Elect additional members to the Board of Directors, raise additional capital of VND 500 billion

CKG Shareholders' Meeting: Electing additional members to the Board of Directors, raising an additional 500 billion VND in capital.

All proposals submitted to the General Meeting of CKG were approved, especially the content regarding the dismissal and election of 4 additional members of the Board of Directors and 1 member of the Supervisory Board for the 2021-2026 term.

The 2024 Annual General Meeting of Shareholders of Kien Giang Construction Investment Consulting Group (stock code CKG), held on the afternoon of June 1st in Kien Giang, was successfully concluded on the first attempt, a stark contrast to the atmosphere of the 2023 Annual General Meeting - which had to be held a second time with most proposals not being approved.

This signals a high degree of consensus among the shareholder groups at the company.

In 2024, CKG aims for revenue of VND 1,220 billion, a slight increase of 0.3% compared to 2023, with 95% contributed by the real estate sector and 5% by other revenue. The target after-tax profit is VND 142 billion, also 96% of the previous year's results, due to the lower profit margin of social housing, which accounts for 60% of total revenue in 2024.

CKG forecasts that the real estate market will remain sluggish, so to clear inventory, recover capital, and reduce maintenance and warranty costs, the company plans to implement promotional programs with discounts. Therefore, the profit margin for commercial residential properties is projected to decrease compared to the same period last year.

In 2024, CKG focused on accelerating and completing legal procedures related to investment and land to promptly launch projects that meet the sales requirements. Simultaneously, it coordinated with relevant authorities to aggressively clear land for construction and sales of projects in 2024, aiming to secure a steady supply for subsequent years in line with the company's development plan.

Continue to promote the social housing and low-income housing segments to generate revenue and liquidity for the business in the current period. Launch several new potential projects to create a pool of products.

Responding to shareholders regarding the legal progress of the group's projects, Ms. Pham Thi Nhu Phuong, the company's General Director, stated that due to the private placement proposal to professional securities investors not being approved last year, the company is facing a capital shortfall of approximately VND 221 billion. During this process, the Board of Directors and the Executive Board of CKG have agreed to transform the company's clean land funds into valuable land assets. This means that in addition to clean land, the company will complete all legal documentation, land use fees, and land allocation fees so that when the market recovers, it will be ready to sell the land, generating cash flow, revenue, and profit.  

In 2023, CKG also carried out several other notable activities as follows: Opening of the CIC Group representative office in Phu Quoc. Simultaneously, the company commenced construction of the Rivera Villas Phu Quoc luxury villa project in Duong Dong town, Phu Quoc City; and inaugurated the CIC Building, serving as the headquarters of its subsidiary company.

Regarding the implementation of projects in 2023, some procedures for land allocation and payment of land use fees have been completed for projects such as the residential area project on Road No. 2 in Vinh Quang Ward.

Regarding the implementation of infrastructure construction and housing construction in projects: Accelerate the construction progress of the Social Housing Project in the Northwest Reclamation Urban Area (7.04ha); the Phu Quoc Riverside Villas high-end villa project (5.76ha) and newly allocated land plots in the Nam An Hoa and An Binh residential areas (Rach Gia City).

Ms. Phuong stated that CKG's key projects this year, in addition to ongoing projects, aim to bring into operation in 2024 projects that have basically completed investment preparation procedures. In Rach Gia City, these include the Rach Gia Central Agricultural and Seafood Market Residential Area project, the Vinh Quang Ward Road No. 2 Residential Area project (approximately 10 hectares), and the Bac Vinh Quang Residential Area project in Vinh Quang Ward (phases 1 and 2). These projects are currently being valued, and land use fees are expected to be paid in the third quarter of 2024.

In Phu Quoc City, the company continues to sell the Phu Quoc Riverside Villas high-end villa project (commercial name Rivera Villas), and is also launching the Bung Goi high-end villa project in Cua Duong commune, Phu Quoc City.

In both markets, the company's key projects are ready for business launch.

