Ten outstanding achievements of Hoa Phat Group in 2016

Hoa Phat Group has recorded many impressive figures and milestones. No year has Hoa Phat had such great events and business achievement. Website www.hoaphat.com.vn would like to point out some highlights in the year so that all staffs could be proud to promote this results in the new year of 2017.

1. 15 years of construction steel development: Sales of construction steel for the first time reached 223,000 tonnes per month and began to export to the US and Canada.

After 15 years of development, Hoa Phat's construction steel has become the market leader with market share in the top 3 of the country. The most impressive output growth was in 2005-16 period. In just over 10 years, Hoa Phat steel has increased its output sharply and consecutively record important milestones. Specifically, sales rose from 122,000 tonnes in 2005 to more than 1 million tonnes in 2014. The figure increased to over 1.8 million tonnes in 2016, an increase of 14 times compared to the early period.

In December 2016, Hoa Phat steel has put on the market over 223,000 tonnes, nearly twice as high compared to the same period and was the highest monthly output in the history of construction steel production and business. With the sales volume of over 1.8 million tonnes in 2016, construction steel exceeded the target of 10 per cent compared with the plan set out at the beginning of the year.

From November 2016, Hoa Phat started exporting the first steel construction blocks to the US and Canada through large trading companies with an output of over 10,000 tonnes per month. This can be seen as a milestone marking the successful penetration of Hoa Phat steel to demanding markets, opening opportunities to bigger export market in the future.

2. Hoa Phat Steel celebrated 20 years of development and receiving Third-Class Labour Medal.

From just a few lines of cutting bending pipe in Hung Yen Province with a capacity of 30,000 tonnes, Hoa Phat Steel Pipe has now dozens lines of pipe cutting, galvanized sheet, hot dipping... with 6 factories in Hung Yen, Da Nang, Binh Duong and Long An Provinces. On the 20th anniversary, the company officially inaugurated the second factory in Da Nang Province. It is the sixth plant in the country. Total current capacity of the company is over 600,000 tonnes per year, 20 times higher than the first period. The company's main products include black-welded steel pipe, galvanized steel pipe, hot-dip galvanized steel pipe, galvanized coils and some other industrial steel products. Hoa Phat Steel Pipe has established and maintained its leading position in the market since 2000 with a market share of over 25 per cent. In addition to occupying the domestic market, the company's products have been exported to the US, Canada, Southeast Asia... with tens of millions US dollars a year. With great achievements, Hoa Phat Steel Pipe Company was awarded the Third-Class Labour Medal by the President in September 2016.

On the 20th anniversary, the company officially inaugurated the second factory in Da Nang Province.

3. Hoa Phat coking coal and thermal factory recorded 1 billion KWh of commercial electricity

On the occasion of the company's 9th anniversary (31/08/2007 - 31/08/2016), Hoa Phat coking coal and thermal factory reached a milestone of 1 billion KWh of commercial electricity, helping Hoa Phat Steel ensure 40 per cent of production power, contributing significantly to the success of construction steel of the group in general and Hoa Phat Energy JSC in particular. Hoang Duc Thuan, director of Hoa Phat Energy Company, said that the third phase of the thermal power plant was officially completed in mid-2016 with a capacity of 15MW, contributing to a total capacity of 52MW. The current coke production of the company is approximately 800,000 tonnes per year, serving completely for Hoa Phat Steel Complex.

4. Hoa Phat took the lead in colour and cold coated steels

Hoa Phat Group in April 2016 decided to establish Hoa Phat Steel Sheet One Member Company Ltd and building Hoa Phat colour coated steel factory in Pho Noi A Industrial Zone, Hung Yen Province with total investment of VND4 trillion which was started construction in May 2016. Cold rolled steel sheet, galvanized sheet and colour coated steel will satisfy Japanese JIS 3321: 2010 standards, European BS-EN 10346: 2009 standards, Australian AS 1397: 2001 standards and the US ASTM A792 standards..., ensuring high quality and friendly with environment. This will be the first factory in Viet Nam to be equipped with the most modern and advanced technology equipment in Europe. All of the plant's main production lines are supplied by Italian Danieli Group, which is expected to be in pilot operation by the end of 2017.

5. Hoa Phat Furniture pioneered in applying 3D printing into production

In the past few years, Hoa Phat Furniture has affirmed its leading position by investing in modern machines and continuing to expand production in Hung Yen and Binh Duong Provinces, pioneering the application of 3D printing technology into production, shorten prototype design time, increase product design accuracy, save production costs, and meet the growing demands of customers and the market. With the leading position in the furniture market in Viet Nam, the company has developed many new products such as smart safe (smart safe), high class sofa, Italian folding chair etc.

