SUNSHINE CRYSTAL BAY BUSINESS PLAN Prepared by Group 1 Faculty of International Economics Foreign Trade University September 2022 TABLE OF CONTENTS Confidentiality Agreement 1 Executive summary 2 1 Pr.
SUNSHINE CRYSTAL BAY BUSINESS PLAN Prepared by: Group Faculty of International Economics Foreign Trade University September 2022 TABLE OF CONTENTS Confidentiality Agreement Executive summary Project Description Company Description 2.1 Mission 2.2 Balance Sheet: link 2.3 Financial Analysis: 2.4 Projects Market Analysis 11 3.1 Target market 11 3.2 Market outlook 11 3.2.1 In the Northeast region 11 3.2.2 In Quang Ninh 13 3.3 Market trends 15 3.4 Competitive advantage 17 Sale/Marketing Strategy 19 4.1 Market research 19 4.1.1 Tourism market analysis in Vietnam 19 4.1.2 Resort Real Estate market analysis in Vietnam 19 4.1.3 Resort Real Estate market analysis in Ha Long, Quang Ninh, Vietnam 21 4.1.2 Direct and indirect competitors 22 4.2 Customer research 26 4.2.1 Psychology and Behaviors 26 4.2.2 Customer Selection Basis 26 4.2.3 Demography 27 4.3 Marketing Strategy 28 4.4 Sales Strategy 30 4.4.1 Pricing 30 4.4.2 Sale plans 31 4.4.3 Customer relation 32 Research and Development 34 5.1 Technology Level 34 5.2 R&D 34 5.3 Future Sustainable Development Plan 36 5.3.1 Objectives 36 5.3.2 Action Plan 37 5.3.3 Transparency 37 5.3.4 Engage the networks 38 5.3.5 Control 40 Staffing and Operations 41 6.1 Staffing 41 6.1.1 Management structure 41 6.1.2 Staffing 41 6.1.3 Human resources policies 43 6.2 Training plans 44 6.3 Operations 46 Financial Projections 51 Funding Requirement 56 LIST OF TABLES Table 1: Company Overview Table 2: Financial Ratio from 2019-2021 Table 3: List of resort real estate projects in Quang Ninh 24 Table 4: Sustainable objectives for the next years 36 Table 5: Grantt chart for Transparency stage 38 Table 6: Grantt chart for Engage customers stage 39 Table 7: Gantt chart for Engage suppliers stage 40 Table 8: Infrastructure Infomation 46 Table 9: Summary table of the project implementation 50 Table 10: Account Receivable Days Sales Outstanding 51 Table 11: Depreciation time 51 Table 12: Breakeven Estimation 55 Table 13: Funding Requirement 57 Table 14: Fund Allocation 57 LIST OF FIGURES Figure 1: Management structure 41 Confidentiality Agreement The undersigned reader acknowledges that the information provided in this business plan is confidential; therefore, the reader agrees not to disclose it without the express written permission of Sunshine Homes Development JSC It is acknowledged by the reader that information to be furnished in this business plan is in all respects confidential in nature, other than information that is in the public domain through other means, and that any disclosure or use of this confidential information by the reader may cause serious harm or damage to of Sunshine Homes Development JSC Signature Name (printed) Phan Huy Khai Date 15/09/2022 This is a business plan It does not imply offering of securities This document is the proprietary property of Sunshine Homes Development JSC Copying of otherwise distributing the information contained herein is a breach of confidentiality agreement Executive summary Sunshine Homes Development JSC is one of the most largest corporations in Vietnam with a firm and sustainable growth since the establishment Sunshine Homes Development JSC is a famous corporations in real estate industry Besides real estate investment, they also "encroaching" into the field of direct operation, ensuring service quality for apartment buildings along with other value-added services on the market We here now prepare a new business plan for Sunshine Homes Development JSC to build a Crystal Bay in Quan Lan island, Van Don, Quang Ninh city in Vietnam The purpose of the plan This is the report for our business plan to build a resort in some places in Quang Ninh, Vietnam, in which we diversify tourism products in accordance with the master plan to develop tourism in Quan Lan island and to satisfy the demand for sightseeing and discovery of tourists, which include resort, accommodation and entertainment Products, services and their advantages The Sunshine Crystal Bay Quang Ninh is a resort offering lodging for vacations, weekends, and over-night trips There are 120 seavilla and 200 hotel rooms each furnished with a kitchenette, refrigerator, stove, dishes, a color television, and an airconditioner There is a store, located on the premises, offering some personal items as well as souvenirs and small gifts We also provides spa services, a golf course, a conference room and swimming pool (one located