Specifically, LDP plans to achieve a revenue plan of VND 275 billion, a 48% increase compared to the previous year’s performance. Of this, commercial goods account for 37% (VND 102 billion) and manufacturing goods account for 62% (VND 171 billion). Pre-tax profit is expected to be VND 3 billion (a loss of VND 20 billion in 2023). The planned investment in assets is VND 50 billion.
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LDP’s 2024 Plan
Source: LDP
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In reality, LDP has incurred losses for two consecutive years (with a net loss of nearly VND 39 billion in 2022). In 2024, SSI predicts limited industry growth at 8.4%. Meanwhile, Mirae Asset forecasts that the value of the pharmaceutical industry in 2024 will reach USD 7.89 billion (a 9.1% increase), with the ETC channel (prescription drugs) growing stronger than OTC (over-the-counter drugs) due to the full coverage of health insurance reaching 93% of the population.
Source: VietstockFinance
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Therefore, the company plans to boost the revenue of all product categories this year, with a focus on finding and expanding distributors and agents, especially in untapped areas.
In addition, the company will strengthen the ETC market in other provinces, focus on manufacturing products, conduct research to expand the drug portfolio, target high-end customer groups such as pharmacy chains and high-end functional food chains to increase profits, exploit the profits of former processing and export partners, expand the export market, and improve the quality of raw materials sourcing.
Regarding specific plans, LDP stated that the ETC channel will depend on the actual bidding plan. The results of the bids in 2023 and 2024 will significantly contribute to this year’s revenue for LDP. Meanwhile, the OTC channel is targeted for streamlining and standardizing the product portfolio to gain a competitive advantage in terms of price – also a priority for this year. As for the manufacturing sector, the goal is to ensure a return on investment, so the focus is on developing strategic products this year.
LDP also plans to propose approval of the borrowing limit for 2024 to ensure sufficient resources to meet business plans. The proposed loans include bank loans for working capital supplementation (VND 150 billion) and medium to long-term loans from credit institutions or support funds for plant renovation, upgrading, and equipment purchases (VND 50 billion). In total, the proposed borrowing limit is VND 200 billion.
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LDP’s Loan Plan
Source: LDP
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Regarding the remuneration plan, the company plans to allocate VND 15 million per month for the Chairman of the Board of Directors, VND 10 million per person per month for Board members, VND 10 million per month for the Chief Accountant, VND 5 million per person per month for Board members, and VND 5 million per month for the administrator (also the Board Secretary).
Selling 6.5 million shares to repay debts
LDP will also propose to the General Meeting of Shareholders the private placement of shares to individuals or organizations as professional securities investors.
The expected number of shares to be offered for sale is 6.5 million, corresponding to an increase of VND 65 billion in charter capital. If the sale is successful, LDP’s charter capital will reach VND 192 billion.
The expected offering price is not less than VND 10,000 per share. The shares offered for sale will be restricted from transfer for 1 year from the completion date. The expected issuance time is in 2024.
The company stated that assuming a successful sale at VND 10,000 per share, the proceeds of VND 65 billion will be used to repay outstanding debts.
Chau An
