We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Vietnam Prop. | LSE:VPF | London | Ordinary Share | KYG9362H1083 | ORD USD0.01 |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.5525 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMVPF
RNS Number : 1235U
Vietnam Property Fund
21 December 2012
VIETNAM PROPERTY FUND LIMITED
("VPF" or the "Company")
PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2012
Financial Highlights
As at and for As at and for % change the year ended the year ended 30 June 2012 30 June 2011 US$ US$ Total net assets 67,496,602 71,476,461 (5.57)% NAV per share 0.77 0.80 (3.75)% Net loss (3,426,485) (20,574,327) 83.35% Net loss per share (0.039) (0.229) 82.97% Share price (closing price on LSE)) 0.54 0.71 (23.94)% Discount (29.60)% (11.27)% (162.64)% US$/VND exchange rate - depreciation 20,878 20,592 1.39% ---------------------- ---------------- ---------------- --------------- As at and for As at and for % change the year ended the year ended 30 June 2012 30 June 2011 US$ US$ Cash and cash equivalents 26,703,886 28,078,262 (4.89)% Bank interest income 509,447 230,719 120.81% Loan interest income 54,791 849,609 (93.55)% Dividend income 456,648 564,783 (19.15)% Net changes in fair value of financial assets at fair value through profit or loss (337,346) (21,756,267) 98.45% (Losses)/gains on disposal of investments (2,442,065) 1,663,700 (246.79)% Other income 151,798 - n/a ------------------- ---------------- ---------------- ---------- Total income (1,606,727) (18,447,456) 91.29% =================== ================ ================ ==========
Portfolio Highlights
As at and for As at and for % change the year ended the year ended 30 June 2012 30 June 2011 US$ US$ Listed investments at cost 24,655,110 29,842,145 (17.38)% Unrealised losses (12,789,114) (14,813,323) 13.66% -------------------- ---------------- ---------------- ---------- Listed investments at fair value 11,865,996 15,028,822 (21.05)% -------------------- ---------------- ---------------- ----------
The directors present their report and the audited consolidated financial statements of Vietnam Property Fund Limited ("VPF" or the "Fund" or the "Company") and its subsidiaries (together referred to as the "Group") for the year ended 30 June 2012.
Principal Activity
The Company is an investment holding company incorporated as an exempted company with limited liability in the Cayman Islands on 17 October 2007. It had no employees as at 30 June 2012 (30 June 2011: Nil). The investment objective of the Company is to provide shareholders with attractive capital returns over the mid to long-term by investing in a portfolio of real estate investments, primarily in Vietnam.
Results and Dividends
The Group's consolidated net loss for the year ended 30 June 2012was US$3,426,485 (net loss for the year ended 30 June 2011: US$20,574,327). The consolidated financial positions at 30 June 2012 and 2011 are set out in the audited financial statements. The directors have taken the decision not to pay a dividend in respect of the year ended 30 June 2012(30 June 2011: Nil).
Chairman's Statement
In the 2011 Annual Report, the Chairman's Statement ended with a note of caution about predicting timing. 2012 was one of those years in which nothing quite happened as expected. Hopes were high that the Government would take firm control over the banks and address the issue of non-performing loans ("NPLs"), perhaps going as far as establishing an asset management company (AMC) to clean up NPLs. The banking restructuring has, however, been delayed and both a Party Congress and partial power shuffle have given no additional hope for the immediate future. Inflation remains slightly below the 10% level and interest rates are still painfully high.
Real estate market conditions are perhaps at their worst since the 1997 Asian crisis. Similar to that period, the poor economic situation was compounded by oversupply in most sectors and crowned by the spectre of unfinished buildings. It took some time for the market to take up the existing buildings, followed by stalled projects that resumed construction before new development could begin again. But because property development is a long term business, there were then, as there are now, pockets of opportunity for the brave-hearted and well researched. An example would be President Place, one of the only new office buildings to come to the market in Ho Chi Minh City this year which has remarkably managed to find pre-commitments for as much as 50% of its space. Vietnam Property Fund Limited will be seeking such niche opportunities.
