Dat Xanh Group shall issue 50.3 million shares to increase the charter capital to almost 3,033 billion dongs. This year the company will focus on developing projects with area from 5 hectares and next year will be for projects with areas from 20 hectares.
In the afternoon of March 31, Dat Xanh Real Estate And Services Joint Stock Company held 2017 General Shareholders Meeting. Accordingly, in 2017 Dat Xanh will increase the corporation’s charter capital from more than 2,530 billion dongs to almost 3,033 billion dongs.
This increase will be executed by phases. In phase 1, Dat Xanh will issue almost 33 million shares to pay dividend of 2016 with the rate of 13%. Additional charter capital is about 329 billion dongs.
Dat Xanh is powerfully shifting from brokerage firm to project development company
In phase 2, the company will issue more than 14.3 million shares for 2017 dividend advance and 3 million of preference shares for staff of the company – ESOP. Total additional charter capital after this phase is almost 173 billion dongs.
At the meeting, Dat Xanh also decided to pay 712.5 billion dongs for the cooperation with Sai Gon Real Estate Joint Stock Company in forming Sai Gon Riverside Investment Limited Company. Specifically, Sai Gon Riverside Investment Limited Company will be established with total charter capital of 950 billion dongs.
In which, Sai Gon Real Estate Company will contribute 237.5 billion dongs, accounting for 25% of charter capital, the remaining 75% is from Dat Xanh with 712.5 billion dongs. This capital contribution is together with Sai Gon Real Estate to develop SaigonRes Riverside project in Hiep Binh Chanh Ward, Thu Duc District, HCMC.
In 2017, Dat Xanh sets the target of achieving net revenue of 3,300 billion dongs, increased by 131% compared to 2016. Profit after tax is 700 billion dongs, increased by 130% YOY. Dat Xanh also aims to become a professional project developer to buy projects with good locations and complete legal basis.
At the moment Dat Xanh’s land fund is 400 hectares with the direction of developing projects with area from 5 hectares in 2017 and focus of the coming years will be for projects with areas from 20 hectares.
The Board of Management also wanted to decide the granting of loans and project guarantees for subsidiaries with loan value not exceeding 20% of total asset value as specified in the most recent financial report.
The Board of Management also based on 2017 business results to decide dividend advance without exceeding 10% of nominal price. In which, the rate of dividend advance in form of shares is 5% of charter capital at the time of finalizing shareholder list.
Previously in a report at the meeting, Mr. Nguyen Khanh Hung – Vice Chairman of the Board cum General Director of Dat Xanh Company reported that in 2016 Dat Xanh implemented 24 projects, achieving a net revenue of 2,506 billion dongs and after-tax profit of 537 billion dongs.
In 2016, Dat Xanh executed M&A for 12 projects, increasing the total number of projects owned by Dat Xanh to 27. Since 2015, Dat Xanh’s charter capital has increased 4 times, from 750 billion dongs to more than 3,000 billion dongs.