Contrasting profit picture at two renewable energy companies of the secretive giant Ninh Thuan

Ninh Thuan Energy Industry Joint Stock Company (Ninh Thuan Energy Industry) has just announced periodic information about the financial situation in 2023 to the Hanoi Stock Exchange (HNX).

According to the report, last year Ninh Thuan Energy Industry recorded poor business results, reporting a loss of 241.8 billion VND, an increase of nearly 2.5 times compared to 2022 (loss of 106 billion VND). This is a record loss for this renewable energy business ever.

Regarding the financial health of the business, by the end of 2023, the equity of Ninh Thuan Energy Industry is 880 billion VND, down 21.6% compared to the beginning of the year (1,122 billion VND).

The debt/equity ratio increased from 2.38 times to 2.93 times, compared to the beginning of the year. However, due to a sharp decrease in the company’s equity, the company’s liabilities actually decreased by nearly 100 billion VND, down to 2,578 billion VND.

Of which, the outstanding bond debt of Ninh Thuan Energy Industry is VND 2,080 billion.

Previously, in the 2021 fiscal year, Ninh Thuan Energy Industry reported a loss after tax of 22.7 billion VND.

Thus, for 3 consecutive years, Ninh Thuan Energy Industry has accumulated losses of more than 370 billion VND.

According to data from HNX, on December 25, 2020, this enterprise issued a batch of TT.BOND.2020 bonds, with a volume of 2.2 million bonds, par value of 1 million VND/bond, respectively. 2,200 billion VND, 15-year term, interest rate 10.75%/year.

In 2022 and 2023, this enterprise will buy back 30,000 bonds before maturity 4 times (total 120,000 bonds), equivalent to 30 billion VND. Currently, the outstanding bond debt of the TT.BOND.2020 bond batch is 2,080,000 bonds, equivalent to a value of 2,080 billion VND.

Despite poor business and constant losses, in 2023, Ninh Thuan Energy Industry paid (4 days late for the reason of “not arranging resources in time”) of nearly 150 billion VND in interest for the TT bond lot. BOND.2020 is in circulation.

It is known that Ninh Thuan Energy Industry Joint Stock Company was established in February 2017, with headquarters at TM 18-49, Area K1, Chu Manh Trinh Street, Thanh Son Ward, Phan Rang – Thap City. Cham, Ninh Thuan province.

This enterprise currently has a charter capital of 1,232.1 billion VND. The legal representative is General Director Le Manh Ha.

Ninh Thuan Energy Industry is the investor of the Thien Tan 1.2 and Thien Tan 1.3 solar power plant project, Phuoc Ninh solar power plant. Thien Tan 1.2 solar power plant is located in Phuoc Ha commune, Thuan Nam district, Ninh Thuan province with a capacity of 100 MWp. While Thien Tan 1.3 Solar Power Plant is located in Phuoc Vinh commune, Ninh Phuoc district, Ninh Thuan province with a capacity of 50MWp. Phuoc Ninh solar power plant is located in Phuoc Ninh and Phuoc Minh communes, Thuan Nam district, Ninh Thuan province with a capacity of 45MWp.

In addition, Mr. Le Manh Ha is also the legal representative of Ninh Thuan Energy Investment and Development Company Limited (Ninh Thuan Energy Investment and Development).

In contrast to the gloomy business picture and constant losses of Ninh Thuan Energy Industry, the remaining renewable energy company of this secretive Ninh Thuan giant is Ninh Thuan Energy Investment and Development. recorded profit after tax increasing each year.

Specifically, Ninh Thuan Energy Investment and Development recorded excellent business results last year, reporting a profit after tax of 19.4 billion VND, an increase of nearly 4.4 times compared to 2022 (4.4 billion VND). ).

Regarding the financial health of the business, as of the end of 2023, equity increased by 3.3% compared to the beginning of the year, to 612.7 billion VND.

The debt/equity ratio increased from 2.38 times (equivalent to 1,412 billion VND) at the beginning of the year, to 2.86 times (equivalent to 1,752 billion VND) by the end of 2023.

In particular, the outstanding bond debt of the enterprise increased from VND 1,290 billion at the beginning of the year, to VND 1,531.7 billion at the end of 2023.

According to data on HNX, on December 30, 2020, Ninh Thuan Energy Investment and Development issued a batch of bonds code TT.14.BOND.2020 with a volume of 1.35 million bonds, par value 1 million VND/bond, corresponding to a total face value of 1,350 billion VND. This batch of bonds has a term of 15 years, maturing on December 30, 2035 with an interest rate of 10.1%/year.

From mid-2022 to the end of 2023, this enterprise has repurchased part of the TT.14.BOND.2020 bond batch 3 times ahead of maturity with a total of 100,000 bonds, equivalent to 100 billion VND, reducing the total outstanding value. issuance of the bond lot down to 1,250 billion VND.

The most recent time was on January 2, 2024, Ninh Thuan Energy Investment and Development bought back 50,000 additional bonds before maturity, equivalent to 50 billion VND. Thus, the current outstanding value of bond batch TT.14.BOND.2020 is VND 1,200 billion.

It is known that Ninh Thuan Energy Investment and Development was established in December 2017, with headquarters located at Doan Khue Street, Dong Bac New Urban Area (K1 area), Thanh Son ward, City. Phan Rang-Thap Cham, Ninh Thuan province. This enterprise currently has a charter capital of more than 581.4 billion VND.

Ninh Thuan Energy Investment and Development is the investor of the Thien Tan 1.4 Solar Power Plant project in Phuoc Chien commune, Thuan Bac district with an electricity output of 156 million kWh/year.

Thus, it can be seen that although the profit picture of the two renewable energy companies of the secretive giant Ninh Thuan is strongly contrasting. However, the common point of both companies is that their bond debt accounts for the majority of the business’s outstanding debt, at over 80%.