Duc Thanh Wood (GDT) spends 138 billion VND to buy another factory in Binh Duong

Duc Thanh Wood (GDT) spends 138 billion VND to buy another factory in Binh Duong

Duc Thanh Wood Processing Joint Stock Company (code GDT) will receive the transfer of land use rights and assets attached to land in Binh Duong with a value of 138 billion VND to build a factory.

Recently, Duc Thanh Wood Company announced information related to the transfer of land use rights and assets attached to the land of Factory 6 in Tan Hiep Ward, Tan Uyen City, Binh Duong Province with a value of 138 billion VND.

Accordingly, the land plot has an area of 28,666.7 m2 (residential land is 300 m2, perennial land is 3,836.2 m2, non- agricultural production land is 24,530.5 m2). In addition, other constructions on the land include factory 1 with a construction area of 4,860 m2 and factory 2 with an area of 7,020 m2.

Workers work in a factory of Duc Thanh Wood Company.

Speaking at the 2024 Annual General Meeting of Shareholders held last weekend, Ms. Le Hai Lieu, Chairman of the Board of Directors of Duc Thanh Wood Company, said that this land is near the Company's factory 3 in Binh Duong. The purpose of the Company receiving the transfer of this land is to expand production when needed, thereby helping to increase revenue for the Company because there is a quite attractive lease contract here.

To support the acquisition of the above factory, GDT has approved a resolution to borrow 90 billion VND from BIDV Bank.

In 2023, GDT streamlined its operations to reduce costs and improve operational efficiency by merging factories into Factory 3 in Binh Duong. In addition, the Company also installed additional solar power systems for factories and actively sought new business opportunities at international fairs.

However, GDT's business results in 2023 still declined sharply when revenue decreased by 22% and net profit dropped by 47%.

“The number is not as high as previous years, but it is still the dream of many businesses in general and the wood industry in particular. Because the phrase profitable business seems very luxurious for businesses in 2023. This is a period with too many events, from climate change to geopolitical conflicts, inflation and finally the slow recovery of demand,” said Ms. Lieu.

In 2024, GDT targets revenue of nearly VND 366 billion and after-tax profit of VND 60 billion, up 18% and 65% respectively compared to the previous year. The above plan demonstrates GDT's prudence in the context of the complicated developments of the world economy.

Source: https://baodautu.vn/go-duc-thanh-gdt-chi-138-ty-dong-mua-them-mot-nha-xuong-tai-binh-duong-d215769.html