In the aforementioned period, Tran Thi Minh Tam, CEO and Member of the Board of Directors of LSG, intended to purchase 4.3 million shares, while Bui Huu Tai, Company Secretary and Administration Manager, planned to buy 4 million shares.
Prior to the transaction, Ms. Tam did not own any LSG shares, while Mr. Tai held only 47,900 shares (equivalent to 0.05%). If the transaction is successful, Ms. Tam’s ownership will increase to 4.78%, and Mr. Tai will hold approximately 4.5%.
Analyzing the stock price trend, LSG started 2024 with a downward trajectory, surged to a peak of VND 10,600 per share in early April, then plummeted before resuming an upward trend. At the close of May 31, LSG‘s market price stood at VND 11,400 per share, the highest since the beginning of the year. Based on this price, Ms. Tam and Mr. Tai would need to invest approximately VND 49 billion and nearly VND 46 billion, respectively, to finalize the transaction.
| Price movement of LSG shares since the beginning of 2024 |
LSG is a real estate company and the developer of Dragon Riverside City, which includes the Dragon Hill Premier apartment complex in District 5, Ho Chi Minh City. This project is considered Land Saigon’s flagship development over the past decade but has faced delays in execution, which the Chairman of the Board of Directors, Nguyen Quang Hieu, attributed to the legal review process impacting the construction schedule and apartment sales.
Dragon Riverside City Project Illustration
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At the 2024 Annual General Meeting of Shareholders, CEO Tran Thi Minh Tam shared that the Dragon Riverside City project had completed crucial legal procedures, including being recognized as the investor, obtaining land allocation, and receiving investment approval. The Dragon Hill Premier apartment complex has been granted a construction permit and has finished the underground construction phase (phase 1, including piles and retaining walls). However, construction cannot resume due to the government’s policy of reviewing the legality of numerous large real estate projects nationwide.
According to Ms. Tam, the company cannot commit to a timeline for completing these procedures but remains prepared with the necessary resources to continue the project. The prioritized resources include self-funding, loans, and capital mobilization from customer payments based on the construction progress.
The 2024 Annual General Meeting of LSG approved a revenue plan of VND 51 billion (compared to VND 950 million in the previous period) and an after-tax profit of VND 967 million, only 16% of the previous year’s figure. Ms. Tam attributed this to unresolved issues, such as the lack of approved land price for Dragon Riverside City, which makes it challenging to determine the cost and expected profit for the year.
LSG has faced challenges in its business performance over the years. During 2019-2022, the company had no sales revenue but remained profitable due to financial income (mainly from lending activities). In the first quarter of 2024, LSG again reported no revenue and incurred a loss of more than VND 225 million. Ms. Tam explained that this loss was due to a temporary imbalance in the cash flow, but she remains confident that the company will not incur a loss for the full year.
| LSG’s business performance has been challenging due to the project’s inability to proceed |
