Kinh Bac City Development aims higher in 2019

Thursday, Apr 11, 2019 08:23

In 2018, land rental fees exceeded VND2 trillion, contributing up to 78 per cent of the total turnover and up 181.6 per cent year-on-year. — Photo

Industrial zone developer Kinh Bac City Development Share Holding Corporation (KBC) has set higher business targets for 2019, aiming for total consolidated revenue of VND3.9 trillion (US$167.4 million) and net profit of nearly VND1.04 trillion ($44.5 million).

These figures are 12 per cent higher in revenue and 28 per cent in profits compared to last year, the company’s 2018 annual report released yesterday showed.

Last year was successful for Kinh Bac City Development, as its net revenue reached nearly VND2.5 trillion, almost double 2017. In particular, land rental fees exceeded VND2 trillion, contributing 78 per cent of total turnover and up 181.6 per cent year-on-year.

According to the report, the company’s land fund for industrial park (IP) development is 5,188ha, equivalent to nearly 5.5 per cent of the total industrial land area of ​​the country. Land area for urban development is 1,058.6ha.

In recent years, KBC's business has concentrated in northern localities of Bac Ninh, Hai Phong and Bac Giang and HCM City's Cu Chi District. This year, the company will invest in infrastructure construction of Quang Chau IP, Nam Son Hap Linh Industrial Park (PK), Tan Phu Trung IP, Phuc Ninh IP and Trang Due IP.

The company’s profit after tax reached nearly VND809 billion, up 30.7 per cent compared to 2017 and surpassing the yearly target by more than 1 per cent, in which net profit of the parent company was VND746 billion.

The company still owes investors a dividend of 30 per cent in cash and shares in 2017 which was approved in its 2018 annual shareholders’ meeting. It attributed the delay to insufficient cash source due to slow construction progress of some urban development project.

It is expected to pay 10 per cent cash dividend two times this year – the first 5 per cent in the second quarter and the last 5 per cent in the third quarter. The remaining 20 per cent dividend payment will be scheduled at an appropriate time. — VNS

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