Dragon Capital Management Limited (the "Investment Manager") has been patiently waiting for distressed opportunities to arise for some time now, but while these were expected during 2012, they failed to materialise. Recovery always seemed to be just around the corner and so it was worthwhile for developers to cling on. Meanwhile, the banks themselves lacked a clear mechanism to proceed with foreclosures. As hopes of an immediate market rebound are fading and projects are stalling while bleeding heavy interest payments, truly distressed projects will inevitably start appearing and it is for these opportunities that VPF retains approximately 40% of its net asset value ("NAV") in cash.
At the same time, it is critical that VPF's own projects do not join ranks of the distressed and therefore much time has been spent, and it would appear successfully, putting in plans to deal with these difficult market conditions. At SDI, the Investment Manager has led an initiative to implement various changes to the management structure and operations, while also considering design changes to control construction and interest costs. SSR are primed to start construction with all the planning and design in place but, with fairly little debt, the project can easily be put on hold until conditions are appropriate. The PDD Office Building actually maintained its value despite lower occupancy due to steady rent and reduced management costs.
2013 may prove not be a better year than 2012, but it may be a year in which truly interesting distressed opportunities could arise and VPF's patience may be rewarded. We are unlikely to see a sudden rebound in the property markets of Vietnam, but we might be able to confidently point at a bottom, albeit probably an extended one. Many of Vietnam's economic woes are solvable and with healthy foreign reserves and assets in some blue chip listed companies, the Government does have some options to tackle the current crises. Meanwhile, there are still businesses requiring space and people needing housing, many of whom have funds available but are also waiting for the market to bottom before committing. Perhaps things will get worse before they get better but the market will eventually recover and the result will be a more discerning customer and a cleaner field for the professionals, such as the Vietnam Property Fund Limited, to operate.
Due to an administrative oversight following VPF's change of custodian, administrator and registrar last year, the Company did not hold an Annual General Meeting ("AGM"), and accordingly the audited financial statements for the year ended 30 June 2011 have not yet been presented to members for adoption. We apologise for this oversight and intend to present the 2011 financial statements to members for adoption at the AGM to be held during the first quarter of 2013, at which time the audited financial statements for the year ended 30 June 2012 will also be presented to members for approval, as well as dealing with other items of both general and special business. A notice of the AGM will be circulated in due course.
As shareholders are well aware, VPF's share price has seen a disappointing performance as ongoing selling pressure from small investors has resulted in a widening discount gap between NAV and the prevailing share price. The Company's buyback programme has been successful in reducing this gap only temporarily. It appears that the inherent mechanisms of AIM make the share price extremely susceptible to even a single seller, notwithstanding the buyback programme. For this reason the Investment Manager has suggested that the Company considers a relisting on the Irish Stock Exchange (ISE). The Company is currently taking this option under consideration as to whether this is an appropriate course of action to pursue, and further information will be included as appropriate in the notice of AGM referred to above.
Investment Manager's Statement
The past twelve months have provided amongst the worst trading conditions for real estate in Vietnam since the financial crisis in Asia in 1997/98. Whilst we quietly hoped for a recovery in residential sales and commercial rents, the reality has been the bursting of the credit fuelled property bubble which up to now has been slowly deflating since 2007. The ability of the majority of investors, developers and land owners to hold on in the hope of recovery has been admirable but a grim realisation has finally dawned that this will not happen any time soon. As a consequence, we believe we are about to enter a phase of distress in the coming six to twelve months.
The performance of VPF's portfolio holdings has not been particularly strong with listed equity performing poorly in the second half of 2011 as reduced sales, heavily curtailed revenue targets and debt burdens dragged the whole sector into a downward spiral. However, given that we continue having faith in the fundamentals in the medium to long term of the companies VPF owns, we did not sell into this downward trend, especially as their land banks have an intrinsic value considering the scarcity of land in Vietnam and as such we have no selling pressure. The first three months in 2012 saw a surprising bounce for most real estate stocks with strong performances from the likes of Hoang Anh Gia Lai and Sacomreal providing increases well in excess of 100% from their Christmas lows. Since then, however, the market has been tracking sideways.
VPF's projects have fared a little better as we have made every attempt to avoid distress, manage costs and delay product launch dates until sales recover. Nonetheless, VPF felt it is prudent to reflect the delays to the timing of sales, interest charges and a generally weak property market into the discounted free cash flow to equity, which led to the write down of $1.9m or 11.8% to the investment into Saigon Development and Investment Corporation (golf course and villa project in District 2, Ho Chi Minh City). The golf course will be completed during 2013 which will allow launching the first phase of residential.
