CC1 won the bid for Long Thanh airport, the chairman acquired 16 million shares

Organization related to CC1 chairman acquires 16 million shares

Recently, CC1 Holdings JSC, an organization related to Mr. Nguyen Van Huan, Chairman of the Board of Directors of Construction Corporation No. 1 (CC1), registered to buy 16 million CC1 shares for investment purposes.

The transaction will be carried out from December 19, 2023 to January 17, 2023 by negotiation or order matching. If the transaction is successful, CC1-Holdings will own 16 million shares, equivalent to 4.46% of CC1's shares.

cc1 long thanh airport bidder organization related chairman of the joint bid 16 million with shares picture 1 — CC1 borrowed nearly double its equity, just won the bid for Long Thanh airport, the organization related to the leader immediately acquired 16 million more shares (Photo TL)

Not only the organization related to the Chairman of the Board of Directors, but also the Vice Chairman of the Board of Directors of CC1, Mr. Le Bao Anh, registered to buy 14 million shares. In fact, Mr. Le Bao Anh bought 13.7 million shares, increasing his ownership ratio to 3.83% of the charter capital.

The above transactions all took place in the context of CC1's declining business results, with both profits and revenue falling sharply since the beginning of 2023. However, a notable bright spot is that the VIETUR - CC1 consortium won the bid for Long Thanh airport, despite some problems in business operations.

Just won the bid for Long Thanh airport and immediately reported a loss

Notably, in the second quarter of 2023, CC1 recorded revenue of VND 1,236.6 billion, down 22% year-on-year. Compared to the first quarter, CC1's revenue still grew, with gross profit reaching VND 108.8 billion, down 8% year-on-year.

After deducting expenses, the company recorded a loss after tax of VND2.5 billion. The loss information for the second quarter was announced right after the VIETUR - CC1 joint venture announced that it had won the bid for the Long Thanh Airport project.

Entering the third quarter of 2023, revenue reached VND 1,269.8 billion, gross profit reached VND 132.7 billion, equivalent to a gross profit margin of 10.5%. The company recorded a profit after tax of VND 18.5 billion, and the profit after tax of the parent company's shareholders reached nearly VND 18 billion.

Accumulated revenue in the first 9 months of the year reached VND3,052.9 billion, down 24.2% over the same period. Accumulated profit after tax reached VND37.7 billion, down 19.7% over the same period last year. Compared to the set target, CC1 has only completed 28% of the revenue plan and 25% of the annual profit plan.

Debt is almost twice as high as equity.

In terms of asset structure, CC1 recorded total assets of VND 14,513.3 billion at the end of the third quarter of 2023, down 7% compared to the beginning of the year. Of which, cash and cash equivalents decreased sharply from VND 1,630.8 billion to VND 967.8 billion.

Notably, the amount of cash decreased from 1,206 billion to only 317 billion VND. The amount of bank deposits decreased from 205.3 billion to only 175.9 billion VND. The company's long-term receivables also decreased from 1,929.7 billion to only 1,128.9 billion VND.

In the capital structure, payables currently account for a relatively large proportion of VND 10,744.3 billion, equivalent to 74% of total capital. Notably, the company's short-term debt accounts for VND 2,169.3 billion. Long-term debt accounts for VND 4,600.6 billion.

Thus, the total short-term and long-term debt of CC1 is up to 6,769.9 billion VND, nearly double the current equity of the company. This shows the huge existing risk for this unit.

Regarding debt, CC1 has announced a policy of buying back all corporate bonds in circulation on the market with 3 codes CC1H2124001, CC1H2124002 and CC1H2124003. The total value of these 3 bonds is up to 2,650 billion VND. The goal of buying back bonds is to reduce the company's debt ratio.

Source