AsemconnectVietnam - The annual shareholder meeting of Saigon Real Estate Corporation (Saigonres - code SGR) took place on April 1, 2023, approved the plan for 2023 with a total investment value of VND2,340 billion, total revenue of VND906 billion, consolidated profit after tax is VND315 billion and dividend in 2022 is expected to be 10%.

Mr. Pham Thu, Chairman of the Board of Directors of Saigonres, said that the company's charter capital of VND600 billion was still low compared to the investment needs of projects, so the Board of Directors determined to focus on profits to increase charter capital to VND1,000 billion. Therefore, in 2022, only 10% dividend will be paid. In 2023, if the profit is completed at VND315 billion, it is expected to pay 20% of the dividend, the remaining VND200 billion, and if it exceeds the 2023 plan, there will be a surplus of about VND400 billion to increase the capital to VND1,000 billion by the end of 2023 and early 2024. Next year, SGR plans to increase capital by private placement to VND1,500 billion.
"To pay a 10% dividend this year is the company's effort, because banks currently limit the limit on real estate loans," said Mr. Thu.
However, Mr. Truong Hoang Chau, a small shareholder, said that in 2022, in addition to paying a 10% cash dividend, the remaining profit should pay 20% of the stock dividend, which also helps the company increase charter capital immediately.
Mr. Chau also said that Saigonres is developing according to the group model, so it should focus on main activities, eliminating small business activities such as restaurant business, logistics transportation.
Responding to shareholders, Mr. Thu said that the procedure for dividing and increasing share capital is very time-consuming, so the company will put the profits of 2 years into the procedure to increase capital once.
Regarding capital contributed to companies outside the industry, according to Mr. Thu, the contributed capital is very low, accounting for only a few percent of the charter capital, but the Board of Directors has carefully researched when contributing capital, because logistics is a potential field, the company associated with a German unit to do this field and in the future will open up a big development direction.
In the strategic direction, Saigonres in addition to accelerating growth through a variety of business fields, when encroaching on the fields of information technology software development, logistics transportation, restaurant business... . also continues to perfect the goals of human resource development, corporate culture, management system, communication - marketing, social activities - community and environment.
At the shareholder's proposal to promote project compensation, Mr. Thu said that at this time, the interest rate for real estate loans is very high from 14-17% per year, so this is not the time to invest in compensate as in the period of 2019 -2020. At that time, the interest rate was low and the company had financial resources, so it greatly increased compensation.
For the project in Nhon Trach (Dong Nai), Mr. Thu said, entangled in the general situation of changing personnel in localities, there is a delay in procedures in all provinces. "Not only the project in Nhon Trach, the projects in Hoa Binh or in Phu Quoc too," said Mr. Thu.
It is known that Saigonres is in the process of negotiating the transfer of two projects An Phu River view and An Phu Residence, if successful, it is expected to earn about VND600-650 billion.
Explaining bonuses and remuneration to the Board of Management, Mr. Thu said that despite working very hard and actively, the Board of Directors also shared with shareholders by reducing remuneration and bonuses to only 50% compared to the bonuses permitted by the General Meeting of Shareholders.
N.Nga
Source: VITIC/Tinnhanhchungkhoan