On the morning of April 27, 2024, Bamboo Capital Group (stock code BCG) held its annual Shareholders’ Meeting virtually to approve business plans and dismiss several members of the Board of Directors, including Chairman Nguyen Ho Nam.
Opening the meeting, Chairman of the Board of Directors Nguyen Ho Nam shared that BCG is accelerating its ESG journey by applying leading-edge modern platforms to track, analyze, and assess carbon emission levels at its member companies. Sustainability reports are now given more importance and are executed with higher and stricter standards. This is an essential part of the sustainable development plan that BCG has set for itself and its member companies.
In 2024, the economic outlook for Vietnam and the world remains challenging. However, BCG will continue its efforts to enhance its ability to turn challenges into opportunities, thereby fulfilling its 2024 business goals.
Profit Target Increased More Than Fivefold
In 2024, BCG aims for consolidated net revenue of nearly 6,103 billion VND, a substantial 52% increase, and post-tax profit of close to 952 billion VND, which is more than five times higher than the 2023実績. With this target, BCG plans to distribute a 5% dividend in 2024.
Here’s a breakdown of the plans for each segment:
+ Renewable Energy: BCG expects to finalize price negotiations for two solar power projects, Phu My and Krong Pa 2, and continue to push for the completion of a 150MW rooftop solar power project. It will also start developing 550 MW of onshore and offshore wind power (expected COD in 2025).
As for waste-to-energy, BCG Energy plans to build its first waste-to-energy plant in Cu Chi district (total capacity of 200MW) in 2024, processing 2,000 tons of waste per day, with phase 1 completed in 2025 and phase 2 in 2026. It will also construct a plant in Long An with a capacity of 500 tons per day.
+ Real Estate: BCG Land (stock code BCR) will focus on completing ongoing projects, including Malibu Hoi An, Hoian d’Or, and King Crown Infinity, while expediting legal procedures for other projects. It will also research and develop industrial real estate.
+ Construction and Infrastructure Investment: Tradico, a member company, will undertake the construction of Package 12 of the Chau Doc – Can Tho – Soc Trang Expressway and the Duc Thinh Residential Area project (Bac Giang) in 2024.
Listing of AAA Insurance on the Stock Exchange
+ Financial Services (AAA Insurance): AAA aims for insurance premium revenue of at least 1,000 billion VND in 2024, with after-tax profit at least equal to 2023 but potentially reaching around 17 billion VND (a 71% increase).
Simultaneously, AAA will file a registration statement for trading its shares on the UpCOM exchange. Notably, late last year, BCG successfully conducted an IPO for BCG Land. The IPO process for BCG Land began in mid-2022, but the real estate market and the Vietnamese economy went through several fluctuations, which extended the IPO timeline beyond the initial plan.
+ Production and Trade: In this segment, the pharmaceutical industry, represented by Tipharco, has set a cautious plan for 2024, given the ongoing uncertainties, with a target of 406 billion VND in revenue and 33 billion VND in profit. Meanwhile, the trading segment of Nguyen Hoang Development JSC, another BCG member, will focus on core products such as domestic and export furniture, and modified starch to generate stable revenue while seeking partners to expand its market reach.
With a longer-term perspective, BCG plans to achieve revenue of nearly 30,500 billion VND and after-tax profit of over 4,500 billion VND by 2028.
This year, BCG plans to increase its charter capital to over 8,800 billion VND through a rights issue (2:1 ratio) and a bonus share issue (10% ratio).
Chairman Nguyen Ho Nam Resigns from the Board of Directors
This shareholders’ meeting also proposed the dismissal of Board of Directors members Nguyen The Tai and Pham Nguyen Thien Chuong for the 2020-2025 term. Notably, Chairman of the Board of Directors Nguyen Ho Nam also submitted his resignation letter one day before the meeting.
In his resignation letter, Mr. Nam stated that he was stepping down to “focus on his role in the Founders’ Council and Advisory Council in guiding the strategic direction of the Group.”
The company will also dismiss the Supervisory Board for the 2020-2025 term, including Kou Kok Yiow.
After resigning from the Supervisory Board, Kou Kok Yiow appeared on the list of candidates for the BCG Board of Directors, along with Hoang Trung Thanh (Vice Chairman of the Board of Directors of BCG Energy JSC). Leong Kwek Choon, currently a senior advisor at RE Substainability International (Singapore) Pte. Ltd., is a candidate for the Supervisory Board.
Photo: Bamboo Capital (BCG) Shareholders’ Meeting held virtually.
Discussions at the Meeting
1. Why did Chairman Nguyen Ho Nam resign?
Nguyen Ho Nam: The group has been preparing for this in advance as part of a restructuring effort. BCG currently has 12 leaders ready to succeed the nine founding members, and under these 12 individuals, there is a team of 42 core members prepared to take the next step.
More importantly, BCG is developing a group model that is not dependent on any one member. Therefore, the founding members will gradually withdraw from the Board of Directors so that the next generation of leaders can develop with greater confidence.
My resignation is not a departure but rather a transition to a new role as the Strategic Council, where I will serve as Chairman. In this new role, the Strategic Council will dedicate its time to seeking new directions for the Group.
2. Did the management discuss the feasibility of the relatively ambitious 2024 business plan?
Vice Chairman of the Board of Directors Pham Minh Tuan: The group invests in real estate and renewable energy, which are sectors dependent on the policy environment and legal progress. Renewable energy, in particular, is currently facing development challenges due to slow policymaking and approval processes.
The 2024 business plan is based on the Group’s capabilities, without considering potential delays in policy implementation. Compared to other companies in the same industry at the same time, while others are reporting losses and many projects are not being implemented, BCG has been able to generate profits thanks to its rigorous monitoring processes. Therefore, if the profit target is not met this year, efforts will be made to achieve it in the following year.
Chairman Nguyen Ho Nam added that in recent years, unforeseen and extraordinary changes have delayed the Group’s projects, leading to below-expected business results. However, when plans are not met, bonus mechanisms are not implemented.
