TRUONG THINH GROUP - A CORPORATE SUCCESS STORY
Truong Thinh Group, formerly known as Truong Thinh General Construction Company Limited, was established in 1994. After 19 years of operation and development, Truong Thinh has become a strong corporation in the fields of Construction and Tourism Services.
ABOUT TRUONG THINH GROUP - 26 YEARS OF SUSTAINABLE DEVELOPMENT
When converting to a joint-stock company model, Truong Thinh Group's charter capital was 385 billion VND. From August 2010, Truong Thinh began its journey to increase its charter capital, from 385 billion VND to 582 billion VND, and by January 2017, its charter capital reached 1,889 billion VND.
The three founding members of Truong Thinh, including Mr. Vo Minh Hoai, Mr. Le Tuan Anh and Ms. Vo Thi Lan Anh, hold 100% of the Group's capital. In which, Mr. Vo Minh Hoai holds the majority of shares, followed by Ms. Vo Thi Lan Anh. In addition, another name that was once mentioned as the founding shareholder of Truong Thinh Group is Ms. Nguyen Bao Ngoc.
Mr. Vo Minh Hoai - Chairman of Truong Thinh Group
In 2000, Truong Thinh was selected by the Ministry of Transport as the main contractor in the Quang Binh Construction Joint Venture to construct the South Xuan Son Bridge - North Da Mai Bridge section of the Ho Chi Minh Road project, a contract worth 145 billion VND with a construction period of 3 years. This is considered a turning point in the development of Truong Thinh when it first entered the "big playground".
Truong Thinh brought the project to completion on schedule, and was evaluated as one of the three "4 best" sections (fastest, most beautiful, best quality and safest) on the entire route of the Ho Chi Minh Road construction project and is one of four units awarded the Second-class Labor Medal by the State.
In 2003, Truong Thinh began participating in international bidding. The Truong Thinh - WKK (Japan) contractor consortium won the bid for package R1-NH9 (one of the major bidding packages of the East-West Economic Corridor development project, Quang Tri province) with a value of 131.6 billion VND.
From here, Truong Thinh expanded to implement a series of key projects in the North, constructing bridges, roads, and hydropower plants. In addition, the group has also invested in a series of transport infrastructure construction projects in the form of BOT, BT such as: BOT Dong Hoi bypass, BOT expanding National Highway 1 from Dong Ha city to Quang Tri town, BOT Quang Ninh - Le Thuy section, BT project of Ho Chi Minh highway La Son - Tuy Loan section...
In Quang Binh, in addition to infrastructure projects, Truong Thinh Group invested in My Canh Tourist Area, now Sun Spa Resort on Bao Ninh peninsula. They invested in and exploited Thien Duong Cave Eco-tourism Area, Bao Ninh new urban area, Dong Hoi city, a resort in Quang Dong commune, Quang Trach near the resting place of General Vo Nguyen Giap in Vung Chua - Dao Yen, and invested in Suoi Bang Tourist Area...
Sun Spa Resort
Sun Spa Resort - a high-class resort with the longest coastline and river frontage in Vietnam, a record set by the Vietnam Record Book Center (in June 2013). With a total area of 29 hectares, Sun Spa Resort is divided into 2 zones: a 4-star high-class resort area (including 234 rooms) and a 5-star high-class villa area (including 40 bungalows & 19 villas). Stretching on a beautiful white sand peninsula with 3 sides bordering the sea, likened by locals to a mermaid spreading herself between two deep blue waters, one side is the vast ocean, the other side is the gentle Nhat Le river, Sun Spa Resort is a bright spot in the poetic picture of Dong Hoi in the Central region.
In addition, the investment in Truong Thinh's hydropower projects has been delayed and prolonged for many years, also attracting attention.
The La Trong - Song Gianh Hydropower Plant Project, according to the initial announcement at the groundbreaking ceremony in 2007, has an installed capacity of 18MW, invested by Truong Thinh's member, Truong Thinh Hydropower Joint Stock Company, with an investment level of 307 billion VND, expected to be completed and put into operation in January 2009.
