Hoang Quan Real Estate (HQC) postpones issuance of 100 million shares

From May 19, 2023, Hoang Quan Real Estate (HQC) has approved a plan to offer 100 million individual shares at a price of VND 10,000/share. The newly issued shares will be restricted from transfer for 1 year from the date of issuance.

The initial issuance plan is expected to collect VND1,000 billion and disburse from the third quarter to the fourth quarter of 2023. Of which, VND400 billion will be used to receive the transfer of shares from existing shareholders of Golden City Investment JSC. VND600 billion will be used to buy shares in the private offering of Golden City Investment JSC to supplement capital for the Golden City Social Housing Apartment Project.

Hoang Quan Real Estate HQC plans to issue 100 million shares in 2023 — Hoang Quan Real Estate (HQC) broke its annual plan, missed the deadline to issue 100 million shares (Photo TL)

However, recently, Hoang Quan Real Estate announced that it missed the deadline for the private offering of shares and had to postpone the plan to 2024.

Accordingly, the time for investors to register to buy individual shares will be moved from January 2, 2024 to March 11, 2024. Compared to the original plan, the purpose of capital use has also been adjusted. The amount to buy shares from existing shareholders of Golden City Investment JSC has decreased from VND 650 billion to VND 400 billion. The amount to buy privately issued shares of Golden City Investment JSC has increased from VND 350 billion to VND 600 billion.

Golden City Investment Joint Stock Company is the investor of the Golden City Project with a scale of 3.35 hectares and an investment capital of VND 1,776.6 billion. Mr. Truong Anh Tuan, Chairman of the Board of Directors of Hoang Quan Real Estate, currently owns 50% of Golden City's capital and is also the legal representative of the company. By May 2022, the company had transferred its legal representative to Mr. Nguyen Thanh Van.

Regarding business performance, in the third quarter of 2023, Hoang Quan Real Estate recorded revenue of VND 83.7 billion, profit after tax only reached VND 1.2 billion. Accumulated in the first 9 months of 2023, HQC's revenue reached VND 229 billion, down 5% over the same period last year. Profit after tax reached nearly VND 3.5 billion, down 78% over the same period.

Compared with the 2023 business plan, the company has only completed 2.5% of the annual profit plan.

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