the foundation for the sustainable development welcome to...
TRANSCRIPT
The foundation for
the sustainable development
Welcome to
KINHBACCITY
CONTENTS
PART I : KINH BAC CITY GROUP
PART II : BUSINESS OPERATION
PART III : OUR PROJECTS
PART I
INTRODUCTION OF KBC
• DEVELOPMENT PATH
• MERITS AND AWARDS
• OUR CHAIRMAN
• CORE VALUES
• OPPORTUNITIES AND CHALLENGES
• SHAREHOLDERS AND EQUITY
2003
Existing Que Vo IP
came into operation.
Currently, 90%
occupied, attracts 50
foreign investors
2002Kinh Bac City Development
Share Holding Company
established as a pioneer in
developing IP and urban
areas in the North with
capital of 20 billions VND
2005
Established
subsidiary Saigon -
Bac Giang IP
Corporation, develo-
ped Quang Chau IP
and Residential
Area.
2006
Established subsidiary
Saigon – Haiphong
Industrial Park
Corporation, developed
Trang Due IP which is
currently a part of Dinh
Vu – Cat Hai Economic
zone
2009
Renamed
KinhBacCity
Development
Holding Corporation
Transferred to listing
on HCM Stock
Exchange market
(HOSE)
2008
Top 10 leading
stocks in Vietnam
Market, awarded by
Standard & Poors
2014
Restructuring successfully
matured debts of 3,000
billion dong; Mobilized
1.200 billion dong of new
convertible bonds;
Concluded of the 2nd
contract with LG Group;
Consolidated business
Results grew 4 times as
much as 2013 features.
Total contributed capital
4,757,111,670,000 dong
2012
Founded Trang Cat
One Member Urban
Development
Company Limited,
managed and
developed Trang Cat
Resident Area in Hai
Phong City.
2007
Listed on the
Hanoi Stock
Exchange market
with 88 million
shares
2010
Establishing new land
bank: M&A
Northwest Saigon City
Development
Corporation,
promoting Tan Phu
Trung IP.
Acquiring Nam Son
Hap Linh IP in Bac
Ninh
Became the main
investor of Diamond
Rice Six Star Hotel and
Hanoi Multifunction
Complex
2013
Trang Due
became a part of
Dinh Vu Cat Hai
EZ, attracted LG
Electronics
Group and their
satellites
investments.
MILESTONES
ON 15 YEARS
DEVELOPMENT
2015
Deinvestment of non-core
business as hydropower
Sharp decrease in loan
balance (by BVND1000)
Consolidated results reached
double growth in profit after
tax after against 2014
Access easily to the credit
organization. Nam Son Hap
Linh and Que Vo IP are
approved the loan of 550
billions dong by the banks
2016
Sales
increased upto
BVND 2018
or +15% vs
PY;
Sharp
decrease in
loan balance
by BVND800;
2017
Launch sale of Phuc ninh
Urban Area (136ha);
Deinvestment of non-
core business Lotus
Hotel;
Diversify sources of
capital by issue of bond
value of over BVND
1530 for on-going
projects and signed loan
contracts with
international bank - DEG;
Top 10 Viet Nam
Golden StarViet Nam Golden
Brand
Gold Cup ISO
2009
The second class
labour medal
MERITS & AWARDS
Viet Nam Typical
Entrepreneur
Viet Nam Gold Ball
AwardErnst & Young Award
The third class
labour medal
Business Community
Award
Reputable Stock
Brand NameBest ASEAN
Business Award
Typical Merits & Awards of KBC
Typical Merits & Awards of the Chairman- Mr. Dang Thanh Tam
The first class
labour medal
The second class
labour medalThe third class
labour medal
The Nationwide
Front- rank Individual
Awarded from the King of
State of Japan
Asean Business
Awards- 2010Asean Business
Awards- 2011
OUR CHAIRMAN
“KBC overcomes all the challenges to
transform pristine and poor land into
industrial parks and urban areas which
are filled by the hi-tech factories with
less environment pollution.”
