Property developer Kita Invest reports surges in 2023 liabilities, profit

Kita Invest JSC, the real estate arm of Kita Group, had liabilities of VND13.97 trillion ($549 million) as of end-2023, up 34% from the beginning of the year, according to the firm's financial statements.

Of this, VND843 billion ($33.13 million) was in bonds, a steep reduction from VND2.54 trillion ($99.9 million) after Kita Invest bought back bonds ahead of maturity last year.

It spent VND1.6 trillion ($62.87 million) on buying back outstanding bonds belonging to six batches: KITA.BOND2020.01; KITA.BOND2020.02; KITA.BOND2020.03 KITA.BOND2020.04; KITA.BOND2020.05; and KITA.BOND2020.06.

Of these, KITA.BOND2020.03, maturing May 5, 2025 and worth VND100 billion ($3.93 million), was bought back, leaving VND400 billion outstanding. The notes carry a fixed coupon rate of 13.9% after two term extensions.

The terms of batches KITA.BOND2020.07 and BOND2020.08 have been extended from 36 months to 48 months, resulting in a new maturity date of July 30.

The developer earned a net profit of VND44.5 billion ($1.75 million) last year, a nine-fold increase year-on-year.

As of end-2023, its total assets were valued at VND15.17 trillion ($596.3 million), up 31.2% from end-2022, while its equity rose by 4.1% in the period to VND1.2 trillion ($47.3 million).

Kita Invest was founded in January 2019 with founding member Nguyen Duy Kien contributing 40% of its capital, while CEO Dang Thi Thuy Trang and Kita Group each contributed 30%. After a month, its charter capital was hiked to VND1.15 trillion ($45.19 million).

As of March 2023, 98% of the Kita Invest’s charter capital was controlled by Tan Thanh Investment and Development Company Limited.

Kita Invest owns the well-known urban project Stella Mega City in the Mekong Delta city of Can Tho. The 150-hectare project, valued at VND8 trillion ($314.3 million), includes 5,000 land plots, townhouses, shophouses, villas, and apartments.