Vietnam’s property developer Danh Khoi renamed, expands into agriculture, healthcare

Vietnam’s property developer Danh Khoi Group JSC (HNX: NRC) has changed its name to NRC Group JSC, as announced at its 2025 AGM on Tuesday.

NRC will retain real estate as its core business while branching into high-tech agriculture, pharmaceuticals, medical supplies, and healthcare, as part of its strategy to transform into a multi-sector conglomerate.

According to the AGM resolution, NRC has set a target of VND25 billion ($956,000) in pre-tax profit for 2025 on revenue of VND959 billion ($36.67 million).

In 2024, amid a challenging business environment, the company posted an audited after-tax loss of over VND137 billion ($5.23 million).

Notably, the board scrapped its 2024 plan to issue 100 million privately placed shares at a par value of VND10,000 ($0.38) each.

The cancellation was attributed to continued economic volatility and unfavorable market conditions, chairman Le Thong Nhat explained.

Last year, the company planned to issue shares to finance the acquisition of fully legalized land plots in well-planned residential areas with completed infrastructure, including the Dai Nam residential area in the southern province of Binh Phuoc and the Ham Thang-Ham Lien small-cale industrial, commercial and service residential area in the south-central province of Binh Thuan.

In 2025, the company will proceed with a new plan to issue more than 92.5 million shares at a par value of VND10,000 each, aiming to increase its charter capital. The move is intended to restructure its finances, reduce debt, boost assets, and supplement working capital for operations during the 2025-2026 period.

Venturing into healthcare, agriculture

At the AGM, many investors voiced concerns over NRC’s substantial losses and outstanding tax liabilities. They also questioned the feasibility of the capital raise, given that NRC’s current share price stands at just VND4,500 ($0.17), compared with the planned issuance price of VND10,000.

However, Nhat expressed confidence in the company’s issuance plan and real estate projects, stating that debt issues, both tax-related and with bondholders, were being addressed through negotiations and extensions with relevant parties.

Regarding capital use, Nhat said that if the share offering succeeds, the proceeds would be allocated to various purposes.

Specifically, the group will allocate over VND337 billion ($12.89 million) to acquire more than 33.7 million shares in Vietnam Prime Healthcare Investment Group Joint Stock Company (Vietprime Healthcare).

Another VND300 billion ($11.47 million) will be invested in apartment units under The Welltone Luxury Residence project in Nha Trang town, the south-central province of Khanh Hoa.

Meanwhile, VND70 billion ($2.68 million) will be used to partially repay principal and interest on bank loans from BIDV and Vietcombank, and VND203 billion ($7.76 million) will go toward settling bond obligations. An additional VND15.4 billion ($589,000) will be earmarked for working capital.

The disbursement is expected to be completed by the end of Q2/2026.

On the Hanoi Stock Exchange (HNX), NRC shares closed Wednesday at VND4,600 ($0.18) apiece.