2024 Annual General Meeting of Victory Capital
Victory Capital JSC (HOSE: PTL) has received shareholder approval to borrow VND 1,000 billion from two investors. The funds are intended for investment in subsidiaries for project development, land acquisition, mergers and acquisitions, and working capital replenishment.
 The newly appointed Chairman of the Board of Directors speaks at Victory Capital’s 2024 Annual General Meeting held on the morning of April 26 in District 7. Photo: Tử Kính
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Focus on Exploiting the Victory Tower Building
Prior to the meeting, the Board of Directors of PTL elected Mr. Lê Hào as Chairman after Mr. Nguyễn Tấn Thụ submitted his resignation a few days ago.
In his speech at the meeting, the new Chairman of PTL stated that the recent collapse of the Chinese real estate market has had a significant impact on the Vietnamese market, particularly the real estate sector.
According to Mr. Hào, the real estate market in 2024 is expected to face challenges; however, it is predicted to recover in 2025 and 2026. This year, PTL will concentrate on optimizing the Company’s exploited assets, particularly the Victory Tower building at 12 Tân Trào, District 7. The exploitation of this asset alone will generate hundreds of billions of VND for PTL annually.
In addition, PTL will focus on identifying and acquiring clean land for project development. The Company will also consider acquiring companies with sufficient capabilities to contribute to the development of the real estate ecosystem.
Management stated that the Company will focus on four core areas: real estate development, project development services, general contracting, and leasing real estate for rental.
“Victory Capital has defended and stood firm during the most difficult times, and now is the opportunity to grow stronger,” said Mr. Hào optimistically.
In 2024, PTL will continue to oversee the operation and management of the Victory Tower building. Leasing operations at the building were the Company’s primary source of revenue last year.
According to PTL, despite the expiration of the building’s management contract in early 2023, Sao Kim Company (the entity leased by VCG in 2017) has not yet handed it over to PTL and continues to manage the building without the Company’s consent, resulting in significant revenue volatility compared to 2022.
The Company is planning to seek tenants and develop business exploitation plans for vacant spaces in the Victory Tower building, the commercial area on floors 2-3 of the Mỹ Phú apartment building, the floor space in the basement owned by the Company in the Mỹ Phú apartment building, the District 2 apartment building, and the Victory Tower building, among others.
The real estate company plans to increase its charter capital to VND 2,000 billion, double the current amount, and is optimistic about its revenue and profit targets. Specifically, PTL has set a revenue and other income target of nearly VND 160 billion, eight times the actual figure in 2023; pre-tax profit of VND 42 billion, 16.8 times higher.
| Revenue and net profit of PTL from 2016 to present |
VND 1,000 Billion Loan from Two Investors and Issuance of Debt-Exchangeable Shares
With the approval of the general meeting, PTL will implement a plan to borrow VND 1,000 billion to contribute to subsidiaries for project investment and land development, mergers and acquisitions, and working capital replenishment.
Specifically, PTL will contribute VND 574 billion to its subsidiary Tiến Phát Đạt Real Estate Investment JSC; VND 289 billion to its subsidiary Phúc Khang Gia Real Estate JSC; and VND 12 billion to its subsidiary Tân Long Phát Real Estate JSC for project investment and land development, mergers and acquisitions, and project investment. The remaining VND 125 billion will be used to replenish working capital.
Grand House JSC and Mr. Lê Thế Tình will lend VND 300 billion and VND 700 billion, respectively. These are two of the five investors included in the list of PTL‘s private placement announcement in mid-2023, and according to management, the two investors have no relationship with the Company.
The loans are unsecured, bear an interest rate of 7.5% per annum, and have a maximum term of 12 months. Repayment can be made in cash or through the issuance of shares that can be converted into debt, which is likely to occur within the current year.
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Grand House JSC was established in 2022 with a charter capital of VND 100 billion and is headquartered at 150 Trần Não, An Phú Ward, Thu Duc City. The company’s primary business activity is real estate and land use rights owned, used, or leased by the owner. Ms. Nguyễn Thị Ngọc Phương is Grand House’s largest founding shareholder, holding 99.98% of its shares, with the remaining shares divided equally between Nguyễn Kiều My and Phạm Ngọc Linh. Ms. Phương (born in 1990) is also the General Director and legal representative of Grand House. |
The general meeting also approved the issuance of 100 million shares to convert the aforementioned VND 1,000 billion debt. Based on the average closing price of VND 4,064 per share over the past 60 trading sessions (from January 10, 2024 to April 09, 2024), the Company’s book value as of the end of 2023 was VND 4,777 per share. The debt conversion ratio has been set at VND 10,000 per share convertible into one common share.
After the conversion, the two lenders, Grand House JSC and Mr.
