False information regarding the short-term investments of CTD

Dear Shareholders,


First and foremost, we would like to thank our Shareholders for their support of Coteccons during this difficult period.


Because of politics and recent negative consequences from the real estate market on Vietnam’s stock market, you may notice uncertainty and a less bullish outlook on the global economy. The VN-Index has fallen by more than 40% from its top in 2022, while Coteccons (stock code CTD) has fallen by more than 71% since its peak at the start of the year.


You have been confused as a result of the share price decrease and the propagation of erroneous information concerning Coteccons’ development prospects. Coteccons fosters a culture of transparency and is devoted to implementing the idea of fairness for all shareholders, therefore any questions from shareholders, whether major or tiny shareholders, will always be heard. As a result, we are responding to shareholders officially with this notice:


1/ Regarding the consolidated financial statements for the third quarter of 2022 published on October 29, 2022:

Coteccons’ net revenue increased 191% year on year in the third quarter of 2022 and 25.5% year on year in the first nine months of 2022 to 8,307 billion VND. A profit of 315 billion VND, up 15.8% year on year, was obtained in the first nine months of 2022 as a consequence of cost savings and higher package efficiency from handover and settlement operations, as was a third quarter gross profit of 96 billion VND, up 4% year on year.


However, Q3 gross profit and gross margin did not expand in tandem with sales, owing to variations in input prices such as building materials, as well as the expenses of mobilizing and employing people. Work grew dramatically. As a result, the cost of goods sold and services provided grew by VND 2,027 billion, or 192.3% year on year, leading the gross margin to fall to 1.06% year on year.

The causes for the reduction in profits were described in the company’s consolidated financial statements for the third quarter of 2022, which were issued on October 29, 2022.


2/ Regarding construction activities:

Coteccons affirmed that that the company’s construction operations are not tied to real estate investors, as some rumors alleged.

The corporation has set aside funds for two projects, Alpha Hill and IFC Saigon Tower One, to be completed by 2020 or early in relation to the investor Van Thinh Phat:

  • Receivables for the Alpha Hill project are 34 billion; provision has been made for 34 billion.
  • Receivables for IFC Tower One project is worth 7.9 billion, and 7.9 billion has already been spent.

Coteccons does not tolerate the exchange of low offer prices for projects, the company’s board of directors reiterated. The Coteccons brand, also known as “Coteccons Inside,” was formed by the corporation, which is always consistent and transparent and has four different ideals.


3/ Regarding the list of bonds the company is holding:

A bond with collateral and a promise to purchase it back from a trustworthy organization make up the entirety of the company’s bond portfolio, which is made up of bonds from more than 6 different issuers. The corporation claims that the bonds it owns are unrelated to the issuers, however this is based on certain inaccurate sources.

The company has collected $469 billion compared to the number of bonds held at the end of the second quarter of 2022, for the portfolio of bonds owned by the company under a redemption arrangement with a duration of no more than one year and an interest rate of 7.5-12%.


4/ Regarding the provisioning for risky projects:

The Board of Management of Coteccons has proactively made a provision of 961 billion VND for receivables from customers, which the company has recorded from 2020 and earlier, in response to the market’s negative risks, for the purpose of sustainable development and ensuring the assets of our shareholders.


Corporate income tax (CIT), which the company has already paid in the amount of 43 billion dong for the business results of 2021 with a pre-tax profit of 38 billion dong, is still owed by the company for the provisioning. Absolutely not to generate losses in order to avoid paying taxes, as is the rumor making the rounds on social media.


The required steps are being taken by Coteccons to collect debts. Provisions for projects that have been deemed at risk will be reversed as soon as the company has finished its recovery. Acts of spreading false rumors, misrepresenting the truth, making up stories, and harming enterprises shall be dealt with by the corporation in line with the law.

Best regards!


