By the end of 2023, Mai Linh Group recorded an accumulated loss of more than VND 1,300 billion, exceeding its equity. In addition, Chairman Ho Huy’s company still owes 10 months of employee insurance.
Portrait of President Ho Huy
Businessman Ho Huy was born in 1955, from Thanh Hoa, and has a Bachelor of Law degree. After leaving the army, he was one of the generation of young people sent to study abroad in the Russian Federation in the 1980s.
After studying abroad and receiving specialized training in auto mechanics, he returned home to found Mai Linh Transport Company with an initial capital of only 300 million VND in 1993.
In April 1995, Mr. Huy entered Saigon and established Saigon Taxi Enterprise, from which Mai Linh Taxi service was born.
Mr. Ho Huy, Chairman of Mai Linh Group
In 2002, Mai Linh Group Joint Stock Company was officially born. In 2018, based on the merger of three companies: Mai Linh Group Joint Stock Company – Mai Linh Northern Joint Stock Company – Mai Linh Central Joint Stock Company, Mai Linh Group was granted a new tax code.
According to the business registration in July 2018, Mai Linh Group has a charter capital of approximately VND 1,729 billion. The company’s headquarters is located at 64-68 Hai Ba Trung, Ben Nghe Ward, District 1, Ho Chi Minh City. Mr. Ho Huy is Chairman of the Board of Directors.
Besides taxi, Mai Linh has gradually developed into a multi-industry ecosystem with tourism – travel, construction, training, traditional advertising, information technology, finance, real estate, etc.
Mr. Huy used to be the owner of a series of subsidiaries in other fields but has now ceased operations such as: Mai Linh Ca Na Tourism LLC, GMT Travel Joint Stock Company, Mai Linh Quang Ninh Joint Stock Company, Dimora Vietnam Joint Stock Company, Mai Linh Production and Trading Joint Stock Company, Saigon Public Service and Dump Point Exploitation Joint Stock Company, Sang Tao Advertising and Marketing Joint Stock Company, Viet Linh Informatics Joint Stock Company…
Currently, in addition to the position of Chairman of the Board of Directors of Mai Linh Group, Mr. Ho Huy is the representative of many other companies such as: Thanh Do Company Limited, Mai Linh Hue Company Limited, Mai Linh Binh Duong Company Limited, Mai Linh Dak Lak Company Limited, Saigon Taxi Meter Inspection Company Limited, Mai Linh An Giang Company Limited, Mekong Green Trading Joint Stock Company, Saigon Binh Minh Transport Service Trading Company Limited, Mai Linh Ninh Binh Company Limited, Mai Linh Ha Nam Company Limited, Mai Linh Hoa Binh Company Limited, Mai Linh Hanoi Technology Transport Company Limited, Mai Linh Lai Chau Company Limited, Mai Linh Lang Son Company Limited…
Mr. Ho Huy also owns a private company called Ho Huy Investment LLC (established in 2014). As of the end of 2016, this company had a charter capital of nearly 520 billion VND, responsible for contributing capital to a number of member companies of the Mai Linh ecosystem.
Mai Linh Group’s losses ‘erode’ equity
According to the consolidated financial report for 2023, Mai Linh Group recorded net revenue of VND 1,589 billion, down 3% compared to 2022. After deducting cost of goods sold, gross profit was over VND 400 billion, down nearly 4% compared to the previous year.
During the period, financial revenue reached VND54 billion, double the same period. However, financial expenses also increased by 11.6% to more than VND126 billion, almost all of which was interest expense.
Selling expenses decreased by 2%, business management expenses decreased by 11% to 69 billion VND and 300 billion VND respectively.
It can be seen that the gross profit generated is not enough to cover the costs, causing Mai Linh to have a net loss from business activities of nearly 41 billion VND, while in 2022, it will also have a net loss of nearly 97 billion VND.
Although other profits decreased by nearly half to VND55 billion, it was enough to help Mai Linh report a profit after tax of nearly VND4 billion. Profit after tax belonging to the parent company’s shareholders was only VND1.2 billion while the company suffered a loss of VND1.8 billion.
With consecutive losses for many years, Mai Linh Group recorded an accumulated loss of VND 1,306 billion at the end of 2023. This accumulated loss was larger than the owner’s equity (VND 1,246.6 billion).
At the end of 2023, Mai Linh’s total assets reached VND4,271 billion, up 3.2% compared to the beginning of the year. Of which, short-term receivables accounted for VND1,942 billion. Construction in progress tripled to more than VND37 billion.
Total liabilities reached VND4,076 billion, an increase of about VND70 billion compared to the beginning of the year. Of which, short-term financial debt increased by VND50 billion to VND997 billion, long-term debt increased by nearly VND45 billion to nearly VND404 billion.
At the 2024 Annual General Meeting of Shareholders last April, Mai Linh Group announced this year’s business plan with consolidated revenue of VND 1,650 billion, a slight increase compared to 2023, but after-tax profit increased sharply, up to VND 60 billion.
Not only has Mai Linh Group suffered losses in business, it has also owed insurance for its employees for a long time. According to data from the Ho Chi Minh City Social Insurance, as of the end of July 2024, Mai Linh Group has not paid insurance for its employees for 10 months with an amount of more than 4.5 billion VND.
In addition, Vina Taxi Company Limited (formerly known as Mai Linh Insurance Agency Company Limited) also delayed paying insurance for 5 months with an amount of more than 76 million VND.