Elect additional members to the Board of Directors, raise additional capital of 500 billion VND

CKG Shareholders' Meeting: Electing additional members of the Board of Directors, raising additional capital of VND 500 billion

All CKG's Congress proposals were approved, especially the dismissal and election of 4 additional members of the Board of Directors and 1 member of the Supervisory Board for the 2021-2026 term.

The 2024 General Meeting of Shareholders of Kien Giang Construction Investment Consulting Group (stock code CKG) took place on the afternoon of June 1 in Kien Giang and was successful in the first session, in complete contrast to the atmosphere of the 2023 General Meeting of Shareholders - when the 2nd General Meeting of Shareholders had to be held with most of the proposals not being approved.

This is a signal that there has been a high consensus among shareholder groups at the Company.

In 2024, CKG targets revenue at VND 1,220 billion, a slight increase of 0.3% compared to 2023, contributing 95% from the real estate sector, and 5% from other revenue. The target profit after tax is VND 142 billion, equal to 96% compared to the results achieved last year due to the low profit margin of social housing but accounting for 60% of the total revenue structure in 2024.

CKG forecasts that the real estate market is still sluggish, so in order to clear inventory, recover capital, and reduce maintenance and warranty costs, the Company plans to implement promotional discount programs, so it is forecasted that the profit margin of commercial housing will decrease compared to the same period last year.

In 2024, CKG will focus on accelerating and completing legal procedures on investment and land to soon implement projects eligible for sale. At the same time, coordinate with relevant agencies to drastically clear the land to implement construction and sale of projects in 2024 to have a cushion output to prepare for the following years according to the business development roadmap.

Continue to promote the social housing segment and housing for low-income people to create revenue and liquidity for the business in the current period. Implement some new potential projects to create a pillow product.

Responding to shareholders about the legal progress of the group's projects, Ms. Pham Thi Nhu Phuong, General Director of the company, said that because the proposal for private issuance to professional securities investors last year had not been approved, the company had a capital shortage of about 221 billion VND. During that process, the Board of Directors and the Executive Board of CKG agreed to turn the company's clean land funds into valuable land funds, meaning that in addition to clean land, legal documents, land use fees, and land allocation fees must be completed in full... so that when the market recovers, the company will be ready to sell, bringing in cash flow, revenue and profit.  

In 2023, CKG will also carry out a number of other outstanding activities as follows: Opening of CIC Group representative office in Phu Quoc. At the same time, the company started the project of Rivera Villas Phu Quoc luxury villa area in Duong Dong town, Phu Quoc city; Inaugurating CIC Building as the headquarters of the member company.

The implementation status of projects in 2023 has partially completed land allocation procedures and land use fee payment at projects such as the Residential Project on Road No. 2, Vinh Quang Ward.

Regarding the implementation of technical infrastructure construction and housing construction at projects: Accelerating the construction progress of the Social Housing Project in the Northwest New Urban Area (7.04ha); Phu Quoc Riverside Villas Luxury Villa Project (5.76ha) and newly allocated land locations in the Nam An Hoa and An Binh Residential Area Project (Rach Gia City).

Ms. Phuong said that CKG's key projects this year, in addition to transitional projects, in 2024, strive to put into operation projects that have basically completed investment preparation procedures. In Rach Gia City, the Rach Gia Commercial Center Agricultural Seafood Market Residential Area Project, the Residential Line Project on Road No. 2, Vinh Quang Ward (about 10 hectares), the Bac Vinh Quang Residential Area Project, Vinh Quang Ward (phase 1, 2). These projects are being evaluated, and it is expected that land use fees will be paid in the third quarter of 2024.

In Phu Quoc City, the company continues to sell the Phu Quoc Riverside Villas luxury villa project (commercial name Rivera Villas), and sells the Bung Goi luxury villa project in Cua Duong commune, Phu Quoc City.

In both markets above, the company's key projects are ready for business implementation.