in the villa area and the other will be outside) We are a business providing a place of lodging and relaxation for both the general public and business travelers Our goal is to provide the best service and enjoyable atmosphere for all of our clients All of these offerings are internationally standardized which would surely satisfy not only domestic customers but also foreign tourists Market opportunities Now is a good time to implement this project because there have been so many opportunities First is the increasing in the demand of going sightseeing of people all over the world after Covid-19 pandemic Secondly, Quan Lan island provide a good eco-system with phenomenal scenes, which will be a good attraction to customers This document is the proprietary property of Sunshine Homes Development JSC Copying of otherwise distributing the information contained herein is a breach of confidentiality agreement Project Description Project title: Sunshine Crystal Bay Quang Ninh Overview: The Sunshine Crystal Bay Quang Ninh is a resort offering lodging for vacations, weekends, and overnight trips There are 120 seavilla and 200 hotel rooms each furnished with a kitchenette, refrigerator, stove, dishes, a color television, and an air-conditioner There is a store, located on the premises, offering some personal items as well as souvenirs and small gifts We also provide spa services, a golf course, a conference room and swimming pools (one located in the villa area and the other will be outside) Location: Quan Lan Island, Van Don, Quang Ninh Province Project scale: Total area: 468,256.22 m² Detailed planning: arched buildings (10 floors each with 200 rooms, hotels, spa) Private event center Golf course service (1 golf course) swimming pools (with outdoor infinity pool, villa pool) 120 sea villas Investment objective: To invest in building Quan Lan Island into a high-class Crystal Bay of international stature with a total area of 468,256.22 m² Investment purpose: In order to diversify tourism products in line with the master plan for tourism development on Quan Lan island, Ha Long city and Quang Ninh province At the same time, satisfying the needs of relaxation, accommodation, entertainment and sightseeing and discovery needs of tourists Investment form: New construction investment Management form: The investor directly manages the project through the Project Management Board established by the investor Estimated budget: $316,657,881 This document is the proprietary property of Sunshine Homes Development JSC Copying of otherwise distributing the information contained herein is a breach of confidentiality agreement Company Description Full name Sunshine Homes Development Joint Stock Company Charter equity 2.500.000.000.000 VND Phone number 0247.302.5888 Website https://ssh.vn Stock symbol SSH Business Registration Certificate 0106784499 Chairman: Mr Do Anh Tuan Board of Directors C.E.O: Ms Do Thi Dinh Bussiness sectors Real-estate Table 1: Company Overview 2.1 Mission Pioneer in the 4.0 technology revolution in the real estate field, bring new living experiences to residents with synchronous utilities and services that are applied 4.0 technologies such as artificial intelligence AI, Big Data , IoT in life Gradually create and promote the scale and ecosystem of Sunshine Homes Development JSC in particular and the real estate industry in general 2.2 Balance Sheet: link This document is the proprietary property of Sunshine Homes Development JSC Copying of otherwise distributing the information contained herein is a breach of confidentiality agreement 2.3 Financial Analysis: Business Performance (unit: Billion VND) 2019 2020 2021 Assets 5.800,80 10.013,23 9.753,18 Net Revenue 1.573,85 1.507,70 1.352,70 Earning before tax 558,55 289,70 405,91 Net income 446,69 227,2 322,7 Financial Index 2019 2020 2021 2.54 1.09 1.28 TD/TA 49,5% 74,7% 73,4% D/E 97,9% 294,9% 276,4% Inventory turnover 3.40 0.87 0.58 Net Revenue/Total Assets 0.27 0.15 0.14 After-tax profit margin 28,38% 15,07% 23,86% ROE 16,49% 7,1% 11,6% ROA 8,99% 2,4% 3% Liquidity Analysis Ratios: Short-term Solvency Measures Capital structure Asset utilization ratios Earning powers Table 2: Financial Ratio from 2019-2021 This document is the proprietary property of Sunshine Homes Development JSC Copying of otherwise distributing the information contained herein is a breach of confidentiality agreement 2.4 Projects This document is the proprietary property of Sunshine Homes Development JSC Copying of otherwise distributing the information contained herein is a breach of confidentiality agreement accommodation