Mr. Dang Thanh Tam was born in 1964, graduated Maritime University in Haiphong, also
achieved a Bachelor of Laws, Bachelor of Business Administration and Diploma of
Business and Management of Henley College – UK
Nearly 20 years experience in developing Industrial park in Vietnam
OUR CHAIRMAN
• Member of Parliament – 13th Term
• Member of APEC Business Advisory
Council
• Member of the High Council of the
Government’s Post-WTO Action
Program
• Former Co-Chairman of Viet Nam- Japan
Business Forum
• The first non state - owned businessman
of Viet Nam awarded the Labor Medal –
1st class, 2nd class, 3rd class by the
President of SRV
• The first businessman of Viet Nam
awarded from the King of State of Japan
Awarded a lot of merit certificates by the
Prime Minister of SRV
OUR CHAIRMAN
Most updated photos of KBC’s chairman with Vietnam new President of State
and Prime Minister during their office swearing-in ceremony in April 2016
CORE VALUES
CORE VALUES
Human resources
Huge land bank
Reputation and
experience
Product development
strategy
CHALLENGES
- MARKET COMPETITION
- DEVELOPING LAND BANK
- CAPITAL RESOURCES FOR LONG-TERM INVESTMENT
- MOVEMENTS IN REAL ESTATE MARKET
- TIGHTENING MANAGERIAL POLICIES WITH IP DEVELOPMENT
Sustainable growth
OPPORTUNITIES
- STABLE ECONOMY
- FAVOURABLE INVESTMENT ENVIRONTMENT
- GOOD INFRA-STRUCTURE
- CENTER LOCATION, NATURAL RESOURCES
- STRONG DIPLOPMATIC RELATIONSHIP
- INTERNATIONAL COOPERATION AND FTAs
FDI attraction
level
OPPORTUNITIES AND CHALLENGES
SHAREHOLDER STRUCTURE
Shareholder Structure (27/12/2017)
Name Number of
Shares Percentage
Total issued shares 475,711,167 100%
Treasury shares 5,950,978 1.25%
Outstanding shares 469,760,189 98.75%
Major shareholders 115,681,290 24.63%
Dang Thanh Tam (Chairman of KBC) 75,250,000 16.02%
Kinh Bac Investment and Consultant
Corporation 40,431,290 8.61%
Foreign shareholders 120,612,328 25.68%
Long-term shareholders 151,210,704 32.19%
Other Shareholders 82,255,867 17.51%
(*) KBC's Foreign Room is 49%, Foreign hold 27.60%)
25%
26%
32%
17%
Shareholder Structure27st December 2017
Major shareholders Foreign shareholders
Longterm shareholders Other Shareholders
PART II
BUSINESS OPERATION
• Distribution
• Products
• Objectives in 2018
• Typical tenants
KBC’S INDUSTRIAL PARKS AND URBAN AREAS
Total current land bank under the
management of KBC and the co-
management with subsidiaries and
associated companies is about:
≈ 5,100 ha industrial land
≈ 1,100 ha urban land
Appropriate for next 10 to 20 years of
development
OUR PRODUCTS
Sublease land
Lease and sell factories and offices
Internal road
network
Main road:
57m
Other road:
35m
The electric power:
110KV/22KV - 80MVA.
