Bong Sen's semi-annual financial report shows that after-tax profit is negative for more than 355.5 billion VND, meaning the company has an average daily deficit of nearly 2 billion VND.
This figure decreased by about 13% compared to the same period last year, but the loss that has lasted since 2021 - the time the company first announced the information - has not been overcome yet. As of the end of June, Bong Sen's accumulated loss reached nearly VND 3,092 billion.
Poor business performance caused Bong Sen's equity to decline by nearly 14%, to about VND 4,539 billion. Meanwhile, the company's payables increased by 8.5%, exceeding VND 9,076 billion.
Notably, about VND 4,800 billion came from the bond issued in October 2021 arranged by Tan Viet Securities (TVSI), with an initial interest rate of 10.5%/year and then increased to 15.75%/year, paying interest periodically for 3 months. This bond was originally scheduled to have a term of 5 years but has been extended many times, and is now maturing in October 2026.
According to the plan, the money raised from the bond lot will be used to contribute capital to the office building project, commercial - service center and apartment at 152 Tran Phu (HCMC) through a cooperation contract with Vina Alliance Company Limited.
However, the project was later inspected and revoked. In November 2022, Bong Sen said he had asked Vina Alliance to return the entire amount but could not contact him. The company explained that the delay in paying principal and interest to bondholders was due to the company's account and collateral being frozen at Saigon Bank (SCB), making it impossible to execute the payment order.
At the extraordinary meeting at the end of August 2023, Bong Sen said it would handle assets to fulfill its obligations with a VND4,800 billion bond lot, including Daeha Company shares, Palace Saigon hotel mortgage documents, Bong Sen Annex hotel, Vietnam House restaurant and some real estates in District 1.
The company also affirmed that if not enough, it will continue to process other assets to settle obligations. However, the situation of late payment still exists. In the first 6 months of the year, Bong Sen recorded a debt of nearly VND 2,230 billion in interest that had been stagnant for many years with bondholders, with the reason being that his account was frozen.
Bong Sen is a member enterprise of Saigontourist, equitized in 2005, owning many hotels and restaurants in the center of Ho Chi Minh City such as Palace Saigon (Nguyen Hue), Bong Sen Saigon (Dong Khoi), Bong Sen Annex (Hai Ba Trung), along with Vietnam House, Lemongrass, Calibre, Bier Garden, Buffet Ganh Bong Sen and Brodard cake chain with 18 stores.
The enterprise once bought more than 51% of Daeha Joint Stock Company - the investor of Daeha complex and Daewoo Hanoi Hotel. Bong Sen also participated in the acquisition of Saigon One Tower, the project is now renamed IFC One Saigon.
This enterprise is on the list of 762 companies related to Van Thinh Phat Group. With a bond lot of VND4,800 billion still owed, two primary purchasing units to issue to individual investors, Tan Viet Securities (TVSI) and Tan Thanh Long An Company - are both in the ecosystem related to Ms. Truong My Lan.
At the March 2024 trial, Ms. Lan confirmed that Bong Sen is a family-owned enterprise, holding 93.6% of shares in Daewoo Hotel Hanoi and had proposed to sell this property to remedy the consequences of the related case.
