NĐTC Hoa Sen starts from 01/10 to 31/09
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The Annual General Meeting of Shareholders for the financial year 2023-2024 of Hoa Sen Group is expected to be held on March 18 in Ho Chi Minh City. |
Looking back, Hoa Sen’s leadership evaluated 2023 as a year with many fluctuations and difficulties in the global business environment, and the Vietnamese steel industry was not exempt from the impact.
During this period, the steel tycoon recorded a net revenue of VND 31,650 billion and a post-tax profit of VND 30 billion, achieving 93% and 30% of the set targets, respectively.
Setting a minimum profit target of VND 400 billion
For the financial year 2024, the Board of Directors has developed two business plan scenarios.
In the first scenario, Hoa Sen will consume over 1.6 million tons of products, achieve net revenue of VND 34,000 billion, and post-tax profit of VND 400 billion.
In the more positive scenario, the consumption volume will exceed 1.7 million tons, with net revenue of VND 36,000 billion and post-tax profit of VND 500 billion.
Source: Annual General Meeting documents of HSG
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Continuing unfinished projects
In addition, the steel tycoon will continue its plan to IPO subsidiary companies that have been set in recent years.
For the plastics manufacturing and trading segment: In the financial year 2023, Hoa Sen Plastics Joint Stock Company received two additional plastic plants in the North and Central regions from the parent company. The company is continuing to work with consulting units to study, develop the optimal plan for the IPO and listing of shares of Hoa Sen Plastics Joint Stock Company, and submit it as a basis for consideration at the Annual General Meeting of Shareholders.
For the Building Materials and Interior Distribution business segment: Hoa Sen Home building material and interior supermarket system has developed 114 stores nationwide as of the end of the financial year 2023. The company aims to transform Hoa Sen Home into an independent operating system; At the same time, prepare the plan and complete the necessary conditions to establish Hoa Sen Home Joint Stock Company and transfer the entire Hoa Sen Home system to Hoa Sen Home Joint Stock Company at an appropriate time.
For the steel pipe segment: During the financial year 2022-2023, the Board of Directors considered and agreed to a plan approved at the General Meeting of Shareholders to restructure, specialize the steel pipe production and trading segment with the direction of transferring the entire steel pipe segment to a company specialized in steel pipes.
As planned, Hoa Sen will consider changing the name of Hoa Sen Phu My One Member Liability Limited Company to Hoa Sen Steel Pipe Joint Stock Company, owned by Hoa Sen Group with 99% of charter capital. The entire steel pipe business will be transferred to Hoa Sen Steel Pipe Joint Stock Company. Hoa Sen Steel Pipe Joint Stock Company will receive the entire infrastructure serving the operation of steel pipe production and business activities (land, factories, machinery, equipment, production lines…) and become the managing unit in the steel pipe production and business segment.
After Hoa Sen Steel Pipe Joint Stock Company operates stably, if conditions are favorable, Hoa Sen will develop a plan to IPO and list shares of this unit.
Transfer of Hoa Sen Yen Bai project
The Hoa Sen meeting documents also revealed that during the financial year 2022-2023, the Board of Directors discussed and agreed on the promotion and search for partners interested in transferring the Hoa Sen Yen Bai Commercial, Service, Hotel, Restaurant and Event Center Project. According to the latest financial report, Hoa Sen Group is currently holding 95.96% of the capital in Hoa Sen Yen Bai.
This project was started in 2016, with an area of nearly 9,676 m2 and is designed to have two components.
Specifically, the commercial center, service, hotel, restaurant, and event organization building is carried out on a land area of over 5,585 m2 leased by Yen Bai Provincial People’s Committee. The commercial townhouse area is carried out on a land area of over 4,090 m2 assigned by the Yen Bai Provincial People’s Committee. This land has been granted a Certificate of Land Use Rights since 2017.
Rendering of the Hoa Sen Yen Bai Commercial, Service, Hotel, Restaurant and Event Center Project
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According to the latest financial report, the construction cost of the Hoa Sen Yen Bai project is recorded at nearly VND 386 billion.
In relation to real estate events, Hoa Sen announced the establishment of a new company named Hoa Sen Saigon Joint Stock Company from January 2024. The initial charter capital will be VND 100 billion, of which Hoa Sen will contribute 40% of the capital and the remaining portion will come from other shareholders. This company specializes in investing in real estate projects worth VND 1,000-3,000 billion to develop office projects, commercial centers, and residences. From there, it can be used as an office for Hoa Sen, for lease, or for consideration of transfer.