The project to expand National Highway 1 from Km 672+600 (the concrete road point south of Quan Hau bridge toll station) to Km 704+900 (Hung Thuy commune, Le Thuy district) was approved by the Ministry of Transport and assigned to Truong Thinh Group as the investor in March 2013. The project scope includes expanding the old National Highway 1 and building a new 33.05 km long flood bypass road through 8 coastal communes of Quang Ninh and Le Thuy districts.
The route was constructed from September 1, 2013 to May 25, completing all items, exceeding the construction schedule by more than 6 months. From Dong Hoi city, you can follow Vo Nguyen Giap street to cross this flood bypass to Le Thuy district, the hometown of the General.
La Trong - Song Gianh 1 hydropower project has an installed capacity of 18 MW, with an average annual electricity output of 60 million kWh, invested by Truong Thinh Hydropower Joint Stock Company with 307 billion VND.
Along with investing in La Trong - Song Gianh 1 Hydropower Plant, Truong Thinh Hydropower Joint Stock Company also invested in the construction of two hydropower projects in Quang Binh: Kim Hoa hydropower plant, Kim Hoa commune (Tuyen Hoa) and Khe Ron hydropower plant, Le Hoa commune (Tuyen Hoa) with a capacity of 18 MW with a total investment of 300 billion VND. The three upstream hydropower plants on the Song Gianh river, when put into operation, will contribute 130 million kWh of electricity to the national grid each year.
At the end of 2016, the Group's charter capital was 1,151 billion VND, the total assets of the parent company reached more than 3,115 billion VND. The asset structure mainly focused on tangible fixed assets of 1,043 billion VND; long-term unfinished assets of 377.4 billion VND; investment in subsidiaries and associated companies nearly 1,016 billion VND, including a provision for impairment of investment of negative 81 billion VND.
Báo cáo tài chính Trường Thịnh mẹ năm 2016
According to the introduction, Truong Thinh Group invests in about 16 members such as: Truong Thinh Construction Consulting Joint Stock Company, Truong Thinh 5 Joint Stock Company, Truong Thinh BOT One Member Limited Liability Company, Truong Thinh Hydropower Joint Stock Company, Truong Thinh Suoi Bang Tourism Joint Stock Company, Truong Thinh Golf & Resort Joint Stock Company, Truong Thinh Construction and Installation One Member Limited Liability Company, Dong Hoi City Bypass BOT Limited Liability Company, Quang Tri BOT Limited Liability Company, Truong Thinh Tourism One Member Limited Liability Company...
The three investments in subsidiaries/associated companies that account for a large proportion of Truong Thinh's investment portfolio include: Truong Thinh Tourism, Dong Hoi City Bypass BOT, and Truong Thinh Hydropower.
On the contrary, the parent company's short-term and long-term debt is more than 1,184 billion VND; equity is 1,153 billion VND.
In the two years 2015 and 2016, Truong Thinh recorded 888 billion VND and more than 916 billion VND in revenue respectively; 1.85 and 55.1 billion VND in financial activities revenue; profit after tax was 1.12 billion VND and 1.48 billion VND respectively.
BOT projects are certainly operating profitably and bringing cash flow to Truong Thinh every year. However, one of the Group's other "rice cookers", Truong Thinh Tourism One Member Limited Liability Company (represented by Ms. Vo Thi Phuong Anh, daughter of Mr. Vo Minh Hoai), at the end of 2016 had a charter capital of 468 billion VND, recording an accumulated loss of nearly 131 billion VND. In 2015 and 2016, Truong Thinh Tourism recorded business losses of 15 billion VND and 66 billion VND respectively.
It is also noted that, in 2016, the marine environmental incident caused by Formosa affected tourism activities in Quang Binh province. However, before that, in 2015, the management unit exploiting Sun Spa Resort and Thien Duong Cave Eco-tourism Area had lost nearly 15 billion VND, recording a revenue of 155 billion VND; accumulated losses from previous years to 2015 were about 50 billion VND.
Interest expense is a burden for Truong Thinh Tourism. At the end of 2016, the total assets of Truong Thinh Tourism were 813 billion VND, the debt of this company was nearly 410 billion VND.
In addition, Truong Thinh Group also constructs many civil and real estate construction projects such as:
