Hodeco Boosts Capital to Nearly VND 2 Trillion Following Bonus Share Issuance

Bà Rịa – Vũng Tàu Housing Development Joint Stock Company (Hodeco, stock code: HDC, listed on HoSE) has recently released a report on the results of its share issuance to increase charter capital from owner’s equity (bonus shares).

By the end of the issuance on November 12, Hodeco successfully distributed 21.39 million out of the total 21.4 million shares to 23,101 shareholders. The share transfer is expected to take place in December 2025.

The issuance capital includes VND 150 billion from capital surplus and VND 64 billion from the development investment fund. The rights ratio is 100:12, meaning shareholders holding 100 shares will receive 12 newly issued shares. These shares are unrestricted for transfer.

Upon completion of the issuance, Hodeco’s outstanding shares increased from nearly 178.4 million to approximately 199.75 million, raising the charter capital from over VND 1,783.5 billion to nearly VND 1,997.5 billion.

Alongside this issuance, Hodeco is offering 4.9 million convertible bonds under the code HDC425001, priced at VND 100,000 per bond, aiming to raise nearly VND 500 billion. These bonds are unsecured, non-warrant convertible bonds into common shares.

The bonds have a 2-year term with a fixed interest rate of 10% per annum, paid semi-annually. They are issued to existing shareholders at a rights ratio of 35,671:1,000, allowing shareholders holding 35,671 shares to purchase 1,000 bonds. The purchase rights can be transferred once.

The transfer period for bond purchase rights is from November 19 to December 5, 2025. The registration and payment period for bond purchases is from November 19 to December 10, 2025.

The bonds must be converted into common shares in two phases. Phase 1 involves converting 40% of the bonds after one year of issuance, and Phase 2 converts the remaining bonds at maturity. The conversion ratio is 1:10, meaning each bond converts into 10 common shares.

Regarding business performance, according to the consolidated Q3/2025 financial report, Hodeco recorded net revenue of VND 102 billion, an 18% decrease year-over-year. This decline is primarily due to an 87% drop in real estate sales, which generated only over VND 8 billion. Despite reduced revenue, a 26% increase in cost of goods sold resulted in a gross profit of just over VND 17 billion, a 70% decrease year-over-year.

Notably, financial revenue for the period reached over VND 700 billion, compared to just over VND 2 billion in the same period last year. This includes a VND 696 billion profit from the sale of shares in Ocean Entertainment Construction Investment Joint Stock Company. As a result, Hodeco reported a record after-tax profit of nearly VND 539 billion, compared to just over VND 13 billion in the same period last year.

For the first nine months of the year, Hodeco achieved net revenue of over VND 281 billion, a 26% decrease, while after-tax profit reached VND 610 billion, 9.4 times higher year-over-year. Compared to the 2025 plan, HDC has achieved only 19% of its revenue target but has exceeded its profit target by 44%.

As of September 30, 2035, Hodeco’s total assets stood at VND 5,404 billion, a 10.8% increase from the beginning of the year.

In terms of capital structure, total liabilities decreased slightly to VND 2,523 billion. Short-term financial debt decreased by 26% to VND 869 billion, primarily from bank loans. Long-term debt totaled VND 757 billion, including VND 491 billion in bonds and VND 266 billion in bank loans.

In Q3/2025, Hodeco spent VND 1.1 billion on salaries, allowances, and bonuses for the Board of Directors, a more than 50% reduction year-over-year.

Meanwhile, the company doubled its expenditure on salaries and bonuses for the Executive Board, totaling VND 10.6 billion. Chairman of the Board Đoàn Hữu Thuận received over VND 3.3 billion, and CEO Lê Viết Liên received over VND 3 billion.