TNI cooperated with Korea, invested condotel in Da Nang

This week, Thanh Nam Group Joint Stock Co (HoSE: TNI) will transfer 60% stake in Son Tra Investment and Development Co., Ltd. for Korean partner to jointly implement the condotel project. Le Duc Tho street (Da Nang city).

Recently, TNI held an extraordinary shareholders’ meeting. At the congress, TNI has approved the issuance of 31.5 million new shares for existing shareholders at the ratio of 1: 1.5 (owning 10 shares to buy 15 new shares). At the offer price of 10,000 dong per share, TNI will earn VND315 billion, thereby raising its chartered capital to VND525 billion dong.

TNI will attack Da Nang market by two projects at Hoang Sa and Le Duc Tho streets

The proceeds are distributed as follows: Short-term bank loans (VND 105 billion); additional capital for implementation of economic contracts (VND95 billion) and investment in approved projects (VND115 billion).

The projects approved at the General Assembly include: hotel and serviced apartment projects for sale at Vuon Dao Garden, Bai Chay Ward, Ha Long City, Quang Ninh Province; hotel and apartment projects for sale at Lot A1.1 Hoang Sa Street, Da Nang; and condotel project at Le Duc Tho street, Da Nang city.

Specifically, for the project in Quang Ninh, Nguyen Hung Cuong – Chairman of TNI – said that the company has already deposited land and is negotiating other related content. The area of ​​the project is 8,816sqm.

For the project at Hoang Sa – Da Nang, Mr. Cuong said that the company has land and this is the land used for a long time. “The project has the size of 2,039sqm, located at Hoang Sa – Vo Nguyen Giap crossroad – Nguyen Huy Chuong. Each apartment, “Cuong said. TNI has approved the establishment of Da Nang New Sun Co., Ltd. (chartered capital of VND 200 billion) to implement this project.

As for the condotel project in Le Duc Tho – Da Nang, TNI has also set up Son Tra Investment and Development Co., Ltd to be the investor. The company has a chartered capital of VND5.6 billion and is represented by Mr. Nguyen Hung Cuong as the legal representative.

Speaking at the extraordinary shareholders’ meeting, Mr. Cuong said TNI will transfer 60% of capital contribution at Son Tra Company to Korean partners this week to implement the project. After the transfer, the joint venture company will continue to implement the steps for the project such as applying for investment certificates, design, market survey, estimation, construction, management operation …

In the first six months of this year, TNI reported net sales of VND520 billion (+ 36% y / y). Gross profit came to VND23.7 billion (up 2.3xs); Six-month after-tax profit reached VND10.4 billion (up 3.4 times over the same period last year).

As of 30 June 2016, TNI has total assets of 564 billion. 60% of them are receivables and inventory (VND334 billion). Cash and cash equivalents only VND2.2 billion.

Total liabilities of TNI are VND319 billion (total short-term debt), equity is VND245 billion dong. Payables ratio on equity is 1.3 times.

Remarkably, the debt accounted for 77% of TNI’s liability structure. This resulted in interest expenses up to VND9.3 billion for six months, up 27% y / y, raising financial pressure for TNI.

BIDV is currently the sole creditor of TNI with VND213 billion (short-term VND lending) and VND33 billion (short-term foreign currency loans).

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