Vingroup reports a net profit of $101.8 million for Q1of 2015 during its general shareholders meeting on April 23. — Photo cafef.vn

HA NOI (Biz Hub) — Property developer Vingroup (VIC) reported a net profit of VND2.2 trillion (US$101.8 million) for the first quarter of this year during its general shareholders meeting on April 23.

Pham Nhat Vuong, the group chairman, said he expected sales to reach between VND40 trillion ($1.851 billion) and VND60 trillion ($2.777 billion) this year, which would help the group execute all their projects planned for 2015 and also repay a portion of its debt.

Also at the meeting, VIC General Director, Duong Thi Mai Hoa, said the group expected to earn net revenue of VND30 trillion ($1.388 billion) this year, reflecting an increase of VND2.276 trillion ($105 million) from 2014. The increase would stem from the core business activities of real estate and hospitality. It was also targeting an after-tax profit of about VND3 trillion ($138.8 million) for 2015.

During the next five years, VIC has predicted a reduction in revenue and profit from real estate. However, it would try to maintain its leading position in the industry. Thus, profit from real-estate development would account for half of the group's total profit, while other businesses would contribute the remainder.

Besides the core business of property development, Vingroup was already working in the sectors of hospitality, education, health care, e-commerce, fashion, retailing and agriculture.

The group had recently entered the exhibition industry by contributing VND1.489 trillion ($68.9 million) to the charter capital of the Viet Nam Exhibition and Fair Centre JSC in Ha Noi. It has also proposed the purchase of 80 per cent of the State's stake in the Sai Gon and Hai Phong seaports—the two largest ports in Viet Nam.

In the meantime, Vuong said the group would also boost its presence in agriculture and build an ecosystem to provide quality products to supermarkets and resorts in the group.

At the meeting, the board also decided to pay a 25.8 per cent dividend in shares to shareholders. Thus, the group will issue an additional 375.3 million shares for the dividends.

It hopes to increase charter capital by nearly VND18.3 trillion ($847.22 million), an increase of 3.75 trillion ($173.6 million), compared with current levels.

On April 23, VIC shares closed at 48,800($2.25) each on the HCM City Stock Exchange. — VNS