If the transaction is successful, Shark Hung will increase his ownership from nearly 13.3 million shares (2.86%) to nearly 18.3 million shares (3.94%) in Century Real Estate Joint Stock Company (Cen Land, HOSE: CRE).
Shark Hung’s move comes as the CRE stock price is at its lowest level in a year. At the close of the August 1st session, CRE shares stood at VND 6,830 per share, down more than 20% from the beginning of the year, with an average liquidity of nearly 451,000 shares per session. Based on this price, it is estimated that the Vice Chairman of Cen Land’s Board of Directors will need to spend more than VND 34 billion to complete the deal.
| CRE share price falls to its lowest level in a year |
Net profit for the first six months was more than 11 times higher than the same period last year.
At the end of the second quarter, CRE brought in more than VND 333 billion in net revenue and a profit of over VND 8 billion, down 17% and 12%, respectively, from the previous year.
For the first six months of the year, Cen Land recorded net revenue of over VND 827 billion, up 82%; net profit of over VND 16 billion, 11.4 times higher than the same period last year. Real estate brokerage and investment activities accounted for the majority of this, with nearly VND 775 billion, an increase of 73%.
 Source: VietstockFinance
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In 2024, CRE has set ambitious plans with a net revenue target of VND 3,250 billion and a pre-tax profit of VND 220 billion, an increase of 3.5 times and nearly 45 times, respectively, compared to 2023. Compared to the plan, Cen Land is still far from the profit target, having achieved only 10% after the first six months.
Notably, CRE shares are still under warning due to the auditing organization’s exception opinion on the audited financial statements for 2023.
CRE shares under control, CenLand targets pre-tax profit of VND 220 billion
On July 30th, the company also issued a clarification and resolution regarding the warning status of its securities. Accordingly, CRE stated that the Louis City Hoang Mai project, implemented by Hoang Mai Urban Development and Investment Joint Stock Company, had to pay the state over VND 1,400 billion for land use in phase 3. As of the end of March, the investor had paid approximately VND 758 billion, with an outstanding balance of over VND 668 billion.
Explaining the reason for the investor’s failure to pay the full amount, CRE cited a few objective reasons, such as the large amount of land use fees requiring time for financial arrangements, as well as the challenging economic conditions affecting business and sales, resulting in deviations from the planned revenue sources.
In the second quarter of 2024, the investor paid an additional VND 110 billion, and in July, they paid an additional VND 180 billion in land use fees. Thus, the total amount paid so far has exceeded VND 1,048 billion. Going forward, the Company will continue to closely monitor the progress and urge the investor to arrange funds to pay the remaining amount.
Cen Land’s Investment in Louis City Hoang Mai: Unraveling the Complexities
Regarding the recovery of debts from Hong Lam Xuan Thanh and related parties, CRE stated that the Company has been actively working with Hong Lam Xuan Thanh to understand their financial capabilities and the reasons for their tax arrears. Hong Lam Xuan Thanh has an estimated tax debt and late payment of VND 70 billion, mainly in value-added tax. However, as of now, Hong Lam Xuan Thanh still has VND 40 billion in value-added tax to be deducted. Therefore, if the tax authority agrees to the deduction, the actual amount of tax debt to be paid to the state budget is only about VND 30 billion. From May 31st to the present, Hong Lam Xuan Thanh has paid VND 1.23 billion in tax arrears to the state budget.
Currently, the amounts receivable from Hong Lam Xuan Thanh are mainly deposits for the purchase of products belonging to the Xuan Thanh Service and Resort project in Xuan Thanh, Nghi Xuan district, Ha Tinh province (commercially known as Hoa Tien Paradise).
In the third and fourth quarters of 2024, upon receiving suitable proposals from Hong Lam Xuan Thanh, Cen Land will sign contracts for the sale of future houses for the properties that have been deposited. This will allow for the settlement and offsetting of financial obligations between the two parties.
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.
