KITA Group Chairman Resigns from RCC Board Amid Capital Raise

Overview

Nguyen Duy Kien, chairman of KITA Group, has submitted his resignation from the board of RCC Group (UPCOM: RCC), the company managing the prime land at 33 Lang Ha, Hanoi. The resignation comes as RCC plans a private placement to raise 150 billion VND, in which Kien is slated to participate, increasing his stake to 13.19%.

Key Facts

• Nguyen Duy Kien resigned as board member of RCC Group, effective upon shareholder approval, citing personal reasons.
• Kien owns 3.24 million RCC shares, representing approximately 10.1% of charter capital.
• RCC plans to issue 10 million shares at 15,000 VND/share, raising 150 billion VND.
• Kien is allocated 2.31 million shares in the placement, costing 34.65 billion VND, raising his stake to 13.19% post-issue.
• Proceeds: 20 billion VND for subcontractor payments on the Ninh Binh – Hai Phong expressway project; 10 billion VND to repay BIDV debt; 120 billion VND to repay short-term loans from four individuals, including Kien.
• RCC shares will exit restricted trading on August 6, 2026, after audited 2025 financials are published.
• RCC remains under warning status for failing to publish the 2026 annual general meeting resolution on time.

What Happened

RCC Group announced it received a resignation letter from Nguyen Duy Kien, dated July 27, for personal reasons. Kien, who was elected to the board for the 2025–2030 term in August 2025 and later became vice chairman, will step down pending shareholder approval. Despite the resignation, Kien is listed among investors in RCC’s private placement, approved by the board on July 28.

The placement involves 10 million shares at 15,000 VND/share, raising 150 billion VND. Kien is set to buy 2.31 million shares, increasing his holding to 5.55 million shares (13.19%). Other investors include Chairman Vu Duc Tien, board member Pham Ngoc Quoc Cuong, Nguyen Gia Long, and shareholders Nguyen Duc Giang and Nguyen Thi Phuong. Proceeds will fund subcontractor payments, BIDV debt, and short-term loans from individuals, including Kien.

Market Context

RCC shares closed at 22,100 VND on July 26, 2026, on the UPCOM exchange. The stock has been under restricted trading but is set to be lifted on August 6, 2026. The company remains under warning for late disclosure of its 2026 AGM resolution. RCC’s total assets stood at 1,080 billion VND at end-Q1 2026, with short-term receivables of 676 billion VND and short-term borrowings of 399 billion VND. The company’s core business is railway infrastructure construction, with a prime office property at 33 Lang Ha.

Strategic Significance

Kien’s resignation from the board while increasing his stake signals a potential shift in governance but continued financial commitment. His participation in the placement, coupled with the use of proceeds to repay loans to himself and other individuals, raises questions about related-party transactions and corporate governance. For investors, the move may indicate a realignment of control or a strategic repositioning of RCC’s capital structure. The company’s reliance on short-term loans from individuals highlights liquidity pressures, and the placement is a critical step to stabilize finances.

What to Watch

• Shareholder approval of Kien’s resignation and the private placement at the next EGM.
• Completion of the placement and subsequent changes in ownership structure.
• Publication of audited 2025 financials and removal of restricted trading status.
• Resolution of the warning status regarding the 2026 AGM resolution.
• Updates on the Ninh Binh – Hai Phong expressway project and subcontractor payments.