Mr. Le Viet Hai: Hoa Binh Construction is about to collect a debt of more than 2,800 billion VND

Hoa Binh Construction Group said that in the fourth quarter it will collect more than VND2,800 billion in debt from Nova, Sungoup, Gamuda, Sunshine, Vingroup, Cocobay, and Ecopark.

This is the information Mr. Le Viet Hai - Chairman of the Board of Directors of Hoa Binh Group Joint Stock Company (HBC) shared at the 2nd Extraordinary General Meeting of Shareholders on October 17 when asked about the company's receivables.

Accordingly, the company's current receivables are 9,192 billion VND, of which the expected debt collection of 2,836 billion VND in the fourth quarter will come from businesses with the most debts, such as Nova, Sungoup, Gamuda, Sunshine, Vingroup , Cocobay, Ecopark..... By Lunar New Year, the expected debt collection is 4,846 billion VND. The company's integration and provisioning in the fourth quarter will not have many changes.

Regarding cash flow, the company said that on average, it earns 150-200 billion VND per month from completed and ongoing projects. In addition, the company has won 12 lawsuits and is gradually recovering money from the parties. As for FLC, the company has collected 57% of the principal debt and has been recovering about 28 billion VND from Cocobay. In the near future, the company will earn more than 261 billion VND from winning the lawsuit against Vi Khoa Hoc Company Limited and Urban Development Joint Stock Company.

Mr. Le Viet Hai (center) at the second extraordinary shareholders' meeting on the afternoon of October 17. Photo: Thi Ha — Mr. Le Viet Hai (center) at the second extraordinary shareholders' meeting on the afternoon of October 17. Photo: *Thi Ha*

As of December 31, 2022, the company had outstanding debts at 14 banks, but by October 16, it had settled its debts at 7 banks with a payment of VND 1,327 billion. Currently, the total outstanding debt at 7 banks is VND 4,756 billion, a decrease of VND 6,083 billion compared to the beginning of the year.

However, this year the company's consolidated revenue is only about 7,800 billion VND and the profit is still more negative than expected. The company has not liquidated the assets of Matec Company because the partner is having difficulty in financial management.

"I take personal responsibility for Hoa Binh's continuous difficulties. I would like to thank shareholders and employees for their understanding during this time," Mr. Hai confided.

Mr. Hai also shared that because the company is facing difficulties, salaries have been delayed for 3-4 months, and even reduced by 50%, but employees are still dedicated to their work. CEO Le Van Nam has not received any salary yet.

In its 2024-2028 development plan, Hoa Binh said it will deploy many projects in foreign markets such as the US, Vanuatu, Australia, and Africa. The company is signing an agreement in principle with an international investment and development group to cooperate strategically and support international business expansion. The company cannot disclose the partner's name due to confidentiality issues.

Regarding foreign markets, HBC believes that Africa has the most potential, with an abundant labor force. Meanwhile, Australia and the US have legal and technical requirements, so it is challenging to bring workers, engineers, and managers to work. However, in these markets, profits will be high due to the price difference of 5-8 times. In the near future, if HBC can overcome the requirements of the US and Australia, according to Mr. Hai, it will certainly be highly effective. HBC also has the opportunity to learn from the experience and quintessence of these developed countries. Next year, HBC will have revenue in foreign markets. Revenue from foreign markets is expected to reach 1 billion USD by 2028.

Also at the meeting, Hoa Binh shareholders approved the plan to issue a maximum of 220 million shares privately at an offering price decided by the Board of Directors but not lower than VND12,000 per share. The privately issued shares are subject to a minimum transfer restriction of 3 years for strategic investors and 1 year for professional securities investors, with implementation period of 2023-2024.

The mobilized amount of about VND 2,640 billion is expected to be used to supplement business capital and pay off debts.

Hoa Binh has approved a plan to issue 54 million individual shares to convert debt at VND12,000 per share. The conversion ratio is 1.2:1, meaning every VND12,000 of debt will be converted into 1 share. The shares are restricted from transfer for one year and are expected to be implemented in 2023-2024.

Thi Ha

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