The transfer period for pre-emptive rights will run from September 24 to October 7, 2024, with the registration and payment period for the share purchase open from September 24 to October 14, 2024.
This plan to increase capital was approved at the 2023 Annual General Meeting of TNH. If successful, the expected proceeds from the offering will amount to VND 152 billion. Out of this sum, the company will allocate VND 20 billion to repay loans from credit institutions, VND 40 billion to supplement working capital (payment for goods, medicines, chemicals, and salary payments to officers), and the remaining VND 92 billion to repay debts to the company’s leaders.
These leaders include Chairman of the Board, Hoang Tuyen (VND 35.6 billion); Board Member and Deputy General Director, Nguyen Van Thuy (VND 35 billion); General Director and Vice Chairman, Le Xuan Tan (VND 11.4 billion); and former Board Member, Nguyen Xuan Don (VND 10 billion).
Source: TNH’s 2023 Annual Report. Note: Mr. Nguyen Xuan Don was relieved of his duties as a Board Member on June 28, 2024.
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Previously, TNH had borrowed VND 92 billion from its leaders for a term of 12 months starting from August 2022, with an interest rate of 5.45% per annum, to repay bonds issued in 2020. The company has requested an extension of this debt three times, with the latest extension until March 31, 2025, to allow for the completion of procedures for the issuance of shares and arrangement of funds to repay the debt as per the signed contract.
Upon completion of the issuance, TNH’s charter capital is expected to increase from VND 1,102 billion to VND 1,254 billion.
In terms of business performance, in the first half of 2024, TNH recorded a slight decrease in revenue to VND 222 billion compared to the same period last year. Despite higher costs, financial expenses and management expenses decreased, preventing a significant drop in profits. Net profit decreased by 14% to over VND 53 billion.
The company attributed the higher costs to the concentration of resources on completing the Vietnam-Thailand Hospital project, particularly recruitment costs.
For the full year 2024, TNH targets revenue of VND 540 billion and net profit of VND 155 billion. In the first half, the company achieved 41% of its revenue target and 35% of its profit target.
| TNH’s Semi-Annual Business Results for 2019-2024 |
In the stock market, TNH’s share price has fallen more than 18% from its peak of VND 28,500 per share on July 15, 2024, to the VND 23,000 level. However, compared to the beginning of the year, the share price is still up by more than 50% and nearly 2.4 times the public offering price.
| TNH Share Price Movement since the Beginning of 2024 |
In other related news, on September 10, the Tax Department of Thai Nguyen City issued a decision to fine TNH VND 22 million for late submission of tax declaration compared to the prescribed time limit.