Looking forward, with distress just around the corner we believe the interesting times are about to come in Vietnam. In fact, we are already seeing some keenly priced deals from funds and companies looking to make a quick exit from projects. Unfortunately, the majority of projects are not what we would consider clean, with land compensation, planning approvals and land use fees/taxes still needing to be dealt with. This makes them unattractive to VPF as we prefer to concentrate on cleaner transactions. At the time of publication, there are already two strong candidates for investments at distressed prices.
We have been mulling over the differentiators that make a good developer here in Vietnam. The main elements that set a good developer apart from the field are expertise, flexibility and attention to detail. In terms of expertise, it is only a matter of time before more local developers can build good projects. The issue we have faced when selecting development partners is that the majority in Vietnam have never experienced a downturn and consequently have little experience on which to draw. This is where flexibility is of paramount importance. For a developer, to recognise the changing market environment and to amend or rework projects to appeal to buyers in more difficult conditions takes skill, foresight and often the acceptance of a dent to their pride. The final element of attention to detail is not difficult. By this, we mean keeping a building site in good order for potential buyers or tenants to view, good landscaping, managing the sales and leasing process and strong management of costs and consultants. It is not hard to do but is often overlooked in Vietnam leaving unattractive, half-finished projects with no continuity or empty land plots where no construction has happened. This stands in stark contrast to the fully developed projects by the likes of Keppel Land from Singapore for which the environment is so much better and the prices on the primary and secondary markets reflect this. It is for these reasons that we plan to make a strategic investment with a developer called Sapphire who fulfils all of the above disciplines with great aptitude.
The next six months will probably see us experience the bottom of the cycle and the distressed deals we will see will make this the most exciting time for VPF since inception. It has been a rocky ride since 2008 but we believe we are finally seeing the bargains that will make the patience worthwhile.
Full updates on VPF and its investment activities will be available shortly on the website: www.vietnampropertyfund.com.
ENQUIRIES:
Rachel Hill
Dragon Capital Markets (Europe) Limited | Tel: +44 79 71 214 852
Tom Sheldon, Richard Thompson
Seymour Pierce Limited (Nominated Adviser and Broker) | Tel: +44 20 7107 8000
VIETNAM PROPERTY FUND LIMITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2012
30 June 2012 30 June 2011 US$ US$ CURRENT ASSETS Financial assets at fair value through profit or loss 37,881,969 42,926,446 Short term loan receivable 2,400,000 - Other receivables 182,295 274,307 Cash and cash equivalents 26,703,886 28,078,262 ------------- --------------- 67,168,150 71,279,015 NON-CURRENT ASSETS Loan receivables 528,600 400,000 ------------- --------------- 528,600 400,000 TOTAL ASSETS 67,696,750 71,679,015 ============= =============== CURRENT LIABILITIES Accrued expenses 200,148 202,554 ------------- --------------- 200,148 202,554 NET ASSETS 67,496,602 71,476,461 ============= =============== EQUITY Issued share capital 882,225 893,225 Share premium 84,389,841 84,932,215 Accumulated losses (17,775,464) (14,348,979) ------------- --------------- TOTAL EQUITY 67,496,602 71,476,461 ============= =============== NET ASSET ATTRIBUTABLE TO ORDINARY SHAREHOLDERS 67,496,602 71,476,461 NUMBER OF ORDINARY SHARES IN ISSUE 88,221,459 89,321,459 ============= =============== NET ASSET VALUE PER ORDINARY SHARE 0.77 0.80 ============= ===============
VIETNAM PROPERTY FUND LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2012
