On June 23, Kinh Bac City Development Corporation - JSC (KBC) successfully held the 2023 Annual General Meeting of Shareholders (AGM). Chairman Dang Thanh Tam was absent due to family matters. Ms. Nguyen Thi Thu Huong, CEO of KBC, chaired the meeting.
Ms. Huong said that as of June 22, KBC officially reduced its bond debt to VND0. According to the financial report, by the end of 2022, KBC had a total outstanding bond debt of VND3,900 billion.
Previously, at the end of May, Mr. Dang Thanh Tam's KBC was only able to buy half of the bonds offered for early repurchase. This was a rather surprising signal after nearly a year of the corporate bond market plummeting.
At the congress, KBC CEO revealed that a large foreign direct investment (FDI) enterprise plans to lease the remaining part of the Nam Son Hap Linh Industrial Park (Bac Ninh), which will bring billions of USD into Vietnam.
Previously, KBC leased 62.7 hectares of Nam Son Hap Linh Industrial Park to Goertek and recorded revenue in the second quarter of 2023.
On June 20, the Prime Minister approved the general planning of Bac Ninh province and KBC has an additional 150 hectares right next to Que Vo Industrial Park. Regarding Phuc Ninh urban area, the leaders of Bac Ninh province and KBC have met and in the near future will complete some procedural issues to continue signing contracts and collecting money from customers who have purchased houses and opening the next phase of sales.
In Bac Giang, Ms. Thu Huong also said that Quang Chau Industrial Park and Quang Chau expansion have leased 50 hectares to Foxconn. In the near future, KBC is completing procedures for Quang Chau to attract more than 1.3 billion USD in foreign investment capital. Quang Chau Industrial Park is considered a highlight in the North and a place where high-tech enterprises are concentrated.
According to Ms. Huong, in the second quarter, Bac Giang continued to rank second in the country in economic growth. Previously, Bac Giang attracted 1.2 billion USD in investment, of which KBC contributed 700 million USD.
The social housing project in Nenh town, Bac Giang province has been completed and is ready for handover this year. Meanwhile, new projects are speeding up the legal process.
In Hai Phong, Trang Due 3 Industrial Park has not officially broken ground yet, but KBC has compensated several hundred hectares by purchasing land from local people. Trang Cat Urban Area has also been deployed in stages, leveling 100 hectares.
The CEO of KBC also said that there are currently about 20 enterprises from economies such as China, Taiwan, and South Korea interested in Nam Son Hap Linh Industrial Park and Trang Due 3 Industrial Park.
Regarding the general business situation, according to KBC representative, the expected industrial park leasing area in 2023 is 250ha, currently reaching 70%. Estimated revenue for 6 months is 4,500 billion VND and profit is 2,000 billion VND, completing 50% of the yearly plan.
KBC plans to achieve revenue and after-tax profit of VND9,000 billion and VND4,000 billion, respectively, in 2023 as set out at the beginning of the year. In 2023, KBC will focus on leasing to businesses from Taiwan (China), South Korea and China with projects in electronics manufacturing, headphone components, logistics, and household electrical appliances.
Previously at a talk show, Mr. Dang Thanh Tam, Chairman, said that he and KBC were “lucky, not talented” when the industrial real estate business broke through, had abundant money and a large land fund ready to serve large foreign corporations, including Apple.
Recently, industrial real estate enterprises, including KBC, have participated in building social housing for workers to strengthen their commitment to foreign corporations.
Mr. Tam said, for example, Apple, as soon as it entered Vietnam, wanted to ensure accommodation for workers to ensure production.
Recently, KBC has been leasing industrial park land at higher prices (1.5-2 times higher) and is targeting high-tech fields such as chip manufacturing.
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