Hoa Phat affirms its stature after 10 years of restructure

Hoa Phat Group officially implemented its restructure under group model including parent and subsidiaries companies 10 years ago (January 9^th 2007). Hoa Phat has seen outstanding developments and making important marks in their production and business in the past 10 years.

It can be said that the policy to form the group model is proper, expressing the strategic and long-term vision of the Board of Directors of Hoa Phat Group. With the centralized management model, Hoa Phat Group Joint Stock Company plays the role of holding, capital management, strategic business orientation and support for subsidiaries in terms of expertise. Recalling the time of restructuring, Hoa Phat Steel Company acquired shares at 6 companies and changed its name to Hoa Phat Group JSC. The company comply with accounting and auditing standards for public companies and applying modern governance model.

This was the first important step for Hoa Phat Group to list on Ho Chi Minh Stock Exchange on November 15th, 2007. Tran Tuan Duong, vice chairman of Hoa Phat Group's board of directors said that the listing on HOSE was a big turning point in the development process of the group, affirming its leading position in industrial production sector. Listing shares for no other reason than the objective of sustainable development, transparency of production, business activities and professionalism according to the model of centralized and modern management, while creating more capital mobilization channels for the group's long-term development projects.

Revenue and profit of Hoa Phat Group have seen a strong growth since its operation under the group model

To implement steel and agricultural projects, HPG's chartered capital was also increased sharply from VND1.3 trillion from January 2007 to VND8.4 trillion in January 2017, an increase of 7.6 times after 10 years. Revenue growth was surged from VND5.6 trillion in 2007 to about VND28 trillion in 2016, after-tax profit increased 9 times compared to 10 years ago - a very high profit growth for a multi-sector industrial group.

It's can be said that since the listing, HPG has really taken off, making a lot of big investment projects, especially in the key steel production and trading sector. The capital mobilization on the stock market in the recent years helped HPG carry out Hoa Phat steel complex project, bringing the group to become the leading steel producer in Vietnam with total capacity of over 2 million tonnes per year.

Steel production (including construction steel, steel pipe, energy and minerals) has been the key business of Hoa Phat Group

If before the time of listing on the stock exchange, in 2007, Vietnamese consumers are only familiar with Hoa Phat's furniture, construction machinery or industrial zones. Hoa Phat has the largest market share in terms of construction steel, steel pipes and office furniture though it newly joined the industry. Hoa Phat is also a reputable brand in the field of real estate, including urban areas and industrial zones. Refrigeration products of Hoa Phat have the highest localization rates.

Today, Hoa Phat is known as a multi-sector group, operating effectively in many different fields and a national and responsible brand to all people and one of the most effective enterprises in Viet Nam. With the right investment strategy, HPG will continue record other successes in their way in the future, bringing added value to the society with the spirit of "harmony and development”.

                                                                                                           Nghi Tran