Issue to existing shareholders, ratio 2:1

CKG has submitted a document to cancel the proposal to issue more than 13.4 million individual shares to professional securities investors because the issuance plan has lasted for 3 years and is no longer suitable for the capital needs to serve business activities in the period of 2023-2025.

At the same time, CKG also submitted a proposal to issue shares to pay dividends at a rate of 20%. At the same time, CKG plans to issue shares to existing shareholders at a rate of 50%, with an issue price of VND10,500/share, thereby mobilizing more than VND500 billion.

Through 2 issuances, charter capital increased to 1,613 billion VND.

The expected capital from the issuance to existing shareholders is more than 500 billion VND, which will be used to disburse 350 billion VND to pay part of the maturing bonds, the remaining amount to pay short-term debts and supplement working capital.

According to CKG, capital mobilization will help the company both ensure counterpart capital for ongoing and future projects, and ensure capital for production and business for enterprises in the current difficult time of credit capital.

According to Ms. Phuong, after paying the above items, the company will use other resources to allocate investment in the company's potential projects, thereby, the company's revenue, profit and can pay dividends without affecting the company's financial ratios and profitability ratios.

Will expand foreign room to 49%

Investors question whether the company has foreign investors interested, whether any investors will invest in the company or not?

Ms. Phuong said that in the report No. 4, there is content to amend and supplement business lines. Currently, CKG's foreign room is at 0%, accordingly, the company also requests to return the business lines that are subject to regulations restricting foreign ownership . This is a stepping stone for the company to expand the foreign room to 49%, thereby opening the way to welcome cooperation from foreign investors in accordance with the company's development orientation.

Recently, the company has welcomed many foreign investors to visit and learn about the company's strategy and business activities, but there has been no specific agreement because the foreign room has not been opened. The company will notify shareholders if it "finalizes" foreign investors.

Sharing more at the Congress, Mr. Tran Tho Thang, Chairman of the Board of Directors of CKG   said that up to now, the company has completed its human resources work, so it hopes to operate   Business will have more support.

During the period 2019-2020, the market faced difficulties due to Covid-19, the period from 2021 to now has also continued to face difficulties, especially the situation of capital use by real estate enterprises. Many enterprises have to weigh and measure in investing in projects, with CKG, choosing to focus on social housing projects to meet the real needs of the people.

According to the 3 new Laws, the company's operating orientation is completely appropriate, accordingly, the company will continue to research the market properly, choose the right segment, to ensure good sales. For example, building social housing is not simple, but the company has a lot of experience with this segment.

The real estate market has slightly increased, it is expected that in 2023-2024 the company will focus on social housing, although the profit margin is not high but it meets the real needs of the locality, preparing for the recovery of real estate. The Board of Directors has calculated to prepare the land fund for stronger exploitation from 2024-2025.

Regarding the story of foreign investors, if they participate in the company, they will increase value, bring financial resources, support improved governance...

The General Meeting of Shareholders also dismissed and elected additional members of the Board of Directors and members of the Supervisory Board for the 2021-2026 term.

Specifically, through the dismissal of Board of Directors members including Ms. Nguyen Thi Hoa Le, Mr. Nguyen Duc Hung, Mr. Nguyen Thanh Lam, Mr. Ha Duy Nghiem; dismissal of Board of Supervisors member Ms. Nguyen Bich Nghia.

As a result of the additional election, all four candidates were elected as members of the Board of Directors, including Mr. Dinh Thanh Tam, Mr. Nguyen Xuan Dung, Mr. Dinh Thanh Thao, and Mr. Tran Van Vinh. For the Board of Supervisors, Mr. Vo Van Y was elected.

At the end of the Congress, all the proposals were approved.

Source: https://baodautu.vn/dhdcd-ckg-bau-bo-sung-thanh-vien-hdqt-huy-dong-von-them-500-ty-dong-d216599.html