In the morning of 22/4, CTCP Vincom Retail (code: VRE) successfully organized the 2024 Annual General Meeting of Shareholders.
Up to 9:00am, there were 108 shareholders representing around 1.8 billion shares, equivalent to 65.79% of the voting rights.
At the General Meeting, Ms. Pham Thi Thu Hien, Vincom Retail’s new General Director, presented the report of the company’s Board of Management on the evening of 22/4, one day before the General Meeting of Shareholders.
In 2023, Vincom Retail recorded record revenue since its establishment, with total revenue at 9,791 billion VND, up 33% compared to the same period last year. Profit after tax reached 4,409 billion VND, an increase of 59% compared to the previous year. Gross profit margin improved, increasing from 51.8% to 54.7%, affirming its leading position in operational efficiency in the market.
QUARTER 1 NET PROFIT REACHED MORE THAN 1,080 BILLION VND, REQUIRED 10,000 BILLION VND FOR DEVELOPMENT EXPENDITURES
In 2024, Vincom Retail aims to continue to increase its coverage in provinces and cities across the country, opening 6 new Malls, including 2 Vincom Mega Malls and 4 Vincom Plazas, with approximately 171,000 sqm of retail floor area, bringing the total number of Malls to 89 in 48 provinces and cities by the end of 2024. In addition, Vincom Retail continues to build and develop the new generation of Vincom Mega Mall products – the Life-Design Mall model with unique architecture, integrating shopping, dining, and entertainment.
Vincom Retail plans revenue of approximately 9,500 billion VND and after-tax profit of approximately 4,420 billion VND in 2024.
Ms. Pham Thi Ngoc Ha – Chief Financial Officer said that in the first quarter of 2024, Vincom Retail’s revenue is expected to be 2,250 billion VND, in which revenue from leasing accounts for about 80%, real estate revenue accounts for 10-12%, and the rest is other revenue. The 16% increase in revenue compared to the same period is thanks to the handover of some shophouses in Dong Hao, Quang Tri.
Net profit reached over VND 1,080 billion – up 6% compared to the same period. Revenue and after-tax profit in the first quarter of 2024 reached 24-25% of the plan for the whole year.
According to the plan submitted to shareholders, Vincom Retail will retain all undistributed after-tax profit for business operations. In the coming years, the company also plans to pay for loans and development plans for the project network with an area of over 800,000 sqm, requiring more than VND 10,000 billion. The company’s management expressed the hope that long-term investment could bring benefits to shareholders.
VINCOM WILL NOT CHANGE ITS NAME?
At the General Meeting of Shareholders, Vincom Retail’s shareholders approved the dismissal of 2 members of the Board of Directors, Ms. Le Mai Lan and Chairwoman of the Board of Directors Thai Thi Thanh Hai, and proceeded to elect an additional member to the Board of Directors for the 2023-2028 term. Mr. Nguyen Hoai Nam was elected to the Board of Directors of Vincom Retail with 100% of the total votes. Mr. Nguyen Hoai Nam (born in 1970), is currently the General Director of Berjaya Vietnam Group – a branch of the Berjaya Corporation Berhad Malaysia.
Vincom Retail’s shareholders also approved to dismiss 3 members of the Board ofSupervisors and elect 3 new members, Mr. Tran Xuan Hai, Mr. Hoang Duc Hung, and Mr. Nguyen Thanh Trung.
Regarding the plan to change the name after the participation of the new group of shareholders, Ms. Mai Hoa said that the Vincom brand is the first mall brand of Vietnamese people. Vincom has been associated with the people, especially the people of Hanoi for 20 years since the opening of the first Vincom mall in Ba Trieu. This name is also a source of pride, the result of hard work and perseverance to have the largest system in Vietnam today. According to Ms. Mai Hoa, whether the brand name will keep the “VIN” word or not is a later agreement of the Board of Directors.
Ms. Thu Hien said that up to now, Vincom has no intention of changing its name because it is a brand with high value for consumers.
Vice Chairwoman of the Board of Directors Tran Mai Hoa also said that in 2024, VRE is expected to open 6 Malls, with 4 opening in June and 2 in April 2024. VRE has signed the lease contracts and the occupancy rate is quite good, Vincom Plaza has a occupancy rate of over 60%, and Greenpark is over 90%. The occupancy rate is expected to be over 90% by the time of opening.
The new strategy is basically consistent with Vincom Retail’s strategy over the past 8 years. For VRE’s projects that have been announced to the market, the total retail area in the coming years will remain unchanged, and the implementation progress will be reviewed annually.
In the projects where VRE has deposited with the investors Vingroup and Vinhomes, the policy on investment value and project benefits remains the same as the deposited projects. Vingroup will continue to accompany VRE, and the mall chain will continue to operate in parallel with Vingroup’s ecosystem.
THE FUTURE OF THE RETAILING TREND
When asked about how VRE will recover the loss if tenants have difficulties and close down, Ms. Pham Thi Thu Hien, General Director, said that the recovery rate of the retail market depends on the overall economy and customers’ spending. The revenue of tenants has decreased not only in the Vincom system but also in other business locations of tenants. VRE’s occupancy rate in 2024 is expected to continue to increase because the newly opened Malls have high occupancy rates that will lead to the overall rate of the system increase, and in the 83 old Malls, some tenants have closed, but the rate is lower than 2023. Besides, VRE is focusing on repositioning the Malls and concentrating business human resources for the Malls that have signed lease contracts to increase the occupancy rate.
Regarding the future trend of retail and which shopping center model has the potential for good cash flow, Ms. Mai Hoa revealed: “More than a week ago, the development director of an online platform joined VRE, which means moving from online to offline. Indeed, the current increase in shipping and the number of shipping staff is an opportunity for big cities like Hanoi and Ho Chi Minh City to access better delivery services, but large professional retail clients have a low rate of sales participation on online platforms, only about 5%.”
