It is necessary to win VND1 trillion of debt repayments to Dong A Bank this year, but Phat Dat will not borrow money from credit institutions but will restructure its internal resources and sell its inventories to operate.
On March 22nd, Phat Dat Real Estate Development Joint Stock Company held the annual shareholders’ meeting in 2017. Accordingly, this year, Phat Dat set a target of sales and services of VND2,000 billion after-tax profit of VND336 billion. With the results achieved in 2016, Phat Dat will pay a dividend of 10%.
With this plan, Phat Dat plans to deduct 6% of its after-tax profits into development investment fund, 5% for welfare fund and bonus fund. Share dividend to shareholders at 85% of profit after tax, equivalent to VND286 billion.
The company also plans to pay dividends on shares to increase charter capital by 10% in 2017. Thus, Phat Dat plans to issue VND20.2 million shares in the second quarter of this year by the line The proceeds from undistributed profit after tax at the end of 2016.
Phat Dat’s plan for 2017 is to restructure its financial assets by reducing inventory, reducing debt to equity and increasing return on total assets. The company has also set a target of VND1 trillion in revenue to pay off its debts and reduce debt.
At the same time, focus on implementation, construction of BT projects to exchange infrastructure for high-value land in the center of Ho Chi Minh City. Continue to build and operate projects on the existing land fund.
Specifically, Phat Dat is focusing on developing large BT projects. For example, Phan Dinh Phung Sports Center Construction Project has completed the project feasibility study. The project of building Orthopedic Trauma Hospital in Binh Chanh is also expected to start construction in the second quarter of 2017.
Most recently, Phat Dat announced Ho Chi Minh City approved the policy for research, investment bridge Thu Thiem 4 connecting District 7 with Thu Thiem new urban area with a total investment of VND5,000 billion.
Answering shareholder questions about cash flow to operate the company and gaining an after-tax profit of VND336 billion, Nguyen Van Dat, Chairman of the Management Board and General Director of Phat Dat Company, Everich Infinity also sold 30% of the apartment, will sell VND370 billion. The Bau Ca project in Quang Ngai is expected to generate a profit of VND30 billion. Block C of the River City project will earn an additional VND20 billion.
“If you transfer the Everich 3 to the partner then the profits will be more. In 2017, the company will not only sell products, transfer projects to create capital flows rather than borrow money from banks. Phat Dat will develop with internal strength, “said Mr.Dat.
Previously, the report at the Phat Dat conference said that by the end of 2016 the company has completed the business plan targets set by shareholders in 2016 with the turnover of nearly VND1,500 billion and the net profit of VND243 billion.
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In the past year, the company has joined with An Gia Investment and Japanese Creed Investment Fund to set up Phu Hung Company to continue developing the remaining 11 blocks of the River City project. The company has sold more than 1,000 units of blocks A, D, L and continues to carry out construction work to prepare for the sales plan in 2017. The Everich Infinity project has handed over the apartment for the first customer.
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