Portrait of Xuan Quang Construction Joint Stock Company - An enterprise that always participates in "huge" bidding packages in Da Nang with low savings rate, once a joint venture with Thuan An Group

Xuan Quang Construction Joint Stock Company (Xuan Quang Company, address: Group 3, Xuan Truong Town, Xuan Truong District, Nam Dinh) was established on December 5, 1999, with Mr. Tran Van Vinh as the legal representative with the title of Chairman of the Board of Directors and General Director. On May 21, 2013, this company was approved on the National Bidding Network and began to record winning many "huge" value bid packages from 2019.

According to the investigation of the Journalist and Public Opinion Newspaper, Xuan Quang Company has participated in 23 bidding packages, of which it won 16 packages, failed 3 packages and 4 packages have not yet had results. The total winning bid value of this company is recorded at more than 6,700 billion VND, of which the winning bid in an independent role is more than 620 billion VND. Notably, this company has continuously won many bidding packages in Da Nang City with a total winning bid value of up to thousands of billions of VND. Among them, many bidding packages were won at close prices, with a very low savings rate.

For example, on March 12, 2020, Mr. Le Van Lam - Director of the Traffic Construction Project Management Board of Da Nang City at that time approved the consortium of Xuan Quang Company to win the bid for the construction and installation of traffic and drainage works at the Project "Renovation of the Western Traffic Intersection of Tran Thi Ly Bridge". This bid package has an estimated price of more than VND 538,612 billion and the winning bid price is VND 535,989 billion. Saving the State budget VND 2,623 billion, equivalent to 0.48%.

On December 14, 2020, Mr. Vu Tien Dung - Director of the Management Board of Construction Investment of Agricultural and Rural Development Projects of Da Nang City approved the consortium of Xuan Quang Company to win the bid for the construction and installation of Bien Bridge, riverbank protection embankment, passenger pick-up and drop-off wharf and boat mooring, buoys, and signs along the river under Sub-project 1 "Emergency dredging and flood drainage of Co Co River". This bid package has an estimated price of more than 383.086 billion VND and the winning bid price is 381.198 billion VND. Saving the State budget 1.888 billion VND, equivalent to a savings rate of 0.49%.

On December 17, 2021, Mr. Nguyen Minh Huy - Director of the Management Board of Traffic Construction Projects of Da Nang City approved the consortium of Xuan Quang Company to win the construction and installation bid for the project "Resettlement area serving the clearance of snow on the western beltway of Hoa Khuong commune". The estimated price of this bid package is more than 94,573 billion VND and the winning bid price is 93,938 billion VND. Saving the state budget 635 million VND, equivalent to a savings rate of 0.67%.

On August 26, 2023, Mr. Le Thanh Hung - Director of the Management Board of Priority Infrastructure Investment Projects of Da Nang City signed Decision 158/QD-BQL approving the consortium of Xuan Quang Company to win the bid package "Construction of coastal road connecting Lien Chieu Port". The estimated price of this bid package is up to 957,594 billion VND and the winning bid price is 956,679 billion VND. Saving the State budget 915 million VND, equivalent to a savings rate of 0.09%.

On November 27, 2023, Mr. Vo Tien Dung - Director of the Project Management Board of Agricultural and Rural Development Construction Projects of Da Nang City approved the consortium of this company to win the construction bid at the Quang Da Bridge and the bridge approach road. The estimated price of the bid package is more than 226,111 billion VND and the winning bid price is 225,788 billion VND. Saving 323 million VND for the State budget, equivalent to 0.14%.

Finally, on December 21, 2023, Mr. Vo Tien Dung continued to sign the decision approving Xuan Quang Company to win the bid for the construction and installation of Bien Bridge under Sub-project 1 "Emergency dredging and flood drainage of Co Co River". The estimated bid price is more than 234.735 billion VND and the winning bid price is more than 234.203 billion VND. Saving the State budget 532 million VND, equivalent to a savings rate of 0.22%.

Notably, in addition to Da Nang City, Xuan Quang Company is also named in many large bid packages in other provinces and cities such as Thai Binh, Lang Son or Hanoi. Notably, among them is bid package 07 of the project to upgrade the section Km18 - Km80 of National Highway 4B, with an estimated cost of more than VND 878,722 billion of the Department of Transport of Lang Son province.

This bid package was signed by Mr. Tran Van Vuong - Deputy Director of the Department of Transport of Lang Son province in Decision 600/QD-SGTVT, approving the consortium of Xuan Quang Company - VINADELTA Joint Stock Company and Thuan An Group Joint Stock Company, the unit related to the case that has just been investigated and prosecuted by the Ministry of Public Security. This is also the bid package that the Steering Committee for Anti-Corruption and Negativity of Lang Son province has inspected, evaluated, advised, and proposed to handle the implementation of the process, order, procedures, and authority in the invitation to bid, bidding, bid evaluation, and contractor selection.

Revenue increased sharply, continuously winning a series of large contracts, but why is the profit of Xuan Quang Construction Joint Stock Company still "modest"?

By winning a series of large contracts, Xuan Quang Company recorded hundreds of billions of VND in revenue each year. In particular, in 2023, the company's net revenue more than doubled compared to the same period in 2022, reaching 546 billion VND. This is also the highest revenue in many years.

However, the company's profits are quite thin, with net profit margins fluctuating only around 1-2% per year. In the past 5 years, Xuan Quang Company has never had a double-digit profit. In 2023, the company had the biggest profit in many years, but its after-tax profit was only over 7 billion VND.

Low profits, so the corporate income tax that Xuan Quang Company has contributed to the State budget in recent years has been quite modest, around 1 billion to 2 billion VND per year, much lower than the revenue figure of up to hundreds of billions of VND.

At the end of 2023, Xuan Quang Company had a charter capital of approximately 300 billion VND. Thanks to profitable business, Xuan Quang Company's equity has continuously increased year by year and reached more than 330 billion at the end of last year. Total liabilities also tend to increase at a faster rate, the ratio of liabilities to total capital at the end of 2023 was 61%, the highest in 5 years.

Capital increased, debt increased, and the scale of Xuan Quang Company also continuously expanded. By the end of 2023, the company's total assets reached more than 850 billion VND, the highest in many years.