HT1 held an extraordinary general meeting on the morning of August 2, 2024. Photo: Thanh Tú
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The meeting approved the dismissal of Mr. Luu Dinh Cuong from his position as a member of the HT1 Board of Management. Mr. Nguyen Quoc Thang has been appointed to fill this position for the 2023-2028 term.
Additionally, Mr. Luu Dinh Cuong has also stepped down from his role as General Director, as he has been appointed by the Ministry of Construction to the Member Council of the Vietnam Cement Corporation, according to the Ministry’s decision on June 11, 2024.
Mr. Thang, the new General Director and legal representative of HT1, assumed his position on July 30. Prior to this role, he served as the company’s Deputy General Director.
Mr. Thang (holding flowers) was elected as a member of the HT1 Board of Management for the 2023-2028 term. Photo: Thanh Tú
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Mr. Thang holds a Mechanical Engineering degree and a Master of Business Administration. The new General Director of HT1 started his career with the company as a technical staff in 2002 and was promoted to Deputy General Director in late 2023 before assuming his current position. In addition to his new role, Mr. Thang is also the Director of Binh Phuoc Cement Plant and a member of the Party Committee.
The former General Director of HT1, Mr. Luu Dinh Cuong, served as a member of the Board of Management and General Director since April 2018. Thus, Mr. Cuong has stepped down from these positions after more than 6 years of service.
In terms of business performance, Ha Tien Cement reported nearly VND 1,909 billion in net revenue and nearly VND 46 billion in net profit for the second quarter, representing a 5% and 22% decrease, respectively, compared to the same period last year.
| HT1’s After-tax Profit from Q1/2020 – Q2/2024 |
Despite the decrease in profit, HT1’s performance is considered positive given the challenging context faced by the cement industry, with domestic cement supply far exceeding demand, high material prices, and competition from low-cost cement imports from China. HT1’s performance stands out as many other companies in the industry continue to incur losses.
For example, VICEM But Son Cement Joint Stock Company (HNX: BTS) extended its losing streak to the seventh consecutive quarter in Q2 with a loss of over VND 36 billion. Similarly, VICEM Hai Van Cement Joint Stock Company (HOSE: HVX) continued to incur losses for the fifth straight quarter in Q2, with a loss of nearly VND 10 billion, excluding revenue from clinker sales.
For the first six months of the year, HT1 recorded revenue of over VND 3,403 billion, an 8% decrease compared to the same period last year. However, the company achieved a net profit of over VND 21 billion, compared to a loss of nearly VND 27 billion in the previous year.
For 2024, HT1 has set a business plan with a total revenue target of VND 7,032 billion, a slight decrease of 0.3% compared to 2023, and an after-tax profit target of over VND 23 billion, representing a 29% increase. The company aims to produce, consume, and process over 5.6 million tons of cement, a 5.4% increase compared to 2023.
Thus, the company has achieved 49% of its revenue target and nearly completed its after-tax profit target, reaching 92% in the first six months.
Ha Tien Cement: Nearly Completing Annual Plan Despite a 20% Drop in Q2 Profit
Most leaders in the cement industry predict that Vietnam’s cement exports in 2024 are unlikely to grow compared to 2023 due to competition from China, Turkey, and some other countries in the region. As a result, many businesses have set pessimistic plans.
For instance, Bim Son Cement Joint Stock Company (HNX: BCC) expects a loss of nearly VND 159 billion in 2024, while VICEM Hoang Mai Cement Joint Stock Company (HNX: HOM) forecasts a loss of nearly VND 104 billion. BTS plans for a loss of VND 111 billion. Ha Tien Cement is one of the few companies with a positive profit growth plan for 2024.
Mr. Ha Quang Hien, Chairman of the Board of Directors of Vicem Logistics Joint Stock Company (HOSE: HTV), assessed that the cement industry has never faced such challenges in sales in over 120 years. Most cement units are struggling and incurring losses. Mr. Luu Dinh Cuong, the former General Director of HT1, stated that it is impossible to predict when the cement industry will recover, as it largely depends on macroeconomic conditions and the global economic situation. This indicates that the future of the cement industry remains uncertain and obscure.
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