The implementation of Trang Cat Urban and Service Area and the Operation situation of the Corporation

Trang Cat Urban Development One Member Company Limited (Investor of Trang Cat Urban and Service Area Project and also a subsidiary that is held 100% charter capital by Kinh Bac City Development Holding Corporation) has paid VND 6,854 billion on land use levy of Trang Cat Urban and Service Area Project for 714,810.4 m2 of long-term use right for residential land. Including the land use levy paid in 2020, after adjusting the planning, the land use levy of the Project is about VND 17,794 billion. Thus, Trang Cat Urban and Service Area Project has been completed 100% land use levy for the entire 1,955 million m2 of long-term housing land to be availably put into business and 533,172.48 m2 of land for social housing construction along with many ha of land for construction of 5-star hotels, commercial centers, hospitals and schools as well as entertainment and sports centers, green parks, retention basins

The project has been invested by KBC since 2006. Currently, the urbanization and modernization needs of Hai Phong city are always in the top cities in terms of GDP development and Hai Phong is the third largest centrally-governed city in the country, with the largest seaport in the North which recent years has developed strongly.

Trang Cat Urban Area project is located adjacent to 5B Hanoi – Hai Phong Highway, the travel time from Hanoi to the urban area is about 50 minutes by car with the speed up to 120 km/hour, as well as is convenient and near when moving to Hai Duong, Hung Yen, Thai Binh, Quang Ninh which are strongly-developing dynamic economic regions.

With an advantageous cost of goods sold, KBC will quickly deploy and put 2.5 million m2 of residential land into business and create a favorable living environment for people.

According to the plan, in May, KBC will start construction of a 50-ha social housing area in Trang Cat Urban Area. In the past year, SHP – a subsidiary of KBC – has become one of the major social housing construction companies, has built and handed over thousands of social housing units with a stable profit of 10%, the Company's social housing products are highly appreciated by customers, which has created civilized and vibrant residential areas. The Company's social housing projects in Bac Giang, Da Nang and Hai Phong have provided a large amount of affordable housing for people.

KBC has restructured and become a provider of commercial housing and social housing that is in high demand in Vietnam.

In the context of the current changes in the impacts of tariff policies, KBC’s BOD has had many meetings to implement flexible response solutions.

On the one hand, the Company continues to accompany investors, expands the customer base to attract investment in existing industrial parks. In Quarter 1, KBC signed 68 ha of lease land (accounting for over 30% of the plan for the year, which is more than 200 ha, to sublease IP land).  Some investors have postposed their investment plans to wait for negotiations on tariffs but still keeping instead of returning land to KBC so that they could operate when conditions are more favorable. On April 17, KBC is welcoming a large corporation that wants to lease a few tens of ha of land.

The factor closely watched by investors today is how the tax rate imposed on Vietnamese goods exported to the US is correlated with the tax on goods in the same region. If it is equal or lower, Vietnam's overall competitiveness will still be maintained. In addition, this is also an opportunity for Vietnamese enterprises to strongly participate in the production of raw materials (while goods from neighboring countries subject to high tariffs will find it difficult to maintain strong production as before) and participate in and global supply chains. Therefore, the demand for land lease of Vietnamese factories is still capable and has a positive long-term outlook.

On the other hand, KBC is actively implementing urban area projects, with products aimed at the actual housing needs of the people and with prices suitable for actual income. This will be a driving force to ensure the plans set out by the BOD of the Company.

With more than 20 years of operation and having experienced many significant fluctuations from the domestic and foreign business environment, KBC always upholds stable and sustainable development and has diverse business plans. KBC's BOD has well and thoroughly prepared and adapted to changing situations.

The company will always strive to bring results worthy of the trust of esteemed shareholders, customers and partners.