No revenue, loss: A construction company closed a loan of more than 2,500 billion to supplement working capital.

Construction Investment and Development Joint Stock Company - Investco (ING) agreed to borrow capital from another real estate company with a maximum limit of VND 2,520 billion, interest rate up to 12.1%/year.

Businesses have difficulty accessing bank loans, so they will "turn" to different methods - Photo: QUANG DINH

Construction Investment and Development Joint Stock Company - Investco recently announced that the board of directors of the enterprise has issued a resolution to borrow capital from another enterprise to supplement working capital for investment and business activities. This real estate enterprise also agreed to borrow with a maximum limit of 2,520 billion VND, interest rate of 12.1%/year.

The loan negotiation and signing process is authorized to Investco's legal representative, Mr. Pham Van Danh - General Director.

According to the 2023 annual report, Investco has a charter capital of VND 208 billion, with its headquarters in Binh Thanh district, Ho Chi Minh City.

Initially, this enterprise was a branch of Hanoi Construction Corporation (HAN Corp). Then, Investco was equitized in 2005 with a charter capital of 35 billion VND.

Notably, the revenue of this enterprise in 2022 and 2023 is "blank". The reason is that the company has completed the handover of projects eligible for handover to customers such as Investco Babylon, Investco Dong Dieu. Therefore, there is no more revenue from these projects.

In addition, the company also has a project underway, the Investco Green City residential area project - Binh Hung commune, Binh Chanh district, Ho Chi Minh City. This project is in the legal completion stage, so the company does not generate revenue.

Another notable point when looking at Investco's financial report is that financial revenue is huge, but financial costs "erode" everything.

For example, in 2023, this enterprise recorded financial revenue of VND 220 billion, but financial expenses were more than VND 222 billion. The result of after-tax profit was still negative VND 14 billion.

Similar to 2022, Investco recorded a sudden increase in financial revenue of up to 661 billion VND, but financial expenses were 661 billion VND.

According to the financial statement explanation, the enterprise's financial revenue is mainly interest on deposits and loans, while financial expenses are interest expenses payable from business cooperation contracts.

Due to business losses, Investco's undistributed profit after tax at the end of September this year amounted to VND286 billion. This caused the company's equity to be negative VND26 billion.

The report also shows that the total number of employees as of September 30, 2024, of this real estate company in Ho Chi Minh City is only 10 employees.

In terms of financial resources, Investco only has nearly 1.9 billion VND in cash and cash equivalents. Most of the assets are in long-term unfinished expenses with 2,535 billion VND.

Source: https://tuoitre.vn/khong-doanh-thu-thua-lo-mot-cong-ty-xay-dung-chot-vay-hon-2-500-ti-de-bo-sung-von-luu-dong-20241225213531155.htm