An Quy Hung reports markedly poorer performance in 2018

An Quy Hung has reported significantly poorer performance in 2018 than in the previous year

Specifically, the financial statement of An Quy Hung in 2017 reported VND956 billion ($41.57 million) in net revenue and VND62.4 billion ($2.7 million) in after-tax profit. In 2018, these figures reduced to VND653 billion ($28.4 million) and VND1.2 billion ($52,200), respectively.

Accordingly, as of the end of 2018, the total assets of An Quy Hung have soared to VND12.7 trillion ($552.17 million) compared to VND1 trillion ($43.48 million) at the beginning of the year.

As of the end of 2018, the company poured approximately VND7.6 trillion ($330.43 million) intosubsidiary, equivalent to the amount that the company spent to acquire Vinaconex, while this figure was only VND210 billion ($9.13 million) early this year.

Other short-term receivables also soared sharply to VND4.278 trillion ($186 million) from VND265 billion ($11.52 billion) at the beginning of the year, which has made up a large portion of its total assets.

Notably, must-pay liabilities of An Quy Hung have also raised to VND12 trillion ($521.74 million) from VND550 billion ($23.9 million), including VND8 trillion ($347.8 million) of long-term liabilities, which was 110-times as much as the $3 billion in 2017.

Earlier, the deal of acquiring Vinaconex (code: VCG) shares, which was carried out by the shareholders of An Quy Hung, surprised the investor community. Firstly, An Quy Hung paid VND7.4 trillion ($321.74 million) to buy 57.7 per cent of Vinaconex, which was VND2 trillion ($87 million) higher than the offering price. On December 4, 2018, An Quy Hung paid all of this amount and became the biggest shareholder of Vinaconex.

During the deal, the financial capacity of An Quy Hung, which was established in 2001 and has been reporting relatively small revenue and profit, was the big question for other investors.

Recently, An Quy Hung has issued private bonds of 255 million VCG stakes, equivalent to 58 per cent of its holding in Vinaconex, with the collateral value of VND7 trillion ($304.35 million). The term of these bonds is three years and their annual interest is 12 per cent at least. Despite the high interest and collateral value, these bonds have yet to draw interest from investors.

Vinaconex is planning to organise its annual general shareholders' meeting on June 28.