Annual Shareholder Meeting 2010 of Hoa Phat Group: New strategy, new stature

In the morning of March 30th 2010, at Hilton Hanoi Opera, 1 Le Thanh Tong, Hanoi, Hoa Phat Group Joint Stock Company held the Annual Meeting of Shareholders 2010 with the participation of shareholders who representing 149,433,002 stocks, equivalent to 76,099% of common stock.

The Meeting leaded President group including: Mr. Tran Dinh Long - Chairman of Board of Directors- Chairman, Mr. Tran Tuan Duong - Vice Chairman of Directors Board cum CEO of the Company, Mr. Nguyen Manh Tuan - Vice Chairman of Directors Board cum Director of Hoa Phat Steel Pipe Co., Ltd. and Mr. Doan Gia Cuong  - Vice Chairman of Directors Board cum Director Hoa Phat Furniture JSC. 

Chair Board of Annual Shareholder Meeting in 2010

CEO Tran Tuan Duong "2010 and subsequent years, Hoa Phat has the adjustment of development strategy"

At the meeting, shareholders have heard CEO Tran Tuan Duong to report operating results in 2009 and business plan and tasks in 2010. Accordingly, 2009 was continuously a successful year of Hoa Phat Group in the context of difficulties and challenges of globalization in general and Vietnam in particular. The Group reached VND 8244 billion of revenue and VND 1271 billion of profit after tax, which exceeded 18% and 38% higher than the mid-year adjusted plan. Total of tax budget revenue of the whole Group reached VND 621 billion, up 13.7% compared to 2008.

Specifically, in his speech, General Director emphasized that "2010 and subsequent years, Hoa Phat has the adjustment of development strategy, from corporation specializing in industrial production to the Group of industrial manufacturing, real estate and mining.” With the new strategy, Hoa Phat Group is continuing to accelerate the implementation of urban projects, apartment building, actively implementation of mining operation, concentration for the industrial manufacturing, depth development, improve the management, maintain 15-20% growth of each the sector, striving to reach the plan in 2010: VND 12,340 billion of revenue and VND 1,350 billion of profit after tax, expected dividend rate 30%.  

Besides, the meeting also heard reports on the activities of the Directors Board, in which stated the decisions of the Board in 2009; Supervisory Board's report on activities during the year 2009; Results of supervising the activities of BOD, the Executive Board as well as the operation of production and business of the Company; evaluation result of the financial statement in 2009 ... and several of papers related to the activities of the Group in 2010 to seek opinions of shareholders.

Participants listens intently to the report of Group and Departments

After hearing the report of the Group and departments, shareholders started the discussion with many questions. On behalf of Hoa Phat Group, Chairman Tran Dinh Long thanked the interest of shareholders . He also highlighted three major achievements of the Group in 2009 including: excellent completing its revenue and profit plan ; putting Hoa Phat Integrated Steel Complex and Hoa Phat Cement Plant into operation, creating a firmly foundation for the real estate and minerals business of the Group. Based on information transparency, Chairman conducted to answer many questions about two sectors which to be paid particular attention of shareholders are the steel and mining.

Besides, the meeting also voted by card and secret ballot to approve the following contents:
- Approve the plan of production and business in 2010.
- Approve the audited financial statement 2009. 
- Approve the plan of issuing the convertible bond 2009.
- Approve the plan, the rate of dividend 2009 as follows:
Divided rate: 60%, including:
• 10% cash (advance) and:
• 50% in stocks (the pay procedure will be done right after this Shareholders Annual Meeting).
- Approve the plan of increasing charter capital of the Company in 2010 and authorize the Directors Board to decide the time, detail mode and listing of additional capital on Ho Chi Minh Stock Exchange.
- Approve the estimated dividend rate in 2010: 30%
- Adopt the policy on issuing preferred stock for employees at the rate not exceeding 1.5% of outstanding shares and authorizes the Directors Board to decide on the issuing plans in details (object, value, time, distribution criteria ...) and make the additional listing of those shares on Ho Chi Minh Stock Exchange.
- Adopt bonus plan for Executive Board of Hoa Phat Group JSC and member companies if the production and business result exceed plan (the recommended maximum bonus of 5% of exceeded profit after tax) and authorize the Directors Board to consider and decide on bonus sharing plan. 
- Approve additional field of business "Export – Import Commissioning" 
- Through rate of the aside funds in 2010 as follows:
• Financial reserve fund: 5% after-tax profit
• Bonus and welfare fund: authorize the Directors Board to decide
- Approve the regulation of remuneration in 2010 for the Directors Board: no more than 1% of profit after tax and authorize the Chairman of BOD to decide the remuneration for Board members.
- Approve to choose KPMG Co.,Ltd as the company implementing review and audit of financial statements in 2010, 2011, 2012.

In 2010, the economy of Vietnam and the world are still many difficult factors, however, with potential advantages, confidence of the shareholders, customers and the consensus of more than 8500 employees, Hoa Phat Group is ready to become a group of industrial manufacturing, real estate and mining in Vietnam.

HPG