The annual general meeting of shareholders of NKG was held on the morning of April 26. Photo: VH
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Opening the meeting, Mr. Ho Minh Quang, Chairman of NKG, said that 2023 marked a year of economic downturn in the world, with high interest rates leading to a decline in consumption. However, Vietnam still kept inflation low, which helped the State Bank reduce interest rates from the first quarter of 2023 to support the economy. This helped the Vietnamese galvanized steel industry recover from the second quarter of 2023.
“Entering 2024, this is a pivotal year for Nam Kim Steel to go deeper into the galvanized steel industry value chain through the new factory project in Phu My”, Mr. Ho Minh Quang emphasized.
For 2024, NKG sets a target of VND 21,000 billion in revenue and VND 420 billion in pre-tax profit, increasing by 13% and 137% respectively over the previous year. The expected sales volume is 1 million tons.
For the first quarter of 2024, the management of NKG revealed that revenue reached VND 5,300 billion, pre-tax profit of VND 188 billion and after-tax profit of VND 150 billion. Sales volume reached 254,000 tons in the first quarter of 2024.
Demand remains low, recovery expected from 2025
Sharing more about the steel industry situation, Mr. Vo Hoang Vu, General Director of NKG, said that domestic demand is still very low, as businesses are reluctant to invest in building their own factories, while the demand for construction and home improvement is still low.
In the international market, NKG focuses about 70% on Europe and North America. “These markets are still affected by inflation and high interest rates. Recently, the market has expected the Fed to cut interest rates in the near future, but so far it has not happened”, he said.
In this context, Nam Kim is focusing on exports. “Currently, with the advantage of quality and established sales channels, we are still confident that the export channel will make up for the domestic market”, he said.
Looking ahead, General Director Vu expects that in 2025-2026, the global economy will recover and investment and consumption activities in the international market will improve. “Nam Kim is investing in the Nam Kim Phu My sheet steel factory project to anticipate this recovery”, he said.
Raise nearly VND 1,600 billion to build a factory
To prepare resources for the construction of the factory, Nam Kim present to shareholders the option of offering a maximum of 131.6 million shares to existing shareholders to raise VND 1,580 billion.
Nam Kim Phu My sheet steel factory project has a total investment of VND 4,500 billion (phase 1), including a 350,000 tons/year galvanized line, two aluminum-zinc alloy coating lines of 300,000 tons/year and 150,000 tons/year, and a 150,000 tons/year color coating line.
At the meeting, Chairman Ho Minh Quang said that the factory has been granted a construction permit and is expected to go into operation from the fourth quarter of 2025 or the first quarter of 2026. Capacity will gradually increase and reach 100% in 2027. “When the Phu My factory is completed, the company’s capacity will increase from 1 million tons/year to 1.6 million tons/year”, he said.
Mr. Vo Hoang Vu said that the new factory will develop higher quality product lines, higher segments and less competitive competition, such as supporting industries, auxiliary mechanics, household appliances and in the product chain. for the automotive industry.
TT Capital Chairman joins the Board of Directors
Regarding personnel, the NKG General Meeting of Shareholders approved the dismissal of Ms. Nguyen Ngoc Y Nhi as a member of the Board of Directors for the term 2020-2025 at her personal request and the dismissal of Ms. Nguyen Thi Bich Nhi as a member of the Board. Supervisory Board.
The General Meeting of Shareholders elected Mr. Nguyen Trung Tin (born 1979) as a member of the Board of Directors for the 2020 – 2025 term and Mr. Dang Van Hoa (born 1990) as a member of the Supervisory Board.
It is known that Mr. Nguyen Trung Tin is the Chairman of the Board of Directors of TT Capital Investment JSC and concurrently the General Director of Phuc Loc Khang Investment JSC.
