Sudico Chairman: "How to bring back the highest value to Sudico's assets"
Responding to questions from shareholders, Chairman of the Board of Directors Do Van Binh said that Sudico spent 4 years waiting for asset valuation in the divestment deal of Song Da Corporation.
On April 19, 2022, Song Da Corporation sold all 41.7 million SJS shares, reducing its ownership from 36.35% to 0% of charter capital. An Phat Investment Service Trading Joint Stock Company bought 41.7 million SJS shares to increase its ownership from 0% to 36.35% of charter capital. However, the difficulties have not stopped when in 2023, Sudico was charged VND 593 billion in tax arrears and late payment penalties.
Currently, in Sudico's huge land fund, the Nam An Khanh project stands out. Despite its beautiful location and open planning, the current price of real estate in this project is about 30% lower than the price of neighboring urban areas. The reason given by Chairman of the Board of Directors Do Van Binh is that the utility part, including 5 public and service areas, has not been granted an investment license and the legal procedures for this activity are very complicated and take time.
When a shareholder suggested selling part of the project to solve cash flow, Chairman of the Board of Directors Do Van Binh said: “If we sell now, we are selling unripe rice. The management board is also trying to bear all the pressure. The product is in the waiting-to-sell stage, not that it is not for sale.”
The Nam An Khanh Urban Area Project has a scale of about 288 hectares and is developed according to a diverse urban model with about 2,000 products, including townhouses, villas, and shophouses. The project started construction more than ten years ago, and some subdivisions have been put into operation.
A series of key real estate projects as "savings"
In addition to Nam An Khanh, Sudico currently has large land funds in many places. The Tien Xuan project is currently behind schedule for 10 years. Regarding the reason, Mr. Binh said that it is due to waiting for the connection of the planned infrastructure with the functional subdivision of Hoa Lac to the satellite city, causing the project to be delayed for many years, not because the project was revoked as many people speculated. Currently, the Tien Xuan project is in the process of completing the review of the current land status; preparing to adjust the detailed planning 1/500.
The Van La and Van Khe projects in Ha Dong were supposed to start construction in 2023, but the project was delayed due to waiting for specific planning. Sudico's management board spent a lot of time completing procedures, and now it is almost complete.
The General Meeting of Shareholders approved specific targets to complete the 2024 production and business plan. Of which, the total investment for Sudico's projects is expected to be 1,421.1 billion VND. Of which, 3 projects are identified as key investment projects, including Nam An Khanh Project (424.9 billion VND); Thinh Lang - Hoa Binh Project (371.5 billion VND); Van La Project (296.6 billion VND).
Regarding the capital increase plan, Sudico plans to issue 126.3 million shares to increase charter capital, at a rate of 110%. Of which, there are 2 methods of issuing shares: Issuing 29.86 million shares to pay dividends for the years from 2018 to 2021 and issuing 96.27 million bonus shares, at a rate of 84%. The source of capital for issuance is taken from undistributed profit after tax; taken from capital surplus. After issuance, Sudico plans to increase charter capital from VND 1,148 billion to VND 2,411 billion.
In 2024, Sudico plans to do business with total revenue of VND 858 billion, an increase of 60.1% over the same period, pre-tax profit of VND 350 billion, an increase of 38.3% compared to the implementation in 2023 and expected dividend from 10% to 15%.
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