(Tien Phong) HVC Group successfully conducted an extraordinary shareholders' meeting, formally unveiling its inaugural real estate project

(Tien Phong) HVC Group successfully conducted the 1st Extraordinary General Meeting of Shareholders in 2024, during which two primary resolutions were approved: the issuance of private shares to augment charter capital and the initiation of the first real estate project.

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Two significant topics were raised at the Congress.

On the morning of August 16, at the Wyndham Garden Hotel Hanoi, HVC Investment and Technology Joint Stock Company (HVC Group, HOSE: HVH) successfully conducted its inaugural Extraordinary General Meeting of Shareholders (EGM) for 2024.

In his opening address, Mr. Tran Huu Dong, Chairman of the Board of Directors and presiding officer of the meeting, stated: “Following a period of business operations, the Company's Board of Directors has diligently and thoroughly prepared to venture into the real estate investment sector. The timing is now favorable for HVC to pursue investments in real estate. A critical element in executing a project is the enhancement of financial capacity. Consequently, the primary agenda of this extraordinary General Meeting of Shareholders is for the Board of Directors to present a plan for the issuance of additional shares to augment capital, as well as to provide a detailed introduction to the project, enabling shareholders to fully comprehend, evaluate, and make informed decisions.”

On behalf of the Presidium, Mr. Le Van Cuong, a Member of the Board of Directors and the General Director of the company, presented the proposal for the issuance of individual shares to augment the charter capital. The objective of this initiative is to enhance working capital to support the company's production and business activities, as well as to provide capital for increasing the charter capital of the subsidiary, HVC Ho Guom Hoa Binh Company Limited, to execute the Garden Villas project, which integrates afforestation with eco-tourism in Mong Hoa commune (Hoa Binh city, Hoa Binh province).

The anticipated funds to be generated from the share offering to professional investors amount to 300 billion VND. Of this total, the company intends to allocate 250 billion VND for the execution of its inaugural real estate project.

On behalf of the company's Presidium, Mr. Do Huy Cuong, Vice Chairman of the Board of Directors, presented a proposal to authorize the Board of Directors to make decisions and implement matters pertaining to capital mobilization, oversee the execution of the Garden Villa project, promote afforestation, and integrate eco-tourism initiatives.

"Presenting" real estate project in Hoa Binh

The Garden Villas, Forest Plantation, and Eco-tourism project encompasses a total area of 28.17 hectares, serving a population of approximately 1,396 residents in Mong Hoa Commune (Hoa Binh City, Hoa Binh Province). The initiative features two subdivisions, Northern Europe and Southern Europe, comprising 263 villas designed in a European architectural style.

The total projected investment for the project amounts to 791.8 billion VND, encompassing construction expenses, site clearance costs, and resettlement assistance. The implementation timeline spans from 2023 to 2026, specifically: in the first quarter of 2023 through the fourth quarter of 2023, investment preparation procedures will be conducted; from the first quarter of 2024 to the second quarter of 2026, site clearance will occur, along with the investment in the construction of project structural components and rough construction, culminating in the completion of the building's exterior; by the third quarter of 2026, the investment in construction will be finalized, and the project will be operational.

The project encompasses a long-term land use period for residential areas, while the land use period for commercial and service areas is set at 50 years.

To date, 89.95% of landowners and land users involved in the project have consented to receive compensation for site clearance. The screening for bombs, mines, and explosives at the project site, aimed at ensuring safety and addressing the aftermath of the war, has also been finalized. Presently, the project is nearing the completion of legal procedures and is preparing to commence construction of the model villa.

The project was previously approved by the People's Committee of Hoa Binh Province to amend the detailed construction planning at a scale of 1:500 in December 2021.

On March 14, 2023, the People's Committee of Hoa Binh Province ratified a decision endorsing the investment policy for the project. Subsequently, on May 15, 2024, the People's Committee of the province issued a decision approving HVC Investment Company Limited as the project investor for Hoa Binh Sword Lake.

At the Congress, HVC Group officially unveiled and presented to shareholders the Garden Villas, Forest Plantation, and Eco-tourism project in Mong Hoa Commune, Hoa Binh City, commercially known as Euro Villas.

Euro Villas is the sole development in Hoa Binh that boasts the unique advantage of a “lake in the heart of the city,” situated along the shores of Du Lake and regarded as a valuable gem of this “epic land.” The project encompasses all three proximity points: “first near the market, second near the river, and third near the road,” as it is positioned adjacent to National Highway 6, approximately 20 km from the center of Hoa Binh City, around 10 km from the Da River, and about 60 km from the National Convention Center.

The project is not only a high-end resort but also emphasizes the establishment of a network of utilities and modern, synchronized health and mental care services. It includes a range of valuable amenities, such as a nine-story hotel apartment complex with a floor area of nearly 1,700 m², dining areas, a clubhouse, a mineral bath spa, and a children's play area.

At the Congress, shareholders unanimously approved the report and proposal of the Board of Directors regarding the Private Share Issuance to increase charter capital, receiving 100% of the votes, as well as the proposal granting authorization to the Board of Directors to execute the real estate project.

In the initial six months of 2024, HVC Group (www.hvcgroup.net) has realized encouraging and favorable business outcomes. Net revenue reached 57% of the 2024 target, reflecting a 52% increase compared to the first half of 2023. Profit after tax accounted for 63% of the 2024 objective, representing a 2.24-fold increase over the same period in 2023.