AsemconnectVietnam - Ba Ria - Vung Tau House Development Joint Stock Company (Hodeco, code HDC - HOSE) successfully offered nearly 20 million shares, raising charter capital from VND1,351 billion to VND1,550.95 billion.

Hodeco said that at the end of the stock offering on June 19, the Company had issued 19,990,244 shares out of the total registered offering of 20 million shares, corresponding to a successful issuance rate of 99.95%, mobilizing VND299.85 billion. In particular, Hodeco added that the remaining 9,756 fractional shares cannot be issued, the Company will cancel the fractional shares.
Thus, after the issuance, Hodeco only has 1 major shareholder, Mr. Doan Huu Thuan, Chairman of the Board of Directors, who owns 9.85% of charter capital and the remaining 90.15% of charter capital belongs to small shareholders owning less than 5% of charter capital.
At the end of the offering, Hodeco's charter capital also increased from VND1,351 billion to VND1,550.95 billion.
It is known that according to the initial offering plan, the Company offered to sell 20 million shares to existing shareholders, raising VND300 billion (offering price 15,000 VND/share), all to pay principal and interest of Some bank loans, disbursement time from the first quarter of 2024 to the third quarter of 2024.
Of which, repaying VND75 billion of debt from Vietnam Joint Stock Commercial Bank for Investment and Development; paid VND91 billion to Petrolimex Petroleum Commercial Joint Stock Bank (the bank recently changed its name to Prosperity and Development Joint Stock Commercial Bank); repay VND54 billion debt to Tien Phong Commercial Joint Stock Bank; and repay VND80 billion to the Joint Stock Commercial Bank for Foreign Trade of Vietnam.
In terms of business activities, in the first quarter of 2024, Hodeco recorded revenue of VND85.32 billion, down 51.7% over the same period, profit after tax only reached VND1.12 billion, down 96.4% over the same period last year. In particular, gross profit margin decreased sharply from 44.8%, to 17.2%.
During the period, gross profit decreased by 81.4% over the same period, corresponding to a decrease of VND64.55 billion, to VND14.71 billion; Financial revenue increased dramatically by 168.4 times, corresponding to an increase of VND11.79 billion, to VND11.86 billion (the same period recorded VND0.07 billion); Financial costs decreased by 58.5%, equivalent to a decrease of VND12.61 billion, to VND8.93 billion; Sales and corporate management expenses decreased by 17.3%, equivalent to a decrease of VND2.47 billion, to VND11.79 billion and other activities fluctuated insignificantly.
In terms of core business activities (gross profit - financial costs - sales & corporate management costs), in the first quarter of 2024, the Company recorded a core operating loss of VND6.01 billion compared to with the same period profit of VND43.46 billion, a decrease of VND49.47 billion.
Thus, in the first quarter of 2024, the gross profit generated was not enough to cover financial, sales and corporate management costs, Hodeco escaped losses by recording a sudden increase in financial revenue.
Hodeco has explained that financial revenue increased mainly due to recording VND11.63 billion in dividends and distributed profits compared to the same period that were not recorded.
In addition, Hodeco also explained profit fluctuations in the first quarter of 2024 when revenue decreased significantly over the same period due to the general situation of the real estate market still being very difficult in the first quarter of 2024, affecting the Company's sales activities. In addition, profits decreased due to adjusting the reversal of provisions for investment devaluation on the separate financial statements of the first quarter of 2024 when preparing the consolidated report and because consolidated revenue decreased significantly over the same period.
It is known that in 2024, Hodeco has an ambitious plan with revenue of VND1,657.6 billion, an increase of 146.7% over the same period, expected profit after tax of VND424 billion, an increase of 222.4% compared to reality in 2023 and expected dividends at a rate of 15%. Of which, the total investment capital is up to VND2,856 billion, an increase of 645.7% compared to the value invested in 2023.
Thus, at the end of the first quarter of 2024 with a profit after tax of only VND1.12 billion, Hodeco has only completed 0.3% of the ambitious profit plan of VND424 billion.
N.Nga
Source: VITIC/Tinnhanhchungkhoan