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The ‘boss’ of social housing is out of breath during the epidemic season

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Hoang Quan Real Estate, an enterprise specializing in building social housing in the South, only made a profit of 2 billion dong in the first half of the year, down 72% over the same period last year.

According to the consolidated semi-annual financial report of 2021 of Hoang Quan Real Estate Services and Trading Consulting Joint Stock Company (HQC), the business is experiencing many challenges during the fourth epidemic. In the past 6 months, the company’s net revenue decreased 47% over the same period, profit after tax was only 2 billion dong, down 72% compared to the first half of last year.

At this year’s Annual General Meeting of Shareholders, the Board of Directors of the company set a target of profit after tax of VND 50 billion, 5 times higher than 2020. However, with the review results in the first 6 months. only a net profit of 2 billion dong, only 4% of the plan, the pressure on profit in the last months of the year is increasing.

Explaining the poor business results of the past 6 months, HQC leaders said that due to the complicated situation of domestic epidemic in the second quarter, investors limited transactions, even though the company had solutions. cost savings to cope with the difficult period, but sales revenue in the quarter did not meet expectations.

The enterprise’s semi-annual financial statements for 2021 are also audited and have opinions on the issue of invoices and tax declaration and payment according to each invoice issuance to the Ho Chi Minh City Tax Department while waiting for the settlement of No. outstanding taxes. Currently, the enterprise still has a tax debt to pay the State of nearly VND 191 billion.

Perspective of the social housing project in Tay Ninh transferred to a partner by HQC.

Leaders of HQC explained that they had sent documents to State agencies such as the Government Office, the Ministry of Construction about the proposal to allow the company to set off benefits to concentrate capital for implementing projects. social housing because the State’s credit support capital for social housing has not been further allocated.

The business’s proposals include: offsetting the refund of the land use levy paid to the HQC Plaza social housing project in Binh Chanh district with the amount of nearly 23 billion dong; Refund of resettlement land for the project of Ben Luc Resettlement Area, Zone 17 – New Urban South of the city related to the fact that the Company has handed over 13,749.81 m2 of land at the project for the People’s Committee of District 8 to arrange resettlement with an amount of about 30 billion VND.

The enterprise also mentioned that the Ho Chi Minh City Housing Development Fund refunded the investment capital and distributed revenue from cooperative investment activities to implement the 35 Ho Hoc Lam project right after the project was accepted and put into use. is estimated at 103 billion VND.

At the time of issuing the reviewed financial statements, HQC has not yet been settled for refunding or setting off tax debts to settle obligations to the State Budget. According to the Tax Administration Law, the Tax Department of Ho Chi Minh City allows the company to issue invoices and declare and pay tax according to each invoice issue during the time of settling the outstanding tax amount.

Nearly a decade ago, Hoang Quan was considered the leading development of social housing not only in Ho Chi Minh City but also expanded to many provinces in the Southeast and Southwest, even appearing in the Central region. In the social housing segment, HQC is considered a “tycoon” when it has the most implemented total social housing projects in the country. Every year, this business also starts a few social housing projects for low-income people and state employees while most other real estate businesses are not interested in the “bones” segment. “This is difficult.

However, in the last 5 years, many social housing projects have encountered difficulties when the preferential loan package of VND 30,000 billion to support homebuyers has ended, lacking a supportive fiscal policy for both buyers and investors. At this stage, Mr. Truong Anh Tuan, Chairman of HQC repeatedly admitted to shareholders that he had to bear the burden and suffer losses to speed up the progress of the social house project to the finish line (the handing over of the apartment). The profit rate of social housing is limited to no more than 10%, and the industry profit margin is low, making businesses short of breath. Currently, the business is trying to turn to commercial real estate development to improve the situation.

This year, the enterprise has implemented urban projects in Can Tho City, Vinh Long, Phan Thiet and Ham Kiem I Industrial Park in Binh Thuan. Through cooperation, HQC continues to promote the implementation of legal procedures to develop new projects (with 100% clean land fund), including 7 high-end projects in Ho Chi Minh City and projects in Binh Duong. , Ben Tre, Phu Quoc – Kien Giang.

Trung Tin

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