Issued to existing shareholders, at a ratio of 2:1

CKG has submitted a proposal to cancel the issuance of over 13.4 million shares through a private placement to professional securities investors, as the issuance plan has been ongoing for three years and is no longer suitable for the capital needs of its business operations during the 2023-2025 period.

Simultaneously, CKG also submitted a proposal to issue shares as a dividend at a rate of 20%. Additionally, CKG plans to issue shares to existing shareholders at a rate of 50%, with an issue price of VND 10,500 per share, thereby raising over VND 500 billion.

Through two rounds of issuance, the charter capital increased to VND 1,613 billion.

The capital raised from the issuance to existing shareholders, totaling over VND 500 billion, will be used to disburse VND 350 billion to partially repay maturing bonds, with the remainder used to settle short-term debt and supplement working capital.

According to CKG, raising capital will help the company secure matching funds for ongoing and future projects, while also ensuring working capital for the business during the current difficult period for credit access.

According to Ms. Phuong, after paying for the above items, the company will use other resources to allocate investments to potential projects, thereby generating revenue, profits, and potentially paying dividends without affecting the company's financial ratios and profitability.

The foreign ownership limit will be increased to 49%.

Investors questioned whether the company had any foreign investors interested in it, and whether any investors would invest capital in the company.

Ms. Phuong stated that in proposal number 4, there is content regarding amendments and additions to business lines. Currently, CKG's foreign ownership limit is 0%, and accordingly, the company is requesting to return business lines that fall under regulations restricting foreign investor ownership. This is a stepping stone for the company to increase the foreign ownership limit to 49%, thereby paving the way for cooperation with foreign investors in line with the company's development orientation.

Recently, the company has welcomed many delegations of foreign investors to visit and learn about the company's strategy and business operations, but no concrete agreements have been reached yet because the foreign ownership limit has not been opened. The company will notify shareholders if a foreign investor is secured.

Sharing further information at the General Meeting, Mr. Tran Tho Thang, Chairman of the Board of Directors of CKG, said:   According to the statement, the company has now streamlined its personnel management and hopes to continue its operations.   Businesses will receive more support.

During the 2019-2020 period, the market faced difficulties due to Covid-19, and the period from 2021 to the present has continued to experience challenges, especially regarding the use of capital by real estate businesses. Many businesses have had to carefully consider their investment in projects; CKG, for example, has chosen to focus on social housing projects that meet the real needs of the people.

According to the three new laws, the company's operational direction is entirely appropriate. Accordingly, the company will continue to conduct thorough market research and select the right market segment to ensure successful sales. For example, building social housing is not simple, but the company has extensive experience in this segment.

The real estate market is showing a slight improvement. In 2023-2024, the company plans to focus on social housing projects. Although the profit margin may not be high, this will meet local needs and prepare for the real estate recovery. The management board has already planned and prepared land for more intensive development from 2024-2025.

Regarding the story of foreign investors, their participation in the company will add value, bring financial resources, and support improved management…

The General Meeting of Shareholders also proceeded with the dismissal and supplementary election of members of the Board of Directors and members of the Supervisory Board for the 2021-2026 term.

Specifically, this was done through the dismissal of Board of Directors members including Ms. Nguyen Thi Hoa Le, Mr. Nguyen Duc Hung, Mr. Nguyen Thanh Lam, and Mr. Ha Duy Nghiem; and the dismissal of Supervisory Board member Ms. Nguyen Bich Nghia.

In the by-election results, all four candidates were elected as members of the Board of Directors: Mr. Dinh Thanh Tam, Mr. Nguyen Xuan Dung, Mr. Dinh Thanh Thao, and Mr. Tran Van Vinh. For the Supervisory Board, Mr. Vo Van Y was elected.

At the conclusion of the Congress, all proposals were approved.

Source: https://baodautu.vn/dhdcd-ckg-bau-bo-sung-thanh-vien-hdqt-huy-dong-von-them-500-ty-dong-d216599.html