Having 2 projects revoked, the company of the daughter of the Chairman of Hoang Quan Real Estate (HQC) did not buy all the shares.

The company related to the daughter of the Chairman of the Board of Directors could not buy all the shares as registered.

Nam Quan Investment JSC, a unit related to Ms. Truong Nguyen Song Van, Deputy General Director of Hoang Quan Real Estate Company (HQC), has just announced that it has purchased 1 million HQC shares.

It is worth mentioning that the initial registration amount of this unit was up to 20 million shares. Thus, Nam Quan Investment of Ms. Truong Nguyen Song Van only bought 1/20 of the initial registration amount.

2 projects of the company of the daughter of the real estate chairman Hoang Quan HQ were revoked because they did not buy all the shares. Image 1 — The company of the daughter of the Chairman of Hoang Quan Real Estate (HQC) only bought 1 million of the 20 million shares initially registered (Photo TL)

After the above transaction, the number of shares owned by Nam Quan Investment increased from 0.21% to 0.42% of charter capital. The reason for not buying all registered shares is because the unit has not prepared enough money as expected.

Regarding the price movement of HQC shares, from the beginning of August until now, HQC code has gradually decreased in value from the peak of VND 5,100/share on August 7, 2023 to only VND 3,770/share in the trading session on October 11, 2023. Corresponding to a price decrease rate of 26% in just the past 2 months.

Also in the period from the beginning of August, Chairman Truong Anh Tuan of Hoang Quan Real Estate registered to sell more than 16.3 million shares, equivalent to 3.43% of charter capital by negotiation. The transaction registration period is from August 9, 2023 to September 7, 2023.

In addition, Hoang Quan Group Company Limited, another unit also chaired by Mr. Tuan, has registered to sell all 3.1 million HQC shares, equivalent to 0.65% of charter capital.

Thus, it can be seen that Mr. Tuan's family sold nearly 20 million shares but only symbolically bought back 1 million shares while previously registering to buy up to 20 million HQC shares.

Second quarter profit plunged 88%, business scale significantly narrowed

Hoang Quan Real Estate's business results in the most recent quarter really made shareholders worried, especially when the chairman's family continuously sold millions of HQC shares.

Specifically, revenue in the second quarter reached VND103.2 billion, cost of goods sold accounted for VND84.5 billion, gross profit in the period reached VND18.7 billion. Gross profit margin decreased slightly from 18.3% to only 18.1%.

Financial revenue and financial expenses in the period both decreased, down to only 578 million and 504 million VND respectively. Sales expenses decreased nearly 10 times, down to only 672 million VND. However, this is not necessarily a good sign because it shows that the business scale of the unit is shrinking. Management expenses are still accounting for a large amount at 9.3 billion VND.

After deducting all expenses and taxes, Hoang Quan Real Estate's after-tax profit was only 1.2 billion VND, down 88% compared to the same period last year.

Accumulated profit after tax in the first 6 months of 2023 reached 2.3 billion VND. Compared to the target set at the beginning of the year, HQC has only completed 1.6% of the annual profit plan. If there is no breakthrough from now until the end of the year, HQC will almost certainly fail the 2023 plan.

Another notable point is that HQC's financial statements also recorded payables to other individuals and entities amounting to nearly VND 1,000 billion. Payables recorded in the form of loans from individuals and organizations at the end of June amounted to VND 938 billion.

Also regarding this debt issue, the company's interest expense accounts for 449.7 billion VND, while project costs and brokerage fees payable are still recorded at 8.9 billion VND.

Meanwhile, short-term receivables accounted for 2,981.1 billion VND, showing the lack of optimization in capital coordination of Hoang Quan Real Estate. The company's cash balance is currently only 27.9 billion VND.

Two social housing projects of Hoang Quan Real Estate in Vinh Long were revoked.

In the context of business problems, Hoang Quan Real Estate has just been mentioned in Report No. 3180 of the Department of Natural Resources and Environment of Vinh Long province. In this report, 2 social housing projects of HQC were named among 11 projects that were slow to develop and had to be revoked.

The two projects include: HQC Hoa Phu Social Housing Construction Project of Hoang Quan Mekong Real Estate Service Trading Consulting JSC (HQM) in Loc Hoa Commune, Long Ho District with an area of 1.4 hectares; Binh Minh Industrial Park Social Housing Construction Project of Hoang Quan Mekong Real Estate Service Trading Consulting JSC in My Hoa Commune, Binh Minh Town with an area of 1.66 hectares.

Notably, Hoang Quan Mekong is also a company chaired by Mr. Truong Anh Tuan. The project has a total investment of VND 249 billion, with a scale of 236 apartments, including 211 social housing units and 25 commercial housing units. The Binh Minh Industrial Park Social Housing Project, in which HQC is the co-investor, belongs to the Binh Minh Port - Industrial Park - Residential Area cluster, with a total investment of VND 618 billion and 1,836 apartments.

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