Revenue in 2021 will increase 77 times, turn losses into profits, will issue shares to raise nearly 700 billion VND
Louis Capital wants to buy Nguyen Kim’s shopping mall chain.
Louis Capital had a ‘hot year’, turning losses into profits
In the AGM of Louis Capital on the morning of April 15, Mr. Nguyen Mai Long – Chairman of the Board of Directors said that in 2021 Louis Capital has a revenue of more than VND 801.89 billion, 77.47 times higher than in 2020 and profit after tax reached VND 98.49 billion (while in 2020 a loss of VND 43.48 billion). Compared to the annual plan, Louis Capital has fulfilled 10.5 times the revenue target and 48.2 times the profit target.
Louis Capital currently has 5 subsidiaries, namely: Wings Global, PBP, Golden Paddy, Samete and Louis AMC.
Recently, Louis Capital has successfully divested from Lam Dong Ladopar Pharmaceutical Joint Stock Company (Stock code: LDP), transferring ownership directly to Louis Holdings. By the end of 2021, Ladophar recorded a revenue of more than 162 billion VND, profit after tax reached more than 39 billion VND. This positive business result helped Ladophar be taken out of the warning area by the Hanoi Stock Exchange from March 22, 2022.
According to the explanation from Louis Capital, they also face many difficulties in 2021 due to the epidemic. In the first 6 months of the year, the operation of this business did not bring high efficiency, mainly because the price of construction steel fluctuated sharply, the construction market was fiercely competitive, and the epidemic caused the completion of construction work to meet difficulties. many difficulties.
From the second quarter of 2021, only when Louis Capital decided to change its business orientation and switch to the field of investment and consulting (both short-term and long-term) helped them get the good results mentioned above.
Besides, the above-mentioned revenue also comes from the revenue of subsidiaries. In 2021, the Company’s net revenue increased by VND 792 billion, mainly due to: Golden Paddy business consolidation leading to an increase in revenue from rice business of VND 351 billion; Sametel business combination resulted in revenue from the business of manufacturing materials – electricity – telecommunications equipment worth VND 293 billion; Louis AMC business combination led to an increase in income from asset trading activities worth VND134 billion.
Mr. Nguyen Mai Long – Chairman of the Board of Directors of Louis Capital.
Profit before tax increased by 151 billion dong thanks to the reversal of provision for bad investments in the year of 43 billion dong, profit from securities trading activities of 64 billion dong, the rest of profit comes from production and business activities. business of subsidiaries.
The business consolidation with subsidiaries resulted in a sharp increase in revenue – from loss to profit; but at the same time it also causes short-term debt of Louis Capital to increase sharply in 2021. Short-term debt increased from VND 11,908 billion to VND 395,165 billion, long-term debt from VND 4,105 billion to VND 22,627 billion. The company’s equity increased from 241.42 billion VND to 420.616 billion VND.
Short-term debt increased sharply by 383 billion dong (equivalent to 3,218%) mainly due to increase in payables to short-term sellers by 269 billion dong and short-term borrowing by 74 billion dong. In which, the business merger with Sametel and Golden Paddy led to an increase in short-term debt of VND 182 billion and VND 130 billion, respectively.
Entering 2022, Louis Capital sets a target of more than VND 1,071 billion in consolidated revenue and more than VND 122 billion in after-tax profit, up 34% and 24% respectively compared to the previous year’s results. Louis Capital also set a plan for 2023 with total revenue of nearly 1,431 billion dong, profit after tax of more than 140 billion dong. On this basis, the company expects a dividend rate of 15% for 2022 and 20% for 2023.
“In 2022, Louis Capital will continue to manage short-term financial investments with high efficiency, manage investments in subsidiaries and associated companies in the Group’s ecosystem. Louis Holdings group, in order to bring stable revenue for the company.
We will also raise capital – calling on partners to invest in large projects of the company, such as Ao Gioi Suoi Tien real estate project in Phu Tho with the scale of phase 1 of 173ha, M&A opportunities. Combined with Louis Holdings to invest and develop real estate projects across the country“, said Mr. Nguyen Mai Long.
Louis Capital will continue to invest in many other companies in 2022
In 2022, Louis Capital intends to bring 1,000 billion VND to invest in the following 3 main areas: use 500 billion VND to conduct M&A of businesses that do not have financial and administrative potential; 370 billion VND in investment – owning commercial centers to operate – exploit in order to maximize value for the goods supply chain of Louis Holdings Group; 130 billion to invest in debt trading activities.
More specifically, they are currently eyeing 3 businesses: Louis Mega Mall, Viet Phu Yarn and Tam Nong – Dong Thap project.
Louis Mega Mall: Louis Capital officially took over the shopping mall chain of Nguyen Kim and changed its name to Louis Mega Mall. Louis Mega Mall owns a prime location in provinces and cities such as Dong Thap, Bac Lieu, Tra Vinh, Gia Lai. Owning Louis Mega Mall will be a push in the real estate field of Louis Capital.
Viet Phu Yarn Factory (Long An): It is a typical investment project of Louis Capital in 2022. With a total area of 31,390 m2, it is expected to expand phase 1: 16,000 m2, phase 2: 2,900 m2, with a capacity of 1,700 tons of yarn/year; This is an enterprise with great potential in producing yarns of all kinds, supplying for domestic and export markets, and trading in spinning materials and equipment.
Louis Capital is planning to issue bonds to increase charter capital to supplement working capital in order to restructure, invest in line equipment, improve production capacity, and revive the Viet Phu brand.
Tam Nong – Dong Thap project: The project of a market combined with shophouse in Tam Nong – Dong Thap has a prime location adjacent to provincial road 844, about 8m wide; The right side is adjacent to the irrigation canal, about 3.4km from Tam Nong District People’s Committee. The project promises to improve the quality of life for residents and business households, contributing to a more modern appearance for Tam Nong district.
Specifically, according to the report to the Board of Directors about the private placement plan, Louis Capital will issue 27,299,990 more shares with the offering price of 12,500 VND/share. The proceeds will be about VND 341 billion, which will be used by the Company to buy back 90% of shares in Louis Mega Mall. The total capital that Louis Capital wants to invest in Louis Mega Mall is 350 billion dong.
In addition, Louis Capital will issue another 27,299,990 shares with par value of VND 12,500/share. All expected proceeds of about VND 341 billion will be used to buy back 70% of shares of Viet Phu Yarn and supplement working capital for Louis Capital.
Accordingly, the charter capital of Louis Capital will increase from VND 273 billion to VND 819 billion in 2022. From the charter capital of VND 100 billion at the time of establishment, Louis Capital currently has a charter capital of VND 273 billion with more than 27 million shares listed.
Following Economic Life
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
