Hoa Phat Group plans 35% dividend payment and VND18 trillion profit in 2021

On March 25^th 2021, the Board of Directors of Hoa Phat Group issued the Resolution No 06/NQHP-2021 to approve the documents of the 2021 Annual General Meeting of Shareholders.

1. Approval of the business and production plan in 2021 to submit to the 2021 Annual General Meeting of Shareholders (scheduled to be held on April 22).

a. The whole group’s revenue plan: VND120 trillion

b. After-tax profit plan: VND18 trillion

2. Approval of the plan to set up funds in 2020 and proposing the plan to set up funds in 2021 to submit to the Annual General Meeting of Shareholders in 2021:

a. Approval of the plan to set up funds in 2020

The contents of the group's appropriation to the financial reserve fund and the bonus and welfare fund of 2020 are appropriated according to the following details (audited figures):

b. Proposals to set up funds in 2021:

- The investment and development fund: Authorizes the Chairman of the Board of Directors to consider and decide on the specific deduction and spending of the fund.

- The bonus and welfare fund: Maximum allowance of 5 per cent of after-tax profit - Payment for the Board of Directors: The maximum deduction is equal to 0.6 per cent of after-tax profit. Authorizing the Chairman of the Board to decide the specific form and remuneration for members of the Board of Directors.

- Reward funds for executive board of Hoa Phat Group Joint Stock Company and member companies: Maximum 5 per cent of after-tax profit exceeded the plan. Authorize the Chairman of the Board to consider and decide bonus levels and specific plans.

3. Approval of the audited consolidated financial statements of 2020 and submit to the Annual General Meeting of Shareholders 2021.

4. Approval of dividend payment plan in 2020:

- Payment rate: 35 per cent

- Form of payment: 5 per cent in cash and 30 per cent in shares

- The implementation time: the second and third quarter of 2021

- Authorizing the Board of Directors to decide the detailed plan for dividend payment (including the plan for handling odd shares)

- Shares issued from 2020 share dividends will be listed immediately after the implementation

5. Approval of the dividend payment rate in 2021: expected 30 per cent.

6. Approval of the gegulation on organization of Annual General Meeting of Shareholders in 2021 to submit to Annual General Meeting of Shareholders in 2021.

7. Approval of the Regulation on electing members of the Board of Directors and the Supervisory Board to submit to the 2021 Annual General Meeting of Shareholders.

8. Approval of the amendment of the current Charter and Internal Management Regulations of Hoa Phat Group Joint Stock Company to submit to the 2021 Annual General Meeting of Shareholders.

9. Approval of the operation regulation of the Board of Directors to submit to the Annual General Meeting of Shareholders in 2021.

10. Approval of the implementation of the investment project of Hoa Phat Dung Quat 2 Iron and Steel Production Complex and submit it to the Annual General Meeting of Shareholders in 2021, specifically:

a. Project name: Hoa Phat Dung Quat 2 Iron and Steel Production Complex

b. Investor: Hòa Phát Dung Quất Steel Joint Stock Company

c. Expected capacity: 5.6 million tonnes a year, including:

- Flat steel: expected 4.6 million tonnes a year

- Steel bar and high quality steel wire: expected 1 million tonne a year

d. Expected land area: 283,73 ha

e. Expected location: Bình Đông and Bình Thuận communes, Bình Sơn District, Quảng Ngãi Province, Việt Nam

f. Expected total investment: VND85 trillion, including:

- Fixed capital: estimated at VND70 trillion

- Working capital: estimated at VND15 trilliong

g. Project progress: The construction is expected to be completed and put into operation within 36 months from the date of handing over the land and granting a construction permit.

h. Authorizing the Chairman of the Board of Directors to adjust contents related to the investment plan of Hoa Phat Dung Quat 2 Iron and Steel Production Complex Project presented in this document including: project name, investor, capacity, land area, execution site, total investment and structure, project implementation schedule and other project-related issues.

i. Issues related to debts, issuing guarantees, maintaining ownership ratios (if any) and other supports of Hoa Phat Group Joint Stock Company for the project at credit institutions: The Board of Directors, Chairman of the Board of Directors, General Director exercise full authority according to their competence.

11. Approval of the Regulation on information disclosure of Hoa Phat Group Joint Stock Company.

12. Approval of contents related to the internal audit of the company, including:

a. Appoint Ms. Bui Thi Hai Van, currently the company’s Head of the Internal Control Board concurrently holding the position of its Internal Auditor Board;

b. Approval of the company’s internal audit regulation;

c. Approval of the company’s internal audit plan in 2021.