Annual General Meeting of Shareholders 2011: A new step

In 31/03/2011, at Hilton Opera Hanoi Hotel, Hoa Phat Group Joint Stock Company has conducted the Annual General Meeting of Shareholders 2011with the participation of the shareholders representing 253,766,143 shares, equivalent to 79.83% of common shares.

The Meeting was chaired by Mr. Tran Dinh Long - Chairman of the Management Board (MB), Mr. Tran Tuan Duong - Vice Chairman of MB and CEO, Mr. Nguyen Manh Tuan - Deputy Chairman of MB cum Director of Hoa Phat Steel Pipe Co., Ltd. and Mr. Doan Gia Cuong - Deputy Chairman of MB cum Director of Hoa Phat Hoa Phat Furniture JSC.

Mr. Tran Tuan Duong reported results of business in 2010 and plans for 2011. Summarizing 2010, the Group revenue reached VND 14,493 billion and profit after tax VND 1,376 billion, respectively over 17% and 2% of the plan; the total taxes is VND 1078 billion, increased by 74% compared with 2009. Hoa Phat Group ranked in Top 10 of largest private enterprises in Vietnam and Top 1000 enterprises of tax contribution in Vietnam. Industrial production has mutant grown from the effect of Hoa Phat Steel Integrated Complex, deserving a found for the Group’s new areas. Real estate segment also promises a mutation on profitable growth with many perspective housing projects, urban; the energy sector and mining - solid rear for steel production - also marked with many factories put into operation. In 2010, Hoa Phat Group is also flexible and diverse forms of capital mobilization, with the successful issue VND 800 billion of bond.

Tran Dinh Long and members of Management Board are very confident of revenue and profit plan in 2011

In 2011, with the recovery of world economy and 7-solution package of the Government, on the basis of market assessment, the Board of Directors strives to reach revenue VND 17,500 billion and net profit VND 1865 billion; profit after tax of the HPG shareholder is VND1757 billion, EPS of HPG is 5528 dong per share.

Following the report of the Board, Board of Directors and a changing report of the Supervisory Board, the Meeting has discussed many important contents. In particular, shareholders were most interested in Hoa Phat Steel Integrated Complex, real estate projects such as Mandarin Garden, Hoa Phat Building in 257 Giai Phong Ha Noi, Tu Lien Bridge, also forms and rate of dividend. Answering to shareholders, Mr. Tran Dinh Long said, in 2011, the Group expects to complete Phase 2 of Coke production plant to raise the total capacity to 700,000 tones per year, and Phase 2 of Hoa Phat Steel Integrated Complex to reach 1.05 million tons of steel per year.

The Meeting votes for the business plan, dividend plan and rate of 2011

About the shareholders' questions on buying 10 million treasury shares, Mr. Tran Tuan Duong said: “Our HPG stock has been fixing a very low price, so that we decided to buy 10 million shares to ensure benefits for shareholders”.
 
On real estate projects, Hoa Phat Building in 257 Giai Phong street (Hanoi) was ordered all apartments within a month and estimated hands over the product to the customers in early 2012. Hoa Phat also contributed investment capital to Dai Mo – Tay Mo Urban Project which has scale of 281 ha in the southwest of Hanoi and its details plan 1/2000 was approved by the City People's Committee.
 
Pho Noi A Urban area project in My Hao and Van Lam district, Hung Yen province which invested by Hoa Phat will be expected to contribute significant revenue and profit of the Group from 2012 to 2020.
 
HPG shareholder’s General Meeting also approved the following important contents:
- The dividend rate in 2010: the rate of dividend payment is 30%, with 20% advance in cash and the remaining 10% will be made in the last six months of 2011.
 
- The expected dividend ratio in 2011: the dividend is 40%.  
 
- The bonus plan for the Executive Board when business exceeds the plan: Based on the business plan in 2011, the Board recommended the Board awarding for a maximum of 5% of profit after tax over the plan of the Company.
 
- To approve the plan of deduct funds in 2011: appropriation to fund a financial reserve equal to maximum 5% of after-tax profit and welfare fund maximum 5% of profit after tax and authorize the Board to decide.
 
- On the mode of remuneration to the Board in 2011: the remuneration of the Board shall not exceed 1% of profit after tax in 2011 and authorize the Chairman of the Board to decide the form and specific rate of remuneration of the Board members.
 
- The business plan of 2011.
 
- Adoption of financial statements 2010.  
- Approved Mrs. Nguyen Thi Thao Nguyen to withdraw from the list of Supervisory Board 2007-2011 term.

- Approved the addition of two new members of Supervisory Board: Mrs. Nguyen Thi Thanh Van and Mrs. Truong Nu Minh Ngoc.

HPG