As per the plan, HAP will contribute an additional 32.33% of capital (19.4 million shares), while its subsidiary, Hai Phong Paper JSC, will contribute the remaining 2.98% (1.79 million shares).
The specific value of the deal has not been disclosed, but according to the resolution, the share price will not be less than VND 20,000, corresponding to a value of no less than VND 423.8 billion.
The Board of Directors authorized Mr. Vu Xuan Thuy, Deputy General Director in charge, to implement the necessary procedures for capital contribution according to the resolution, the Company’s Charter, and in accordance with the law. The Board of Directors, the Board of Management, the Accounting Department, the Internal Control Department, and other related departments are responsible for executing the resolution based on their functions, tasks, and authority.
As of June 30, 2024, HAP recorded International Green Hospital as an associated company, with a contribution ratio of 49.5% and an original value of over VND 443.5 billion. If the above transaction is successful, HAP will turn International Green Hospital into a subsidiary, increasing its ownership to 84.8% of capital.
Source: Consolidated Financial Statements for Q2 2024 of HAP
|
In fact, HAP has been associated with International Green Hospital since its early days of operation in 2014 and has also increased and decreased its ownership in the hospital over the years.
Specifically, HAP launched the International Green Hospital project on October 10, 2014, with a total investment of VND 447 billion. This project also commemorated the 85th anniversary of the Vietnam General Confederation of Labour. In 2016, the hospital was evaluated and licensed by the Department of Health to operate two additional specialties: internal medicine and plastic surgery. It also signed a contract with the Social Insurance of Hai Phong City for health insurance examinations and treatments.
On March 23, 2022, the Board of Directors of HAP passed a resolution to contribute additional capital to the hospital. At that time, HAP held 33.65% of the charter capital and decided to contribute an additional VND 731 billion (49.1 million shares), including VND 480 billion (24 million shares) through the transfer of shares from existing shareholders and VND 74 billion (7.4 million shares) through the purchase of newly issued shares. After the transaction, HAP owned 81.8% of the hospital’s charter capital.
However, in December 2022, HAP divested from the hospital and retained only 49.5% ownership, as is currently the case. The proceeds from the divestment were used by HAP to invest in projects for the period of 2021-2026, which were approved by the General Meeting of Shareholders in 2021.
In recent years, HAP has been promoting another hospital project, specifically investing in the construction of the International Green General Hospital in Hai Duong province. The project has a scale of 300 beds and a total investment of about VND 1,000 billion. It is awaiting the agreement of the People’s Committee of Hai Duong province and the provincial departments for compensation and site clearance.
In terms of business performance, in the first half of 2024, HAP recorded a net profit of VND 5 billion, unchanged from the same period last year. Its assets stood at VND 1,279 billion, including VND 443 billion in long-term financial investments.
| HAP’s quarterly business results in recent years |
Cen Land’s annual profits plummet to 2.5 billion VND, with nearly 60% of assets being accounts receivables.
Although the fourth quarter saw a reversal in profits, declining revenue resulted in Cen Land’s net profit for the entire year of 2023 only reaching 2.5 billion VND. It is worth mentioning that nearly 60% of the company’s assets consist of receivables from partners, with a total value of approximately 4,100 billion VND.
Declining profits at Bank increase in 2023
Throughout the year 2023, this bank achieved a pre-tax profit of over 928 billion VND, a decrease of 16.2% compared to 2022 and only 73% of the set plan was accomplished.
