C.E.O Group lost over 100 billion and expected to revive tourism in Phu Quoc

C.E.O Group (C.E.O Group) was established in 2001, formerly known as Vietnam Trade, Construction and Technology Limited Company (VITECO). After reaching the charter capital of 100 billion dongs, C.E.O then decided to convert to a joint stock form, named C.E.O Investment Joint Stock Company.

In 2015, the group took the official name of C.E.O Group Joint Stock Company, owning charter capital of more than 1.5 trillion VND and total assets of up to 8 trillion VND.

Source: VIRAC

Business model

C.E.O Group is now exploiting the Real Estate Tourism industry as possessing beneficial areas and uppermost destinations. The company current main activity in three arrays include Real Estate, Hospitality Management, and Training workforce supply in the tourism industry.

C.E.O. currently owns an extensive land bank in some potential areas such as Hanoi, Ha Nam, Phu Quoc, Quang Ninh, Nha Trang, Quang Binh, Can Tho,… to ensure development in the long-term. The company plans to fulfil about 3,000 to 5,000 international 5-star hotel rooms and reach 1 million square meters of construction floor by 2021.

The corporation controls and exploits some massive land banks: the largest in Phu Quoc with a total value of 450 hectares, Cai Rong area (Van Don – Quang Ninh) with 300 hectares and Ha Nam 126 hectares. In 2019, the 5-star Novotel Villas complex owned by the group voted by Wanderlust Tips Travel Magazine as the Best cared resort for families.

For managing hotels and resorts, alongside the partnership with Novotel that holds operating occupancy over 70%, C.E.O. is also developing its individual brand, Sonasea. Sonasea Van Don and Sonasea Premier Nha Trang will be put into service in the coming years. C.E.O Group continued efforts to nurture and supply human resources for the exclusive future of Sonasea hotel.

Company financial performance

Revenue in the period of 2017 – 2019 was maintained sustainably, in particular, the company’s net income from sales and service provision in 2019 recorded VND 1,113 billion, up 32.88% compared to 2018 and 187.57% compared to 2017. Following that, the company’s gross profit in 2019 received a remarkable growth, reaching 452.75 billion V.N.D., up 85.52% and 306.47% respectively compared to 2018 and 2017.

Source: VIRAC

In 2018, C.E.O.’s assets reached 2,552 billion VND, mostly allocated to inventories with 560 billion VND and investments in subsidiaries worth 1,131 billion VND.

Source: VIRAC

Till 2019, revenue continued to grow 32.88%, after the inventory decline C.E.O proactive rising investments in subsidiaries to accelerate the construction of projects in the future. As a result, the group spent VND 2,419 billion on member companies, double that of 2018.

Source: VIRAC

The group finally freed half of the overflowing debts since 2017, showing its effectiveness in capital utilization and development plans has brought back great economic benefits.

The impact of the COVID – 19 pandemic severely affected C.E.O Group, especially in the tourism and resort real estate segment.

Due to the strong impact of the Covid-19 epidemic, in 2020, C.E.O Group’s revenue is only 290 billion dong, down more than a billion dong compared to the same period in 2019.

Retail and resort is the most affected market, especially in luxury real estate, luxury resort real estate and services that depend significantly on foreign tourists. As of the second quarter of 2020, the enterprise recorded a loss of 112 billion dongs. Accumulated in the first six months, the enterprise had a loss of 110 billion dongs.

As of June 30th, 2020, the total assets of C.E.O Group reached VND 7,843 billion, a slight decrease of 2% compared to the beginning of the year. Cash and cash equivalents of businesses decreased by 35% to 130 billion, only cash increased by 50%.

Beneficial opportunities in future time

In the coming time of 2021, C.E.O Group will continue to focus on implementing key projects such as Sonasea Van Don Harbor City, River Silk City, C.E.O Me Linh, Sonasea Villa & Resort. With the disease situation well behaved in Vietnam, the corporation can expect business status to be restored soon.

Cutting down non-essential expenses are one of the solutions that needed to be put into practice. Also, site clearance compensation, construction work, product handover to customers and business promotion have been promoted. 

C.E.O Group continues to prioritize the critical projects in Van Don (Quang Ninh), Hanoi and Ha Nam,… for implementation. Most recently, the Singapore Shoptel subdivision of the Sonasea Van Don City complex launched in July 2020 has received the attention of many customers. 

The business property still ensures human and physical facilities are in the best state to bounce back as soon as markets stabilize and recover. At the same time, C.E.O Group focuses on perfecting and applying new governance models, building and standardizing processes to improve management efficiency. Accelerate digital transformation, digitize data and use appropriate technologies to production and business activities, especially in business and marketing; research, investment and development of new fields, products and services create an active and flexible position in pristine conditions.

 


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