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Ninh Van Bay Travel’s losses keep mounting
Ninh Van Bay Travel Real Estate JSC’s accumulated losses increased to VND480 billion ($21.1 million) due to the ineffective liquidation and transfer of two investment projects in 2017.
Ninh Van Bay Travel Real Estate has just released the fourth quarter financial results which showed considerable fluctuations compared with the same period last year.
Specifically, net revenue from the sales of goods and the provision of services hit VND45 billion ($1.9 million), up 17 per cent against 2016. However, financial revenue has been reduced from VND11 billion ($485 thousand) to around VND500 million ($22 thousand) due to decreasing interest income from deposits and loans.
Meanwhile, financial costs have increased by 21 times to VN230 billion ($10.1 million) as the company suffered losses when transferring all of its contribution capital, loan, and interest receivables at Hai Dung Co., Ltd. However, its after-tax loss was reduced to VND177 billion ($7.8 million) as the company gets debt exemption of VND72 billion ($3.1 million).
In the second quarter of 2017, the company made provisions for receivables from Tan Phu Travel JSC, which added another VND246 billion ($10.8 million) to enterprise management costs.
In addition, its liquidation of two investments has created large profit fluctuations. When the company earned VND15 billion ($661 thousand) in profit in 2016, its after-tax loss amounted to VND456 billion ($20.1 million) in 2017, which is far below the year’s target of VND16.5 billion ($727,000). The company had negative undistributed earnings of VND690 billion ($30.4 million) at the end of 2017.
Beside provisions for short-term receivables, the company did not cover the construction costs of an unfinished resort in Nhon Trach district of Dong Nai province after transferring the subsidiary. As a result, Ninh Van Bay’s asset value reduced by roughly VND784 billion ($34.5 million) to VND534 billion ($23.5 million) in 2017. Meanwhile, its debt declined by VND300 billion ($13.2 million) to VND144 billion ($6.3 million) thanks to the settlement of bonds issued three years ago.
The company aims to restructure investment and focus on high-yield assets by making evaluations and provisions at subsidiaries. In the coming time, the company will transfer stakes at Emeralda Ninh Binh to solve its capital problems.
Ninh Van Bay Travel Real Estate JSC specialises in developing and managing high-quality travel real estate resorts in Vietnam and the region. Among them, Six Senses Ninh Van Bay has become the destination of over 150,000 guests and obtained 14 awards from the World's best travel organisations and tourism journals.
In the medium and long term, the company shall develop a chain of luxury and upscale resorts in other tourism cities. However, the company recorded continuous losses and lack of capital for numerous projects during the property crisis.
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