Danh Khoi Group Joint Stock Company (stock code: NRC) plans to raise VND1,000 billion from private offerings. Of which, VND195 billion will be used to pay for a part of the project at Dai Nam Residential Area (National Highway 13, Chon Thanh, Binh Phuoc) of tycoon Huynh Uy Dung (Dung "Lo Voi").

The information was stated by Danh Khoi in the presentation at the shareholders' meeting at the end of June.

Dai Nam residential area has an area of ​​about 100 hectares, approved for detailed planning 1/500 in 2018. The project is located on the frontage of National Highway 13, near many large industrial parks of Binh Phuoc and is considered convenient for trading.

In 2022, the press reported that Mr. Dung "Lo Voi" signed a memorandum of understanding to buy and sell this residential area to a business in Hanoi, expected to earn 2,400 billion VND. However, later, the partner company did not properly execute the contract to transfer the deposit of 100 billion VND within 7 days, so the transaction was canceled.

Danh Khoi Group was established in 2014, with a charter capital of nearly VND926 billion as of March 31. Some of the group's key projects include Astral City (Binh Duong), The Welltone Luxury Residence (Khanh Hoa), Takashi Ocean Suite Ky Co (Binh Dinh)...

In 2023, the company achieved revenue of nearly VND 5 billion, down 97%, and after-tax profit of nearly VND 12 billion, an improvement compared to the loss of nearly VND 73 billion the previous year.

In the first quarter of this year, the company made a profit of nearly VND3 billion, while in the same period last year it lost nearly VND17 billion. Financial debt was more than VND389 billion, mainly short-term debt. As of March 31, the company had more than VND554 million in cash.

In this year's capital usage plan, if successfully mobilizing 1,000 billion VND from investors, Danh Khoi plans to use 520 billion VND to pay tax debts, bond debts and debts at BIDV bank.

In addition to purchasing part of Mr. Dung "Lo Voi" project, Danh Khoi also wants to buy Ham Thang - Ham Liem (Binh Thuan) small-scale industrial and commercial residential area. The transaction is expected to be implemented in the fourth quarter of this year and in 2025.

The company's management believes that in 2023, the difficult situation will still exist for real estate businesses. The company has tried to restructure and improve its apparatus to contribute to reducing costs, restructuring the investment portfolio, re-evaluating the priority of projects, creating a premise for development in the next stages in the future.

Although the company has made great efforts to change its business methods and solutions, difficulties from the economy and real estate market still have a great impact on the business activities of its partners.

Therefore, although the company's financial situation has improved compared to last year, there are still some outstanding financial obligations to the State and bondholders. The Board of Directors aims to restructure capital sources and investment and business activities this year.