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In the supplementary materials for the annual general meeting on March 18, 2024, the steel tycoon presented to shareholders the proposals regarding investment expansion in various industries and fields. The considered fields include finance, banking, securities, insurance, real estate, precision mechanics, manufacturing mechanics, semiconductor technology, project development for office spaces, housing, residential areas, urban areas, education, training, healthcare, tourism, ecology, and hospitality. Hoa Sen Group also stated that the total maximum investment for the expanded fields will not exceed 5,000 billion VND. In addition, the company will issue 5 million ESOP shares at a price of 10,000 VND per share, and these shares will be subject to a 1-year transfer restriction. ESOP recipients include executives, managers, directors, and key personnel of the Group. Setting a minimum profit target of 400 billion VND Regarding the business plan for the financial year 2024, the Board of Directors HSG has developed two business plan scenarios. In the first scenario, Hoa Sen will consume more than 1.6 million tons of products, achieve net revenue of 34,000 billion VND, and after-tax profit of 400 billion VND. In a more optimistic scenario, the consumption volume will reach over 1.7 million tons, with net revenue of 36,000 billion VND and after-tax profit of 500 billion VND.
Continuing unfinished plans In addition, the steel tycoon will continue with the IPO plans for its subsidiaries as proposed in recent years. For the plastics manufacturing and business segment: In the fiscal year 2023, Hoa Sen Plastics Joint Stock Company received two additional plastic factories in the North and Central regions from the parent company. The company continues to work with consulting units to study and develop optimal plans for IPO and listing of shares of Hoa Sen Plastics Joint Stock Company, as a basis for submission to the General Meeting of Shareholders for consideration and approval. For the distribution and interior materials business segment: Hoa Sen Home building materials and interior supermarket system has developed 114 stores nationwide, as of the end of the 2023 financial year. The company aims to make Hoa Sen Home an independent operating system. At the same time, the company is preparing plans and completing 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: In the 2022 – 2023 term, the Board of Directors has reviewed and agreed to a proposal to be presented at the General Meeting of Shareholders regarding the restructuring and specialization of the steel pipe manufacturing and business segment with the direction of transferring the entire steel pipe segment to a company specializing in steel pipes. According to the plan, Hoa Sen is considering renaming Hoa Sen Phu My One-Member Limited Liability Company to Hoa Sen Steel Pipe Joint Stock Company, in which Hoa Sen Group owns 99% of the charter capital. The entire steel pipe business segment will be transferred to Hoa Sen Steel Pipe Joint Stock Company. Hoa Sen Steel Pipe Joint Stock Company will receive the entire infrastructure serving steel pipe manufacturing and business operations (land, factory buildings, machinery and equipment, production lines, etc.) and become the management unit of the steel pipe manufacturing and business segment. After Hoa Sen Steel Pipe Joint Stock Company operates stably, if conditions are favorable, Hoa Sen will develop a plan for IPO and listing of the shares of this unit. |
HSG allocates up to 5,000 billion VND for new sectors
Hoa Sen Group (HOSE: HSG) is planning to expand into new areas while also planning to issue 5 million ESOP shares for its executives.
