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DC2: Explanation for the share under alert
On 01/04/2014, Development Investment Contruction Number 2
JSC explained for share under alert as follows:
1. Explanation:
The undistributed profit after tax in audited FS as at
31/12/2013 is negative because the executed profit of 2013 of the Corporation
is loss VND 3,127,968,917, because of the following reasons:
a. The real-estate market is frozen, led to the source of
jobs is rare; the competition price is fierce led to the executed revenue
decreased and affects the operating efficiency of the Company
b. The Company is applying accelerated depreciation regime for assets and
equipment, simultaneously, the Company is trying to maintain the organization,
the staff and labor
c.
The financial expense in the year increased significantly because the Company
has to maintain the debt at high-level to meet the working capital to serve the
constructions while the incomplete value is increasing due to the late payment
and settlement for construction because the investors have some difficulties in
financial arrangement.
2. Solutions:
- In 2014, the Company determined that there are many
difficulties so the main targets of the Company is maintaining the production,
preserving the equity of shareholders and not allowing the Company to stop
operations or default.
- In 2015, the Company will bring DC2 out of the alert by
making profit to offset the negative undistributed profit of 2013 and 2014 (if
any), because in 2015, the assets- equipment system of the Company is basically
fully depreciated, combine with the recovery of the real-estate market based on
the effort of Government and Ministries. HNX
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