“HPX Swaps HQC Shares – A Move to Recover Outstanding Debt”

On May 10, 2025, the HQC Shareholder Assembly officially approved the plan to issue private shares to exchange debt worth up to 500 billion VND, equivalent to 50 million shares. Of this, HQC’s debt of 212 billion VND to HPX will be converted into 21.2 million shares, equivalent to a post-issuance ownership ratio of 3.383%.

Following this, on July 31, 2025, the HPX Board of Directors also agreed to this exchange method, expressing confidence in the potential recovery and growth of both businesses in the future.

Mutual Benefits for Both Parties

This is a suitable plan in the current context, benefiting both sides. It helps reduce HQC’s debt pressure while providing HPX with the opportunity to recover its debts and own shares in a potential business with a strong investment portfolio and a focus on social housing development projects.

With positive signals emerging in the real estate market, especially the expectation of a market upturn in late 2025 and a strong breakthrough in 2026, both HQC and HPX are confident that this share exchange deal is not only a temporary financial solution but also a potential strategic investment, bringing long-term added value.

Along with the market recovery, HQC’s share price is expected to grow strongly in the coming time, thereby helping HPX easily recover the entire exchanged debt and even potentially make profits from this investment.

In addition to this share exchange, HQC strongly commits to adding some clauses to the transaction. This includes a readiness to supplement other assets, such as third-party HQC shares, cash, and other real estate, to ensure that when HPX divests the exchanged shares, HQC will make up for any shortfall to ensure HPX recovers the full 212 billion VND debt. This creates a “win-win” scenario, strengthening the trust between the parties and promoting a more efficient financial restructuring process.

For HPX, converting the receivables into shares will help gradually recover the debt from HQC, thereby improving the debt ratio and enhancing the health of the balance sheet.

Hai Phat Benefits from Real Estate Market Recovery – Positive Signals

The real estate market is sending out clear recovery signals thanks to a series of supportive government policies, including interest rate cuts, legal unblocking, and increased public investment. Investor sentiment is improving, and the liquidity of the real estate market is increasing again, with notable improvements in segments with clear legal frameworks, red books, synchronous infrastructure, and meeting practical needs.

In this context, HPX is proactively restarting and commencing construction on numerous large-scale projects in strategic markets, including:

HP Galaxy Cao Bang: A leading project in the northern mountainous region, transforming the urban landscape of Cao Bang city with high-quality housing products and modern utilities.

HPX Golden Lao Cai: Located in the new administrative center of Lao Cai city, the economic development hub of the Vietnam-China border region and the gateway to the development of ASEAN countries. The project is envisioned to become a model urban area with a complex of housing, services, and synchronized landscapes.

HP Intermix Bac Giang – High-Rise Subdivision: Comprising 4 modern apartment buildings that have just been inaugurated and are ready to be launched in the market in Q3 with nearly 300 apartments and dozens of Shophouse units (1st and 2nd floors). The project promises to meet the needs of modern and convenient living in the locality, known as the northern industrial capital.

HP Intermix Bac Giang high-rise subdivision perspective

The Seahara Mui Ne: This project includes low-rise villas and 02 towers of 37 floors + 2 basements. It will offer the market 102 villas and more than 1,100 luxury 5-star apartments, along with over 10,000 m2 of commercial space. It is known that the high-rise subdivision will be inaugurated on August 15, 2025.

In addition, Hai Phat is also developing many important projects in provinces such as Phu Tho, Lam Dong, Quang Ninh, Dak Lak, Hai Phong, and Hanoi. They are gradually realizing their strategy of covering projects in areas with development potential in the real estate market and affirming their position as one of the leading real estate developers.

The debt swap between HQC and HPX is not only a financially wise, flexible, and practical step but also demonstrates the goodwill and cooperation between the two long-standing businesses. This positive signal shows Hai Phat’s efforts in debt collection, proactive financial restructuring, and a step-by-step reduction in the debt ratio to prepare to welcome the new growth cycle of the Vietnamese real estate and stock markets, bringing maximum and long-term benefits to the enterprise, investors, and shareholders.