KBC aims to achieve a consolidated total revenue and net profit after tax in 2024 of VND 9,000 billion and VND 4,000 billion, respectively, representing an increase of nearly 48% and 80% compared to the results of 2023.
The KBC leadership states that the basis for setting the above targets is the estimated rental area of the company’s industrial parks in 2024, which is about 150 hectares, coming from industrial parks such as Nam Son Ha Linh, Quang Chau, Tan Phu Trung, especially Trang Due 3, in addition to the industrial clusters in Hung Yen, Long An, etc. In addition, some of KBC‘s urban projects are also expected to generate revenue and profit this year.
In addition to the ongoing projects, KBC is preparing new industrial land funds to meet the needs of investors in the near future. Specifically, the company is completing the necessary legal procedures to obtain approval for projects in localities such as Bac Ninh, Thai Nguyen, Ha Giang, Can Tho, Vung Tau, with a total estimated area of about 3,500 hectares of industrial land and 650 hectares of urban land.
Cancellation of the plan to pay a 20% dividend and repurchase 100 million shares
On March 28, KBC will hold the first extraordinary General Meeting of Shareholders 2024 at the company’s head office in Que Vo Industrial Park (Bac Ninh). In addition to the above business plans, the Board of Directors of the Company proposes solutions for the contents that have been approved by the General Meeting of Shareholders but have not been implemented in 2023.
Specifically, the Annual General Meeting of Shareholders 2023 has approved a plan to use accumulated undistributed profit as of December 31, 2022, to distribute cash dividends at a rate of 20%. However, KBC stated that in the past year, the company prioritized allocating all financial resources to repurchase all bond debts at maturity, including VND 3,900 billion of principal debt and nearly VND 162 billion of interest, bringing the company’s bond debt to zero before June 30, 2023.
In addition, the company also needs to arrange financial resources to ensure the financial capacity to implement and expand the scale of projects. Therefore, the Board of Directors proposes to cancel the previously approved plan to pay a 20% dividend at the upcoming extraordinary General Meeting of Shareholders 2024.
Prior to the Annual General Meeting of Shareholders 2023, the General Meeting of Shareholders KBC on December 28, 2022, also approved a plan to repurchase 100 million shares to reduce the company’s charter capital. However, during the implementation process, KBC stated that after submitting the dossier to the State Securities Commission, the Board of Directors found that the dossier was incomplete, so it was withdrawn.
Later, during the completion of the dossier, KBC‘s stock price had positive fluctuations and maintained a price level above VND 30,000/share, approaching the repurchase price, so it could not be implemented. Moreover, currently, the company needs to ensure the financial capacity to participate in new projects. Therefore, the Board of Directors proposes to cancel the above repurchase plan at the upcoming General Meeting of Shareholders.
Adjustment of charter capital of Trang Cat urban and service investor
On October 30, 2023, KBC completed the increase of charter capital of its subsidiary – Trang Cat Urban Development Company Limited from VND 6,630 billion to VND 12,681 billion to enhance the financial capacity of this subsidiary in the Trang Cat urban and service project.
 Trang Cat urban and service project rendering
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However, in the documents submitted to the upcoming extraordinary General Meeting of Shareholders 2024, KBC stated that after increasing its capital, the Trang Cat urban and service project does not require such a large amount of capital. For this reason, Trang Cat Company has provided loans to 2 other subsidiaries of KBC, including Saigon – Hai Phuong Industrial Development Joint Stock Company and Saigon – Bac Giang Industrial Development Joint Stock Company, leading to a high value of related-party transactions in 2023.
At the upcoming General Meeting, the Board of Directors of KBC proposes to adjust the charter capital of Trang Cat Company to be appropriate to the actual situation and capital needs of the project; instead, the arrangement of capital will be done through borrowing, issuing bonds, or investment cooperation. In addition, KBC will seek additional business investment cooperation partners or wholesale part of the project to secondary investors.
