Vinaconex announced plans to double the charter capital of Vinaconex 25.

DNHN - Vinaconex also approved the purchase of nearly 7.96 million VCC shares of Vinaconex 25 with a total value of 79.59 billion VND through an existing shareholder share offering plan.

The Board of Directors of Vietnam Import-Export and Construction Joint Stock Corporation (Vinaconex - HoSE: VCG) just announced a plan to raise the charter capital of Vinaconex 25 Joint Stock Company (HNX: VCC) from 120 billion VND to 240 billion VND. Concurrently, Vinaconex authorized the purchase of nearly 7.96 million VCC shares with a total value of 79.59 billion VND through an existing shareholder share offering plan.

According to information provided by the company, the proceeds from this offering will be used to supplement working capital for production and business activities, particularly to repay bank loans due in 2023, including BIDV Bank Quang Nam branch and a limit loan contract with Vietinbank Quang Nam branch.

Nevertheless, the semi-annually reviewed financial report as of June 30, 2023, reveals that Vinaconex 25's liabilities have increased significantly, reaching 1,127.8 billion VND, an increase of 87.6 billion VND compared to the beginning of the year. The current total business debt is 332 billion VND, with interest rates ranging from 7.9% to 12% per year from various loan sources.

Although Vinaconex 25's revenue, sales, and service provision in the first half of the year increased to 485.6 billion VND, a gain of 106.4 billion VND compared to the same period in the previous year, the subsequent profit tax increased fivefold to 3.2 billion VND. However, the business has only completed 33% of the revenue plan and 15% of the profit target after 6 months, compared to the full-year plan target of 1,489 billion VND in revenue and nearly 21.5 billion VND in profit after taxes.

P.V (t/h)