In documents submitted for an extraordinary shareholder meeting late this month, Bamboo Capital Group (stock code: BCG) for the first time disclosed its financial situation and restructuring direction following a challenging period.

According to the leadership, operations in 2024 and early 2025 have been affected by many factors, including the prosecution of a former company leader. Transactions with financial institutions, investors, and customers were severely impacted, causing significant financial pressure and affecting project progress, capital mobilization, and debt recovery.

The company has not yet published its audited financial report for 2024. However, the leadership estimates the loss on the separate audited report to be 71% of assets at the end of 2023, exceeding 7,530 billion dong. Based on the consolidated audited report, the loss amounts to 20% of total assets, equivalent to 8,400 billion dong. These figures differ significantly from the 845 billion dong after-tax profit the company recorded in its self-prepared report.

Bamboo Capital states that due to recent fluctuations, the company must apply prudence in financial reporting, including making provisions for investment impairment, doubtful debts, and contingent liabilities. This significantly reduced last year's after-tax profit. "The Board of Directors recognizes this as a necessary step to ensure transparency, honesty, and prudence," Bamboo Capital's shareholder submission states.

The company expects to return to profitability by 2028, following a series of losses that could extend until 2027. Specifically, this year's after-tax loss is projected at 1,843 billion dong, followed by losses of 300 billion and 76 billion dong in subsequent years. A positive aspect is the plan for steady revenue growth year-on-year, potentially tripling current levels by 2030.

The leadership outlined a two-phase restructuring plan for recovery from now until 2030. The first phase (2025-2027) focuses on maintaining business stability, restructuring finances to reduce debt pressure, and saving costs. The company also plans to streamline its organizational structure, address bond-related issues, complete outstanding financial reports, and hold annual general meetings.

In the subsequent phase, the company plans to focus on high-potential sectors such as renewable energy, financial insurance, and manufacturing. According to Bamboo Capital's leadership, rebuilding trust among shareholders, bondholders, partners, and customers is essential for the effectiveness of all other recovery plans. The company acknowledges that changing market perception could take many quarters, or even several years. During this period, capital mobilization costs will rise, partners will be more cautious, and many collaboration opportunities may be missed.

Financially, Bamboo Capital views restructuring as a necessity to redesign its capital structure, ensuring liquidity and the ability to recoup investments in key projects. The company intends to renegotiate interest rates, terms, and collateral mechanisms with banks, bondholders, and strategic investors for the 2026-2030 period, while also seeking long-term capital for its core businesses.

However, the leadership states that a major challenge in financial restructuring involves the company considering cutting unprofitable projects, allocating resources to projects with quick cash-generating potential, and transparently reporting progress to attract new capital. "Errors in restructuring could lead to loss of cash flow control, cross-payment risks among subsidiaries, and slow down the recovery process," the company's Board of Directors wrote in its submission to shareholders.

Beyond trust and financial capacity, Bamboo Capital stated it will focus on restoring project operational capabilities, technology transformation, and retaining key personnel.

Recently, the company's top-tier personnel experienced significant changes. The company replaced four general directors this year, and a new chairman of the Board of Directors was appointed following the predecessor's passing. Personnel fluctuations at the parent company and its member units, according to the leadership, greatly affect normal operations, continuity, and consistency in management. Long-term plans are easily delayed, new projects are postponed, and resource allocation becomes constrained.

"Without systematically addressing personnel issues, all financial or technical restructuring efforts will be limited, slowing recovery and reducing investment efficiency," the leadership stated.

Bamboo Capital was established in 2011. The company's main business segments include renewable energy, real estate, construction - infrastructure investment, manufacturing - trading, financial services, and pharmaceuticals. In early 3/2025, the company announced that authorities had informed it of the decision to prosecute a case and charge Nguyen Ho Nam, a founding shareholder and former chairman of the Board of Directors until his resignation in mid-2024.

Bamboo Capital's shares have been suspended from trading by the Ho Chi Minh City Stock Exchange since early October. Regulators warned the company about potential mandatory delisting if it fails to submit its audited financial report for 2024 by the end of this year.

Phuong Dong