Dear shareholders and investors,
In the past few days, HDC stock has had unusual fluctuations. Moreover, there are a number of articles giving incorrect and inaccurate information and judgments about the Company’s production and business activities, causing panic for shareholders as well as negative impact on stock price, bad image of the Company.
In order for shareholders to have official information, the Board of Directors of the Company would like to inform some relevant contents as follows:
1. About the Residential Area project on the west side of 3/2 Street:
This is a company project whose land fund has been mostly auctioned since 2006. The origin is land allocated in the form of land exchange to create infrastructure investment capital of BR-VT province. For this type of land, according to Article 29 of Decree 84 of the Government, 2007: “Non-agricultural land used before July 1, 2004 by economic organizations because it was allocated land to create capital for construction of facilities; Non-agricultural production and business land of households and individuals that are not allocated or leased by the State, now economic organizations, households and individuals may continue to use them stably and long-term for non-agricultural purposes, not having to pay land use levy when allowed to change the land use purpose to residential land, and receive compensation for land at the price of residential land when the State recovers the land. However, the 2013 Land Law does not mention this type of land. When the Company implements the project, the State has charged the land use fee on the basis that it is commercial and service land converted to residential land, and at the same time, it is not allowed to deduct the land area converted to public roads. Therefore, the Company has temporarily fulfilled its financial obligations under this decision as well as recognized the costs of the project. Currently, the Company wants to be entitled to the benefits of Decree 84. If possible, the Company will reduce more than 100 billion VND as well as increase the Company’s profit accordingly.
2. Regarding the transfer of shares of Vung Tau Ocean Entertainment Construction Joint Stock Company
This is done through cooperation with an investment partner to build the Dai Duong Tourist Area project, the value of the transfer of more than 11,404,407 shares is VND 1,132,000,000,000 ( equivalent to more than VND 100,000/share). This will bring great revenue and profit to the Company in 2022 and 2023 as well as help the Company have the financial resources to successfully implement the Ocean Resort project in the area of 8.6 hectares on the sea front. This is the part of the project that is carried out independently, regardless of the share ownership ratio of the parties in Vung Tau Ocean Company.
3. About the fact that some articles, when writing and analyzing the Company’s shares, contain inaccurate content, misleading judgments while not directly meeting and finding out, we suggest that the authors contact the Company for complete and accurate information during the writing process so as not to adversely affect the psychology of investors as well as the Company’s shareholders.
The Company’s leadership affirms that it is always in the interests of the Company as well as its shareholders to develop the Company in the best way.
Sincere thanks to our shareholders as well as investors for always accompanying the Company!
