This week, 9 companies announced dividend payment closure, with 7 companies paying cash dividends, 1 company issuing additional shares, and 1 company paying combined dividends.
Temporary production suspension.
Garmex Saigon Joint Stock Company (stock code: GMC) announced that it is seeking opinions in writing on the plan to transfer the land use rights and associated assets of the construction project. Accordingly, GMC wants to transfer more than 5 hectares of land in Hac Dich commune, Tan Thanh district (now Hac Dich ward, Phu My town), Ba Ria – Vung Tau province, which is currently owned by Garmex Saigon.
A factory of Garmex Saigon Joint Stock Company.
GMC will also transfer 2.6 hectares of land in Ha Lam – Cho Duoc Industrial Park (Binh Phuc commune, Thang Binh district, Quang Nam province), which is currently owned by Garmex Quang Nam Co., Ltd.
GMC informed that the company currently has no orders, and with unfavorable business conditions, if the company continues to operate its garment factories, it will incur significant losses. Therefore, GMC has restructured its workforce, reduced labor, temporarily suspended production to minimize losses, and continue to maximize cost savings.
GMC will also review its assets, search for reasonable opportunities to exploit existing properties or liquidate unused assets, and diversify its business to avoid risks for the company. In 2023, GMC recorded nearly VND 8.3 billion in consolidated net revenue, a decrease of 97% compared to 2022, and a post-tax loss of nearly VND 52 billion.
Mr. Jung Sung Kwan – CEO of Thanh Cong Investment Commerce & Service Co., Ltd (stock code: TCM) – has submitted his resignation after nearly 3 years holding this position, and also requested to resign from the position of member of the Board of Directors for the term 2021 – 2025.
Mr. Jung Sung Kwan, 58 years old, of South Korean nationality, holds a bachelor’s degree in business management. In April 2021, he joined the TCM Board of Directors for the 2021 – 2023 term after being nominated by E-land Asia Holdings Pte., Ltd, the largest shareholder, and continued to be appointed as CEO of TCM at the end of May 2021. At TCM, he currently does not own any shares.
Thanh Cong Investment Commerce & Service Co., Ltd has changed key personnel.
In addition, Mr. Jung Sung Kwan is also holding the position of member of the Board of Directors and member of the Audit Committee of Savimex Economic Cooperation and Export-Import Joint Stock Company (stock code: SAV) for the 2019 – 2024 term. Currently, Mr. Jung Sung Kwan owns 121,640 SAV shares.
Vietcombank will increase its charter capital to over VND 77,570 billion.
Vietnam Joint Stock Commercial Bank for Foreign Trade (Vietcombank – stock code: VCB) has just announced the resolution of the Board of Directors approving the profit distribution plan for 2022. According to the approval principle of the State Bank of Vietnam, Vietcombank unanimously agrees to distribute dividends in the form of shares from the remaining profit after tax, setting aside funds for 2022.
Specifically, Vietcombank’s separate after-tax profit audited in 2022 reached nearly VND 29,390 billion. After allocating funds for additional charter capital (over VND 1,469 billion), financial provision fund (VND 2,939 billion), and reward & welfare fund (VND 3,291 billion), the bank will use the entire remaining after-tax profit of over VND 21,680 billion to distribute dividends in the form of shares to shareholders.
Thus, with the current charter capital of nearly VND 55,891 billion and the value of dividend distribution in shares of over VND 21,680 billion, the estimated rate of implementing the right to receive dividends in the form of shares of Vietcombank will be nearly 39%/charter capital, equivalent to issuing about 2.17 billion shares to pay dividends to existing shareholders.
After completing the dividend distribution in 2022, Vietcombank’s charter capital will increase by an additional VND 21,680 billion, reaching over VND 77,571 billion. As of December 31, 2023, Vietcombank has 2 major shareholders, of which the State Bank of Vietnam holds over 4.18 billion shares (equivalent to 74.8% of charter capital) and Mizuho Bank holds nearly 0.84 billion shares (equivalent to 15% of charter capital).
On March 5, Infrastructure Development Joint Stock Company Vinh Phuc (stock code: IDV) will close the list for the interim dividend payment in 2023 and organize the annual general meeting of shareholders in 2024. Accordingly, IDV will distribute dividends in cash at a ratio of 25%. With over 31 million shares in circulation, Vinh Phuc Infrastructure will spend over VND 31 billion to pay dividends to existing shareholders.
At the same time, IDV plans to issue nearly 4.7 million shares to distribute dividends in a 100:15 ratio, meaning shareholders owning 1 share will receive 1 right, and for every 100 rights, they will receive an additional 15 new shares. The source of issuance is the undistributed after-tax profit until September 30, 2023, as stated in the 2023 financial statements audited by the company, amounting to over VND 413 billion.
On March 11, Ho Chi Minh City Book & Equipment Joint Stock Company (stock code: STC) will close the list for the 2023 interim dividend payment and hold the annual general meeting of shareholders in 2024. Accordingly, STI will distribute dividends in cash at a ratio of 14%. With nearly 5.7 million shares in circulation, STI is expected to spend nearly VND 8 billion to pay dividends.