Water supply &
Sewerage:
10,000 m3/day
Telephone, Internet, Cable
TV…
High standard
Factory & Office for rent
INFRASTRUCTURE SYSTEM IN THE IP
TYPICAL TENANTS IN IPS
KEY PERFORMANCE HIGHLIGHTS
1.069
1.434
1.972
1.691
326
611 557 584
0
500
1.000
1.500
2.000
2.500
2014 2015 2016 2017
Revenue/Profit
Revenue Profit after tax to Parent
0
500
1.000
1.500
2014 2015 2016 2017
EPS 900 1.320 1.188 1.244
EPS
SALES/PRODUCTS HIGHLIGHTS
0
1000
2000
3000
4000
5000
6000
7000
2015 2016 2017 2018
4500 5100 5100 5100
10631063 1063 1063
LAND BANK (ha)
Industrial land Urban land
61,2 67 71,7 75
200230 230 250
0
100
200
300
2014 2015 2016 2017
Average IP selling price by years (USD/m2/50 yrs)
IP Factory
735 742
1.129
1.632
717
308 264 233 9 17435 60 76 113 137
218
46%
55%
40%
56%
52%
233
0%
10%
20%
30%
40%
50%
60%
0
200
400
600
800
1.000
1.200
1.400
1.600
1.800
2013 2014 2015 2016 2017
Revenue breakdown by products
Sub-lease land Factory/warehouse sales Utilities
Sale of project Urban land Gross margin
7001000
0
500
1000
1500
2017 2018
Average urban land selling price by years (USD/m2)
Urban land
PART III
TYPICAL PROJECTS
• Operating projects
• Under planning projects
• Property projects
TYPICAL INDUSTRIAL PARKS IN OPERATION
(Bac Giang province)
(Bac Ninh province)
(Hai Phong city)
MAP OF KBC’S IPs IN THE NORTH OF VIETNAM
MICROSOFT
CANON
FOXCONN
LG
SHORT TERM OBJECTIVES
- 56ha
- 63.2ha
QUE VO IP
ĐẠI ĐỒNG HOÀN SƠN IP
(BAC NINH PROVINCE)
-Infrastructure development in IPs, Ready-built
factories lease.
* Main customer :FDI and electronic component
vendors, Samsung Electronics’ vendors
-Infrastructure development in Trang Due Phase 3
* Main customer: LG brands and LG vendors
-Ready-built factories lease, small size land leasing
* Main customer: Samsung Electronics’ vendors
QUANG CHAU IP
NAM SƠN HAP LINH IP
(BAC GIANG & BAC NINH
PROVINCE)
- 143.5 ha
- 283.1ha
TRANG DUE IP
(HAI PHONG CITY)
-Phase 1: 1ha
-Phase 2: 30ha
-Phase 3:
expanding over 456
ha (under the
application)
TAN PHU TRUNG IP
HO CHI MINH CITY- 217ha
-Promote sales and attract high-tech companies
* Main customer: Samsung Electronics’ vendors
* Total area：611 ha
- Phase 1： 97% occupied
- Phase 2： 67 % occupied
* Total factory floor area for lease and
sale：200,000m2
* Typical investors：- Phase 1: Canon, Foxconn, Nippon Steel,
Toyo Ink, Nippon Zoki, Mitac、Sentec,
Amtek, VS Industry
- Phase 2: DK-UIL, Woojeon & Handan,
Jang Won Tech, Tenma, Goertek Vina,
Bujeon, SSCP, Bokwang Hi-Tech…
1.QUE VO IP- BAC NINH PROVINCE
- Transportation advantages:
Nearby the National highway No. 10.
15km away from Hai Phong seaport.
-Total planning area: 400 ha
-Phase 1: 187 ha - 99% occupied
-Phase 2: 214 ha - 77% occupied
Available land for expanding in
short-term: 687 ha
- Typical investors:
LG Electronics, Haengsungg,
Heesung, Aichi Tokei Denki ,
Bluecome, Bucheon Industry,
Dongjin Techwin Vina, Korg Viet
Nam LTD, Hanmiflexible Vina,
Crystal Sweater Vietnam, Magalist
Co.,Ltd; Asia plastic J.S.C…….
2. TRANG DUE IP
( PART OF DINH VU-CAT HAI EZ), HAI PHONG CITY
• Location: Next to National Highway
No.1B to Vietnam – China border gate
• Total area：426 ha
48% occupied.
Typical investor ： JA Solar, ZYF,
Wintek, ICT-Luxshare, New Hope,
Hosident, Nichirin, L&C Tech, Umec
Viet nam, Crystal Viet Nam, Trung
Nguyen coffee…..
