A New Era for REE: Mrs. Nguyễn Thị Mai Thanh Steps Down as Chairwoman to Take on the Role of CEO

24 November, 2024

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Refrigeration Electrical Engineering Joint Stock Company (REE-HOSE) announces changes to its personnel.

Accordingly, Mrs. Nguyen Thi Mai Thanh will no longer hold the position of Chairwoman of the Board of Directors from November 22nd. Mr. Alain Xavier Cany, Vice Chairman of the Board of Directors, will replace Mrs. Thanh in this position.

Mrs. Nguyen Thi Mai Thanh has been appointed as the General Director, replacing Mr. Nguyen Minh Quang, who was dismissed by the company upon mutual agreement to terminate the labor contract, effective from November 22, 2024.

Mrs. Nguyen Thi Mai Thanh is a graduate of Karl-Marx-Stadt Technical University, Germany, with a degree in Refrigeration Engineering. She has been associated with REE since 1993.

From 1993 to July 2020, Ms. Mai held the position of General Director of REE, and from 1993 to the present, she has been the Chairwoman of the Board of Directors.

According to the semi-annual management report for 2024, Ms. Thanh holds over 60.4 million shares, equivalent to 12.83%. Mr. Nguyen Ngoc Hai (Ms. Thanh’s husband) holds more than 25.7 million shares (nearly 5.46%); their son, Nguyen Ngoc Thai Binh – Member of the Board of Directors, Deputy General Director, and Authorized Information Disclosure Person holds 9,311,998 shares, or 5.5%; and their daughter, Nguyen Ngoc N, holds 6,226,462 shares, or 1.3%.

Previously, on June 26, 2024, REE announced that Mr. Huynh Thanh Hai would resign from the position of General Director of REE, effective July 1, 2024. The company appointed Mr. Le Nguyen Minh Quang (PhD in Construction) as the General Director of REE and the legal representative of the company, with a three-year term starting from July 1, 2024.

Refrigeration Electrical Engineering Joint Stock Company is a joint-stock company established in 1993, and its shares were listed on the HOSE in 2000.

The company is headquartered at 364 Cong Hoa, Ward 13, Tan Binh District, Ho Chi Minh City. The main activities of the Group are M&E engineering services, manufacturing and installation of air conditioning systems, computer equipment, telecommunications equipment, and home appliances, owning and leasing office buildings; installation of water supply and drainage systems; water exploitation, treatment, and supply; electricity production; real estate consulting, auctioning, and strategic investment in infrastructure; electricity transmission and distribution.

It is known that REE announced its business results for the third quarter of 2024, with revenue reaching VND 2,000 billion, up 3% over the same period last year, and after-tax profit reaching VND 480 billion, up 7% over the same period last year. The revenue increase over the same period last year was due to the 13% growth in the electricity segment (mainly from hydropower) offsetting the decrease in revenue from the M&E segment. In addition, favorable hydrological conditions, along with high mobilization from hydropower in the third quarter, also significantly reduced the negative impact of lower profits from the office leasing segment.

In the first nine months of 2024, REE’s revenue slightly decreased to VND 6,000 billion, down 7% over the same period last year, and its after-tax profit significantly decreased to VND 1,300 billion, down 22% over the same period last year, respectively completing 69%/65% of VCSC’s full-year forecast.

According to VCSC, the reason for these decreases was the lower revenue and profit in the electricity segment compared to the previous year (mainly due to hydropower with low mobilization and unfavorable weather conditions in the first half of the year).

VCSC sees a downside risk to its 2024 after-tax profit forecast, mainly due to the slower-than-expected realization of profits from the real estate segment, although further detailed analysis is needed. In addition, the construction investment costs and project development process are generally in line with VCSC’s forecast.

The revenue and after-tax profit of the electricity segment in the first nine months were VND 2,942 billion (-17% year-on-year) and VND 602 billion (-35% year-on-year), respectively, completing 75%/66% of VCSC’s full-year forecast. According to VCSC, these results are generally in line with their forecast, as the higher-than-expected profit from the hydropower segment is likely to offset the slightly lower-than-expected profit from the wind power segment, along with lower-than-expected dividends received from PPC due to the reduction in ownership from 2.8% to 20.7% at the end of the third quarter.

The after-tax profit of the office leasing and real estate segments completed 68%/8% of VCSC’s full-year forecast, respectively. VCSC sees a downside risk due to the slower-than-expected realization of profits from the sale of the Light Square project in Bo Xuyen (Thai Binh province), with revenue and after-tax profit in the first nine months reaching only VND 80 billion and VND 17 billion, respectively (only completing 13%/8% of VCSC’s full-year forecast).

The Mechanical and Electrical segment recorded a 9-month after-tax profit of VND 72 billion (+7% year-on-year), completing 51% of VCSC’s 2024 forecast, slightly lower than expected due to a provision of VND 59 billion for bad debts in the second quarter.

The revenue and after-tax profit of the water segment both decreased by 25% year-on-year in the first nine months, mainly due to higher depreciation from the phase 2 expansion project of the Song Da Water Plant and the unsatisfactory business results of TK+ Company. The commercial output in the first nine months increased by 2% year-on-year, while the profit was in line with VCSC’s forecast (completing 71% of VCSC’s 2024 forecast).

VCSC currently has a “market perform” recommendation for REE with a target price of VND 68,100 per share.