The Kinh Bac City Development Corporation (KBC) has reported a loss for Q3 2020, the first loss since Q3 2013.

Dang Thanh Tam, Chair of Kinh Bac City Development Corporation

KBC reported a sharp fall of 80 percent in revenue compared with the same period last year, while the pure profit was not high enough to cover the loan interest and business management costs.

Explaining the unsatisfactory business result, KBC said the Covid-19 pandemic which broke out at the beginning of the year led to a decrease in sales and increase in capital costs.

The information about the loss reminded people of the difficult period that Tam’s enterprise faced nearly a decade ago. At that time, the business also took a loss, while Tam’s elder sister, Dang Thi Hoang Yen, temporarily left.

However, despite the reported loss, the price of KBC has not decreased and it is still at a 3-year level.

Vinatex Tan Tao Investment JSC, the company where Tam is chair of the board of directors, has spent VND140 billion to acquire 10 million KBC shares, raising the ownership ratio to 21 million shares, or 4.47 percent of capital. Tam is also president of Kinh Bac City Development.

Tam is a big shareholder, owning 85.25 million shares (18.15 percent). Prior to that, in the latest move, Vinatex Tan Tao bought 5 million KBC in the months from mid-June to early July 2020.

KBC is a well known industrial real estate developer in the northern market. This is also the most important business for Tam, together with Itaco and SaigonTel.

KBC has recently issued bonds to mobilize capital for a series of real estate projects under implementation. Most of the projects are industrial zones (IZ), such as Quang Chau, Nam Son Hap Linh and Tan Phu Trung, and large urban areas such as Phuc Ninh in Bac Ninh province and Trang Due in Hai Phong City.

Tam’s enterprise is also developing housing and urban real estate in Bac Ninh and Ba Ria – Vung Tau.

Tam recently received good news that his SaigonTel – SSC – KBC and family members have been shortlisted as the investor to implement the Nam Vung Tau new urban area project.

The project was first assigned to Petroland which planned to start construction in 2010. However, the investor did not implement the project as promised and the project was taken back by provincial authorities in 2010.

The project covers an area of 69.46 hectares in wards 10 and 11 in Vung Tau City and has investment capital of VND4.62 trillion. 

V. Ha

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