needs of guests and other needs if required by guests: food, laundry, alarm, telephone Restaurant Department This department has intermediate level or higher, proficient in professional expertise, knows at least a foreign language, has the function of serving daily meals of guests and organizing parties such as: Wedding party, Company party… Entertainment Department Including swimming pool, golf course, karaoke The staff in these departments are professional, professional and enthusiastic with tourists Always give them the most refreshing and reassuring moments of rest 6.1.3 Human resources policies Work environment The company cares about the working conditions of its employees For employees of the departments, arrange a comfortable, cool, clean workplace, providing all necessary working facilities And for employees working at construction sites, they must be fully equipped with personal protective equipment to ensure safety when working Labor policy ● There are holidays, leave and other leave according to the provisions of the Labor Code Employees must wear uniforms according to regulations and strictly abide by the Company's discipline as follows: ● Uphold the sense of responsibility, internal solidarity to successfully complete all assigned tasks ● Strictly comply with the work assignment and maneuvering of superiors ● Report fully and honestly the assigned tasks When facing difficulties at work, they must seek the direction of their superiors to solve them in a timely manner ● Officers in charge of professional work must not take advantage of their positions to receive commissions and bonuses from any organization or individual in any form, causing disrepute to the company ● Do not use the company's name for personal work 43 This document is the proprietary property of Sunshine Homes Development JSC Copying of otherwise distributing the information contained herein is a breach of confidentiality agreement ● It is strictly forbidden to commit fraudulent acts at work and in business leading to damage to property and interests of the company ● It is strictly forbidden to disclose any form of information, arbitrarily bring documents out of the office or provide information of the company to the outside without the consent of superiors ● Keep the company's business secrets ● The individual's income is based on the assessment of the immediate leadership and the views of the superior, so the individual's income is not disclosed Salary The company's salary policy is built on the basis of the assigned work and the performance of that work Periodically, the company will review the employee's work performance as a basis for salary increase through comments and evaluation In addition to salary, the company also considers adequate bonuses to encourage and encourage the working spirit of employees such as: holiday bonus, Tet bonus and bonus according to work performance Social insurance Make deductions and payments for social insurance and health insurance for employees according to current regulations Allowances, benefits and compensation Meal allowance for construction workers 6.2 Training plans Allow the employees to take some general and specialized short-term or long- term training courses which provide them with some knowledge and skills necessary during the working process Provide employees with sufficient, up-to-date and accurate information to increase awareness and understanding of the hotel's image, brand, and reputation so that employees are motivated to improve and innovate 44 This document is the proprietary property of Sunshine Homes Development JSC Copying of otherwise distributing the information contained herein is a breach of confidentiality agreement Establish a mechanism for employees to contribute ideas, share difficulties, problems and desires with the Board of Directors This activity can increase the interaction between officers, employees and their direct/indirect management Improve the quality of life of employees by increasing wages commensurate with work productivity, having policies to reward and promote employees with good achievements, positive attitudes and high responsibility to motivate them to work harder To this, company leaders need to ensure the health of employees by buying insurance for them, taking care of their daily meals, health status and medicine for employees, supporting education and train educate workers' children and build programs to improve material and spiritual life Create supervison and controlling system over employees, test the skills of employees periodically, consider salary raising and