1st quarter 2008 Hoa Phat Group achieves VND451 billion profit after tax

At the end of 1st quarter, Hoa Phat reaches VND2.307 billion in turnover, VND451 billion in profit after tax, accomplishes 30% and 60% of the whole year plan.

With this result, EPS of the first 3 months was 3.416 dong/share, EPS of four latest quarters was 7.649 dong/share. Business activities in the first 3 months 2008 reaches high growth and quite stably, percentage of profit after tax on turnover of the Group increases to 19% while which in 2007 was 11%.

In comparison with the first quarter of 2007, almost every fields of Hoa Phatreach high growth. Among that, constructive steel, steel pipe, furniture, refrigeration, industrial park business, trading obtain more than 40% growth rate in turnover.

Trading, industrial park and steel business are three fields which own highest profit growth rate. In particular, turnover of industrial park’s business raises 5 times, 8 times in profit compared with this period last year.

According to Hoa Phat Urban Development and Construction JSC, there are more and more enterprises invest in Pho Noi A Industrial Park this year, especially who from Korea, Japan and Taiwan. Land rent costs 60-80% more than same period 2007. Now Hoa Phat has area of 1.000ha available for rent in Pho Noi – Hung Yen, 200ha in Hoa Mac – Ha Nam which are very precious because of their premise area, location and synchronic technology - infrastructure. With the development situation, industrial park’s trading promises a lot potentiality the next time.

Despite of high growth recently, there would be big challenges in the rest of 2008. The Government’s decision in economical growth reduction (down to 7%), cut down of public investment, input material prize, increase of capital expense create obstacles for not only Hoa Phat but also almost every enterprises in the economy. The Group leaders are carrying out flexible methods in order to minimize the objective difficulties. Hoa Phat leaders believe the Group will exceed the turnover and profit plan of the year 2008.

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