Update
The 2024 annual shareholders’ meeting of KDH was held on the afternoon of April 23, 2024. Photo: Thuong Ngoc
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Opening the meeting, Chairwoman of the Board of Directors – Ms. Mai Tran Thanh Trang shared: “2023 was a year of many difficulties and challenges, KDH has made efforts to overcome market challenges, persist in the goal of sustainable development, maintain a safe financial structure, and continue to maintain the reputation of a prestigious and professional real estate brand in 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 time, becoming a bright spot in the market.
In 2024, KDH plans to bring villa and townhouse projects to the market in Thu Duc City when conditions are met for sale as prescribed, and complete legal procedures to put the existing industrial park project into business soon. In addition, the Group continues to cooperate, form joint ventures, and associate with prestigious domestic and foreign partners with sufficient financial capacity to implement projects in the future“.
Aiming for a 10% profit growth in 2024
In 2024, KDH targets revenue of VND 3,900 billion and profit of VND 790 billion, increasing by nearly 87% and more than 10% compared to the previous year’s performance.
In order to implement the above plan, KDH plans to complete construction, handover houses and grant pink books to residents at the Privia apartment project in Binh Tan district, Ho Chi Minh City. In addition, two projects with a scale of 6 hectares and 5.8 hectares, respectively, will be developed with Keppel Group (Singapore) in Binh Trung Dong ward, Thu Duc city, expected to be put into operation at the end of 2024 when conditions are met as prescribed.
Finally, continue to complete compensation and site clearance work, complete legal procedures for existing projects in Ho Chi Minh City in preparation for the plan for the following years.
Issue nearly 91 million shares to pay 2023 dividends and nearly 11 million ESOP shares
For the 2023 profit, the General Meeting of Shareholders approved the payment of dividends in shares at a rate of 10% (shareholders owning 100 shares will receive 10 new ones), and this rate is expected to remain unchanged in 2024. However, the value as well as the number of shares paid for dividends in 2023 will change depending on the time the Company completes the private placement of more than 110 million shares.
In late 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 VND 3,000 billion. According to the plan, KDH plans to use VND 300 billion to pay off bank loans at OCB, and the remaining VND 2,700 billion to invest in Khang Phuc.
Accordingly, if the issuance of 110 million shares ends before the last registration date for the 2023 dividend payment, the number of shares issued will be nearly 91 million. Otherwise, the number of shares issued will be only nearly 80 million.
In addition, KDH was 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 23rd. Shares after issuance will be restricted from transfer for 1 year. With nearly VND 184 billion that can be collected if the issuance is successful, KDH will use all the money from the ESOP issuance to supplement its business capital.
The Board of Directors of KDH recorded a change in the year when dismissing Ms. Luu Thi Xuan Lai from the position of Member of the Supervisory Board. The nominee to replace her is Ms. Le Thi Thuy Trang, born in 1991. According to the CV, Ms. Trang is currently the Head of the legal department at Mega City Development Co., Ltd. and personally owns 10,000 KDH shares, equivalent to 0.0013% of charter capital.
Discussion:
Filed for 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 conditions are met. As for the project in Binh Tan, after the completion of compensation, the company will implement and start operating in the following years.
For Le Minh Xuan Industrial Park, the project has been approved by the Prime Minister and the City People’s Committee has approved the planning. For phase 1 (89ha), the Company has paid land lease and is in the process of applying for construction permits, the remaining 20ha is expected to be completed in 2025.
In addition, for some projects that KDH received from the City People’s Committee in Thu Duc City and Binh Chanh, the Company will implement the next steps after officially receiving them.
Status of 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 terms, the joint venture has completed the payment of land use fees and has a certificate of land use rights. The two projects have been started in the fourth quarter, specifically October 2023. When construction is completed, the two projects will provide the market with about 200 townhouses and villas, as well as 600 high-rise apartments, in which the low-rise part will be put into operation first. townhouses, villas at the end of 2024 when all conditions are met, and the high-rise part will be implemented next.
Progress in implementing private placement of 110 million shares?
General Director Vuong Van Minh: The Company has submitted documents to the SSC. After receiving approval, the Company will implement it in accordance with the approved plan.
Bank interest rates are falling, is private placement of 110 million shares still viable?
General Director Vuong Van Minh: Bank lending interest rates are always fluctuating. In order to ensure financial safety and sustainability, the Company believes that this issuance is still suitable at this time.
Confident in paying off bond debt thanks to ample cash flow
Source of funds to pay off maturing bonds?
Member of the Board of Directors Nguyen Thi Dieu Phuong: At the end of 2023, KDH has 2 bond lots with values of VND 800 billion and VND 300 billion, respectively, which are private placement bonds for professional investors. , will mature in Q2-Q3/2025, interest rate 12%/year and unsecured.
KDH is confident in repaying the above bond lot due to its abundant cash flow (over VND 3,000 billion). In 2024, the Company will deliver houses under 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 and are preparing to open for sale when all documents are available, expected to be in the fourth quarter of 2024, the project will implement the low-rise area first.
The Le Minh Xuan Industrial Park expansion project has also completed