promotion for whom qualifies and reaches higher level of standard The team of experts directly educates and trains employees through specific plans such as skill improvement courses, experience-sharing seminars, intimate discussions to strengthen the relationship between leaders and employees Staff management and employees or between employees With different customers, employees must behave flexibly and appropriately Therefore, businesses need to train communication skills for hotel staff, especially those departments that often meet customers such as reception, rooms, security, etc The training program needs to be carefully designed details , from gestures, facial expressions, voices or smiles when communicating It is necessary to create an intimate, close and close working environment between employees and between employees and leaders, spend more on improving the living conditions of workers, quickly solving problems and provide appropriate solutions in a timely manner 45 This document is the proprietary property of Sunshine Homes Development JSC Copying of otherwise distributing the information contained herein is a breach of confidentiality agreement 6.3 Operations - Location: Quan Lan Island, Van Don, Quang Ninh - Infrastructure system: Area 468.256,22 m² Employees 13.000 employees arc-shaped buildings (10 floors each with 200 rooms, hotels ), 120 Feature seavilla Golf course service (1 golf course), swimming pools (1 outdoor infinity Facilities Services pool, villa pool), spa, gym, luxurious restaurants, bars (1 lobby bar, rooftop bar, pool bar), private event center Table 8: Infrastructure Infomation - Project implementation progress: Divided into phases: ● Phase 1: CONSTRUCTION PHASE ○ Sunshine Homes Development JSC company put Sunshine Crystal Bay Quang Ninh project into construction from 2022 to the end of 2025 ● Phase 2: OPERATION PHASE ○ With the efforts of the investor and partners from above, from 2026 the items in the project planning of Sunshine Crystal Bay Quang Ninh have been completed and put into operation This phase focuses on developing restaurants, conference centers, hotels, resorts, villas, high-tech industrial production zones ○ The investor and the construction unit completed the project on time, ensuring the quality and so far the project has been put into operation and received many good reviews from the management unit and customers 46 This document is the proprietary property of Sunshine Homes Development JSC Copying of otherwise distributing the information contained herein is a breach of confidentiality agreement No Project activities Environmental Works and measures to protect impacts the environment Phase 1: CONSTRUCTION PHASE Air environment Transportation of raw materials such as: Dust, Coordinate the means of noise, SO2, NOx, transportation in and out CO, CO2, THC reasonably Workers' health Construction of main items and infrastructure Air environment Reasonable construction time such as: Dust, Construction according to technical noise, SO2, NOx, design Procurement of labor CO, CO2, THC protection equipment Domestic wastewater of workers in the Construction camp area workers' activities Solid Domestic Waste Renting portable toilets, periodically collecting and treating at Wastewater Treatment System No with a capacity of 2000 m3/day Equip the container Hire a unit with collection and treatment functions Environmental incidents (fire, explosion, occupational Economic and Equip labor protection equipment social damage and fire protection equipment accident, leakage) Phase 2: OPERATION PHASE 47 This document is the proprietary property of Sunshine Homes Development JSC Copying of otherwise distributing the information contained herein is a breach of confidentiality agreement Air environment such as: Dust, Kitchen ventilation system Limit noise, SO2, NOx, the use of air conditioners Use CO, CO2, THC, electric passenger transport Plant NH3, H2S, CH4, plants around the smelly area mercaptan Activities of staff Domestic and visitors at wastewater flow Treatment at a wastewater treatment plant with a capacity of 1500 m3/day Sunshine Crystal Bay Quang Ninh Amount of domestic solid waste Place garbage collection and segregation bins on each project area Hire a public environmental company to collect and treat Collect and store hazardous solid Hazardous solid waste in the project area Hire a waste unit with the function of collecting and treating hazardous solid waste The storage system fully meets the technical safety standards Strictly Fuel leak problem Air, soil, water comply with safety technical and