The debt burden of LDG Investment Company is making the company's financial picture very gloomy. The report recorded short-term financial loan balance at the end of 2024 of more than VND 1,204 billion and long-term loan balance of nearly VND 50 billion, equivalent to a total of LDG's financial loan balance of more than VND 1,254 billion. Of the loans from LDG, there were 366 billion VND borrowed from bonds. This is a bond lot LDGH2123002 worth VND 400 billion, maturing on December 10, 2023, with an interest rate of 11.5%. Because the company is facing financial difficulties, there is no source of payment.
LDG's largest creditor is Sacombank with a total outstanding debt of VND 629 billion, mainly short-term debt. Notably, LDG currently has less than 1 billion VND in cash and the equivalent by the end of 2024. This is one of the challenges that LDG is facing in the coming time, and is also a "difficult situation" for creditors who want to recover capital.
Also reporting a loss for the second consecutive year is DRH Holdings Joint Stock Company with more than 197 billion VND, the heaviest loss ever. This loss has eroded all of DRH's accumulated profits, putting the company in a state of accumulated losses of nearly VND75 billion by the end of 2024. In 2024, DRH only recorded nearly 3 billion VND in net revenue, down 70% compared to 2023. Doing business at below cost causes the company to lose nearly 3 billion VND.
Meanwhile, Danh Khoi Group Joint Stock Company reported losses again in 2024. Danh Khoi's net revenue in 2024 is only over 5 billion VND, an increase of 11% over the previous year. All revenue comes from brokerage services and other services, while project investment cooperation activities do not generate revenue. Other profits decreased by more than 40%, to VND 47 billion, due to reduced income from contract compensation but increased fines and late payment fees. In contrast, management costs were recorded at more than VND 58 billion, while in 2023, nearly VND 10 billion was recovered. As a result, Danh Khoi net lost more than 63 billion VND in 2024. Previously, the company made a profit of 11 billion VND in 2023 and lost nearly 73 billion VND in 2022.
The updated business results for the whole year of 2024 of the 30 largest listed real estate investors by revenue conducted by VIS Rating show that in the fourth quarter of 2024, investors recorded a significant revenue growth, up to 183% over the same period in 2023, contributing to an increase of 8% in revenue for the whole year of 2024.
However, total net profit is still down 7% due to higher interest costs as well as operational losses of investors facing legal problems, including Danh Khoi, NBB and LDG.
In 2024, the total debt of investors increased by 20% over the same period, to VND208,000 billion, mainly to finance project development costs (eg: VHM, NLG, DXG), and adding mobilized capital or restructuring maturing debt (eg: NVL, NBB). This increase in debt leads to a 41% increase in interest expenses over the same period.
The operating cash flow remains negative for most investors in 2024, as many investors have increased disbursement to speed up project development after receiving legal approval and are expected to open for sale in 2025 (for example: VHM, K human, PDR). Some other investors are still stuck with the situation of late payment of principal, interest on bonds and project legal issues (for example: NVL, NBB).
"Although there has been an improvement in recording revenue and cash flow, investors' profits and operating cash flow continue to weaken in 2024. However, we believe that 2025 will be a year with better operational efficiency for investors. New housing supply thanks to increased project development activities from the second half of 2024, reinforced by the positive psychology of home buyers, will boost sales and improve financial efficiency of investors in 2025", said Mr. Duong Duc Hieu, Director, Senior Analyst, VIS Rating.
