The result of HSG’s operations during FYTC 2022-2023 was presented in detail to the shareholders at the conference, the Board of Directors, and the CEO proposed the approval of the business plan and some important operation directions of HSG during FYTC 2023-2024 and upcoming periods.
2023 was a difficult year for the global and Vietnamese economy, businesses had to cope with many challenges, especially the sharp decrease in aggregate demand. However, HSG still maintained stability in its financial situation and production and business activities. At the end of FYTC 2022-2023, HSG’s consolidated sales volume reached 1,433,830 tons, completing 94% of the plan; consolidated revenue reached 31,651 billion VND, completing 93% of the plan; consolidated net profit reached 30 billion VND.
Regarding the outlook for 2024, HSG assessed that the market still had many uncertainties and unpredictable factors that could negatively impact businesses in both domestic and international markets. Therefore, HSG has planned its business activities for FYTC 2023-2024 based on two scenarios:
At the shareholders’ meeting, HSG presented the restructuring plan and specialization of the steel pipe production and business segment, transforming Hoa Sen Phu My Co., Ltd. into Hoa Sen Steel Pipe Joint Stock Company, in which HSG owns 99% of the charter capital. Hoa Sen Steel Pipe Joint Stock Company will take over all the infrastructure facilities serving steel pipe production and business activities, with an expected implementation time frame of 1 to 5 years. After Hoa Sen Steel Pipe Joint Stock Company completes the takeover of the steel pipe production and business segment and operates stably with profitability, the Board of Directors will continue to develop and submit an IPO plan for the approval of the shareholders’ meeting and list the shares of Hoa Sen Steel Pipe Joint Stock Company on the stock market.
Prior to that, in order to optimize resources and enhance the efficiency of the plastic business segment, HSG transferred the entire production and business activities of the Plastic segment to Hoa Sen Plastic Joint Stock Company. After 2 years of implementation, the business activities of Hoa Sen Plastic Joint Stock Company have achieved positive results. The company is continuing to work with consulting firms to study and develop an optimal plan for the IPO and listing of Hoa Sen Plastic Joint Stock Company in the future.
For the building materials and interior distribution business segment, HSG will continue to consolidate the operations of its existing 114 Hoa Sen Home supermarkets, while enhancing the autonomy and responsibility of the Hoa Sen Home system towards the goal of making Hoa Sen Home an independent operating system. At the same time, HSG is preparing a plan and completing 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 a suitable time.
HSG also presented the dividend payment plan for FYTC 2022-2023, which will be paid in cash at an expected rate of 5%, with the source of payment being the accumulated undistributed post-tax profit as of September 30, 2023, according to the audited consolidated financial statements for FYTC 2022-2023.
This year’s shareholders’ meeting also conducted the election of members of the Board of Directors for the new term 2024-2029 in accordance with the regulations on elections. The list of candidates for the HSG Board of Directors for the term 2024-2029 includes: Mr. Le Phuoc Vu; Mr. Tran Ngoc Chu; Mr. Tran Quoc Tri; Mr. Ly Van Xuan; Mr. Nguyen Van Luan; Mr. Dinh Viet Duy.
