Recently, TTC Land (SCR) has attracted attention regarding the changes in its Board of Directors (BOD), which includes the resignation of Ms. Huynh Bich Ngoc from her position as Chairwoman.
In the 2024 annual shareholders’ meeting held on April 23rd, 2024, Mr. Dang Van Thanh – Chairman of Thanh Thanh Cong Group (TTC) – explained: “My wife has withdrawn to focus on managing Thanh Thanh Cong Group.”
It is known that Thanh Thanh Cong is a large multi-industry corporation in Vietnam. The group’s subsidiaries operate in the fields of Agriculture, Energy, Real Estate, Industrial Real Estate, Tourism, and Education, spreading across provinces and cities throughout the country and countries such as Laos, Cambodia, Singapore, and Australia.
In which, 4 companies of the Group have been officially listed on HoSE: Thanh Thanh Cong – Bien Hoa (TTC AgriS; Stock code: SBT), Gia Lai Electricity (GEC; Stock code: GEG), Saigon Thuong Tin Real Estate (TTC Land; Stock code: SCR), Thanh Thanh Cong Tourism (TTC Hospitality; Stock code: VNG).
Moreover, Ms. Ngoc is currently the Chairwoman of Thanh Thanh Cong Investment JSC – a major shareholder of SCR with a stake of over 17%.
Returning to SCR, along with Ms. Ngoc (who resigned as Chairwoman), two other BOD members, Mr. Hoang Manh Tien and Ms. Tran Diep Phuong, also resigned. Consequently, the number of SCR BOD members has reduced from 6 to 5.
Subsequently, the General Meeting elected two new BOD members, including one independent member. The two candidates nominated by the shareholder group for the BOD are:
+ Mr. Le Quang Vu (nominated by Ms. Huynh Ngoc Bich on behalf of a shareholder group holding 17.39% of capital);
+ Mr. Pham Trung Kien (nominated by Mr. Dang Hong Anh on behalf of a shareholder group holding 10.11% of capital).
After the General Meeting, Mr. Nguyen Thanh Chuong assumed the role of Chairman of the BOD, Mr. Dang Hong Anh continued to hold the position of Vice Chairman of the BOD, and Mr. Vo Quoc Khanh continued to hold the position of BOD member of SCR.
Mr. Vo Thanh Lam assumed the position of General Director of SCR.
Photo: The new SCR BOD at the General Meeting on April 23rd, 2024.
Mr. Thanh also stated that the decline in SCR stock is part of the general market trend, and that the company must accept the current difficulties to sustain its long-term growth.
“I expect the real estate market to recover later this year and early next year, with projects in Da Nang expected to generate sales this year. In 2025, we will see SCR’s balance sheet change 180 degrees. SCR’s move towards a closed ecosystem (in Industrial Real Estate, Warehousing, and Commerce) will also bring about significant changes,” Mr. Thanh said.
The 2021-2025 strategy involves SCR adopting a “hibernation” approach with a cautious outlook, avoiding project expansion, consolidating existing projects, refraining from issuing bonds, and retaining profits. This is the direction of Thanh Thanh Cong Group for SCR.
By 2030, the Group has suggested a vision for SCR as a closed-loop real estate company , providing a comprehensive range of real estate services. To implement this strategy, the Group will provide SCR with liquidity support of nearly 400 billion VND through debt-to-equity swaps, according to Mr. Thanh.
At the General Meeting, SCR shareholders also approved the plan to issue shares in exchange for debt, with a total issuance of more than 34.9 million shares, equivalent to an issuance value of over 349 billion VND, corresponding to the value of the debt being exchanged.
These shares will be distributed directly to creditors at a ratio of 10,000 VND of debt exchanged for 1 newly issued share. The shares will be subject to a one-year transfer restriction. The implementation period is expected to be in 2024 – Q1 2025. It is understood that all creditors are domestic investors, and the issuance does not violate cross-ownership regulations.
Accordingly, there are 3 creditors that will exchange debt with SCR:
+ Thanh Thanh Cong Investment JSC (TTC Group) with a debt value of 289 billion VND, equivalent to 28.9 million shares;
+ Thanh Thanh Cong Industrial Park JSC with a debt value of 54 billion VND, equivalent to 5.4 million shares;
+ Thanh Thanh Nam JSC with a debt value of nearly 6 billion VND, equivalent to nearly 569 thousand shares.
If the issuance is successful, these 3 creditors will hold 22.7%, 1.26%, and 0.13% of SCR’s capital, respectively.
In terms of business operations, in 2024, SCR plans to achieve a consolidated net revenue of 705 billion VND, an increase of 90% compared to 2023; while its pre-tax profit will remain unchanged at 16 billion VND.
Due to the difficult business situation, the BOD proposed and obtained approval from the General Meeting to not distribute profits or set up funds; all retained post-tax profits of over 406 billion VND will be added to the investment capital for the company’s business operations.
