline has a fleet of 30 planes. For its strong growth, the carrier is set to expand its fleet to 100 aircraft.

Other local airlines, Pacific Airlines and Vietravel Airlines, are also looking for investors to make their financial health better to overcome market challenges.

FLC Group set up Bamboo Airways in late May 2017, with its initial charter capital of VND700 billion ($29.6 million).

In April 2022, FLC became the airline’s largest shareholder, with capital contribution totaling over VND3.58 trillion ($151.4 million), or a 51.24-percent stake in the air carrier.

FLC former chairman Quyet poured over VND2.8 trillion ($118.4 million) into the airline, or a 40.03-percent stake, while other shareholders injected more than VND610 billion ($25.8 million), an 8.73-percent share.

In its recent financial statement, FLC’s ownership in Bamboo Airways fell to 21.7 percent of the latter’s total charter capital of VND18.5 trillion ($782.3 million).

Bamboo Airways’ board of directors has five members, including Nguyen Ngoc Trong, chairman of the airline; Doan Huu Doan and Le Ba Nguyen, vice-chairs of the carrier; Le Thai Sam; and Nguyen Manh Quan.

Like us on Facebook or follow us on Twitter to get the latest news about Vietnam!

Source: https://tuoitrenews.vn/news/business/20230318/bamboo-airways-has-new-investor/72149.html

Continue Reading

Business

Eximbank forecasts $212 mln profit in 2023

Eximbank is aiming for a pre-tax profit of VND5 trillion ($212 million) in 2023, up 35% year-on-year, according to a document to be released at its 2023 annual shareholders meeting.

Published

on

The meeting is scheduled to be held on April 14 at the GEM Center Convention Center, Ho Chi Minh City. 

In 2023, Eximbank targets total assets of VND210 trillion ($8.9 billion), up 13.5% year-on-year. Capital mobilization is expected to increase by 11% to VND165 trillion ($7 billion), and outstanding loans (including corporate bonds) to increase by 12.3% to VND146.6 trillion ($6.22 billion).

At the meeting, Eximbank will also present to shareholders a plan to increase charter capital. Specifically, the bank plans to issue 265.5 million shares to pay dividends, increasing its charter capital to more than VND17.47 trillion ($740.77 million).

Eximbank, listed on the Ho Chi Minh Stock Exchange (HoSE) as EIB, reported an after-tax profit of VND2.5 trillion ($106.78 million) in 2022, a three-time increase year-on-year.

The bank’s net interest income reached VND5.59 trillion ($238.47 million), up 59% year-on-year, while profit from service activities hit VND514 billion ($21.92 million), up 19%.

Profit from foreign exchange business increased by 54% to VND606 billion ($25.84 million), and the figure from other activities, mainly debt collection and settlement, rose by 68% to VND428 billion ($18.25 million).

Eximbank’s total operating income was VND7.23 trillion ($308.45 million), up 53.6% year-on-year. Operating expenses increased by 36% to VND3.42 trillion ($145.84 million), meaning the cost to income ratio (CIR) improved significantly, down from 53% to 47%.

Notably, the bank’s risk provision expense in 2022 was only VND103 billion ($4.39 million), down 90% over the same period last year.

By December 31, 2022, Eximbank’s total assets had reached VND185.05 trillion ($7.89 billion), up 11.6% compared to the end of 2021.

Outstanding loans increased by 14% to VND129.2 trillion ($5.51 billion), and customer deposits increased by 8.2 % to VND148.61 trillion ($6.34 billion).

Eximbank’s bad debt was VND2.35 trillion ($100 million), up 4.4% year-on-year, an increase much lower than the credit growth rate. The bad debt ratio improved, decreasing from 1.96% to 1.8%.

On January 14, Japan’s Sumitomo Mitsui Banking Corporation (SMBC) sold 134 million Eximbank (EIB) shares, equivalent to 10.8% of the bank’s charter capital, for VND3.421 trillion ($146 million). 

On March 18, 2022, the Japanese financial institution officially announced in writing the termination of its strategic alliance agreement with Eximbank. In September, a representative of SMBC in Eximbank, Vo Quang Hien, left as a member of its board of directors.

On the HoSE, Eximbank closed Monday’s session at VND18,750 ($0.79).

Source: The Investor

Source: https://e.nhipcaudautu.vn/companies/eximbank-forecasts-212-mln-profit-in-2023-3351414/

Continue Reading

Trending