CNT Group transfers apartment complex project in Binh Dinh to subsidiary

Through the capital contribution to establish a subsidiary, CNT Group transferred the Commercial Apartment Complex Project along Huynh Tan Phat Street, with a total investment of over 280 billion VND, to Blue Bay Quy Nhon Co., Ltd. for implementation.

CNT Group transfers apartment complex project in Binh Dinh to its subsidiary.

Through the capital contribution to establish a subsidiary, CNT Group transferred the Commercial Apartment Complex Project along Huynh Tan Phat Street, with a total investment of over 280 billion VND, to Blue Bay Quy Nhon Co., Ltd. for implementation.

Rendering of the Commercial Apartment Complex Project along Huynh Tan Phat Street.

CNT Group Joint Stock Company (CNT Group) has just sent a document to the State Securities Commission and the Hanoi Stock Exchange announcing unusual information. Accordingly, CNT Group announced the Board of Directors' decision to transfer the project from CNT Group to Blue Bay Quy Nhon Co., Ltd.

Accordingly, on November 27, 2024, the Board of Directors of CNT Group approved the plan to transfer the Commercial Apartment Complex Project along Huynh Tan Phat Street, as per Investment Registration Certificate No. 3048448081 dated October 28, 2024, issued by the People's Committee of Binh Dinh Province, from CNT Group to Blue Bay Quy Nhon Co., Ltd. (100% owned by CNT Group).

At the same time, CNT Group commits to ensuring the financial resources for Blue Bay Quy Nhon Co., Ltd. to implement the Commercial Apartment Complex Project along Huynh Tan Phat Street, Dong Da Ward, within the scope of the investor's capital contribution of VND 82,982,250,193.

Previously, on September 30, 2024, the Board of Directors of CNT Group approved the policy of contributing capital to establish a subsidiary company to implement the Commercial Apartment Complex Project along Huynh Tan Phat Street in Dong Da Ward, Quy Nhon City, Binh Dinh Province.

Specifically, Blue Bay Quy Nhon Co., Ltd., registered at 46 Lam Van Tuong Street, Nhon Binh Ward, Quy Nhon City, has a charter capital of 83 billion VND; of which, the capital contribution from CNT Group is 83 billion VND. According to information from the General Department of Taxation, the enterprise was established on October 9, 2024.

Blue Bay Quy Nhon Co., Ltd. operates in the field of real estate business, including ownership, use, or lease of land use rights, as well as consulting, brokerage, and auctioning of real estate and land use rights.

CNT Group also appointed Mr. Pham Quoc Khanh (Chairman of the Board of Directors of CNT Group) as the representative to manage the Group's capital contribution; and Mr. Tran Cong Quy as the legal representative of Blue Bay Quy Nhon Co., Ltd.

According to our investigation, Mr. Tran Cong Quy is also the legal representative of Tra Duoc CNT One-Member Limited Company – another subsidiary of the CNT Group.

CNT Group was recognized by the People's Committee of Binh Dinh province as the winning bidder for the land use rights to implement the Commercial Apartment Complex Project along Huynh Tan Phat Street on August 28, 2024, with a winning bid of over 39.8 billion VND (starting price was 37.9 billion VND). At the time of recognition, CNT Group had already paid a deposit of over 7.58 billion VND.

Next, on October 20, 2024, the People's Committee of Binh Dinh province issued a decision to allocate 1,556 m2 of land (for residential purposes, with a 50-year term) to CNT Group for the construction of the project. On November 2, 2024, CNT Group held the groundbreaking ceremony for the Commercial Apartment Complex Project along Huynh Tan Phat Street.

CNT Group affirms that this event marks a significant milestone in the Group's real estate development strategy in the Central region and demonstrates CNT Group's long-term investment commitment in this promising market.

The commercial apartment complex project along Huynh Tan Phat Street covers an area of 1,556 m2, of which 933.6 m2 is for construction; the project cost is over 236 billion VND. The project scale includes 2 basement floors and 18 above-ground floors with a total floor area of 19,893 m2, and a total of approximately 181 apartments.

Regarding the schedule, within 12 months from August 28, 2024, the investor must complete the investment preparation procedures in accordance with current regulations to be able to commence construction of the project's components; construction of the project works shall not exceed 36 months from the date of issuance of the construction permit.

According to the consolidated financial report for the third quarter of 2024, CNT Group had a net profit after tax of over 20.3 billion VND, a decrease of more than half compared to the third quarter of 2023 (over 46.2 billion VND).

CNT Group explained that the reason for the decrease in financial revenue was more than VND 8.9 billion lower than the same period last year, due to the company focusing its resources on investment in purchasing and developing real estate projects during the first nine months, causing a gradual decrease in financial investment funds.

In addition, revenue from real estate business operations decreased by more than 11.3 billion VND due to the still sluggish real estate market and difficulties in debt recovery to hand over products for revenue recognition.

Through the capital contribution to establish a subsidiary, CNT Group transferred the Commercial Apartment Complex Project along Huynh Tan Phat Street, with a total investment of over 280 billion VND, to Blue Bay Quy Nhon Co., Ltd. for implementation.

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