ecosystem regulations during import and environment export Coordinating with relevant authorities to develop an incident handling plan Environmental incident Wastewater treatment station problem Fully invested in the maintenance and operation of the wastewater treatment plant Regularly check the drainage system of the resort 48 This document is the proprietary property of Sunshine Homes Development JSC Copying of otherwise distributing the information contained herein is a breach of confidentiality agreement Strictly implement the contents of the incident prevention and response program Build a direct lightning protection Lightning incident system for each separate area Install lightning protection system Invest according to the progress of infrastructure construction Labor protection equipment for construction workers according to Work accident incident current regulations of the Ministry of Labor, War Invalids and Social Affairs Periodically check the health status of employees according to the State's regulations Gas storage is installed with sensors to warn of gas leaks All works in the project area have Fire incident lightning protection and fire alarm systems Equipped with fire extinguisher system according to the requirements of the fire prevention and fighting industry When an oil spill occurs, use Oil Sorbent Sock, then use a Oil spill incident lightweight, porous substance that only absorbs oil and does not absorb water; Thermal method for high-temperature oxidation of 49 This document is the proprietary property of Sunshine Homes Development JSC Copying of otherwise distributing the information contained herein is a breach of confidentiality agreement organic pollutants in oily wastewater Products formed in gaseous and solid states Install ventilation and ventilation systems at warehouses storing Chemical leak fertilizers and pesticides incident Coordinate with authorities to develop plans for incident prevention and response, etc Table 9: Summary table of the project implementation 50 This document is the proprietary property of Sunshine Homes Development JSC Copying of otherwise distributing the information contained herein is a breach of confidentiality agreement Financial Projections Key Assumptions Nature and Limitation of Projection: This financial projection is based on sales volume at the levels described in the revenue section and represents the company's expected assets, liabilities, capital, revenues, and expenses to the best of management's knowledge and belief Given the hypothetical assumptions, the projections reflect management's assessment of the expected conditions and its expected course of action Income sources: The Company's revenue is primarily derived from sales of its products in Quang Ninh, which includes six product lines: Deluxe room, Standard room, Seavillas, Restaurants, Tour and Golf Revenue projections are based on our forecast for 2026 - 2028 sales period The projected growth rate for revenue is 10%/year Expenses: The Company’s expenses are primarily those of Salaries and wages, Travel, Meals and Entertainment, Advertising and administrative costs Other expenses are based on management's estimates and industry averages The growth rate of payroll is expected to be 20%/year, while that of expense is 3-5%/year Creditor days expected: Percent of Collections Year Year Year Paid within 30 days 20% 20% 20% Paid between 30 and 60 days 40% 40% 40% Paid in more than 60 days 40% 40% 40% Table 10: Account Receivable Days Sales Outstanding Debtor days allowed: paid in more than 60 days Depreciation time (Straight-line depreciation): Fixed Assets Depreciation (years) Real Estate-Land Not Depreciated Real Estate-Buildings 50 Leasehold Improvements 10 Equipment Furniture and Fixtures 5 Vehicles Table 11: Depreciation time 51 This document is the proprietary property of Sunshine Homes Development JSC Copying of otherwise distributing the information contained herein is a breach of confidentiality agreement Profit & Loss Accounts Revenue 2026 2027 2028 Deluxe room 6,673,729 7,341,102 8,075,212 Standard room 6,038,136 6,641,949 7,306,144 Seavillas 17,389,831 19,128,814 21,041,695 Restaurants 40,561,017 44,617,119 49,078,831 Tour 42,544,000 46,798,400 51,478,240 Golf 556,780 612,458 673,703 Total Revenue $ 113,763,492 $ 125,139,841 $ 137,653,825 Cost of Goods Sold Deluxe room 667,373 734,110 807,521 Standard room 603,814 664,195 730,614 Seavillas 3,830,400 4,213,440 4,634,784 Restaurants 12,763,200 14,039,520 15,443,472 Tour 19,144,800 21,059,280 23,165,208 Golf 262,800 289,080 317,988 Total Cost of Goods Sold 37,272,386 