2022-01-11 17:17:00

Cen Land: Charter capital increase, target revenue of 10,000 billion VND in 2022

Cen Land plans to increase charter capital to over 4,637 billion VND along with target revenue of 10,000 billion VND in 2022.

Ambitious plan 2022


On January 10, 2022, Century Land Joint Stock Company (HSX: CRE, Cen Land) has just held the Extraordinary General Meeting of Shareholders 2022. Many important decisions were approved by shareholders after the meeting.


Cen Land holds the Extraordinary General Meeting of Shareholders in 2022


The Extraordinary General Meeting approved the capital use plan of the public offering to existing shareholders in 2021, the change of some business lines, and the share issue for increasing charter capital. The meeting elected Ms. Nguyen Minh Hoi – Cen Land permanent deputy CEO, Cen Saigon chairman to the Board of Directors of Cen Land for the term from 2018 to 2023.


Ms. Nguyen Minh Hoi was elected a member of the Board of Directors for the term from 2018 to 2023.


In order to improve its financial capacity and business strength, Cen Land has approved the plan to issue more than 262 million shares. About 60.5 million bonus shares at the rate of 30% and approximately 201.6 million shares are offered at the ratio of 1:1 to existing shareholders at the price of 10,000 VND/share. Cen Land's charter capital is expected to increase from 2,016 billion VND to more than 4,637 billion VND.


The company plans to use 500 billion VND to repayment of principal of issued bonds; 500 billion VND to partial transfer of housing products to be formed in the future under Xuan Thanh project; 800 billion VND to partial transfer of real estate products to be formed in the future under Khe Cat residential area in Minh Thanh ward, Quang Yen town; the remaining 216 billion used to pay off loans.


Sharing at the meeting, Cen Land chairman Nguyen Trung Vu said that in 2021, Cen Land will achieve revenue of more than 5,700 billion VND, profit after tax is over 450 billion VND.


Explaining about the sudden increase in revenue, Vu said that in 2019, Cen Land's properties for sale are apartments for workers in the city and homebuyers from other provinces. But in 2020, the impact of the COVID-19 pandemic resulted in the transaction volume of these products sharply decrease. Many apartment projects are almost unsold. In contrast, land plots and villas have increased in price, and many projects have tripled their values. After the social distancing is over, the wave of real estate investment has increased.


If leaders are not agile enough to adapt to the market, it is likely to face difficulties in the next few years. Cen Land is looking for reasonable projects to buy, does not follow the waves of the market, considers and evaluates each project thoroughly. As a professional real estate development unit, Cen Land has a very careful calculation and has a long way to go,” said Cen Land chairman.


Vu is confident with a revenue of 10,000 billion VND, if the market is good, it can be higher, at 12,000 - 14,000 billion VND. Even if the market freezes, Cen Land has well prepared.


Cen Land and its financial partners are willing to invest more to get higher profits. In 2022, Cen Land continues to invest in many projects. Real estate developers have the desire to shake hands with Cen Land due to its experience in project concept, financial capacity and powerful sales forces. Cen Land has cooperation with investors including Tuan Chau, Xuan Cau, FLC, among others.


When Cen Land purchases a project, customers will buy it because of the project appraisal by Cen. Customers really feel secure to follow our project investments," Vu affirmed.


Highest revenue in history


Overcoming the difficulties and challenges of the pandemic, 2021 marks the spectacular growth and the highest revenue in the history of Cen Land.


Only in the first 10 months of the year, the company's revenue reached 5,000 billion VND, accounting for 100% of the whole year 2021 plan approved by the General Meeting of Shareholders. Cen Land's investment portfolio includes 6 projects: Louis City Hoang Mai, Hinode Royal Park, Binh Minh Garden, C-Sky View, Casamia Hoi An and Trinity Tower.



The secondary investment segment recorded a revenue of 3,371 billion VND, up 533% over the same period in 2020. In which, Hinode Royal Park and Louis City Hoang Mai contributed mainly to Cen Land's 9-month revenue.


Cen Land has completed the stock issuance to raise charter capital. The total number of shares offered and issued is over 105 million shares, with a par value of 10,000 VND. The total value of shares offered and issued at par value is over 1,055 billion VND. After issuing about 105.6 million shares, the charter capital increased to about 2,016 billion VND.


To prepare resources for the implementation of the 2022 plan and join the billion-dollar club, Cen Land has signed strategic partnership agreements with financial institutions and major developers.


Recently, Cen Land signed a comprehensive strategic cooperation agreement with I.P.A Investments Group JSC (I.P.A, HNX: IPA). From December 3 to 15, I.P.A registered to buy 22 million CRE shares (10.66 per cent of CRE's capital).


Cen Land has also cooperated with major real estate developers such as Tuan Chau Group, Hong Lam Xuan Thanh, and more in 2022.


On the stock market, CRE shares continuously gained more points and at the end of the trading session on January 10, 2022, CRE shares were traded at around 43,500 VND/share. CRE is aiming to become a blue-chip in 2022 with a market capitalization of tens of trillions of dong.