Hoa Phat aim to reach revenue of VND 70,000 billion in 2019

On March 29, 2019 at the Hanoi Hilton Opera Hotel, the General Meeting of Shareholders of Hoa Phat Group Joint Stock Company (HPG) was held. The meeting agreed on many important issues, including the 2019 business plan with expected revenue of VND 70,000 billion and after-tax profit of VND 6,700 billion.

The meeting had the participation of 300 shareholders, representing 1.61 billion shares, accounting for 75.85% of ordinary shares with the right to attend the meeting under the control of the Presidium including Mr. Tran Dinh Long, Chairman of Board of Directors, Mr. Tran Tuan Duong, Vice Chairman cum General Director, and Vice Chairman Doan Gia Cuong and Nguyen Manh Tuan.

Hoa Phat paid nearly 6,400 billion VND to the State Budget in 2018

According to business results report 2018, General Director Tran Tuan Duong said that in the context of Vietnam's economy and the well growing world economy, there were many complicated fluctuations due to US-China trade tensions. , Hoa Phat Group has achieved many great successes, surpassing many records in business and production.

By the end of 2018, Hoa Phat Group has 20,000 employees, operating scale spreads over 25 provinces and cities across the country and a representative office in Singapore. The Group achieved VND 56,580 billion in consolidated revenue and VND 8,600 billion in after-tax profit, increased 21% and 7% compared to 2017, exceeding 3% and 7% of the 2018 plan. Total state budget contribution for the year was VND 6,388 billion, increased 32% compared to 2017.

The steel sector is still the core and dominant, accounting for 83% and 89% of revenue and after-tax profit of the Group. In 2018, Hoa Phat continues to set the highest business record ever with 3,180,000 tons of finished steel products, up 10% compared to 2017. The market share of Hoa Phat construction steel and steel pipes respectively were 23.8% and 27.5%, leading the nation. In particular, nearly 240,000 tons of steel exports to 14 countries, increased 51% compared to 2017.

The project of color-coated and cold-plated corrugated iron sheet factory with a capacity of 400,000 tons / year put into operation the painting - plating stage and has launched on the market of galvanized and color-plated corrugated iron products since April 2018. Hoa Phat Dung Quat Iron and Steel Production Complex has completed 70% of the workload of the Phase I by the end of 2018. Categories belonging to phase 2 and deep-sea ports for 200,000 ton ships are actively deployed.

Other fields of traditional industrial production, real estate and agriculture also promote internal strength, continuously innovate and expand development. The real estate sector doubled increased compared to the same period last year, highlighting from the group of housing and urban projects. Hoa Phat aims to sell the rest of apartments in 2019 at Mandarin Garden 2 and 70 Nguyen Duc Canh apartment projects, Hanoi.

The agricultural sector has initially recorded achievements, after-tax profits increased nearly 4 times compared to 2017. After 3 years of investment, Hoa Phat has led the Australian beef production in Vietnam with 42% market share.

Determined to operate the Dung Quat project in the second quarter of 2020

Based on the achieved results and market movements, the Board of Management determined that 2019 will continue to be a premise year towards "new stature and new strength". The Group will devote all efforts to speeding up the project of Hoa Phat Dung Quat Iron and Steel Integrated Complex, ensuring the project is put into operation on schedule, considering this as the No. 1 goal this year.

Regarding annual plan, Hoa Phat targets 70,000 billion dong revenue and 6,700 billion dong after-tax profit. Responding to shareholders about the profit plan compared to the 2018 performance, Chairman Tran Dinh Long said that 2019 revenue is expected to increase more than 20% compared to 2018 by bringing Phase I - Dung Quat Iron and Steel Integrated Complex Project, the color-coated corrugated iron line comes into operation and gradually increases the scale from agricultural products as well.

However, this is also a challenging year, fuel prices tend to rise, new projects have been put into operation and have not run at full capacity, financial costs increased due to tight credit policies. .. In particular, the biggest objective reason for the reduction of profit plan is due to the high price of iron ore from 64-65 USD / ton to 85-90 USD / ton currently due to the broken ore dam in Brazil. “The goal of Hoa Phat is to promote gaining more market share when Dung Quat project comes into operation. When there is market share, profits are inevitable, ”said Chairman Long.

The Board of Directors directly answered questions of Shareholders

Members of the Presidium also frankly answered all questions from shareholders about the ongoing projects, especially the Dung Quat project, color-coated corrugated iron products, the effects of the US trade war - China as well as the market protection trend around the world, the impact of African swine cholera on pig farming, ...

Regarding the progress of Hoa Phat Dung Quat Iron and Steel Integrated Complex, the Group has operated stably the first construction steel rolling line with a capacity of 600,000 tons from the fourth quarter of 2018. The first blast furnace is expected to produce the first batch of iron on June 18, 2019, and will complete the next blast furnace every 4 months. Basic construction items, equipment installation in both phases are being controlled according to the set progress, striving to synchronously complete both phases in the second quarter of 2020. Up to now, Hoa Phat has recruited 5,500 employees for the project, practically operational training in Hai Duong to serve the construction and operation of the Complex in Quang Ngai.

The Group's leader also said that, with the goal of sustainable development, Hoa Phat's strategy is always to explore new projects, new products, and add value to each shareholder and social community, but the business is steel production.

The Annual General Meeting of Shareholders of Hoa Phat Group Joint Stock Company in 2018 voted on many important issues including: Reports of the Board of Directors and the Supervisory Board; Report on business results in 2018 and plan for 2019 (revenue of VND 70,000 billion and profit after tax of VND 6,700 billion); through the amendment of some contents of the Company's Charter; Audited financial statements 2018; statement of appropriation of funds; Dividend plan for 2018 and expected 2019 and some other important contents. The dividend rate for 2018 is 30% by share.

With a high proportion of votes for the program content, HPG General Meeting 2019 was successful. Hoa Phat with the message that never stops, whether the market is favorable or difficult, the Group has always been steadfastly striving, moving forward and believes that it will fulfill the plan approved by the General Meeting of Shareholders.

Nghi Tran