40,999,625 45,099,588 Gross Margin 76,491,105 84,140,216 92,554,237 Payroll 9,181,972 11,002,558 14,285,972 Advertising 920,000 947,600 976,028 Car and Truck Expenses 360,000 370,800 381,924 Commissions and Fees 60,000 63,000 66,150 Contract Labor (Not included in payroll) 16,400 16,892 17,399 Insurance (other than health) 120,000 123,600 127,308 Legal and Professional Services 24,000 24,720 25,462 Office Expense 180,000 185,400 190,962 Repairs and Maintenance 282,000 296,100 310,905 Supplies 168,000 173,040 178,231 Travel, Meals and Entertainment 1,800,000 1,854,000 1,909,620 Utilities 240,000 247,200 254,616 Operating Expenses 52 This document is the proprietary property of Sunshine Homes Development JSC Copying of otherwise distributing the information contained herein is a breach of confidentiality agreement Total Operating Expenses $ 4,170,400 $ 4,302,352 $ 4,438,605 Income (Before Other Expenses) $ 63,138,734 $ 68,835,306 $ 73,829,661 Other Expenses Amortized Start-up Expenses 376,421 376,421 376,421 Depreciation 13,427,289 13,427,289 13,427,289 Commercial Loan 24,122,052 22,752,790 21,194,526 Line of Credit 143,773 157,848 157,848 Total Other Expenses $ 38,069,534 $ 36,714,347 $ 35,156,083 Net Income Before Income Tax $ 25,069,199 $ 32,120,959 $ 38,673,578 Income Tax $ 5,089,124 Net Income/Loss $ 19,980,075 $ 25,621,483 $ 30,863,578 Interest $ 6,499,476 $ 7,810,000 Balance Sheets ASSETS 2026 2027 2028 Cash 22,721,935 50,426,504 81,771,753 Accounts Receivable 8,466,292 9,312,921 10,244,213 Prepaid Expenses 6,811,419 6,452,924 6,094,428 Other Initial Costs 340,571 322,646 304,721 Total Current Assets $ 38,340,217 $ 66,514,995 $ 98,415,115 Current Assets Fixed Assets Real Estate Land 57,935,882 57,935,882 57,935,882 Real Estate Buildings 200,000,000 200,000,000 200,000,000 Equipment 10,000,000 10,000,000 10,000,000 Furniture and Fixtures 10,000,000 10,000,000 10,000,000 Vehicles 2,000,000 2,000,000 2,000,000 Other 27,993,588 27,993,588 27,993,588 Total Fixed Assets $ 307,929,470 $ 307,929,470 $ 307,929,470 (Less Accumulated Depreciation) $ 13,427,289 $ 26,854,578 $ 40,281,867 Total Assets $ 332,842,397 $ 347,589,886 $ 366,062,718 53 This document is the proprietary property of Sunshine Homes Development JSC Copying of otherwise distributing the information contained herein is a breach of confidentiality agreement LIABILITIES & EQUITY Liabilities Accounts Payable 4,151,200 4,566,320 5,022,952 Commercial Loan Balance 180,074,876 168,785,762 155,938,383 Line of Credit Balance 1,973,094 1,973,094 1,973,094 Total Liabilities $ 186,199,170 $ 175,325,176 $ 162,934,429 Equity Common Stock 126,663,152 126,663,152 126,663,152 Retained Earnings 19,980,075 45,601,558 76,465,137 Dividends Dispersed/Owners Draw - - - Total Equity $ 146,643,228 $ 172,264,711 $ 203,128,289 Total Liabilities and Equity $ 332,842,397 $ 347,589,886 $ 366,062,718 Cash Flow Year Totals Year Totals Year Totals Cash Sales $ 22,752,698 $ 25,027,968 $ 27,530,765 Accounts Receivable $ 82,544,502 $ 99,265,243 $ 109,191,768 Total Cash Inflows $ 105,297,200 $ 124,293,212 $ 136,722,533 Beginning Balance Cash Inflows Cash Outflows Investing Activities New Fixed Asset Purchases $- $- $- Additional Inventory $- $- $- Cost of Goods Sold $ 33,121,186 $ 40,584,505 $ 44,642,956 Operating Expenses $ 4,170,400 $ 4,302,352 $ 4,438,605 Payroll $ 9,181,972 $ 11,002,558 $ 14,285,972 Taxes $ 5,089,124 Operating Activities $ 7,810,000 Financing Activities 54 This document is the proprietary property of Sunshine Homes Development JSC Copying of otherwise distributing the information contained herein is a breach of confidentiality agreement Loan Payments $ 34,041,904 $ 34,041,904 $ 34,041,904 Owners Distribution $- $- $- Line of Credit Interest $ 143,773 $ 157,848 $ 157,848 Line of Credit Repayments $- $- $- Dividends Paid $- $- $- Total Cash Outflows $ 85,748,359 $ 90,089,167 $ 105,377,283 Net Cash Flows $ 19,548,841 $ 34,204,045 $ 31,345,249 $ 1,973,094 $- $- Operating Cash Balance Line of Credit Drawdown Break-even Analysis The following table reflects the company's break-even estimates These are based on fixed and variable cost estimates derived from income statement data Gross Margin % of Sales Gross Margin $ 76,491,105 Total Sales $ 113,763,492 Gross Margin/Total Sales 67.2% Total Fixed Expenses Payroll $ 9,181,971.50 Operating Expenses $ 41,925,281.48 Operating + Payroll $ 51,107,253 Breakeven Sales in Dollars (Annual) Gross Margin % of Sales 67.2% Total Fixed Expenses $ 51,107,253 Yearly Breakeven Amount $ 76,010,662 Monthly Breakeven Amount $ 6,334,222 Table 12: Breakeven Estimation 55 