3. QUANG CHAU IP- BAC GIANG PROVINCE
• Location: next to 22
National Road (trans Asia
highway) connecting Moc
Bai International Border
Gate to 1A National
Highway
- 25km from HCMC
- 15km from airport
- 25km from Saigon Port
- 10km from 1A highway
• Total area: 542 ha, 31%occupied
4. TAN PHU TRUNG IP- HCMC
• Along with National Highway
No.1B to Vietnam – China border
gate.
• Total area:
• Phase 1: 268 ha – 99%
occupied
• Phase 2: 96.2 ha. – under
construction
• Typical investor：Hayakawa, Tabuchi Electric,
Maeda Kosen, CEDO, UMW
equipment system, YG Tech,
Daisen Viet Nam…
3. 5. DAI DONG HOAN SON IP- BAC NINH PROVINCE
6. LIEN CHIEU IP- DA NANG PROVINCE
• Location:
- 15 km from Centre of
Da Nang City
- 15km from Da Nang
International airport
- 25km from Tien Sa
Seaport
•Total area: 289 ha.
• Occupancy rate: 64%
• Location:
- 20km from Centre of
Da Nang City: 10km
- 10km from Da Nang
International airport
- 20km from Tien Sa
Seaport
•Total area: 132 ha.
•Occupancy rate: 73%
•Typical investor: Nissan
7. EXPANDED HOA KHANH IP - DA NANG PROVINCE
INDUSTRIAL PARK PROJECTS UNDER PLANNING
1. NAM SON HAP LINH IP- BAC NINH PROVINCE
•Location: Next to highway
No.18B, convenience for
transportation to Cai Lan deep
seaport, Hai Phong Seaport,
Noi Bai airport & Vietnam-
China border.
• Total area：432 ha.
Clear land : 100 ha
• Location:
- 50km from Hue City Centre
- 32km from Da Nang City
Centre
- 44km from Phu Bai
International airport
- 3km from Chan May Seaport
- 32km from Tien Sa Seaport
•Total area: 650 ha.
Available land for subleasing:
586ha
2. CHAN MAY IP- THUA THIEN HUE PROVINCE
(CHAN MAY – LANG CO EZ)
Procedure of Investment Certificate
TYPICAL PROPERTY PROJECTS
1. PHUC NINH NEW URBAN AREA
• Total land area：136 ha
• Function：Grand complex
project
• Location：Bac Ninh
downtown, Bac Ninh city.
• Phase 1 (implementing):
55.8 ha
1. PHUC NINH NEW URBAN AREA
Little Area (6.2 ha)
6.2 ha Little Area
to be sold in 2017
1. PHUC NINH NEW URBAN AREA
New 22 ha Area – External factors /opportunities
1. PHUC NINH NEW URBAN AREA
New 22 ha Area – Work in progress
1. PHUC NINH NEW URBAN AREA
New 22 ha Area – Sales opening
TRANG DUE URBAN AREA
Total land area：42 ha (cleared
38ha)
Location：Trang Due Industrial
park, Hai PhongCity.
2. NEW URBAN AREAS PROJECTS
2. NEW URBAN AREAS PROJECTS
QUANG CHAU NEW URBAN AREA
Total land area：120 ha
Location：Quang ChauIndustrial park, Bac Giang
Province.
TAY BAC – CU CHI HOUSES FOR WORKERS
Total land area：47.7 ha
Location: Tan Phu Trung IP, Cu Chi Dist., Ho Chi Minh city
3. HANOI COMMERCIAL PROJECTS
HA NOI CITY MULTI - FUNCTION COMPLEX
Total land area：20,000 square meter.
Function：Hotel, office building, commercial center…
Location：10 Km from Hanoi center.
4. TRANG CAT URBAN AREA
• Location: Hai Phong City
• Total land area：581 Ha (cleared
land: 511 ha), including:
- High-tech Industrial Park.
- Golf course.
- Township.
THANK YOU !