This time, the business is dominated by the family Nguyen Duc Cu is expected to raise chartered capital to 775 billion, or half the current level..
Xuan Mai Investment and Construction JSC (Xuan Mai Corp) is likely to have a third consecutive increase in capital since the beginning of 2017. That is only about a year and a half ago.
According to the Resolution of the Annual General Meeting of Shareholders 2018, Xuan Mai Corp will issue additional 27.5 million shares to raise capital this year, of which 20 million shares will be issued to existing shareholders at a ratio of 5: 2. 5 million shares were paid at the rate of 10% and 2.5 million shares were issued to ESOP employees.
Earlier, the company raised its chartered capital from 300 billion dong to 400 billion dong in 2017, up to 500 billion dong in the first quarter of 2018 and is expected to increase to 775 billion dong according to the resolution passed, now on.
A reasonable explanation for the increase of capital in Xuan Mai Corp, may be due to the size of the debt of the company is now bulging, with the balance to the end of March 2018 is about 2,200 billion VND, 4.5 times the chartered capital.
According to the financial report, as of March 31, 1818, total consolidated assets of Xuan Mai Corp reached VND 3,910 billion, mainly in receivables (VND 1,600 billion) , inventory (VND 987 billion), fixed assets (VND 637 billion).
In terms of business results, in Q1 / 2018, Xuan Mai Corp achieved revenue of 252.6 billion dong, up 40 percent against the same period of 2017 (178 billion dong). However, the company is losing after tax of VND23 billion (Q1 FY2017 loss of VND15 billion). Hopefully the losses are only temporary. Previously, in 2017, Xuan Mai Corp after tax profit of 99 billion, in 2016 is 73 billion.
The business plan of 2018 was approved by the General Meeting of Shareholders of Xuan Mai Corp., with the target of a total output value of 2.810 trillion dong, turnover of 2.667 trillion dong and after tax profit of 109.3 billion dong.
In addition to plans to issue 5 million shares to pay dividends at a rate of 10%, Xuan Mai Corp also plans to pay 2017 cash dividend at a rate of 10%. The annual shareholders' meeting approved VND 1.28 billion and paid VND 231.6 million to the BOD and the SB for VND1,026 billion to the Board of Management.
Xuan Mai Corp
Xuan Mai Corp., formerly known as Xuan Mai Plate Factory, was established by the Soviet Union on November 29, 1983 under Decision No. 1434-BXD / TCCB of the Ministry of Construction.
After several times of restructuring, Vinaconex Xuan Mai Construction Joint Stock Company (Xuan Mai), under Decision No. 1434 / QD-BXD, was equitized in 2003.
In fact, for the next decade, this joint-stock entity is still a member of Vietnam Construction and Import-Export Corporation (Vinaconex), operating mainly in the field of concrete and construction.
After many years of difficulties and losses, in 2013, Vinaconex sold all 51% of the capital (10.200.000 shares) in Xuan Mai Corp to Khai Hung Company Limited.
The ownership structure of Xuan Mai Corp. then changed some times, but in fact it was circulated in the group of investors related to Mr. Nguyen Duc Cu - Director of Khai Hung Company.
Mr. Cu is more widely known as Vice Chairman of LienVietPostBank (LienVietPostBank; LPB)
With the new "intestines", on April 21, 2014, the company officially removed the "Vinaconex" element in its name, transformed into Xuan Mai Investment and Construction Corporation (Xuan Mai Corporation or often abbreviated Xuan Mai Corp).
New leadership with good capital from LienVietPostBank and some other banks, has "changed meat", bringing Xuan Mai Corp. from a business is sinking into a recession into a construction and business units. Real estate is located in Hanoi.
In the field of construction, Xuan Mai Corp. has participated in a number of large projects such as Cho Mo Trading Center, Hanoi Paragon Project, Eco Green City Nguyen Xien Project or Liberia Plaza Project Liberation.
The abundant capital from the new owners also brought Xuan Mai Corp. to approach and soon asserted in a new field that is real estate business.
The company has completed the first phase of Xuan Mai Complex in Ha Dong and is currently implementing the second phase. At the same time, it has marked many projects such as Xuan Mai Riverside, Xuan Mai Me Tri Plaza, TNT apartment building. Kien Hung.
Not to stop in Hanoi, Xuan Mai Corp also "South advance", become an investor with a place in Ho Chi Minh City. With the initial project is apartment Binh Tri Dong Tan Binh.
Especially, at the beginning of 2018, Xuan Mai Corp has acquired Tan Thuan Tay residential area (Diamond City), Tan Thuan and Binh Thuan wards, through its subsidiary, Xuan Mai Construction Investment Company. in District 7 of Hoan Cau Group - that time was in debt crisis.
The transaction has been approved by the People's Committee of Ho Chi Minh City according to Decision 1051 / QD-UBND on 19/3. However, the transfer area does not include some land lots for resettlement purposes with the symbols V1 to V5 and V7. After returning to Xuan Mai Corp, the project has a new name, Eco-Green Saigon.
Insisting that, a few years ago, Hoan Cau Group had to mortgage Diamond City to Sacombank to secure some loans. Borrowers have difficulty finding repayment, when Sacombank has temporarily assigned to VAMC.
President of Sacombank Duong Cong Minh and owner of Xuan Mai Corp. Nguyen Duc Cu, remember, have a long time collaborating with each other at LPB. Since the day when Sacombank's top leader, Duong Cong Minh has been very active in dealing with bad debts - especially in relation to real estate, including by finding a number of partners / businesses.
Formally, Nguyen Duc Cu personally does not directly hold a position at Xuan Mai Corp. However, do not underestimate his influence on the business.
In the second half of 2017, Nguyen Minh Trang, the second daughter of Nguyen Duc Cu, holds a 55.07% stake in Xuan Mai. Not to mention his first son, Nguyen Bao Ngoc, is now a member of the Board of Directors and holds 5.09% of the capital of Xuan Mai until the end of 2017.