AsemconnectVietnam - The capital for Hua Na Hydropower to acquire Nam Non Hydropower Plant includes nearly VND210 billion of the Company's development investment capital and VND487.62 billion from loans.

The Board of Directors of Hua Na Hydropower JSC (code HNA) has just approved the investment decision to purchase Nam Non Hydropower Plant in Nghe An with a maximum total investment value of nearly VND698 billion, including: the maximum value of the plant purchase is VND645 billion; VAT of about VND51.6 billion and more than VND1 billion is the value of consulting contracts. This total investment value does not include related fees and charges during the transfer process, these costs will be updated according to actual occurrence.
The investment capital includes nearly VND210 billion of Hua Na's development investment capital and other legal capital sources; The remaining VND487.62 billion is from loans from domestic commercial banks. HNA plans to complete the procedures for transferring and handing over assets in the fourth quarter of 2024.
Nam Non Hydropower Plant has an installed capacity of 20 MW including 2 generators, located in Luong Minh Commune, Tuong Duong District, Nghe An Province, with a long-term land lease area of 66,776 m2.
Hua Na Hydropower Plant will acquire Nam Non Plant from Nghe An Energy Development Corporation, a company with a charter capital of VND 450 billion. The legal representative is Mr. Dao Duy Tan, Chairman of the Board of Directors and General Director of the Company.
HNA said that the current energy transition trend is to prioritize investment in developing renewable energy projects, including small hydropower plants. Therefore, the current task of investing in developing small hydropower plant projects will be in line with the energy transition trend and the development orientation of the Company, contributing to increasing future revenue and profit for shareholders, improving capacity, experience, brand and corporate culture.
"Investing in acquiring Nam Non Hydropower Plant in Nghe An province will facilitate management and operation, synchronously expand the Company's production and business scale and make optimal use of the Company's existing management and operation human resources", HNA said.
In the first half of 2024, Hua Na Hydropower recorded revenue of VND205.55 billion, down 28% over the same period and a loss after tax of VND13.87 billion compared to the same period with a profit of VND46.83 billion.
In 2024, Hua Na Hydropower plans to have a total revenue of VND744.07 billion and a profit after tax of VND179.95 billion. Thus, by the end of the first half of 2024, Hua Na Hydropower Plant is still far from its annual profit target.
In a recent interview with Dau Tu Chung Khoan Newspaper, Mr. Doan Van Truong, Deputy Director of HNA, said that due to the unfavorable hydrological situation in the first months of the year, it greatly affected the Company's business results. However, from July to October is the center of the rainy season, so the water in the lakes will be better than in the first months of the year, the situation is more favorable. This also helps the electricity output mobilized at Hua Na to be better from July, helping the plant run at maximum capacity.
N.Nga
Source: VITIC/Tinnhanhchungkhoan