Press Release
The KDH 2024 Annual General Meeting was held on the afternoon of April 23, 2024. Photo: Thuong Ngoc
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Opening the Congress, Chairwoman of the Board of Directors, Ms. Mai Tran Thanh Trang, shared: “2023 was a year of many difficulties and challenges, KDH has strived to overcome the challenges of the market, remaining steadfast in the goal of sustainable development, maintaining a safe financial structure, and continuing to be a prestigious and professional real estate brand on the market. At the end of 2023, KDH‘s Privia project in Binh Tan District with more than 1,000 apartments was launched and sold out in a short period of time, becoming a bright spot in the market.
In 2024, KDH plans to bring to the market villa and townhouse projects in Thu Duc City when the conditions for sale according to regulations are met, and at the same time, complete the legal procedures to soon put into operation the existing Industrial Park project. In addition, the Group will continue to cooperate, form joint ventures, and alliances with reputable domestic and foreign partners with sufficient financial capacity to implement projects in the future.”.
Set a profit growth target of 10% in 2024
In 2024, KDH sets a revenue target of 3,900 billion VND and a profit of 790 billion VND, increasing by nearly 87% and over 10% compared to the previous year’s performance,
In order to implement the above plan, KDH plans to complete construction, hand over houses, and grant pink books to residents at the Privia apartment project in Binh Tan District, HCMC. In addition, the construction of two projects with scales of 6h and 5.8ha, respectively, together with Keppel Group (Singapore) in Binh Trung Dong Ward, Thu Duc City, are expected to be put into operation at the end of 2024 if the conditions are met according to regulations.
Finally, it is to continue to complete the work of compensation, land clearance, and complete the legal procedures of existing projects in HCMC in preparation for the plans for the following years.
Plan to issue nearly 91 million shares for dividends in 2023 and nearly 11 million ESOP shares
Regarding the payment of dividends, for the 2023 profit, the General Meeting of Shareholders approved a 10% stock dividend (shareholders holding 100 shares will receive 10 new shares), this rate is expected to remain unchanged in 2024. However, the value and the number of shares paid as dividends in 2023 will change depending on when the Company completes the private placement of more than 110 million shares.
It is known that at the end of February – early March 2024, KDH conducted a written consultation with shareholders and approved the plan to offer more than 110 million shares privately to 20 professional investors, thereby raising 3 trillion VND. According to the plan, KDH plans to use 300 billion VND to pay off bank loans at OCB, and the remaining 2,700 billion VND to invest in Khang Phuc.
Accordingly, if the issuance of 110 million shares ends before the record date of the 2023 dividend payment, the number of issued shares will be nearly 91 million shares. Otherwise, the number of issued shares will be only nearly 80 million shares.
In addition to issuing shares to pay dividends to shareholders, KDH was also approved by shareholders to issue 10.8 million ESOP shares to employees at a price of VND 17,000/share, 49% lower than the opening price on April 23. Shares will be restricted from transfer within 1 year after issuance.
With nearly 184 billion VND that can be raised if the issuance is successful, KDH will use the entire amount from the ESOP issuance to supplement its business capital.
This year’s KDH leadership has seen a change with the removal of Ms. Luu Thi Xuan Lai from the Supervisory Board. The nominee to replace Ms. Lai is Ms. Le Thi Thuy Trang, born in 1991. According to her resume, Ms. Trang is currently the Head of the Legal Department at Mega Urban Company Limited and currently owns 10,000 shares of KDH, equivalent to 0.0013% of charter capital.
Discussion:
Filed for a private placement of 110 million shares
KDH’s project development plan?
Chairwoman of the Board of Directors Mai Tran Thanh Trang: For the project under construction, The Privia will be handed over this year; the project in Thu Duc will be opened for sale if the conditions are met. The project in Binh Tan will be implemented and start operating in the following years after the compensation is completed.
For Le Minh Xuan Industrial Park, the project has been approved by the Prime Minister and the city government has approved the plan. For phase 1 (89ha), the Company has paid the land lease fee and is in the process of applying for a construction permit, and the remaining 20ha is expected to be completed for compensation in 2025.
In addition, for some projects that KDH has acquired from the Municipal People’s Committee in Thu Duc City and Binh Chanh District, the Company will take the next steps after officially receiving them.
Share the status of the 2 projects in cooperation with Keppel in Thu Duc?
Deputy General Director Nguyen Thuy Duong: The total area of the 2 projects is nearly 12ha. In terms of legal procedures, the joint venture has completed the payment of land use fees and has a certificate of land use rights. The two projects began construction in the fourth quarter, specifically in October 2023. When the construction is completed, the two projects will offer the market approximately 200 townhouses and villas, as well as 600 high-rise apartments. The low-rise townhouses and villas will be sold first at the end of 2024 when all conditions are met, while the high-rise buildings will be developed subsequently.
Progress of the private placement of 110 million shares?
General Director Vuong Van Minh: The Company has filed the application with the State Securities Commission. Upon receiving the approval, the Company will implement it in accordance with the approved plan.
Bank interest rates are declining, is the private placement of 110 million shares still suitable?
General Director Vuong Van Minh: Bank lending interest rates fluctuate constantly. To ensure financial security and sustainability, the Company believes that this issuance is still appropriate at the present time.
Confident in repaying bond debt with ample cash flow
Source of funds to repay maturing bonds?
Member of the Board of Directors Nguyen Thi Dieu Phuong: At the end of 2023, KDH had 2 bond lots with values of 800 billion and 300 billion VND, respectively. These are bond lots issued privately to professional investors, which will mature in the second and third quarters of 2025, with an interest rate of 12%/year and no collateral.
KDH is confident in repaying the above bond lot due to its abundant cash flow of over 3,000 billion VND; in addition, in 2024, the Company will deliver houses from The Privia project to customers, thereby expecting to collect 25% of the remaining contract value in the fourth quarter of 2024.
In addition, the two projects in cooperation with Keppel at the end of 2023 have also started construction and are preparing to open for sale when all documents are
