The economy in general and businesses in particular have just gone through a turbulent year of 2023. Failing to meet the set targets, even suffering losses, “missing” dividends, and sluggish business performance have affected stock trading… these are sad stories at this year’s General Meeting of Shareholders.
At the event, many Chairmen frankly admitted their shortcomings and apologized to shareholders.
Hoa Binh Construction Chairman apologizes to shareholders, hopes that 2024 will “shine” again
Most recently, at the General Meeting held on the afternoon of April 25, 2024, Chairman of Hoa Binh Construction Group (stock code HBC), Mr. Le Viet Hai, apologized to shareholders for failing to achieve the 2023 business targets. Last year, HBC achieved revenue of VND 7,527 billion, and post-tax profit of negative VND 1,115 billion. This is the second year that HBC has posted a business loss.
“As the captain of the Hoa Binh ship, I sincerely accept responsibility for not achieving the set targets. I affirm that I regard Hoa Binh as my own flesh and blood child and that, over the past 36 years, I have always tried my best to mobilize all personal and family resources to do everything possible to help the ship overcome the storm while committing to protecting the interests of shareholders,”
Mr. Le Viet Hai shared at the Meeting.
According to him, HBC’s 2023 storm seemed insurmountable, but thanks to the solidarity of cadres, employees, the companionship of partners, suppliers, subcontractors, and shareholders, HBC overcame an extremely precarious situation.
Photo: HBC Chairman – Mr. Le Viet Hai.
In 2024, HBC plans to return to profitability with VND 433 billion. This figure is based on the fact that the real estate and tourism sectors have recovered in 2024 and that large and reputable investors have trusted Hoa Binh and continued to invite HBC to participate in projects to be implemented in the near future. With such a positive outlook, HBC believes that achieving revenue from bid-winning projects of around VND 2,800 billion is feasible.
In the first quarter of 2024, HBC’s consolidated revenue reached nearly VND 1,651 billion, and consolidated profit reached nearly VND 57 billion. Of which, the total contract value from the foreign market that HBC achieved was nearly USD 52.8 million, equivalent to VND 1,343.5 billion.
This year, HBC also plans to issue a large number of shares to raise capital and offset debts. Specifically, the Company will issue 200 million shares to increase capital, with an issue price of VND 12,000/share, and 74 million private shares to swap debt with suppliers, subcontractors, and manufacturers. The face value of the debt-swapped shares is VND 10,000/share.
All proceeds from the private share offering will be used to supplement working capital and pay off existing debts. The expected implementation time is during 2024 – 2025; details will be announced after receiving approval from competent state agencies.
MWG Chairman apologizes and thanks shareholders for their continued support; no income received in the first quarter of 2024 despite strong profit recovery
In the same situation, the Chairman of Mobile World Group (stock code MWG) expressed his gratitude and apologized to shareholders because MWG shares did not bring about the desired results.
“I am well aware that the Group’s performance is not effective, but the fact that many investors did not sell their shares and continued to hold them shows their belief in the Group. I extend my sincere thanks to our shareholders, and on top of that, I offer my apologies,”
Mr. Nguyen Duc Tai said.
In 2023, MWG recorded net revenue of over VND 118,000 billion, a decrease of 11% year-on-year and only 88% of the plan. Post-tax profit reached VND 168 billion, a decrease of up to 96%, failing to meet the set target.
Photo: MWG Chairman – Mr. Nguyen Duc Tai.
In 2024, MWG’s leadership assessed that the demand for consumer shopping will generally remain the same or even decrease compared to 2023 for some non-essential items. However, with a healthy financial foundation and a leaner “body” after restructuring, the MWG Chairman emphasized that the enterprise is ready to cope with market fluctuations.
MWG will also be determined to realize the revenue target of VND 125,000 billion and after-tax profit of VND 2,400 billion in 2024.
In the first quarter of 2024, MWG recorded net revenue of VND 31,486 billion, an increase of more than 16% compared to the same period last year, completing 25% of the annual revenue plan. Net profit increased by 43 times year-on-year to over VND 900 billion, the highest in the last 6 quarters since Q3/2022 and completing 38% of the set target for the year.
Despite this bright spot, according to the Q1/2024 consolidated financial statements, senior leaders, including Chairman of the Board of Directors Nguyen Duc Tai, Member of the Board of Directors Doan Van Hieu Em, and Member of the Board of Directors cum General Director Tran Huy Thanh Tung, all received a salary of VND 0.
Cen Land Chairman: Apologizes for not completing the task, but personally did not rely solely on reason and has found new directions to avoid dependence on the real estate market
Photo: CRE Chairman – Mr. Nguyen Trung Vu.
Also apologizing for not completing the task, Mr. Nguyen Trung Vu – Chairman of Cen Land (CRE) – at the same time affirmed to shareholders that the situation was due to the general context of the market. As for himself, he is a businessman and does not rely solely on reason; therefore, during the difficult time in the real estate market, the Company has been and is looking directly at the core issues
