Hoang Quan Real Estate (HQC) Chairman takes advantage to sell 16.3 million shares

HQC shares just increased in price, Chairman immediately registered to sell 16.3 million shares

At the 6th trading session, August 4, 2023, HQC shares of Hoang Quan Real Estate Trading and Services Consulting JSC (HQC) increased to VND 4,900/share and recovered to the price level achieved in May.

It is worth mentioning that right after the stock peaked, Mr. Truong Anh Tuan - Chairman of the Board of Directors 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.

Hoang Quan Real Estate Company has just recovered its shares, the chairman is competing to sell 163 million shares, image 1 — Hoang Quan Real Estate (HQC) Q2 profit decreased, more than 1,000 billion VND borrowed from units and individuals on the financial statement (Photo TL)

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

Meanwhile, Nam Quan Investment JSC, a unit related to Ms. Truong Nguyen Song Van, Deputy General Director of Hoang Quan Real Estate, and also the daughter of Mr. Truong Anh Tuan, has registered to buy 20 million HQC shares. The transaction was conducted by negotiation from August 2 to August 25.

With the number of transactions relatively matching as above, it is possible that this is an internal transaction between Mr. Tuan and his relatives.

Regarding the price movement of HQC shares, this code hit bottom in November 2022 at 1,860 VND/share. After many recoveries, HQC code has now reached 4,900 VND/share, 2.63 times higher than the bottom.

Second quarter profit dropped 88.2%, hundreds of billions of dong to be paid are still recorded on the financial statements

According to the business results report, HQC's net revenue in the second quarter reached 103.2 billion VND. Of which, cost of goods sold accounted for 84.5 billion, gross profit reached 18.7 billion VND. Gross profit margin decreased from 18.3% to only 18.1%.

During the period, both financial revenue and financial expenses decreased sharply, recorded at 578 million and 504 million VND respectively. Sales expenses decreased nearly 10 times, down to 672 million. However, business management expenses still accounted for 9.3 billion VND.

HQC's profit after corporate income tax reached 1.2 billion VND, down 88% compared to the same period last year. The accumulated profit for the first 6 months of the year only reached 2.3 billion VND, equivalent to 1.6% of the year's profit plan. With this figure, it is relatively easy to understand that HQC broke the year's profit plan.

Another notable thing is that on the financial statements of Hoang Quan Real Estate, this unit is still recording nearly 1,000 billion VND in assets in the form of payables to other units and individuals.

Of which, the amount payable recorded as borrowed money from individuals and organizations by the end of June has reached 938 billion VND. In addition, the company also has to record short-term payables with 105.1 billion VND in interest expenses, 449.7 billion VND in project costs and 8.9 billion VND in brokerage costs. Basically, this amount of assets is HQC's debt to its partners.

On the other hand, short-term receivables accounted for 2,981.1 billion VND, showing that the company has not optimized its capital allocation. Cash only accounted for 27.9 billion VND and HQC also did not have any large deposits in the bank.

Two social housing projects of HQC in Vinh Long were revoked.

In report No. 3180 of the Department of Natural Resources and Environment of Vinh Long province recently announced the revocation of 11 slow-moving projects in the province. It also mentioned 2 projects of HQC.

Including: HQC Hoa Phu social housing construction project of Hoang Quan Mekong Real Estate Trading Services Consulting Joint Stock Company (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 Trading Services Consulting Joint Stock Company in My Hoa commune, Binh Minh town with an area of 1.66 hectares.

Hoang Quan Mekong is also a company with Mr. Truong Anh Tuan as Chairman of the Board of Directors. The project has a total investment capital of 249 billion VND, a scale of 236 apartments with 211 social houses and 25 commercial houses.

Binh Minh Industrial Park Social Housing Project, with HQC as the co-investor, belongs to the Binh Minh Port - Industrial Park - Residential Area cluster with a total investment capital of 618 billion VND with 1,836 apartments.

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