Kinh Bac Urban Development Corporation (stock code: KBC) has just sent a document to the Ho Chi Minh City Stock Exchange (HoSE) approving the use of 10 million KBC shares of Chairman of the Board of Directors Dang Thanh Tam as collateral to fulfill the obligation to repay loans in 2024 at credit institutions.

The guarantee period is calculated from the date of the loan 17-6 until all of KBC's debt repayment obligations are completed.

After the above information, KBC shares closed the session on June 19 down 1.64% compared to the reference price, down to VND29,900/share. With this price, the estimated value of the above shares is VND299 billion.

According to a recent report, Mr. Dang Thanh Tam is holding more than 138 million KBC shares, equivalent to about 18% of Kinh Bac's charter capital. Thus, the number of shares that Mr. Tam used as collateral for bank loans only accounts for 7.2%.

Regarding Kinh Bac's business activities, the financial report for the first quarter of 2024 shows that the company's net revenue only reached VND 152 billion, a decrease of more than VND 2,000 billion compared to the first quarter of 2024 due to no revenue from land and infrastructure rental.

After deducting cost of goods sold and other expenses, Kinh Bac reported a loss of VND85.6 billion, while in the same period last year it reported a profit of VND940 billion, ending a streak of four consecutive profitable quarters. With the above results, the company is still far from its 2024 profit target of VND4,000 billion.

As of the end of March 2024, Kinh Bac's total liabilities recorded up to VND 19,193 billion (an increase of nearly VND 6,000 billion compared to the end of 2023), mainly arising from long-term payables to Saigon - Ham Tan Tourism Joint Stock Company of VND 5,650 billion.

The value of Kinh Bac's cash and cash equivalents portfolio by the end of the first quarter decreased by more than VND260 billion, down to VND579.9 billion.

According to the 2024 annual general meeting of shareholders, Kinh Bac plans to submit a plan to privately offer 250 million KBC shares with a total issuance value of VND 2,500 billion to professional securities investors.

Kinh Bac said the proceeds from the offerings will be used to supplement working capital for production and business activities, restructure debts, increase operating capital, invest in subsidiaries, joint ventures, and associates...