Ha Do Group (HDG) profits hit rock bottom, Chairman resigns due to old age

Ha Do Group's revenue has declined for 4 consecutive years.

Ha Do Group Joint Stock Company (HDG) was formerly a construction enterprise of the Ministry of National Defense , established in 1990 and transformed into a joint stock company model in 2004. The company operates in the fields of real estate, energy, construction, trade and services.

Once a giant in the construction industry, in the past 5 years, Ha Do's business activities have taken significant steps back.

In terms of revenue, in the period 2020-2023, Ha Do Group's revenue continuously decreased. Specifically, HDG's revenue peaked at VND 4,999 billion in 2020. Since then, Ha Do's revenue has only decreased, not increased.

By 2023, the company's revenue will be only VND 2,889.4 billion, down 19.3% over the same period in 2022.

In terms of profit, in the period 2020-2022, Ha Do still recorded around 1,300 billion VND. In 2022, after-tax profit peaked at 1,361.9 billion VND. By 2023, after-tax profit dropped sharply by 36.4% to only 866.3 billion VND. This is also the lowest profit level in the past 5 years of the company.

In the first quarter of 2024, the company's revenue reached 847.8 billion, profit after tax brought in 264.3 billion VND. Compared to the same period, both revenue and profit decreased by 12.7% and 26% respectively.

Chairman of the Board of Directors resigns after 30 years of service due to health and age

In the context of declining profits and revenue, Chairman of the Board of Directors of Ha Do Group, Mr. Nguyen Trong Thong, has submitted his resignation. Thus, after more than 30 years of working with the group, the founder of HDG has resigned from the position of Chairman of the Board of Directors due to age and health reasons.

Mr. Thong's resignation from the position of Chairman of the Board of Directors while Ha Do's business results showed signs of decline made shareholders worried.

Ha Do Group's (HDG) revenue has declined for 4 consecutive years, and profits have also hit a 5-year low. (Photo TL)

Because not only at Ha Do Group, Mr. Thong also holds the role of chairman at a series of subsidiaries including: Agrita Quang Nam Energy JSC, Binh An Riverside Real Estate Investment JSC, Minh Long Dong Saigon JSC, Ha Do 756 Saigon JSC, ZaHung JSC...

Regarding the shareholder structure, as of the end of 2023, this chairman still holds 31.83% of the charter capital. Vice Chairman and Deputy General Director Nguyen Trong Minh, Mr. Thong's son, is holding 0.21% of the shares. Mr. Thong's sister, Ms. Nguyen Thi Xuan Lan, is holding 0.2% of the shares.

Accumulated undistributed profit after tax is 2,394 billion VND

In the asset structure of Ha Do Group, as of the end of the first quarter of 2024, this unit has total assets of 14,259.8 billion VND. Of which, fixed assets account for 8,913.4 billion VND. Most of which are construction machinery and equipment and real estate held by the company.

According to the capital structure, Ha Do recorded liabilities at 6,766.7 billion VND. Most of which is long-term debt, accounting for 4,823.3 billion VND. The amount of long-term debt at the end of the first quarter was 4,742.9 billion VND, all of which were bank loans. Short-term debt accounted for only 570.6 billion VND.

Meanwhile, equity capital was recorded at 7,493 billion, a slight increase compared to the beginning of the year. However, the company is recording undistributed profit after tax of up to 2,394.2 billion VND.

Source: https://www.congluan.vn/tap-doan-ha-do-hdg-loi-nhuan-cham-day-chu-tich-hdqt-xin-tu-chuc-vi-tuoi-cao-post305249.html