AsemconnectVietnam - With outstanding loans of VND4,900 billion, Kinh Bac Urban Development Corporation (code KBC - HOSE) wants to raise VND1,000 billion through bond issuance to restructure debt.

Kinh Bac has just approved a plan to issue bonds code KBCH2426001; face value VND1,000 billion; these are non-convertible bonds, without warrants, with collateral and are not secondary debt.
In particular, the bonds are expected to be issued for a term of 2 years, implemented in the third quarter of 2024 and with a fixed interest rate of 10.5%/year, paying interest every 6 months.
Kinh Bac added that the Company will use the mobilized amount to restructure the debts of Kinh Bac and its member units.
It is known that by the end of the second quarter of 2024, total short-term and long-term debt increased by 33.9% compared to the beginning of the year, equivalent to an increase of VND1,240.7 billion, to VND4,900 billion and equal to 24% of total equity (at the beginning of the year, outstanding debt was VND3,659.3 billion and equal to 18.1% of total equity).
In terms of business activities, in the second quarter of 2024, Kinh Bac recorded revenue of VND891.73 billion, down 61.8% over the same period, after-tax profit recorded VND267.94 billion, down 73.5% over the same period last year. In which, gross profit margin decreased sharply from 70.8% to 52.1%.
In addition, during the period, the decline in revenue and narrowing gross profit margin led to a 71.9% decrease in gross profit compared to the same period, equivalent to a decrease of VND1,189.08 billion, to VND464.65 billion; financial revenue decreased by 20.2%, equivalent to a decrease of VND27.62 billion, to VND109.3 billion; financial expenses decreased by 64.2%, equivalent to a decrease of VND99.22 billion, to VND55.38 billion; sales and business management expenses decreased by 52.8%, equivalent to a decrease of VND185 billion, to VND165.68 billion and other activities fluctuated insignificantly.
Mr. Pham Phuc Hieu, Deputy General Director of Kinh Bac, explained that the business decreased in the second quarter because during this period the Company reduced revenue recognition from industrial park business activities compared to the same period.
In the first half of 2024, Kinh Bac recorded revenue of VND1,044.06 billion, down 77.1% year-on-year, and profit after tax of VND191.21 billion, down 90.8% year-on-year. In particular, profit in the first 6 months of 2024 was lower than profit in the second quarter of 2024 because in the first quarter of 2024, the Company recorded a loss of VND76.73 billion.
In terms of revenue structure in the first half of 2024, revenue decreased mainly due to a decrease of 88.3% in land and infrastructure rental revenue compared to the same period, equivalent to a decrease of VND4,009.9 billion to VND531.5 billion.
It is known that in 2024, Kinh Bac plans to have total revenue of VND9,000 billion and expected profit after tax of VND4,000 billion.
Thus, with only VND191.21 billion in profit recorded in the first half of 2024, Kinh Bac has only completed 4.8% of the profit plan of VND4,000 billion in 2024.
N.Nga
Source: VITIC/Tinnhanhchungkhoan