What goal does LDG Group set after 1 year of business not completing the plan?

LDG Investment Joint Stock Company (LDG Group, code: LDG) has just announced information about the 2022 Annual General Meeting of Shareholders with the increase of profit plan to double in 2021 after 1 year of business not completing the plan and elected 2 more members to increase the number of members of the Board of Directors (BOD) of the company from 5 to 7 people.

In the announced list, there are two candidates: Mr. Ngo Van Minh – Deputy General Director of the company and Mr. Louis Nguyen – Chairman and General Director of Saigon Asset Management Company (SAM). Currently, Mr. Louis Nguyen does not hold any LDG shares.

In addition to changing the number of members of the Board of Directors, the upcoming meeting will present to shareholders the 2022 target with VND 2,337 billion in net revenue and profit after tax of VND 310 billion, 7.2 times and 2 times respectively. 1 times the low result of 2021.

Regarding the dividend plan, LDG Group submits to shareholders to consider adjusting the 2019 dividend payment form from cash to stock dividend at the rate of 7%, corresponding to the number of issued shares of 16.76 million unit.

In addition, the company also submitted to shareholders for approval a private placement of 120 million shares. Issuance ratio calculated according to the number of shares outstanding after paying the dividend is 46.84% and calculated according to the number of shares before paying the dividend in 2019 is 50.12%.

The asking price is expected to be 12,000 VND/share, equivalent to the amount of money you want to mobilize, 1,440 billion VND. The book value of LDG shares at the end of 2021 is VND 13,547/share.

The total proceeds from the offering will be used to invest in projects, of which VND 840 billion will be used to contribute capital to the Bai But – Son Tra beach resort project, and VND 400 billion will be used to invest in the Lot apartment project. C1 – Binh Nguyen New Urban Area, and VND 200 billion contributed capital to Binh Minh Seafood Joint Stock Company.

The predecessor of LDG Group is Long Dien Real Estate Company, with the initial charter capital of only VND 50 billion (in 2010). After 5 years of development, the charter capital amounted to 750 billion VND, by 2018 it increased to more than 2,000 billion VND.

In 2021 LDG Group has the following business results: Net revenue reached VND 321 billion and profit after tax reached nearly VND 141 billion.

It is known that in 2021 LDG plans to achieve 1,574 billion dong of net revenue (up 13%) and 301 billion dong of profit after tax (23 times higher than the previous year), only completing 21% of the revenue target and 47% of the target. profit.

As of December 31, 2021, the total assets of LDG Group reached VND 6,841 billion, up 23% compared to the beginning of the year. LDG’s inventory was recorded at VND 1,045 billion, down slightly from the beginning of the period. Short-term receivables amounted to VND3,508 billion, up 30% compared to the beginning of the period and accounted for 51% of total assets.

On the source side, liabilities increased sharply by 48% to 3,597 billion dong. In which, long-term debt increased from 552 million dong to 658 billion dong, short-term loan balance also increased slightly to more than 612 billion dong.