DIC GROUP STRIVES TO OPTIMIZE CASH FLOW

In the fourth quarter of 2024, DIC Group will continue to strengthen cost control measures and accelerate project implementation progress to improve cash flow in the context of the real estate market facing many challenges.

REAL ESTATE CONTINUES TO BE THE MAIN SOURCE OF REVENUE.

Real estate remains the primary pillar in DIC Group's revenue structure.

Currently, DIC Group is undertaking several significant real estate projects, including those in the investment stage that have not yet generated revenue. In the first nine months of 2024, DIC Group has invested VND 2,257 billion in real estate projects and other production and business costs.

Furthermore, DIC Group is allocating resources towards these projects, resulting in higher business management costs and salaries. The temporary payment of corporate income tax for the real estate business segment has also increased significantly during the same period (with revenue received in advance rising by VND 623 billion). As of September 30^th, 2024, DIC Group has paid VND 461 billion in corporate bonds due. Additionally, in the first nine months of 2024, it has paid VND 176 billion in bond interest, VND 243 billion in principal and interest for the North Vung Tau Urban Area project, VND 131 billion in principal and working loan interest, and VND 24 billion in principal and interest for the DIC Star Hotel project in Vinh Phuc, as well as compensation for the Long Tan Tourist Urban Area project...

At the same time, as of September 30^th, 2024, DIC Group's Consolidated Financial Statements recorded a prepayment of 2,366.65 billion. This is the revenue received in advance for real estate transfer activities. Accordingly, DIC Group will account for this revenue when handing over real estate projects to customers.

PROMOTING SALES TO OPTIMISE CASH FLOW

In recent years, changes in legal regulations related to the conditions for transferring real estate projects have affected the progress of opening and selling a number of projects of DIC Group. Currently, businesses are making efforts to coordinate with the authorities to quickly complete legal procedures, ensuring that projects are eligible for sale.

For the DIC Victory City Hau Giang Urban Area project (Scale: 83.46ha), DIC Group has qualified to open for sale 599 land products in Zone 2 of the project. On 22^nd October 2024, the Department of Construction of Hau Giang province issued Notice No. 1991/SXD-QLN&TTBĐS, regarding "Land use rights with technical infrastructure in real estate projects are transferred to individuals who build houses by themselves under (Phase 2) of the project: Vi Thanh Commercial Residential Area, ward IV, Vi Thanh city". In addition, DIC Group is also applying for permission to open for sale about 300 more real estate products in Zone 2, contributing to increasing revenue for DIC Group and meeting the demand for real estate ownership in this potential area.

For the Lam Ha Center Point housing project, DIC Group is currently completing legal procedures, coordinating with localities to appraise and determine land use levy. DIC Group is also asking the locality to allocate land and calculate land use levy in the Nam Vinh Yen City Vinh Phuc Urban Area project. According to the plan, the procedures will be completed in December 2024, creating conditions for the project to be launched on the market soon.

Furthermore, DIC Group is negotiating and implementing legal procedures to be eligible to transfer the project, part of the project to partners in the fourth quarter of 2024.

On the other hand, DIC Group also focuses on recovering debts from Cap Saint Jaques projects; Vung Tau Gateway flat building and DIC Nam Vinh Yen City Vinh Phuc Urban Area... in order to create a stable cash flow in the fourth quarter of 2024.

With these efforts, DIC Group aims to optimise cash flow and enhance operational efficiency, better preparing for the next stage of development.

Media and Communication Department