According to the Hanoi Stock Exchange (HNX), Long Thanh Golf Investment and Trading JSC announced its business results in the first half of 2024 with post-tax profit remaining low at VND15 billion, a slight increase compared with the VND11.3 billion in the same period last year.

The profit is low compared with the company’s stockholder’s equity of VND6.763 trillion as of the end of June 2024. The total assets of the company were also high, VND22.115 trillion, including VND15.352 trillion ($614 million) of liabilities.

In 2023, the business reported post-tax profit of VND242 billion, while in 2022, the figure was VND192 billion.

In general, the RoE (return on equity) of Long Thanh Golf was 0.2-0.4 percent, much lower than the 3.2 percent in 2023.

Long Thanh Golf Investment and Trading still had debt of $614 million, though its accounts payables dropped sharply in the first half 2024.

The company in late 2023 reported that total debts had reached VND36 trillion ($1.44 billion), while the figure had dropped to VND15.352 trillion ($614 million) by the end of the second quarter 2024.

The enterprise did not report details about the lower debts. However, analysts believe that for a company that invests in golf courses and real estate, debts may be commercial loans, bond debts or money paid in advance by buyers.

Meanwhile, reports showed that bond debts did not change a lot. Therefore, it is highly possible that the reduced debts were commercial loans and money paid in advance by buyers.

According to HNX, Long Thanh only has one lot of bonds, GLTCH2124001, in circulation, with total value of VND1 trillion. These are 3-year bonds issued on December 21, 2021 with an interest rate of 9.5 percent per annum. 

As of the end of the second quarter in 2024, its total assets had dropped to VND22.115 trillion, a sharp fall from the VND43.6 trillion by late 2023.

Long Thanh Golf is part of the KN Investment Group owned by Le Van Kiem. KN Investment operates in four business fields, including golf courses, real estate, mining, and solar power.

Another part of the business ecosystem is KN Cam  Ranh Company Ltd. The major capital contributor is LongThanh Golf. 

KN Cam Ranh is the developer of KN Paradise, covering 800 hectares in Cam Ranh, capitalized at $2 billion. KN Cam Ranh released its 2023 financial report in March 2024, showing that its profit decreased by 16 percent compared with the year before to VND173 billion.

As of the end of 2023, KN CamRanh stockholder equity had increased by 15 percet to VND7.819 trillion.

Le Van Kiem, who is from Hue, started his business in 1979 and succeeded during doi moi (renovation). In his first business period, Kiem used rubber granules to produce paint and fertilizer. Later, he shifted to other business fields – garments, construction, Industrial Zone development, and golf courses. In the last decade, he has focused on finance and real estate.

Kiem is considered a pioneer in golf course development with Long Thanh Golf Course, covering 1,200 hectares. He is also one of the first founders of VPBank.

KN Investment Group has injected money into many business fields. It is the developer of the Long Thanh - Vientiane Economic Zone (600 hectares), KN Van Ninh (solar power plant), KN Cam  Lam Solar Power project, KN Paradise (resort) and high-end apartments at The Vista AnPhu.

KN Paradise is an integrated resort and amusement park in Bai Dai, Cam Ranh in Khanh Hoa province. The project includes a 27-hole golf course, thousands of shophouses, villas and semi-detached houses, many hotels, spa resorts and tens of thousands of condotels.

Long Thanh Golf is the investor of the Long Thanh project with an urban area, a golf and sports course, and ecotourism complex in Bien Hoa City in Dong Nai province, covering 333 hectares, and the Long Thai Ecotourism Urban Area in Long Thanh district, covering 843 hectares. This is one of the largest golf courses in Vietnam.

The company has also invested in a 5-star hotel, high-end villas and a 560-hectare golf course in Vientiane, Laos.

Manh Ha