Danh Khoi avoided losses in Q2/2024 thanks to other income.

Thanks to the 60 billion VND compensation received from the liquidation of the contract for the transfer of a portion of the East Thu Luu Canal Housing Project, Danh Khoi was able to avoid losses in the second quarter of 2024.

Danh Khoi Group Joint Stock Company (HNX: NRC) has just announced its consolidated financial report for the second quarter of 2024, with net revenue reaching only over 6.3 billion VND. However, financial expenses amounted to 25 billion VND, plus other expenses, resulting in a net loss from business operations of 26 billion VND.

However, Danh Khoi avoided losses and reported a net profit of over 4 billion VND in the second quarter thanks to other income of 60 billion VND from compensation for the liquidation of a contract to transfer a portion of the Thu Luu Canal East Housing Project in Long Toan Ward, Ba Ria City, Ba Ria - Vung Tau Province.

For the first six months of the year, Danh Khoi's net revenue reached VND 11.7 billion and after-tax profit exceeded VND 7 billion. In 2024, Danh Khoi aims for consolidated total revenue of VND 1,926 billion and after-tax profit of VND 40 billion. Thus, after half a year, the company has only achieved 0.6% and 18% of its annual plan, respectively.

In the first half of the year, Danh Khoi incurred two short-term receivables of VND 258 billion from ABFAST Joint Stock Company and VND 198 billion from Tan Tien Trading and Investment Company Limited.

In addition, Danh Khoi has recovered the entire principal amount of 185 billion VND, which was the advance payment to Danh Khoi Holdings Investment Joint Stock Company for the transfer of a portion of the Thu Luu Canal East Housing Project that the two parties had already liquidated.

Regarding Danh Khoi Holdings, Danh Khoi currently has approximately VND 227 billion in short-term receivables and VND 450 billion in long-term receivables.

Specifically, the company also has a business cooperation agreement for a mixed-use apartment complex project in Subdivision No. 4 of the Nhon Hoi Eco-tourism Urban Area, Quy Nhon City, Binh Dinh Province, with Danh Khoi Holdings. Accordingly, Danh Khoi is the capital contributor, Danh Khoi Holdings is the capital recipient, and the parties have agreed on a value of investment cooperation in which Danh Khoi contributes 75 billion VND and shares a minimum of 30 billion VND in profits with the capital contributor upon completion of this investment cooperation agreement.

Danh Khoi also contributed 450 billion VND to the Binh Duong 1 Commercial Center and High-End Apartment project and received a share of the cooperation's revenue. Danh Khoi paid on behalf of Danh Khoi Holdings to DKPM Asset Management Services Company to build a model house for the Binh Duong 1 Commercial Center and High-End Apartment project.

In addition, Danh Khoi also contributed VND 350 billion to a real estate investment partnership for urban development projects in Subdivisions 2, 4, and 9 of the Nhon Hoi Eco-tourism Urban Area. Accordingly, Danh Khoi will market 195 land plots within the project, and the parties will share pre-tax profits, with Danh Khoi receiving the difference between the fixed selling price and the actual selling price. As of the date of this financial report, Danh Khoi has fully recorded the shared profits and is recovering the principal amount.

This year, Danh Khoi plans to offer 100 million shares at a par value of VND 10,000 per share to professional securities investors. With the VND 1 trillion raised if the issuance is successful, the company plans to use VND 520 billion to pay off all outstanding tax debts, settle all bonds, and settle all loans at BIDV Bank.

Next, the company plans to use VND 195 billion to pay for a portion of the Dai Nam Residential Area project and VND 180 billion to pay for a portion of the Ham Thang - Ham Liem small-scale industrial, commercial, and service residential area project. The implementation period is in Q4/2024 and 2025. The remaining VND 105 billion will be used to supplement working capital for the company's production and business activities.

At the annual general meeting held at the end of June, Mr. Ho Duc Toan, Chief Financial Officer of Danh Khoi Group, stated that this plan had been carefully considered by the Board of Directors. While a private placement would inevitably lead to dilution, the company accepted it to attract more investors. Simultaneously, it would provide the company with additional capital to implement its plans… ultimately aiming to deliver the highest value to shareholders.

Regarding the share issuance price being higher than the market price, Mr. Toan stated that the book value at the end of 2023 was 14,000 VND per share. Furthermore, the company's undistributed after-tax profit in 2023 was over 9.6 billion VND… During the meetings, several investors also assessed and recognized the company's future prospects.

Further elaborating on the capital utilization plan if the fundraising is successful, Mr. Le Thong Nhat, Chairman of the Board of Directors of Danh Khoi Group, said that the initial plan is to acquire a portion of the Dai Nam residential area project and the Ham Thang - Ham Liem small-scale industrial, commercial and service residential area.

However, the management board has also explored several other projects with criteria including complete legal documentation, fully developed infrastructure, and high liquidity. The product line will primarily focus on land plots and low-rise townhouses. The aim is to create a new breakthrough in 2024.

Source: https://baodautu.vn/danh-khoi-thoat-lo-quy-ii2024-nho-thu-nhap-khac-d222060.html