The global and Vietnamese economies faced significant challenges and fluctuations in the past year, impacting the operations of many businesses, including Nhựa An Phát Xanh. However, thanks to the timely and flexible policies implemented by the Board of Directors and the Executive Board, the company overcame these difficulties, increased production, enhanced profits, and expanded its core business activities, solidifying its position as Vietnam’s largest plastic packaging exporter.
In 2023, AAA recorded consolidated revenue of VND 12,622 billion, exceeding the plan by 101% and reflecting a 17% decrease compared to 2022. This reduction was mainly due to low resin prices and the company’s focus on risk prevention, adjusted sales policies, and tight control over accounts receivable and inventory, resulting in decreased revenue in the resin trading segment.
The company achieved an impressive after-tax profit of VND 309 billion, a substantial increase of 164% from 2022 and reaching 62% of the plan. The main reason for not completing the profit plan was that the industrial real estate segment recognized revenue and profits annually instead of a one-time recognition as initially planned.
Nhựa An Phát Xanh successfully held its 2024 Annual General Meeting of Shareholders
At the meeting, the Board provided an update on investment and project implementation. The expansion project of the An Vinh Industrial Packaging Factory and the Resin and Plastic Products Factory (Factory 8 Project) are expected to be operational by 2025, anticipating over VND 1,300 billion in annual revenue when operating at maximum capacity. Regarding real estate, the An Phat 1 Industrial Park officially commenced operations in 2023 and has achieved an 85% occupancy rate to date. Together with the High-Tech An Phat Industrial Park, the An Phat 1 Industrial Park has become a destination for domestic and foreign investors, attracting investment to the region.
The General Meeting approved a profit plan of VND 377 billion (up 22% from 2023) and other important contents
For the 2024 business plan, the General Meeting approved a revenue plan of VND 12,000 billion and an after-tax profit of VND 377 billion. Going forward, AAA will continue to reinforce its position as a leading enterprise in Vietnam’s plastic packaging industry while expanding its core businesses in industrial real estate, plastic raw materials, and logistics.
During the meeting, the Board of Directors directly answered shareholders’ questions regarding the company’s production and business activities, as well as projects and plans for the upcoming period.
In response to a shareholder’s inquiry about AAA’s decision not to pay dividends in 2023, the Board explained that the company retained profits to invest in and develop new projects. According to General Director Nguyen Le Trung, AAA plans to double its production revenue by 2030. To avoid raising capital from shareholders, the company needs to retain profits to expand production scale in the coming years.
Shareholders asking questions to the Board of Directors
AAA’s growth drivers for 2024 include: (1) growth in the core business of manufacturing plastic packaging, resin, and additives, including increased sales volume, higher contribution from industrial packaging and biodegradable packaging with high profit margins, and optimized product, customer, and market structure; (2) accelerated handover of the An Phat 1 Industrial Park to customers; (3) improved performance in the resin trading segment; and (4) optimized costs.
The Board of Directors answering shareholders’ questions
To achieve the set goals, AAA will vigorously implement various solutions and business strategies in 2024. The company will enhance research and development activities to diversify its product portfolio, encourage new initiatives to increase labor productivity and improve product quality, adopt a lean and efficient enterprise management approach, and upgrade its human resources.
Additionally, the General Meeting approved amendments to the company’s business lines and charter and agreed to re-elect Mr. Nguyen Le Thang Long and Ms. Nguyen Thi Tien to the Board of Directors after the end of their term.
