LDG Chairman explains about 500 villa project in Dong Nai

The transaction was made in the last 2 sessions of the week, April 13 and 14. After this transaction, he still owns 15 million LDG shares with a corresponding ratio of 5.86%.

Previously, around November 2022, when LDG stock price plummeted, Mr. Hung was also asked by the securities company to sell millions of shares.

In addition to reporting that Mr. Hung's shares were sold for mortgage, LDG Company also explained information related to the inspection results of Dong Nai Provincial People's Committee regarding the Tan Thinh Residential Area project in Doi 61 Commune, Trang Bom District, Dong Nai, invested by the company.

LDG's project in Dong Nai

Accordingly, Mr. Nguyen Khanh Hung said that previously, the company subjectively assumed that land legal procedures would be carried out at the provincial level, because the rice land area counted when carrying out the investment policy approval was less than 10 hectares (the procedure is expected to be completed in about 6 months).

However, due to the updated cadastral map system of Tan Thinh Residential Area Project, the land plot area and land use origin have been changed, increasing the rice land area in the project from 9.8 ha to 12.7 ha. Therefore, the work of requesting approval of the Prime Minister's policy on allowing the transfer of rice land to implement the project (lasting 17 months) has arisen. This has affected the progress of the project implementation.

Due to the slow progress in land legal procedures, the construction of some items as mentioned above by the company has not completed the procedures. The company has been implementing remedial measures such as forcing to continue implementing land allocation and land lease procedures for the project. The company is also continuing to implement related procedures according to the direction of the competent State agency to soon complete the land allocation procedures to continue implementing the project...

Previously, the inspection conclusion stated that the enterprise’s administrative violations included construction without completing infrastructure licensing procedures, incomplete construction design documents, lack of documents related to infrastructure construction activities, and administrative violations in the process of land exploitation and use. In which, the competent authority issued an administrative penalty decision and the enterprise complied and paid a fine of 6.5 billion VND.

"According to the inspection conclusion, in the coming time, the company will continue to carry out additional procedures according to regulations and report to the competent authorities according to the inspection conclusion to soon complete the legal procedures for the project to implement business in accordance with the prescribed legal procedures" - Mr. Hung emphasized in the document.

In 2023, LDG plans to submit to shareholders for approval a net revenue target of VND 1,448 billion, an increase of 5.2 times compared to 2022. Expected profit is VND 3.9 billion, down 2.5% over the same period.

LDG's market price is currently around more than VND 4,000/share, down sharply from more than VND 20,000 in early 2022 but still higher than the bottom in October 2022.

Source: https://nld.com.vn/kinh-te/chu-tich-ldg-phai-ban-giai-chap-hon-35-trieu-co-phieu-20230415101326453.htm