Project scene Cat Ba Amatina. Source: VCG
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Forecasting continued difficulties in 2024
In 2024, Vinaconex Investment and Tourism Development Corporation (Vinaconex-ITC, UPCoM: VCR) forecasts that the resort real estate market will still be in a depressed state and unable to recover due to the unimproved demand. Therefore, the Company assesses that the implementation of the resort villa and commercial townhouse products of the project in this year will still face many difficulties.
In the coming time, VCR will continue to complete legal procedures together with the possibility of transferring a part of the project to other investors to continue investing, doing business and/or selling, leasing,… The Company has the potential to cooperate with credit institutions, investors with financial capacity to increase the scale of capital implementation of the project.
In addition, VCR continues to recover receivables from customers who have signed contracts and consider the timing of sales based on market signals, expecting to achieve VND 526 billion in revenue and VND 96 billion in after-tax profit in 2024.
This year, VCR will continue to pay monthly salaries to the Board of Directors at the following rates: VND 15 million for the Board of Directors, VND 12 million for the Vice Chairman of the Board of Directors, VND 10 million for Members of the Board of Directors, VND 5 million for the Head of the Supervisory Board, and VND 3 million for Members of the Supervisory Board. These rates remain unchanged compared to 2023 and 2022. The income of General Director Le Van Huy in 2023 and 2022 is VND 1.4 billion and VND 1.3 billion, equivalent to about VND 113 – 118 million/month.
Project accounts for nearly 90% of total assets
In 2023, due to difficulties in the real estate market, VCR proactively delayed the progress of implementing the Cat Gia – Cat Ba urban tourist area (commercial name Cat Ba Amatina) in Cat Ba town, Tran Chau commune, Cat Hai district, Hai Phong city, and adjusted its business plan.
In this project, VCR (a subsidiary of Vietnam Export Import and Construction Joint Stock Corporation (HOSE: VCG), VCG holds 51%) has completed the procedures for obtaining the fire protection design approval certificate and construction permit; completed the appraisal of the feasibility study report for 81 adjacent houses, semi-detached villas in zone A3, A4 and 184 single villas, semi-detached villas, semi-detached villas in zones B1, B3; completed the procedures for obtaining the conditions for doing business with future-formed 51 semi-detached villas in zone A3, A4; completed the partial adjustment of the detailed construction planning project at a scale of 1/500.
In addition, the Company has completed the foundation construction of 51 semi-detached villas (SL01, SL02, SL3, SL4) in zone A3, A4; prepared the site for the construction of zone CT02 and some items such as clear ground, drainage system,…
The project Cat Ba Amatina can be seen as everything that the subsidiary VCG has at the present time. By the end of 2023, VCR booked the basic construction cost of this project at VND 4.3 trillion, increasing by about VND 800 billion compared to the beginning of the year, accounting for up to 88% of total assets.
| Trend of assets and liabilities of VCR from 2017 to now |
VCR achieved VND 42 billion in revenue in 2023, accomplishing about 32% of the set target. This result is mainly due to the prolonged stagnant real estate market and very low liquidity, VCR said.
At the same time, the subsidiary of VCG did not achieve the after-tax profit target of VND 19 billion due to having to pay the capital cost of VND 277 billion arising from the termination of the investment cooperation contract with the parent company, resulting in a loss of VND 287 billion for the whole year, increasing the accumulated loss to VND 517 billion by the end of 2023. It is known that this is an investment cooperation agreement for zone CT02 and infrastructure connecting zone CT02 of Cat Ba Amatina project.
Cooperation contract between VCR and VCG no longer valid by the end of 2023. Source: VCR
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Vinaconex terminates cooperation contract with Cat Ba Amatina project owner, will be refunded VND 2,200 billion
VCR was established in 2008 to invest in the development of Cat Ba Amatina project. The project has a scale of 172.38 ha and started the final phase in November 2020. The total expected investment capital is VND 10,941 billion, with the aim of building a modern new urban – tourist area. Cat Ba Amatina is divided into two development phases, including phase 1 expected to be completed in 2023 and phase 2 in 2025.
| Trend of net profit of VCR from 2008 to now |
Tu Kinh
