CII continues to increase ownership at NBB

Ho Chi Minh City Infrastructure Investment Joint Stock Company (Code CII) has just announced the purchase of additional shares at Nam Bay Bay Investment Joint Stock Company (Code NBB). The transaction will take place from July 1, 2024 to July 30, 2024. CII will purchase an additional 4.22 million NBB shares, thereby increasing its ownership from 50.31% to 54.53% of charter capital.

In addition, CII Infrastructure Construction JSC (CII E&C), another subsidiary of CII, has registered to sell 4.22 million NBB shares, reducing its ownership ratio from 4.22% to 0% of charter capital. Thus, this can almost be considered a transfer of NBB shares within the CII ecosystem.

Previously, CII E&C also transferred 7.811 million NBB shares to CII, helping CII increase its ownership from 42.51% to 50.31% of charter capital at Nam Bay Bay. The amount of NBB shares held by CII E&C has decreased to only 4.22%.

Also in March 2024, CII's Board of Directors passed a resolution, approving CII to increase its ownership ratio at NBB to a maximum of 79.8%.

Real estate revenue continues to decline, interest expenses increase

Regarding the business activities of Ho Chi Minh City Infrastructure Investment, in the first quarter of 2024, the company recorded revenue of VND 878.1 billion, an increase of 17.4% over the same period. Of which, gross profit increased by 71%, reaching VND 471.4 billion.

In CII's revenue structure, revenue from traffic toll collection activities nearly doubled, accounting for 678.9 billion VND. Meanwhile, revenue from real estate business activities continued to decrease by nearly half, to only 171.7 billion VND.

Financial revenue increased sharply to VND532.3 billion, equivalent to an increase of 145%. This sharp increase in financial revenue was due to the recognition of revaluation gains on investments in associates of VND430.3 billion.

In addition, financial expenses also increased, accounting for 450.8 billion VND. The majority of which was interest expense with 376.6 billion VND. Compared to the same period last year, interest expense increased by 30.8%. Showing that interest expense is still a big problem for CII.

After deducting all expenses and taxes, CII's remaining after-tax profit reached VND 322.8 billion, an increase of 826.8% compared to 2023.

Liabilities are 3 times higher than equity.

At the end of the first quarter of 2024, CII's total assets were recorded at VND 36,205 billion, an increase of more than 9% compared to the beginning of the period. Of which, cash and cash equivalents accounted for VND 2,246.6 billion.

CII currently records up to 4,108 billion VND in assets in the form of receivables. Of which, the provision for short-term doubtful receivables has increased by nearly 70 billion compared to the beginning of the year, accounting for 231 billion VND. Inventories have also increased nearly 4 times, accounting for 2,125 billion VND.

Regarding capital structure, CII recorded liabilities of VND26,677 billion, nearly 3 times higher than equity. Of which, short-term debt accounted for VND4,847 billion, most of which were loans from banks and securities companies.

Long-term debt accounts for 15,274 billion VND with bank loans accounting for 14,252 billion VND. In addition, there are 4 bonds issued with a total value of 1,022 billion VND.

Pham Thi Khanh Linh