Speaking to VietNamNet , a representative of Hoa Binh Construction Group (HBC) said that the 2023 extraordinary shareholders' meeting on the morning of August 26 did not take place as planned because the required number of shareholders did not attend. According to regulations, the meeting can only be held when the attendance rate is over 50%.
It is expected that the Board of Directors of the Group will hold the second extraordinary General Meeting of Shareholders in accordance with regulations. Detailed information about the time will be notified to shareholders later.
Previously, HBC announced to hold an extraordinary general meeting of shareholders to approve the 2022 audited financial report and the plan to issue individual shares.
At this meeting, the Board of Directors proposed to shareholders a plan to issue individual shares to convert debt. Accordingly, HBC plans to issue a maximum of 107 million individual shares at an issue price of VND12,000/share to the company's creditors. The creditors here are the company's subcontractors, suppliers, and manufacturers.
The conversion ratio is 1.2:1, meaning that every 12,000 VND of debt will be converted into 1 additional HBC common stock issued. The debt after conversion will be eliminated, and creditors will become shareholders of HBC.
In addition to issuing individual shares to convert debt, Chairman Le Viet Hai's Group also plans to offer shares in 2 rounds at a price of VND12,000/share in the period 2023-2024. In the first round, the company plans to offer a maximum of 120 million shares and in the second round a maximum of 47 million shares (at least 6 months after completing the first round of private offering). The proceeds from the issuance will be used to supplement the company's working capital and pay off debts.
According to the parent company's financial report and audited consolidated financial report for 2022, the company's net revenue reached more than VND 14,148 billion, reaching 80.85% of the plan and increasing by 24.59% compared to 2021. The company had a net loss of VND 2,566 billion.
Meanwhile, in the consolidated financial report for the second quarter of 2023 and the first 6 months of the year, HBC's after-tax profit in the second quarter increased more than 12 times, from nearly 45.2 billion VND in the same period to more than 546.3 billion VND.
Accumulated for 6 months, HBC's profit was more than 101.5 billion VND, much higher than the nearly 55.8 billion VND in the same period last year.
The reason Mr. Le Viet Hai's business has positive profits is thanks to restructuring activities, selling assets to restructure debt, to improve the financial situation and thereby be able to participate in construction projects.
In the second quarter, HBC recorded other income skyrocketing nearly 190 times from VND3 billion in the same period to VND569 billion, thanks to the liquidation and transfer of fixed assets of scrap materials.
During the period, Hoa Binh Construction approved a resolution to sell 100% of its capital at Matec Construction Machinery Company Limited (a subsidiary, managing and operating all of the group's machinery and equipment) and a part of the depreciated equipment to investor Ashita Group, for VND1,100 billion.
Thus, HBC's main profit comes from financial activities and business restructuring.
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