On July 25, CMC Corporation, a leading technology group in Vietnam, successfully held its annual general meeting in Hanoi, during which several important matters were discussed and approved.
Aspiring to Become a Global Digital Group
For the fiscal year 2023, CMC recorded a remarkable performance with a pre-tax profit of VND 461 billion, a 15% increase compared to the previous year. The company achieved 95% and 100% of its targeted and baseline plans, respectively. Gross revenue reached VND 7,342 billion, equivalent to 83% of the baseline plan, while consolidated post-tax profit attained a historic high of VND 402 billion, completing 99% of the baseline plan.
Based on this performance, the shareholders’ meeting agreed on ambitious financial goals for the 2024 fiscal year (April 1, 2024 – March 31, 2025). The company aims to achieve a revenue of VND 8,824 billion, representing a 20% increase from the previous year. Additionally, they target a consolidated post-tax profit of over VND 405 billion, a slight 1% improvement from the record-high profit achieved in the previous year.
Regarding dividend distribution, the company plans to issue a stock dividend at an 11% ratio for 2023. According to CMC, this approach to dividend distribution aims to reinvest and increase capital for member companies while also funding projects.
Mr. Nguyen Trung Chinh, Chairman of the Board of Directors and Executive Chairman of CMC, shared his vision: “The fiscal year 2023 was a year of explosive events, marking CMC’s advancement into the international market and setting the stage for growth in the 2024 fiscal year. Recently, the launch of CMC Korea represented a new milestone in our ‘Go Global’ journey.
Moving forward, CMC will continue to expand into key global technology regions such as the United States, Europe (UK and Germany). In the international market, our focus is on increasing market share and delivering high-quality technology solutions to global clients, continuing our inspiring journey beyond Vietnam’s borders. The US market will be a key focus, with plans to open a company office in the US by the end of 2024. We have set a challenging goal of contributing $100 million in revenue from the US market to the Group’s total revenue within the next five years.”
Additionally, CMC is committed to its strategy to become a global digital enterprise with international standards by 2028, aiming for a workforce of 10,000 to 15,000 employees.
Mr. Nguyen Trung Chinh, Chairman of the Board of Directors and Executive Chairman of CMC Corporation
Approving a Nearly VND 8,000 Billion Investment for a Super-Large Scale Data Center
During the general meeting, shareholders approved the investment plan for a “Super-Large Scale Data Center” (DC Hyperscale) project in the High-Tech Park in Tang Nhon Phu Ward, Thu Duc City, Ho Chi Minh City. The total expected investment for this project is VND 7,678 billion.
With a land area of over 3 hectares, CMC aims to construct a massive infrastructure data center and develop platforms and ecosystems in cloud computing, artificial intelligence, big data, and information security. This initiative is intended to transform Ho Chi Minh City into a digital hub for the country and the region, attracting major domestic and international technology investors and developing digital services for the global market.
According to CMC, the data center market revenue for 2024 is projected to reach $321.2 billion and is expected to maintain a compound annual growth rate of 7.3%. By 2032, the data center market revenue is estimated to reach $565.5 billion.
“CMC Technology Group is committed to maintaining its leading role, staying at the forefront of new technology waves, continuously innovating in governance, enhancing service quality, prioritizing customer satisfaction, accelerating revenue growth, and delivering sustainable and valuable investment projects to our shareholders,” affirmed Chairman of the Board, Mr. Nguyen Trung Chinh, at the general meeting.
In terms of personnel changes, the meeting approved the resignation of Mr. Kim Jung Wuk from the position of Board member and Mr. Nguyen Minh Tue from the position of Supervisory Board member. Mr. Kwon Ohsoo (born in 1968), Vice Chairman of Samsung SDS Vietnam, was elected as a new Board member, and Ms. Mai Thu Ha (born in 1982), Head of CMC’s Legal Department, was elected as a member of the Supervisory Board.
CMC Corporation, formerly known as ADCOM Center, was established in 1991 under the National Center for Microelectronics and Information Technology Research with initial capital of VND 50 million. On February 7, 2007, CMC underwent privatization and officially transformed into CMC Corporation, with 13 founding shareholders comprising key leaders of the company and its subsidiaries. Currently, CMC Corp has four major institutional shareholders: Samsung SDS Asia Pacific (30%), MVI Investment (14%), Pyn Elite Fund (7%), and My Linh Investment (5%).
Samsung SDS officially invested in CMC Corp in August 2019 by purchasing 5 million shares on the stock exchange through a matching method at an average price of VND 40,000 per share and 25 million shares in a private placement at VND 34,000 per share. The total value of the transaction at that time was approximately VND 1,050 billion.
Cash Coming to Bank Shareholders
Many banks’ shareholders are set to receive cash dividends in addition to stock dividends in the early days of the Lunar New Year 2024, the Year of the Mouse.
