return icon Vietnamnet.vn

Company with "golden land" plots incurs big losses

Halico, the owner of the famous Vodka Hanoi brand, has reported continued big losses for Q3 2020, despite its great advantages, including wide experience anf ownership of ‘golden’ land plots in advantageous positions.

The beverage company reported a decrease of 20 percent in revenue in Q3 compared with the same period last year to VND76 billion, and a loss of VND20.7 billion.

 

 

{keywords}

 

 

As of the end of September 2020, Halico had taken a loss of VND434 billion, much higher than the chartered capital of VND200 billion.

Like its big shareholder, Habeco, which is holding 54.29 percent of Halico shares, Halico is known as having a ‘120-year-old heritage’ in Vietnam. However, it has gone downhill since joining forces with the world’s big brewers nearly a decade ago.

Halico’s predecessor was the Hanoi Liquor Factory built by Fontaine, France in 1898. Until 2012, Halico had been making profit of around VND100 billion every year. But its revenue and profit began decreasing in 2013 and it has been taking loss since 2015.

In 2011-2012, Diageo, the world’s largest wine group, which ownd a lot of well-known brands including Johnnie Walker, Bailey and Smirnoff, through Streetcar Investment Holding Pte. Ltd, spent VND2 trillion to acquire 45.5 percent of Halico shares.

Halico’s capitalization value was estimated at VND4.3 trillion in accordance with the price paid by Diageo (the figure is VND240 billion now).

The presence of the world’s biggest liquor producer was expected to improve Halico’s business performance. However, contrary to predictions, Halico has been steadily taking a loss.

According to Halico, the company is facing difficulties because of changes in consumers’ taste and requirements. Halico has also had to struggle with tax-evading imports and counterfeits.

Halico took losses though it ownd a lot of land plots located in advantageous positions in Hanoi (Nhan Dong, Lo Duc and Linh Nam) and the land plot with the area of hundreds of thousands of square meters in Yen Phong and Bac Ninh was used to build alcohol production plant and wastewater treatment reservoir.

It also owns land in Da Nang and HCM City.

HNR, the shares of Halico, was put into transaction on UpCom on June 8, 2018 with the reference price of VND31,900 per share. HNR is priced at VND12,000 per share. There have been no order-matching transaction for a long time.

Halico’s decline began after the presence of the giant from the UK. However, many other reasons have also been cited, including internal conflict, a luxury tax increase and the Decree 100 on imposing heavy fines on drunk drivers.

The role of the big shareholders, Habeco and Diageo, has been lackluster. Diageo once brought an outsourcing contract, but it was terminated in 2017. 

V. Ha

The multi-billion dollar empires that exist outside the stock market

The multi-billion dollar empires that exist outside the stock market

Many large corporations, valued at billions of dollars, do not intend to list their shares on the bourse.

Covid-19 disrupts 'rules' of the Vietnamese stock market

Covid-19 disrupts 'rules' of the Vietnamese stock market

Investors are concerned about the stock market performance, which has become unpredictable because of the pandemic.

MORE NEWS

Foreign movies generate more revenue than locally produced films

After one week of release, the film ‘Suddenly Winning the Lottery’ earned VND 71 billion and remained firmly at No. 1 on the box office revenue chart. The film is one of the foreign films generating more revenue than locally produced films.

Ministry to keep coal-fired thermal power projects

To avoid legal risks, thermal power projects in the 8th national power development plan need to be retained, especially BOT (build, operate, transfer) projects, which involve foreign investors, the Ministry of Industry and Trade (MOIT) said.

EVFTA advantages threatened by tough competition

Although Vietnam is hoping for stunning growth in seafood exports, particularly in the likes of basa fish and shrimp, the nation’s share in the EU market and utilisation of its trade deal with the bloc remain under some pressures.

Vietnam wastes 160 tons of agricultural by-products a year

If 1 million by-products in the seafood industry were processed into valuable products, they would bring in US$4-5 billion. Vietnam produces 160 million tons of by-products a year.

Vietnam records high digital banking growth

Vietnam is one of the countries with the highest growth rates in digital banking though it is still a developing economy, according to international organizations.

Shopee empire is being shaken up

Aspiring to become a super app, Shopee is facing challenges, including in the Vietnamese market.

Corporate bond market reform adds safety net for investors

The fresh and stringent legislative framework for the corporate bond market is slated to pave the way for a better debt sector in Vietnam, while the interests of issuers and investors could be safeguarded.

Call of the past

The past artisans might have not imagined that the vases they made would become special cultural values, which are being hunted and those prices paid equal many years of hard work.

Young Khmer-Vietnamese woman earns high profits from flower "massage"

In the first half of the year, Chal Thy could not succeed but finally was able to learn how to pat and massage flowers so that sweet nectar would be secreted.

Nam Dinh museum preserves traditional rural way of life

The Rural Museum, located in the tranquil village of Binh Di in Giao Thien Commune, Giao Thuy District, is about 110km from Hanoi.

M&A in Vietnam forecast to slow down in H2 2022

M&A activities in Vietnam is forecast to slow in the second half as investors become more conservative about several macro trends impacting the country’s economy.

Vietnam, Cuba strive to lift two-way trade to US$500 million in next five years

The Vietnam-Cuba business promotion forum took place in Hanoi on September 30, seeing the participation of visiting Cuban Prime Minister Manuel Marrero Cruz and Vietnamese Deputy Prime Minister Le Minh Khai.

Vietnam defeat Saudi Arabia, top Group D at AFC Futsal Asian Cup

Vietnam beat Saudi Arabia 3-1 at the AFC Futsal Asian Cup 2022 in Kuwait on September 30, thereby topping Group D and having a high chance of securing a berth in the quarter-finals.

EuroCham Chairman praises strong and forward-looking government

Vietnam’s recovery has been ensured by strong and forward-looking government support which helped to bring in more high-profile FDI projects

Many firms suspend raising capital from stock market

Many enterprises have either stopped mobilizing capital or changed their capital-raising plans on the stock market amid existing uncertainties and disadvantages.
back_to_top