CII Secures Over VND 113 Billion in Unrealized Gains from PC1 Stock Investment

Ho Chi Minh City Infrastructure Investment Joint Stock Company (CII) has recorded unrealized gains exceeding VND 113 billion (approximately USD 4.4 million) from its investment in PC1 Group (PC1) shares, acquired during the second quarter at low prices, according to the company's consolidated financial report. As of the end of the second quarter, CII held nearly 36.9 million PC1 shares, with an original cost of over VND 738.5 billion. The fair value, calculated based on the closing market price on June 30, reached over VND 851.8 billion, representing an effective return of more than 15%. CII began establishing its presence as a major shareholder in PC1 from early June, with its subsidiary CII Invest purchasing approximately 3.9 million shares. The CII group has continuously increased its holdings since then. By the end of June, the group controlled 8.97% of PC1's charter capital, making it the second-largest shareholder, trailing only Mr. Trinh Van Tuan, the former Chairman of the Board of Directors. According to the financial report, the average cost basis for its PC1 investment was around VND 20,000 per unit, which represented a low point for the stock. From mid-May to early June, PC1's market price hovered primarily between VND 18,000 and VND 20,000 per unit, marking its lowest point in about a year. CII has repeatedly explained that this is purely a financial investment and that it has no intention of participating in PC1's operations, including nominating or appointing personnel to the Board of Directors or the Supervisory Board. Following CII's significant stake, PC1 shares have improved by over 20%. As of the closing session on July 30, the stock reached VND 21,650. Recently, CII continued to inject more capital, increasing its total shareholding to over 45.61 million units, equivalent to 11.09% of the charter capital. PC1, formerly a state-owned enterprise, specialized in the construction of national power transmission projects, having completed tens of thousands of kilometers of transmission lines from 110 kV to 500 kV. In mid-May, Mr. Trinh Van Tuan was prosecuted on charges of asset embezzlement and violations of accounting regulations. Last week, PC1 held an extraordinary general meeting to complete its leadership structure. Ms. Trinh Khanh Linh (born 1999), Mr. Tuan's daughter, was elected as the new Chairperson of the Board of Directors. Subsequently, CII's Board of Directors decided to approve the company and its subsidiaries continuing to increase their ownership ratio in PC1. They assessed that the enterprise's organizational structure and operations have entered a period of stability. The two parties will collaborate closely to leverage each other's strengths. CII is one of the leading enterprises in the transportation infrastructure sector. The company is well-known for projects such as the expansion of Hanoi Highway and the Ho Chi Minh City – Trung Luong – My Thuan Expressway. For the first six months of the year, CII recorded net revenue of VND 1,586 billion, an 11% increase compared to the same period last year. However, profit after tax decreased by 48% to VND 96 billion, primarily due to a reduction in financial revenue and an increase in interest expenses. By Tat Dat