For the year For the year ended ended 30 June 2012 30 June 2011 US$ US$ INCOME Bank interest income 509,447 230,719 Loan interest income 54,791 849,609 Dividend income 456,648 564,783 Net changes in fair value of financial assets at fair value through profit or loss (337,346) (21,756,267) (Losses)/gains on disposals of investments (2,442,065) 1,663,700 Other income 151,798 - TOTAL INCOME (1,606,727) (18,447,456) ---------------- ---------------- EXPENSES Administration and custodial fees (94,429) (77,362) Directors' fees (204,751) (154,164) Investment management fees (1,362,178) (1,665,358) Legal and professional fee (42,703) (166,321) Other operating expenses (212,110) (247,978) TOTAL EXPENSES (1,916,171) (2,311,183) ---------------- ---------------- NET LOSS BEFORE EXCHANGE GAINS (3,522,898) (20,758,639) EXCHANGE GAINS Net foreign exchange gains 96,413 184,312 ---------------- ---------------- LOSS BEFORE TAX (3,426,485) (20,574,327) Income tax - - ---------------- ---------------- NET LOSS FOR THE YEAR (3,426,485) (20,574,327) Other comprehensive income - - ---------------- TOTAL COMPREHENSIVE LOSS FOR THE YEAR (3,426,485) (20,574,327) ================ NET LOSS AND COMPREHENSIVE INCOME FOR THE YEAR ATTRIBUTABLE TO ORDINARY SHAREHOLDERS (3,426,485) (20,574,327) ================ BASIC LOSS PER ORDINARY SHARE (0.039) (0.229) ================ ================
VIETNAM PROPERTY FUND LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2012
Retained earnings/ Issued Share (accumulated capital premium losses) Total US$ US$ US$ US$ Balance at 1 July 2010 900,010 85,441,995 6,225,348 92,567,353 TOTAL COMPREHENSIVE LOSS FOR THE YEAR: Net loss for the year - - (20,574,327) (20,574,327) TRANSACTION WITH SHAREHOLDERS, RECOGNISED DIRECTLY IN EQUITY: Repurchase of own shares (6,785) (509,780) - (516,565) Balance at 1 July 2011 893,225 84,932,215 (14,348,979) 71,476,461 TOTAL COMPREHENSIVE LOSS FOR THE YEAR: Net loss for the year - - (3,426,485) (3,426,485) TRANSACTION WITH SHAREHOLDERS, RECOGNISED DIRECTLY IN EQUITY: Repurchase of own shares (11,000) (542,374) - (553,374) Balance at 30 June 2012 882,225 84,389,841 (17,775,464) 67,496,602 ========= =========== =================== =============
VIETNAM PROPERTY FUND LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2012
For the year For the year ended ended 30 June 2012 30 June 2011 US$ US$ OPERATING ACTIVITIES Loss for the year (3,426,485) (20,574,327) Adjustments for: Bank interest income (509,447) (230,719) Loan interest income (54,791) (849,609) Dividend income (456,648) (564,783) Losses/(gains) on disposals of investments 2,442,065 (1,663,700) Net changes in fair value of financial assets at fair value through profit or loss 337,346 21,756,267 (1,667,960) (2,126,871) Change in other receivables 27,935 (27,935) Change in accrued expenses (2,406) (7,116) (1,642,431) (2,161,922) Interest received 629,346 948,585 Dividend received 427,017 453,310 Acquisitions of financial assets at fair value through profit or loss (4,279,904) (20,258,759) Payments for granting loans (3,500,000) (400,000) Proceeds from disposals of investments 2,744,970 5,067,834 Withdrawals of term deposits 3,800,000 - Receipts from loans repayments 1,000,000 - Net cash used in operating activities (821,002) (16,350,952) -------------- ------------------ FINANCING ACTIVITIES Repurchase of own shares (553,374) (516,565) Net cash used in financing activities (553,374) (516,565) -------------- ------------------ NET DECREASE IN CASH AND CASH EQUIVALENTS (1,374,376) (16,867,517) Cash and cash equivalents at the beginning of the year 28,078,262 44,945,779 -------------- ------------------ CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 26,703,886 28,078,262 ============== ==================
VIETNAM PROPERTY FUND LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2012
1. Preparation of Financial Statements
The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards ("IFRS"). The consolidated financial statements have been prepared on the accrual basis using the historical cost concept, except for investments classified as financial assets at fair value through profit or loss, which are measured at fair value.
The consolidated financial statements are presented in United State Dollars ("US$"), which is also the functional currency of the Company. All the financial information presented in US$ has been rounded to the nearest dollar. Transactions in foreign currencies are translated to the respective functional currencies of the Group entities at the exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated into the functional currency at the exchange rates at that date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated into the functional currency at the exchange rate at the date that the fair value was determined. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the spot exchange rate at the date of the transaction.
