AsemconnectVietnam - Record loss of VND121.24 billion in the first quarter of 2024, Development Investment Construction Joint Stock Corporation (DIC Corp, code DIG - HOSE) through divestment and dissolution of loss-making business units.

On June 25, DIC Corp announced information about divesting a series of investments and changing the form of capital contribution units.
First, the Company approved the policy of divesting part of its capital at Anh Em DIC Ceramic Joint Stock Company (Abbreviation: DIC Anh Em), transfer period before September 30, 2024.
It is known that by the end of 2023, DIC Corp owns 89.03% of capital in DIC Anh Em, a unit with charter capital of 180 billion VND, operating in the field of manufacturing and trading construction materials (ceramic tiles). .
As of March 31, 2024, DIC Corp said it owned more than 16 million shares of DIC Anh Em, equivalent to investing VND75.25 billion and is making a full provision of VND75.25 billion, asset value. Net assets are VND0.
In addition, DIG also approved the policy of divesting all capital at Phu Rieng Kratie Rubber Joint Stock Company, with the transfer period to be completed before September 30, 2024.
It is known that as of March 31, 2024, DIC Corp owns 2 million shares of Phu Rieng Kratie, equivalent to 5% of capital in Phu Rieng Kratie Rubber. Of which, the investment value is VND20 billion, VND20 billion has been set aside and the net asset value is 0 VND.
In addition, DIC Corp approved the conversion of business type at DIC Hospitality Company Limited (DIC Hospitality) from a LLC to a joint stock company.
At the same time, DIC Corp approved increasing its ownership from 78.3% to 99.9% of capital at DIC Hospitality.
It is known that as of March 31, 2024, DIC Corp owns 78.3% of capital in DIC Hospitality, equivalent to an investment of VND784.5 billion, a provision of VND37.8 billion and the remaining value VND746.66 billion.
Fourth, DIC Corp approved the policy of transferring the commercial service area of the Cap Saint Jacques Complex project - phase 1, Vung City Tau (location 169 Thuy Van, Ward 8, Vung Tau City), area 6,553.9 m2.
In particular, the transferee is DIC Tourism Company Limited; implementation time is in June 2024.
According to research, the Cap Saint Jacques complex has a scale of 11,311.6 m2, including 3 building blocks from 27 to 31 floors high, with a total investment capital of VND3,577 billion, providing the market with a 5-star hotel product, condotel. In particular, phase 1 is the C1 tourist apartment block with 372 units that have been completed and put into use; Phases 2 and 3 are 5-star hotel block C3 and tourist apartment & hotel C4. The project has completed the explanation of the construction investment feasibility study report at the end of 2023.
Thus, the two divesting companies are loss-making business units and have set aside the entire value of the investment.
A noteworthy point is that previously, on June 13, DIC Corp approved the policy of dissolving Vung Tau Center Point Company Limited.
It is known that in June 2023, DIC Corp approved the policy of establishing a one-member LLC owned by the Company with the name Vung Tau Center Point One-Member LLC (established June 26, 2023); Address at 12 3/2 Street, Ward 8, Vung Tau City, Ba Ria - Vung Tau province; Charter capital is VND300 billion. This subsidiary operates in the field of real estate business, land use rights owned, used or leased.
According to information from the Securities Investment Newspaper, the legal representative of Vung Tau Center Point Limited Company is Mr. Le Dinh Thang (born in 1976 in Thanh Hoa), and at the same time, Mr. Le Dinh Thang is also the representative of DIC Holdings Construction Joint Stock Company.
In terms of business activities, in the first quarter of 2024, DIC Corp recorded revenue of VND0.49 billion, down 99.8% over the same period; Profit after tax recorded a record loss of VND121.24 billion compared to the same period profit of VND76.58 billion.
In 2024, DIC Corp plans revenue of VND2,300 billion, an increase of 72% over the same period; Expected pre-tax profit is VND1,010 billion, an increase of 508.9% compared to implementation in 2023 and expected investment capital is VND7,211.8 billion, an increase of 541% over the same period.
Thus, at the end of the first quarter of 2024 with a pre-tax loss of VND120.85 billion, DIC Corp is still very far from its profit plan of VND1,010 billion in 2024.
However, entering the second quarter of 2024, DIC Corp estimates revenue of VND874 billion, up 440.4% over the same period, pre-tax profit increased 824.3% to VND160 billion.
N.Nga
Source: VITIC/Tinnhanhchungkhoan