At the annual general meeting, it was reported that the domestic textile industry faced challenges in 2023 due to a decline in export value in the latter half of the year. According to the Vietnam Textile and Apparel Association (VITAS), the textile and garment export turnover in 2023 was estimated at $40.3 billion, a decrease of 9.2% compared to 2022. In particular, staple fiber exports were estimated to decline by $485 million, equivalent to 10.3%. Additionally, geopolitical uncertainties in the world have negatively impacted the global economy, leading to inflation, high exchange rates, and decreased purchasing power.
Mr. Vu Huy Dong – Chairman of the Board of Directors speaks at the 2024 Annual General Meeting of Shareholders on April 20
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Despite these challenges, the company remains optimistic about the industry’s recovery and has set a revenue target of over 2.4 thousand billion VND, 47% higher than the previous year. Pre-tax profit is projected to be nearly 115 billion VND, an increase of nearly 33% year-on-year, which was also approved by the general meeting of shareholders.
Regarding investment plans, the company has set clear targets for each of its business segments. The fiber and towel production segment will receive investments to increase the CD fiber plant and export towel capacities to 12,000 tons/year and 3,000 tons/year, respectively. The export turnover for 2024 is estimated to reach $70 million/year and increase to $120 million/year by 2025.
In the real estate segment, ADS plans to complete existing projects and accelerate the construction of two social housing buildings in Phu Xuan in 2024. In 2025, the company aims to complete the projects and expand social housing development to neighboring provinces such as Nam Dinh and Hung Yen.
In the industrial real estate sector, the company will continue to develop and operate industrial parks with a total area of 300 hectares.
In the energy sector, ADS intends to export solar panels and related products to the US and European markets, with expected revenue of $50-70 million/year in 2024-2025.
10% cash dividend and issuance of 10 million shares to increase capital
The general meeting of shareholders also approved a 2023 dividend payment of 10% in cash. With approximately 73.4 million shares outstanding, the company is expected to spend around 73.4 billion VND to complete dividend payments to shareholders.
Additionally, to meet capital needs, the AGM approved a plan to issue 10 million shares to strategic partners.
The target investors will be professional securities investors. The offering price will range from 15,000 to 18,000 VND/share and will be subject to a one-year transfer restriction. If the issuance is successful, the company could raise a minimum of 150 billion VND, which is expected to be used entirely for capital contributions to Eiffel Fiber JSC – a subsidiary of ADS – and the Vu Ninh Industrial Park expansion project.
