F88 recorded a record loss of more than VND368 billion in the first half of 2023Wednesday, September 13,2023
AsemconnectVietnam - F88 Business Joint Stock Company has just announced its business situation in the first half of 2023 with recording a record loss and reducing outstanding bond loans to VND222.42 billion.
In the first half of 2023, F88 Company recorded a record loss of VND368.01 billion compared to the same period profit of VND46.27 billion, a decrease of VND414.28 billion. Notably, return on equity (ROE) fell sharply from 9.1%, to negative 30.1%.
In addition, as of June 30, 2023, the ratio of outstanding bond debt to equity is 0.14 times, corresponding to a total outstanding debt of VND222.42 billion.
Business context plummeted, in the first half of 2023, the police of provinces and cities were Ho Chi Minh City, Bac Giang, Tien Giang, An Giang, Can Tho... simultaneously inspected the branches of F88 Business Joint Stock Company in the area.
Particularly for Ho Chi Minh City branch, the investigating agency has prosecuted 10 suspects who are team leaders and employees. In addition, Ho Chi Minh City Police conducted a general administrative inspection and discovered that 79 F88 business locations had violations of regulations on management of business lines subject to security and order conditions.
In 2022, F88's profit reached a record of VND211.55 billion
Before being inspected by the Provincial Police, F88's business situation was relatively positive, continuously growing profits. In particular, in 2022 alone, F88 Business Joint Stock Company recorded a profit of VND211.55 billion, an increase of 314% over the same period. Of which, capital utilization efficiency (ROE) is 31.6%, higher than the banking industry average of 20.69% (data from SSI's iBoard).
If you look broadly, from 2019 to 2022, the profit of F88 Business Joint Stock Company continuously grows. Specifically, in 2020, profit increased by 169.7%, to VND44.85 billion; in 2021 increased by 13.9%, to VND51.1 billion; and in 2022, profit increased by 314%, to VND211.55 billion.
Notably, the outstanding bond outstanding of F88 Trading Joint Stock Company continuously increased. Specifically, if in 2019, outstanding bond debt was VND125.8 billion, equal to 0.5 times equity, then by 2022, outstanding bond debt increased 10.52 times compared to 2019, to VND1,450,3 billion and equal to 1.7 times equity.
F88 successfully raised USD50 million from 2 foreign funds, determined to IPO in 2024
A noteworthy point is that in the first months of 2023, F88 Business Joint Stock Company said it had just successfully mobilized USD50 million (nearly VND1,200 billion) from 2 international funds. All of this capital will be invested by the company in 3 key development items.
The two international investment funds are Vietnam - Oman Fund (VOI) and Mekong Enterprise Fund IV, of which Vietnam Oman Fund (VOI) contributed 30 million USD. The Vietnam - Oman Investment Fund, representing the Kingdom of Oman Investment Authority (OIA).
If this is the first time the VOI fund has invested in the F88 financial convenience store chain, then for Mekong Capital, this is the third time pouring capital, after 2017 and 2020.
Mr. Phung Anh Tuan, Chairman of the Board of Directors and General Director of F88, added that the entire capital of USD50 million will be invested in 3 key development items including: Digital transformation towards improving customer experience , increasing governance efficiency and diversifying digital financial products and services; Market expansion includes growing customer base and increasing the number of points of sale; Invest in the development of F88's human team.
In the past few years, F88 has had breakthrough development, attracting the attention of many international investors. In 2022, this unit attracted more than 70 million USD from two international funds, CLSA Capital Partners (HK) Limited (Lending Ark) and Lendable (London). This business has grown from 300 transaction offices in January 2021 to more than 830 transaction offices in January 2023.
The growth rate of outstanding loans and average revenue of this unit reaching nearly 200%/year for the last three consecutive years is also a factor that attracts the attention of investors.
It is expected that in 2023, the Company will disburse up to USD1 billion and will officially IPO in 2024 with 1,400 transaction offices, capitalization scale reaching USD1 billion.
Regarding F88, the Company is almost entirely owned by F88 Investment - the company has successfully called capital from Mekong Capital fund in 2016 and Granite Oak fund in 2018. F88 only lends mortgage assets and no unsecured loans. Products include: mortgage loans for motorbikes and cars, motorbike registration, car registration, phones, laptops, jewelry... The company has also expanded its portfolio of life insurance products for customers, in association with Mirae Asset Prévoir.
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