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XMC: Business operational explanation
On 16/11/2011, some newspaper released that Construction JSC No.9 and Vinaconex Xuan Mai (HNX: XMC) was forbidden from participating into any project invested by the People’s Committee of Quang Ninh Province. Construction JSC No.9 and Vinaconex Xuan Mai clarifies this issues as follows:
Joint-venture between Thang Long Construction JSC No.9 and XMC Concrete & Construction JSC signed contract on executing the project No43/2009/HĐ-XL dated 05/06/2009 with Quang Ninh province’s Project Management Board.
This is the project on building street arounding Lan Be sea – Cot Dong Ho which connects with the street arounding Bai Tho mountain (First stage) and premises of Ha Long cutural park in Ha Long city with total contract value of more than VND 161 billion.
According to Article 2.1 of joint-venture contract on 15/05/2009, XMC ‘s assignment is producing and providing prestressed concrete pile to base of the project with value of VND 45.8 billion equalling 28% of the contract’s total value.
In fact, the XMC finished 100% of its work which ensured quality and progress of the project as investor’s requirement. However, Thang Long Construction JSC No.9 (The head of the joint-venture) didn’t complete its tasks as required, which influenced investment plan of Quang Ninh province. Therefore, violation of the contract is not the responsibility of XMC.
HNX
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