Cumulative losses persist as Giầy Thượng Đình plans a major project on Nguyen Trãi's prime land, offering 216.5 million shares about 94% below market price

Giầy Thượng Đình JSC (UPCoM: GTD) says it still intends to proceed with a large-scale real estate project on prime land at 277 Nguyen Trãi in Hanoi, while also planning a major private share placement at a steep discount to its market price. The company faces ongoing financial strain, including cumulative losses of nearly VND 106 billion, negative equity of more than VND 12 billion, and audit concerns that raise doubts about its going-concern ability.

Losses persist as auditors flag going-concern risk

According to materials for the annual general meeting, GTD is expected to present a 2026 business plan with total revenue of VND 40 billion, up 60% from 2025, but with no profit. The company reported a loss of nearly VND 39 billion in 2025.

Production is projected at about 390 thousand pairs, down 34% year-on-year.

GTD’s financial statements for 2025 continued to receive qualified audit opinions. Auditors cited more than VND 18 billion in trade receivables and nearly VND 6 billion in payables that could not be reconciled or confirmed. Auditors said there was insufficient evidence to determine whether these balances require adjustment.

With short-term debt exceeding current assets, large cumulative losses, and negative equity, auditors warned of significant doubt regarding the company’s ability to continue as a going concern.

In its explanations, GTD said all receivables have valid supporting documents and are tracked in detail under accounting regulations. The company said it did not obtain full confirmations because some partners had ceased operations, changed legal entities, or failed to respond in time, rather than due to mismanagement of receivables.

2026 plan: relocation and expected production disruption

GTD’s 2026 outlook reflects weak operating conditions after years of losses. After listing on UPCoM in 2016, the company reported losses through 2025 (except 2022, when it recorded a small profit), bringing cumulative losses to nearly VND 106 billion and negative equity to more than VND 12 billion at end-2025.

For 2026, the company expects volatility as it relocates production from its Thượng Đình facility in Hanoi to a plant in Dong Van Industrial Park (Ninh Bình) from May–August 2026. GTD expects a temporary halt in shoe production from Q2 to support the move, with production resuming in Q3. The company also plans to continue seeking contract manufacturing orders to sustain operations at the new plant.

Internal surveys indicate most workers at the 277 Nguyen Trãi plant cannot transfer to the Dong Van site and are requesting compensation under regulations. GTD said the relocation is expected to significantly affect workforce, production, and cash flow in 2026.

Hanoi project: investment of over VND 9.9 trillion

One key agenda item at the upcoming shareholders meeting is a plan to invest in a commercial housing complex with offices, retail, and a multi-level school at 277 Nguyen Trãi, Khương Đình Ward, Hanoi.

The project’s total investment is over VND 9.9 trillion (excluding interest, land use fees, and land rent). Funding is expected to come 20% from the company’s own funds, with the remainder from other lawful sources.

Under a preliminary plan, the complex would include residential, office, and retail components ranging from 25–40 floors, with 4–5 basements. The land area covers over 3.6 hectares on Nguyen Trãi Street, where GTD’s headquarters and factory have been located for decades.

Private placement: 216.5 million shares at VND 10,000

To implement the project, GTD says it requires minimum equity of 20% of the total investment, while the company currently reports negative equity of over VND 12 billion. This has driven a large capital-raising plan.

Specifically, GTD plans to privately place 216.5 million shares to professional securities investors at VND 10,000 per share, an issuance ratio of 2,328%. The offering price is about 94% below GTD’s market price as of 14 April, when the stock traded at VND 166,000 per share. The placement is planned for Q2 2026.

If successful, the company expects to raise VND 2,165 billion, including VND 2,000 billion for the Nguyen Trãi project and VND 165 billion for relocating the plant to Dong Van. The issued shares would be restricted from transfer for one year.

If the funds cannot be raised, the board would be authorized to seek alternative funding through bank loans or other lawful sources.

Partnership search and meeting schedule

In addition to the private placement, GTD said it is pursuing cooperation with financially capable partners experienced in real estate development, including Vinaconex and VCG, to work together on development and mobilize lawful funding for investments, production, and business activities.

GTD plans to hold its shareholders meeting on the morning of May 6 at its headquarters, 277 Nguyen Trãi, Hanoi.