Chairman Truong Anh Tuan talks about cooperation with Novaland

Hoang Quan Real Estate (HQC) Shareholders' Meeting: Chairman Truong Anh Tuan talks about cooperation with Novaland

We have core competencies, doing well in the social housing sector and this is exactly what Novaland needs. The two sides will also support each other in sales, capital and management, Chairman of the Board of Directors Hoang Quan shared at the Shareholders' Meeting held this morning (June 1).

Shareholders question why plans for many years have not been completed

In 2024, Hoang Quan Real Estate Consulting - Trading - Services Joint Stock Company (stock code HQC) plans to have revenue of VND 2,000 billion and after-tax profit of VND 100 billion.

If this planned figure is achieved, it can be considered a record revenue of Hoang Quan Real Estate since listing, and a profit figure that is exceptionally high compared to 2023, 19.2 times higher. The revenue structure comes from projects in 3 segments: Social Housing real estate, Industrial Park real estate and Commercial real estate.

At the General Meeting, shareholders questioned why the company often sets high revenue and profit targets but has not achieved them in the past 10 years?

The Presidium of the Congress said that, without blaming external factors, the leadership made a mistake in its optimistic forecast about the market and the ability to implement the plan.

“For over 10 years, Hoang Quan has been a pioneer in social housing. Until the State cut the funding package of tens of thousands of billions, we could not manage capital, leading to failure to meet business targets,” said Mr. Truong Anh Tuan, Chairman of Hoang Quan Board of Directors. So there are both internal and external reasons.

Currently, the company is trying to apply technology to management, operations and sales (how to sell to 63 provinces and cities in the most economical way)... and Hoang Quan is also about to redo the new KPI after having IT, thereby supporting the improvement of operational efficiency.

According to Mr. Tuan, the company has set a target for the new years, completing 5,000 social housing units each year. For 2024 alone, the revenue target of 2,000 billion VND is a must. The company will carry out 3 projects in Tra Vinh, Tan Huong, Vinh Long with a total of about 3,000 social housing units.

Cooperate with Novaland to implement social housing

Accompanying the Government to realize the Project "Investing in the construction of at least 01 million social housing apartments for low-income people and industrial park workers in the period of 2021-2030", Hoang Quan Real Estate has been and will promote the development of social housing in Ho Chi Minh City and all provinces and cities across the country. The company aims to complete at least 50 social housing projects with about 50,000 products.

Hoang Quan Real Estate also emphasized that it has been and is strategically cooperating with HDBank, BIDV, Agribank to supplement credit capital in implementing business activities. At the same time, focusing on some quick investment activities and quick capital recovery.

Recently, Hoang Quan signed a cooperation agreement with Novaland Group in developing social housing.

When asked about the core purpose of cooperating with Novaland, Mr. Truong Anh Tuan said that in the real estate market, there are no enemies, only friends or partners, so the company always wants to be friends with organizations and individuals inside and outside the industry to be able to take advantage of each other's strengths. Hoang Quan has the core capacity to do well in the social housing sector and this is exactly what Novaland needs. The two sides can support each other in sales, capital and administration.

In addition, Hoang Quan and 9 other units including Novaland have signed a commitment with the Government to build 1 million social housing units. Of which, Hoang Quan will build 50,000 units and Novaland will build 200 units.

However, Novaland's products are positioned in the high-end housing segment. If Novaland were to be the direct investor of the social housing product, it would not be the right brand in the market. Therefore, in the cooperation between the two parties, Novaland is the investor and Hoang Quan will be the implementing unit, doing the project on Novaland's land funds in Ho Chi Minh City, Dong Nai, Ninh Thuan...

Hoang Quan still maintains the policy that home buyers who introduce others to buy will receive 1% (can be directly discounted from the purchase price or paid as commission). Many people have received 1% commission from Hoang Quan, Mr. Tuan said.

In addition to the social housing segment, Hoang Quan Real Estate will diversify its products to balance its revenue sources. For example, it will seek new business opportunities in commercial real estate, industrial park real estate, and resort real estate. Currently, the company is focusing its resources on implementing the Ham Kiem 1 Industrial Park (Binh Thuan) and Binh Minh Industrial Park (Vinh Long) projects.

The company also aims to conduct M&A, bidding, auctioning, and cooperation on at least 3 projects, including 2 social housing projects with a total investment of about 8,000 billion VND and 1 commercial housing project with an investment of 2,000 billion VND.

Mobilizing 1,000 billion VND to acquire a project of nearly 15 hectares in Long An

Hoang Quan Real Estate 's General Meeting of Shareholders also approved the issuance of 100 million shares with a par value of VND 10,000/share to professional securities investors.

It is expected that the mobilized capital of 1,000 billion VND will be disbursed to receive the transfer of shares of An Phu Sinh Construction Investment Joint Stock Company, the investor of An Phu Sinh Residential Area, and disburse capital to continue implementing the project.

Of which, the maximum capital for buying shares is 550 billion VND, equivalent to at least 51% of An Phu Sinh's charter capital and the remaining part for the project in the form of capital contribution, infrastructure construction, utility systems, house construction... at the project invested by An Phu Sinh to complete the project.

According to Hoang Quan Real Estate , this is a project with a scale of 14.7 hectares (Long An) with a total investment of 1,400 billion VND and has full legal documents including Investment Policy; Approval 1/500; Construction Permit issued on April 6, 2022... The project will generate revenue from 2025 and be completed in 2026.

Sharing at the Congress, Mr. Tuan said that the project has been sold land but Hoang Quan's policy is to only sell houses, attached to utilities. The purpose is that Hoang Quan wants to build low-cost housing, but because Vietnamese law does not have this concept, the Hoang Quan project is currently housing for low-income people.

Normally, building commercial housing (can make a profit of 20%) is more profitable than social housing (about 10%). But on the contrary, investing in commercial housing requires more capital investment, more effort... And Hoang Quan did this project because he received an invitation from Long An province.

Source: https://baodautu.vn/dhdcd-dia-oc-hoang-quan-hqc-chu-cich-truong-anh-tuan-noi-ve-hop-tac-cung-novaland-d216587.html