On October 11th, the Government Inspectorate announced the inspection results regarding the conversion of land use purposes from production and business to land business and housing construction during the 2011-2019 period for state-owned enterprises and equitized enterprises. According to the conclusion, several violations were discovered regarding the 23,380sqm land lot at 275 Nguyen Trai Street, Thanh Xuan District, Hanoi.
Following the above conclusion, Hoang Huy Financial Services Investment JSC (the parent company of the enterprise implementing the project located on the aforementioned land lot) sent a document to HoSE to clarify some information. TCH stated that the Conclusion of the Government Inspectorate mentioned: The People’s Committee revoked 23,380sqm of production land from Joint Stock Company of Precision Mechanics No. 1 and handed it over to Hung Viet Commercial Joint Stock Company “in the form of land allocation with land use levy to implement the housing project”.
Since its establishment, Hung Viet Commercial Joint Stock Company has been implementing the project as decided by the Hanoi People’s Committee. Hung Viet has fulfilled its obligation to pay 100% of the land use levy according to the decisions issued by state agencies regarding the project. The implementation of the 275 Nguyen Trai project by Hung Viet has been completed. The construction process was carried out with a construction permit and the approval of the management agency. The buildings have been constructed and accepted by the state agencies for putting into use. Currently, 100% of customers have been granted certificates of land use rights and ownership of assets attached to the land and are living stably in the project.
Panorama of the 275 Nguyen Trai project.
TCH also added that the transfer of 3.2 million shares of Joint Stock Company of Precision Mechanics No. 1 in Hung Viet Commercial Joint Stock Company was decided by the Board of Directors of Joint Stock Company of Precision Mechanics No. 1. Hoang Huy Financial Services Investment JSC, as the transferee, has fully performed its obligations according to the transfer agreement. Accordingly, the transfer price is according to the par value of the shares at the time of transfer. This transaction was completed in 2011.
Regarding the fulfillment of additional financial obligations for the N01 pedestal section of the project, TCH commits to pay and immediately settle 100% of the value of additional financial obligations as soon as the state agency issues a decision determining the financial obligations to be paid.
Regarding the revocation of more than 3,500sqm (NO2 land lot) of the project, TCH said that this land lot was allocated to Hung Viet as 20% of Hanoi city’s land fund for building houses for sale to officials and employees in the area and is under the approval authority of the Government. The current status of the NO2 land lot is a cleared site and has not been constructed since the land lot was handed over up to now. Therefore, the revocation of this land lot from the project will be carried out when there is an official decision, and no additional financial obligations will arise for TCH.
NO2 land lot of the 275 Nguyen Trai project.
TCH stated that the company is related to the inspected entity mentioned in the conclusion of the Government Inspectorate. The enterprise considers this to be a normal inspection and supervision activity of the State. TCH always fulfills its obligations to related parties and the State. However, from October 11th up to now, there has been a lot of unofficial information on social networks that deliberately distorts the nature of the information. Many subjects even fabricate and exaggerate the scale and impact, causing confusion for shareholders and investors. TCH affirms that the company’s activities are still going on as usual and fully performing its financial obligations.
TCH would like to inform investors to distinguish clearly and accurately that the 275 Nguyen Trai project is among the 5 projects in Category 3.2 – Section C, which is to transfer information and documents. This project does not fall under Section 3.1 – Section C of the Conclusion of the Government Inspectorate, which requires the transfer of dossiers and documents for handling.
Therefore, the company recommends that investors refer to official information from TCH and only refer to additional information from reliable and verified sources.
