When will CII shareholders be interested in attending the General Meeting of Shareholders?

CII gives gifts to shareholders to invite them to attend the extraordinary General Meeting of Shareholders

Ho Chi Minh City Infrastructure Investment Joint Stock Company (Code: CII) has just announced the final list of shareholders attending or authorized to attend the extraordinary General Meeting of Shareholders on December 25, 2023. At the same time, shareholders attending will receive a cash gift of gratitude when attending the General Meeting of Shareholders.

According to CII, the amount of money given to participating shareholders will depend on the amount of CII shares that the shareholder is holding.

When will CII stop struggling to invite shareholders to meetings? (Photo TL)

This General Meeting of Shareholders is scheduled to be held on January 31, 2024 with the content revolving around adjusting the plan to issue convertible bonds package 2 approved in the Resolution of the General Meeting of Shareholders dated May 24, 2023; temporarily suspending the conversion of CII42013 convertible bonds into shares in the 7th round (expected on May 2, 2024) and the 8th round (expected on November 4, 2024) and some other issues.

When will CII stop struggling to invite shareholders to meetings?

Historically, CII has failed to hold its General Meeting of Shareholders twice in 2023 despite the announcement of giving gifts to shareholders. The reason was that it failed to convene enough shareholders to hold the meeting.

The first time was in April 2023, the company held an annual general meeting of shareholders but did not convene enough shareholders to hold the meeting. The number of shareholders attending only reached 45.76% of the voting shares.

On September 19, 2023, the company held an extraordinary general meeting of shareholders but did not convene enough shareholders to hold the meeting. The number of shareholders attending was only over 200 people, equivalent to 31% of the voting shares.

In both cases, CII explained that the number of small shareholders was too large, causing the shares to be dispersed and difficult to convene. And in both cases, CII announced that it would give gifts to shareholders but failed.

Currently, CII continues the old method of giving money to encourage shareholders to attend the meeting. This makes investors ask the question: when will CII stop struggling to organize the General Meeting of Shareholders?

Revenue drops 65% after restructuring plan

The highlight of CII’s business plan is the capital restructuring to reduce the debt ratio in the company’s financial leverage. Accordingly, CII plans to issue an additional VND7,000 billion in convertible bonds. The company said that if the plan is completed, CII’s debt/equity ratio will decrease from 2.2 times to 1.1 times.

The results of this restructuring are still unknown, but CII's revenue in the third quarter of 2023 has recorded a significant decrease. Specifically, revenue in the third quarter reached VND 761.2 billion, down 65.5% over the same period. Cost of goods sold accounted for VND 466.3 billion, gross profit reached VND 265.7 billion, down 19.2%.

Financial revenue in the period increased by 83.5%, reaching VND270.6 billion. On the contrary, financial expenses also increased by 15.1%, recording VND371.8 billion. Interest expenses alone accounted for VND267.9 billion. Business management expenses and sales expenses accounted for VND12.9 billion and VND68.1 billion, respectively. Profit after tax in the third quarter reached VND107.3 billion, up 9.7% over the same period.

In CII's capital structure, total liabilities tended to decrease by more than half compared to the beginning of the year, from 20,258.5 billion to only 10,022.6 billion VND. Long-term debt decreased from 9,415 billion to 7,791.1 billion VND. Owner's equity reached 8,058 billion with accumulated undistributed profit after tax reaching 2,441.5 billion VND.

Source: https://www.congluan.vn/den-bao-gio-co-dong-cii-moi-man-ma-voi-chuyen-tham-du-dhdcd-post280364.html