577 Investment Corporation halts all business plans after Carina Plaza

577 Investment Corporation will spend a total of $2.64 million to overcome the fire damage

On April 24, at the annual general shareholders’ meeting of 577 Investment Corporation (code: NBB), Doan Tuong Trieu, chairman of the corporation, expressed his concern for the victims of the fire and pleaded for shareholders to be sympathetic.

He also affirmed that the fire has caused significant damage to the developer Hung Thanh Co., Ltd. and its parent company 577 Investment Corporation.

He said that the corporation has halted all business plans to focus on fixing the building and spent VND21 billion ($0.93 million) compensating the families of victims, support residents to rent temporary accommodations, and cover vehicles damage.

The corporation has spent over VND11.1 billion ($0.5 million) repairing 41 cars and 363 motorbikes. The expenses needed to overcome the consequences and assist residents are estimated at VND60 billion ($2.64 million).

Meanwhile, the charter capital of Carina Plaza’s developer Hung Thanh Co., Ltd. is only VND45 billion ($2 million). Thus, these expenses have exceeded the capacity of this company and 577 Investment Corporation has to provide support.

Thereby, it will increase expenses and reduce the profit of the corporation in the several fiscal years to come. However, Trieu expressed that the company is still waiting for the final conclusions of the investigation agency to allocate responsibility for the fire. “The company will comply with the investigation conclusions and wrongdoers will have to take responsibility for their violations,” he stated.

The sharp decrease of NBB shares has directly damaged 577 Investment Corporation, which has lost 25 per cent of its value. In 2018, the corporation set the goal of VND850 billion ($37.45 million) in revenue and VND170 billion ($7.5 million) of profit. All business plans have been halted, as the corporation only focuses on project development.

In 2017, the corporation hit over VND1.117 trillion ($49.2 million) in revenue, including VND73 billion ($3.2 million) in after-tax profit.