Kinh Bac City Development aims higher in 2019

In 2018, land rental fees exceeded 2 trillion VND, contributing up to 78 percent of the total turnover and up 181.6 percent year-on-year (Photo: vietnamconstruction.vn)

These figures are 12 percent higher in revenue and 28 percent in profits compared to last year, the company’s 2018 annual report released on April 10 showed.

Last year was successful for Kinh Bac City Development, as its net revenue reached nearly 2.5 trillion VND, almost double 2017. In particular, land rental fees exceeded 2 trillion VND, contributing 78 percent of total turnover and up 181.6 percent 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 percent of the total industrial land area of the country. Land area for urban development is 1,058.6ha.

In recent years, its 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 809 billion VND, up 30.7 percent compared to 2017 and surpassing the yearly target by more than 1 percent, in which net profit of the parent company was 746 billion VND.

The company still owes investors a dividend of 30 percent 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 percent cash dividend two times this year – the first 5 percent in the second quarter and the last 5 percent in the third quarter. The remaining 20 percent dividend payment will be scheduled at an appropriate time.

VNA