This document is the proprietary property of Sunshine Homes Development JSC Copying of otherwise distributing the information contained herein is a breach of confidentiality agreement Funding Requirement Sunshine Homes Development JSC is a listed company with a lot of successful real estate projects in Vietnam Therefore, we can be considered as a low-risk investment for all investors With a new project in Quang Lan, Quang Ninh – a rapidly growing city, we believed that our success could attract more and more potential investment to Quang Ninh for the field of luxury travel For this project, we expected to raise funds from an internal source (Sunshine Homes Development JSC), financial intermediary (Sacombank) and other investors Sunshine Homes Development JSC With a variety of businesses that the company has invested in, Sunshine Homes Development JSC can be considered to have a high liquidity rate Moreover, with charter capital of more than 2500 billion VND, Sunshine Homes Development JSC has full ability to finance for a large project The financial potential of Sunshine Crystal Bay Quang Ninh can also be shown through a variety of land banks in the center of big cities such as: Hanoi, Ho Chi Minh, Da Nang, Nha Trang,… that this company owns Sunshine Homes Development JSC is an ecosystem which has many subsidiary companies that together support each project, giving Sunshine Homes Development JSC the right to control the whole process of all projects With the new project located in Quang Lan, the source of funds from Sunshine Homes Development JSC is 30% of total funding requirement, which is expected to cover initial cost of the project Sacombank Sacombank is considered to be one of the biggest commercial bank in Vietnam, which means that this bank can provide a stable source of fund for our large project Sacombank and Sunshine Homes Development JSC have successfully corporated in Sunshine Venicia Thu Thiem project, therefore with this new project, we believe that Sacombank will continue to support us with 60% of total funding requirement with a rational interest rate and terms of payment Other investors With the success that has been proved by many projects before, and the fastdeveloping city like QuangNinh, this project can easily draw the attention of individual or group investors The project is attractive as it is a luxury resort located in the North 56 This document is the proprietary property of Sunshine Homes Development JSC Copying of otherwise distributing the information contained herein is a breach of confidentiality agreement of Vietnam, a place where there are not many beach resorts which offer high standard customers Furthermore, with the reputation of Sunshine Homes Development JSC which is raised by a series of potential projects in the center of big cities, we believe that with this new step, we will provide customers with the most luxury service Fast construction process, high profit margin, when investing in this project, investors can expect a high rate of return Therefore, we would like to raise 10% of the total fund through outside investors Sources of fund Amount ($) Percentage Sunshine Homes Development JSC 94,997,364 30% Sacombank 189,994,729 60% Outside investors 31,665,788 10% Total 316,657,881 100% Interest rate 13% Table 13: Funding Requirement Fund allocation No Capital structure Total value ($) Compensation costs - Site clearance, resettlement Owner’s equity Commercial loan 58 935 882 20 627 559 38 308 323 Construction costs 200 000 000 60 000 000 120 000 000 Cost of equipment 10 000 000 Cost of other assets 39 993 588 164 861 20 162 938 Cost of operating capital 728 411 371 088 689 612 Total 316 657 881 94 997 364 189 994 729 31 665 788 Ratio 100% 30% 60% 10% Outside investors 20 000 000 10 000 000 11 665 788 Table 14: Fund Allocation 57 This document is the proprietary property of Sunshine Homes Development JSC Copying of otherwise distributing the information contained herein is a breach of confidentiality agreement ... new business plan for Sunshine Homes Development JSC to build a Crystal Bay in Quan Lan island, Van Don, Quang Ninh city in Vietnam The purpose of the plan This is the report for our business plan. .. resorts such as: Sunshine City Hanoi, Sunshine Center, Sunshine Riverside, Sunshine Empire, Sunshine City Saigon, Sunshine Diamond River Besides the spearhead field of real estate, Sunshine Homes... Sunshine Crystal Bay Quang Ninh will implement a supply chain environmental management system The step taken includes: ● Choose greener products ● Notify the suppliers that Sunshine Crystal Bay