KBC

Vietnamese (VN)English (UK)Japanese (JP)Korean (KR)Chinese (CN)

KINHBAC CITY DEVELOPMENT

HOLDING CORPORATION

KBC discloses information on our operating situation and some projects

Kinh Bac City Development Holding Corporation (HSX: KBC) would like to inform:

About Lotus Hotel project at Pham Hung Street, Ha Noi:

Recently, there has been some information related to Lotus Hotel Project published by some news channels that do not convey the actual situation of this project. In order for shareholders to update information in an official and clear way, KBC would like to clarify in details as follows:

After the Project Company was transferred in 2017 at the request of the Hanoi government, the partner made adjustment to the project planning to no longer be as designed by KBC. Previously, with the desire to create an iconic project in Hanoi capital, right from the early days of Project implementation, KinhBac City had advocated employing a leading architectural design company called Foster and Partners to design the tallest building in Vietnam with a unique shape of a rice plant. According to the transferee’s subjective needs, they hired another design company to change the project planning into a complex of commercial and service works, hotels and houses for lease with a definite term. In 2020, immediately after receiving the re-transfer of the Project Company, KBC did concentrate all resources to complete the legal procedures of this project. However, after 02 years, due to the complicated developments of the Covid-19 epidemic and a number of other objective obstacles such as changes in legal policy (in 2020, a series of Laws documents related to the investment field were newly promulgated) and due to the general planning project of the capital has not been completed, etc…; the implementation of legal procedures related to the project was interrupted and stalled for quite a long time, leading to the situation that up to this point, the project has not yet completed a number of necessary procedures to be allocated land to implement and put it into operation. Therefore, in this information disclosure, Kinh Bac City affirms that: The information that Kinh Bac City was handed over 4ha of land is completely incorrect. Currently, the Corporation is trying their best to complete legal procedures for the purpose of implementing and putting the Project into operation as soon as possible.

About KBC is building an USD 5-billion hotel:

In the spirit of KBC’s working with a partner, KBC will put into the joint venture a land area of about 200 hectares in Trang Cat, Hai Phong City and the partner will contribute cash capital to build a high-class urban complex on the coast of Hai Phong. This urban complex will include many infrastructures such as high-class villas, high-class houses, high-class apartments, entertainment areas, convention centers, international exhibitions, a marina and a large, modern international 5-star hotel operated by Hyatt Hotel, Resorts and Casino. According to current regulations, if a company wishes to have a casino business license granted, the investment capital must be large. For example, Marina Bay Sands Casino in Singapore, which is known by many people, has an investment of several billion dollars. KBC's partner also wants to build a model of a huge hotel complex with more than thousand rooms and a performance center, etc to be eligible to apply for casino business license and to have the likelihood to be permitted by the authority. Due to its convenient location, it is only less than 1 hour travelling from Hanoi to Hai Phong, and from the center of Hai Phong to Trang Cat is only a few kilometers away. Currently, the expressway system connecting the surrounding neighbours has created an area with a population of 10 million, thus, this urban area is intended to serve as a regional center. In addition, due to the location, the project will have a beautiful marina and will connect to the marina and resorts on Cat Ba Island to create more international high-class services as well as differences compared to other projects. To conclude, the information that KBC spent USD 5 billion to build the hotel is incomplete. The company kindly sends this information to shareholders for acknowledgement.

About the expected profit:

Currently, KBC's equity is nearly VND 20,000 billion, if the expected return is 20% on equity, in the next 5 years, the total profit will be VND 20,000 billion, which is not too high. Profits will be contributed from newly licensed projects and the Corporation's existing projects. According to the current average market price of KBC, it is valued at 45,000 VND/share, which means the market value of KBC is more than VND 25,000 billion. This value is only slightly higher than the current book value of KBC's equity of nearly VND 20,000 billion. Potential opportunities in real estate in industrial parks, according to professional consulting companies, are advised to continue to perform well in the near future.

About the projects that KBC has signed a memorandum of understanding and investment attraction:

KBC mainly participates in the stages of compensation, leveling, infrastructure construction and then enters into a joint venture with this property; or sells or leases the infrastructure in accordance with the law. KBC does not conduct activities related to other business areas that are not KBC's strengths. Due to the characteristics of the infrastructure of industrial projects such as industrial parks, high-tech zones, economic zones, power plants, seaports, etc, the infrastructure construction work has some commons that it has to be compensated for clearance, leveling, building roads, electricity and water, etc. These tasks are the areas of KBC's strength while our partners only focus on the specialized construction factories.

Because of the right orientation on investment attraction and investment efficiency, KBC attracts a large amount of foreign investment capital every year. For example, in 2021, although the Covid-19 epidemic greatly affected production and business activities and attracted foreign investment, KBC still attracted more than USD 3 billion in foreign investment, accounting for a large and significant proportion in the total amount of foreign investment in Vietnam.

 

 

KBC's Chairman

Mr. DANG THANH TAM

Chairman

Read more

Events - Photos

svdv.jpg

Newsletter

Who's Online

We have 94 guests online

Home NEWS News - Events

Head Office:

  • Vietnam: Lot B7, Que Vo IP, Que Vo Dist., Bac Ninh Province.

Rep. Office:

  • Vietnam: 10 Hang Bot Ln., Dong Da Dist., Ha Noi
  • Japan: 5F, Ginza Koreda Bldg., 8-14-5 Ginza, Chuo-ku, Tokyo 104-0061