Many office buildings, schools and hospitals have been equipped with Hoa Phat Furniture such as Vietcombank Building - Ho Chi Minh City Branch; Can Tho Children's Hospital; Dong Nai General Hospital, Marriott Phu Quoc Hotel, Cat Bi Airport, and General Department of Customs.

6. Hoa Phat Refrigeration marked the transition from late 2016

On the occasion of the 15th anniversary of development in July 2016, Hoa Phat Refrigeration Company Ltd recorded the remarkable growth in revenue and profit. The company has exceeded 203 per cent of its after-tax profit target in 2016 after only seven months, up 198 per cent over the same period in 2015. According to the company's leaders, the results are based on taking advantages of opportunities, continuing to launch appropriate marketing programs from time to time: Spring Festival, Hello Summer, the 15th anniversary of the company ... Especially, from the fourth quarter of 2016, Hoa Phat Refrigeration Company changed themselves when deciding to change business strategy by developing sale channel in the supermarkets, establishing a more professional marketing department to promote sales of freezer products, research and developing cooling machine.

7. Inauguration of the first animal feeding factory

On December 9th 2016, Hoa Phat Feeds Trading and Production One Member Company Ltd solemnly held the inauguration ceremony of the first animal feed factory. The factory has a capacity of 300,000 tonnes per year, using modern equipment from Europe. The plant was started construction in May 2015, located in Pho Noi A Industrial Zone, Lac Hong Commune, Van Lam District, Hung Yen Province with an area of 4.5 hectares. In June 2016, the factory officially came into operation, supplying high quality cattle and poultry feed products with BigBoss and HPFeed brands, absolutely no use of banned substances and residual antibiotics in feeds to ensure livestock quality, meeting the increasingly demanding of the market.

Also in the animal feed sector, Hoa Phat is boosting its second factory in Long Khanh Industrial Zone, Dong Nai Province with a capacity of 300,000 tonnes per year. It is expected that the feed mill in Dong Nai will come into operation in February 2017. Hoa Phat is promoting its third factory in Phu Tho Province. Hoa Phat targets to achieve about 5 per cent of the feed market share by 2020 with a capacity of 1 million tonnes per year.

8. The first batch of pig breed imported

The breeding and developing hi-tech and bio-safety pigs of Hoa Phat is concentrated in the North and South. In May 2016, the first shipment of pig breeds of Hoa Phat in the field of livestock arrived at Noi Bai International Airport. According to the executives of Hoa Phat Livestock Development Joint Stock Company, purebred pigs were purchased from DanBred partner – Denmark, the leading country in the world on genetic resources of high quality pig breeding, farming techniques are very modern, especially high demands on strict care procedures.  At present, the group has imported about 2,800 pigs for its breeding in Yen Bai and Binh Phuoc Provinces. It is expected that Hoa Phat will start supplying pigs and pork meat from early 2018.

9. Hoa Phat for the first time surpassed the profit of VND4 trillion after 9 months

In the first 9 months of the year, Hoa Phat achieved VND23.7 trillion of revenue and VND4.6 trillion of after-tax profit, fulfilling 85 per cent of its revenue and 145 per cent of its profit targets. This has been the first time in history that Hoa Phat has surpassed VND4 trillion net profit margin in less than a year. This result is largely due to the prosperity of the steel industry, including construction steel and steel pipe. As mentioned above, these two strategic products have consistently set new records of monthly sale volume, market share and sale revenue. Currently, the steel industry accounts for about 80 per cent of revenue and profit for the Group. With positive results in the fourth quarter, the forecast for the whole year of 2016 will set a new milestone.

After-tax profit for the first time reached the record of over VND4 trillion after only 9 months

10. Hoa Phat honoured with many brandname awards

In 2016, Hoa Phat was voted as the National Brand with construction steel, steel pipes, furniture, refrigeration and real estate for the third consecutive year valued by the Ministry of Industry and Trade for every two years. In the same year, Hoa Phat continued to be voted in the Top 10 most powerful trademarks, top 5 prestigious listed companies in 2016, Top 10 most successful companies in 5 consecutive years, Top 50 most valuable brand in Vietnam ...

Another highlight of the brand is that the top leaders of Hoa Phat Group have decided to conduct a comprehensive brand health assessment program for the first time, thereby improving the brand identity to suit with business strategies in the time to come toward modern, dynamism and sustainability. The program is being carried out by the world's leading market research and brand consulting companies such as Nelson, Dentsu Vietnam, which is expected to be completed in the third quarter 2017.

Hopefully, with the right decisions of the board of directors on business production and brand strategy, Hoa Phat will achieve more achievements in the future.

Nghi Trần