On May 20, 2023, Coteccons organized a training program on business conduct policy, a specialized training course on Vietnam’s anti-corruption regulations and compliance with the US Foreign Corrupt Practices Act (FCPA), and an information security policy. The program is open to all employees of Coteccons and Unicons who are working in the back office and on construction sites across the country. Mr. Nguyen Hoang Lam, Director of Technical & Compliance Division, spent time in the first section discussing “Coteccons’ business conduct policy,” “Policy against sexual harassment,” and “Equality and anti-discrimination policy.” Coteccons is devoted to conducting business honestly and responsibly, and it aims to create a trustworthy and secure working environment, providing equal opportunity for all employees, regardless of race, sex, religion, age, marital status, disability, veteran status, or other factors.  Ms. Nguyen Thi Thanh Tra and Mr. Esko Cate, VILAF, followed, both of whom have substantial experience in compliance and anti-corruption concerns. Employees of Coteccons and Unicons got a thorough understanding of Vietnam’s anti-corruption policies as well as compliance with the US Foreign Corrupt Practices Act (FCPA) during the training session. It not only gives theory but also interactive and includes case studies, assisting employees in understanding how to recognize and prevent potential incidents of corruption. “Today, businesses in the United States have a need to move and expand their market through Asian countries in general, and especially Vietnam in particular. And they are excited about working together, collaborating with trustworthy partners, and following the same core principles. And

Unicons Investment Construction Limited Company (Unicons) Members’ Council has approved the appointment of Mr. Tran Van Lam as General Director, beginning January 31, 2023. Mr. Tran Van Lam is a key person that has been with Coteccons from its establishment. He has approximately 20 years of construction experience, having held numerous important positions such as project manager and project director for both Coteccons and Unicons. Mr. Tran Van Lam was officially appointed as Unicons’ Deputy General Director in June 2021. As a member of the Board of Directors, he spread his assertive working style, strong personality, and positive thinking to the staff and earned the faith and confidence of investors and partners. On January 31, 2023, he was officially appointed general director of Unicons Investment Construction Limited Company. (Mr. Chris Senekki – President of Unicons, Coteccons Deputy General Director congratulates Mr. Tran Van Lam) Mr. Tran Van Lam shared: “First of all, I would like to thank all Coteccons and Unicons people. We uphold freedom, creativity, and transparency, along with the “OWN IT” spirit. These values will bring the company to its best version. “I will always try my best to work with all employees with all my heart and soul, determined to bring the Coteccons and Unicons forward.” “This is a very important milestone for Unicons in particular and Coteccons in general,” said Mr. Bolat Duisenov, Chairman of the Coteccons Board of Directors. “I feel that Mr. Tran Van Lam’s great determination and working ethics of discipline, directness, and fairness

With a view to creating a transparent environment for our investors, on January 16, 2023 Coteccons Construction Joint Stock Company (ticker symbol: CTD) held a shareholder meeting. In his opening remarks, Chairman Bolat conveyed a message about TRANSPARENCY to all participating shareholders “When I was first elected the Chairman of the Board of Directors of Coteccons, my commitment was to put in place best corporate governance practices, especially those that promote transparency. At that time, my belief shared by many of my colleagues here was that there had to be transparency between major investors, BOD members, or those directly employed by the company but also to each individual investor and shareholder owning CTD shares”, said Mr. Bolat Duisenov – Chairman of Coteccons Board of Directors, at the start of the dialogue. “Let’s further uphold this culture of transparency as at Coteccons there’s actually nothing to hide, even when we face challenges or reap unsatisfactory results. Such information can absolutely be shared honestly and openly with each other,” Bolat added. Overcoming challenges in 2022 The year 2022 has passed, can you share your business performance (revenue, profit, achievements) in 2022 and your expectations and plans for the year ahead? Mr. Vo Hoang Lam – General Director of Coteccons: In 2022, the company is implementing 65 projects in all three regions, spanning from the North to the South of Vietnam. Key outstanding projects include Lego, Diamond Crown in Hai Phong or VinFast Factory, among others. As of now, our total revenue

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