2. Issued Share Capital 30 June 30 June 2012 2011 AUTHORISED: 1,000,000,000 ordinary shares at par value of US$0.01 each 10,000,000 10,000,000 1,000 management shares at par value of US$0.01 each 10 10 ------------- ----------- 10,000,010 10,000,010 ============= =========== ISSUED AND FULLY PAID: 88,221,459 (30 June 2011: 89,321,459) ordinary shares at par value of US$0.01 each 882,215 893,215 1,000 management shares at par value of US$0.01 each 10 10 ------------- ----------- 882,225 893,225 ============= ===========
All ordinary shares have the same rights, whether in regard to voting, dividends, return of share capital or otherwise. The management shares do not carry any right to dividends and, in a winding up, are entitled only to a return of paid-up nominal capital out of the assets of the Group after the return of nominal capital paid up on ordinary shares.
3. Net Asset Value per Ordinary Share
The calculation of the NAV per ordinary share was based on the net asset value attributable to the ordinary shares of the Company as at 30 June 2012 of US$67,496,602 (30 June 2011: US$71,476,461) and the number of ordinary shares in issue as at that date of 88,221,459 ordinary shares (30 June 2011: 89,321,459 ordinary shares).
4. Tax
Under the current law of the Cayman Islands and the British Virgin Islands, the Company and its subsidiaries are not required to pay any taxes in the Cayman Islands and the British Virgin Islands on either income or capital gains and no withholding taxes will be imposed on distributions by the Company to its shareholders or on the winding-up of the Company.
The Group is subject to 10% withholding tax on the interest received from any Vietnamese companies. Dividends remitted by Vietnamese investee companies to foreign investors are not subject to withholding tax.
Although the Company and its subsidiaries are not incorporated in Vietnam, their activities are primarily focused on Vietnam. In accordance with the prevailing tax regulations in Vietnam, if an entity was treated as having a permanent establishment, or as otherwise being engaged in a trade or business in Vietnam, income attributable to or effectively connected with such permanent establishment or trade or business may be subject
to tax in Vietnam. As at the date of this report the following information is uncertain:
-- Whether the Company and its subsidiaries are considered as having permanent establishments in Vietnam;
-- The amount of tax that may be payable, if the income is subject to tax; and -- Whether tax liabilities (if any) will be applied retrospectively.
The implementation and enforcement of tax regulations in Vietnam can vary depending on numerous factors, including the identity of the tax authority involved. The administration of laws and regulations by government agencies may be subject to considerable discretion, and in many areas, the legal framework is vague, contradictory and subject to interpretation. The directors believe that it is unlikely that the Group will be exposed to tax liabilities in Vietnam, and in the worst case, if tax is imposed on income which has arisen in Vietnam it will not be applied retrospectively.
5. Basic Earnings per Ordinary Share
The calculation of basic loss per ordinary share for the year was based on the net loss for the year attributable to the ordinary shareholders of US$3,426,485 (net loss for year ended 30 June 2011: US$20,574,327) and the weighted average number of ordinary shares outstanding of 88,739,435 (year ended 30 June 2011: 89,696,686 ordinary shares) in issue during the year.
VIETNAM PROPERTY FUND LIMITED
("VPF" or the "Company")
ANNUAL REPORTS AND ACCOUNTS
FOR THE YEAR ENDED 30 JUNE 2011
The financial information set out in this announcement does not constitute the Company's statutory accounts for the year ended 30 June 2012, but is derived from those accounts. Full sets of accounts are available by contacting either from the offices of Dragon Capital Markets (Europe) Limited or Seymour Pierce Limited, contactable at the addresses detailed below. The Company will post its Annual Report and Accounts to shareholders before the end of 2012 and make them also available on the Company's website, www.vietnampropertyfund.com.
Dragon Capital Markets (Europe) Limited
The Tramshed
Beehive Yard
Walcot Street
Bath BA1 5BB
Tel: +44 (0) 1225 731402
Seymour Pierce Limited
20, Old Bailey
London EC4M 7EN
Tel: +44 (0) 207 107 8000
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR EANAFAFSAFEF
1 Year Vietnam Prop. Chart |
1 Month Vietnam Prop. Chart |
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions