In 2020, Hai Phat Invest plans to increase its charter capital to over VND 3,000 billion, through issuing shares to swap shares and share dividends to existing shareholders.
In the morning of June 27, Hai Phat Investment Joint Stock Company (Hai Phat Invest, Code: HPX) held the Annual General Meeting of Shareholders in 2020.
Overview of Haiphong General Meeting of Shareholders June 27. (Photo: Ha Le)
In 2019, 63% of the profit plan is completed
In 2019, Hai Phat recorded net revenue of VND 3,907 billion, an increase of 81% compared to 2018 (fulfilling 91% of the year plan). Profit after tax reached VND 453 billion, a slight decrease of 8% compared to 2018, achieving 63% of the year plan.
During the year, Hai Phat focused on trading the remaining social and commercial housing apartments of the Phu Lam social housing project (The Vesta), focusing on promoting the business of Roman Plaza project apartments and recovering of secondary investors and customers.
As a result, the company has delivered 1,606 apartments, reaching 100% of the year plan, bringing revenue for real estate business to 3,431 billion dong.
The products are delivered mainly from The Vesta – Phu Lam, Roman Plaza, Phu Luong, Thuan An Central Lake projects.
Roman Plaza, The Vesta and Phu Luong projects due to the extended project duration and the interest rate support package of 30,000 billion dong are no longer valid, so the profit margin on sales is lower than expected.
Profit after tax plan is 350 – 400 billion dong
At the meeting, Hai Phat Board of Directors submitted to shareholders for approval the business plan of 2020 with total expected revenue of VND 1,600-2,000 billion and profit after tax of VND 350 – 400 billion.
Regarding investment, the company will carry out the site clearance and investment procedures of An Binh 1 & 2, Mai Pha and Dong Quang projects to ensure that these projects can be implemented according to the period in 2021 – 2022. In particular, the 5 ha Phu Hai – Phan Thiet land area can be started in October 2020.
In addition, the company will complete the construction of a 1.4 ha Phu Yen project, final settlement and commissioning of completed projects such as The Pride, Tan Tay Do, The Vesta, Phu Luong and Roman Plaza.
At the same time, the company has invested in a commercial housing project under Fidel Park project in Dong Ha city (Quang Tri) with a scale of 1.1 hectares of commercial land.
For M&A activities, businesses focus on seeking short-term investment and business projects. The goal must be to find at least two projects to be able to conduct short-term business, recover capital for investment cooperation in some projects.
Dividend 2019 dividend by stock at the rate of 15%
Also at the General Meeting, the Board of Directors of the company submitted to shareholders for consideration and approval of the plan of profit distribution and deduction for funds in 2019.
Specifically, after dividing the dividend in 2018 by shares (equivalent to VND 300 billion), the remaining profit after tax of the company is more than VND 478 billion. The company expects to pay 2019 dividends by shares at a rate of 15%.
Profit distribution plan for 2019. (Source: HPX)
Want to increase capital to more than 3,000 billion
Hai Phat said that the real estate market is in the purification stage due to the impact of COVID-19 epidemic. In this context, M&A activities of projects will have many favorable opportunities when there are projects that are thirsty capital.
Therefore, in order not to miss investment and business opportunities, the initiative of capital resources is very important in this period. According to the plan in 2020, the total capital demand of the Company is VND 5,590 billion, of which the capital demand for specific activities is as follows:
Facing the current financial situation, the Board of Directors of Hai Phat submitted to shareholders for approval the plan of increasing charter capital with a two-phase roadmap.
With phase 1, the company will issue shares to pay dividends in 2019 at an expected rate of 15%, par value of VND 10,000 / share. The capital used to issue the remaining after-tax profit accumulated until 2019.
Shares are issued to existing shareholders by the exercise of rights. Implementation time after being approved by the SSC and expected in 2020.
Phase 2 will issue shares to swap shares with the aim of increasing the ownership rate in Hai Phat Capital Investment JSC.
Currently, Hai Phat owns 15.5% of charter capital of Transport Construction Corporation 5-JSC (Cienco5). On the other hand, the Company is currently a shareholder of Hai Phat Capital Investment Joint Stock Company (the organization currently owns 78.68% of Cienco 5’s charter capital).
Therefore, in order to dominate and manage the southern backbone BT project and the reciprocal projects of the BT project, the Board of Directors submitted to shareholders for approval of the policy of issuing shares to increase charter capital for stock swap a number of shareholders / shareholders of Hai Phat Capital JSC to increase the ownership of Hai Phat in Hai Phat Capital from the current level (13.76%) to the dominant level in the near future.
The detailed plan for the issuance of shares for swap will be approved by the Board of Directors and submitted to the General Meeting of Shareholders at the extraordinary General Meeting of Shareholders or to collect written opinions of shareholders at an appropriate time chosen by the Board of Directors.
It is expected that after the issuance, Hai Phat’s chartered capital will increase to over 3,000 billion dong. At the end of the meeting, the Board of Directors for the term 2018 – 2023 has two new members: Mr. Le Viet Dung and Mr. Tran Vu Thai Hoa.