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The DSN Leadership’s Decision to Discontinue Free Entry Tickets for Shareholders: Unveiling the Reasons Behind the Change

27 February, 2025

DSN’s 2025 Annual General Meeting was held on the morning of February 24, 2025. Photo: Thuong Ngoc

Why are revenue targets up but profits down for 2025?

The AGM approved 2025 targets of VND 225 billion in net revenue and VND 82 billion in post-tax profits, a rise of over 3% in revenue but an 11% drop in profits. These targets are 6% and 21% lower than the 2024 plan, respectively.

Dam Sen Nuoc expects a 24% dividend ratio for 2025

On the reason for the profit decline despite higher revenue, General Director Vu Ngoc Tuan shared that as revenue increases, so do expenses such as health insurance contributions and the implementation of a new salary regime; land use fees; by 2030, Ho Chi Minh City will close all wells, so DSN is transitioning to more expensive municipal water; and selling tickets through VNPay also incurs additional costs. Overall, the cost of goods sold is expected to increase by nearly VND 13 billion.

DSN’s Chairman of the Board, Mr. Tran Viet Anh, noted that the figure of VND 225 billion in revenue is the minimum target to be achieved. Should business performance be favorable, the Board will consider setting a higher target for the Executive Board.

In response to a shareholder’s concern about the expiration of the land lease, Mr. Viet Anh reassured that this is merely a legal formality, and DSN currently has many assets located on the land in this area. This year, the Company will initiate procedures to officially sign a land lease contract with the city, with an expected land rent of VND 11.2 billion for 2025.

The DSN General Director stated that despite numerous competitors, unless there is an economic downturn, DSN remains an appealing destination. In Ho Chi Minh City, Vinhomes in Thu Duc has a water park, but their target audience differs from DSN’s. DSN’s greatest strengths are its central location, abundance of greenery, and professional service. Competitors may offer more aesthetically pleasing options, but their service quality falls short of DSN’s.

Decree 168 impacts DSN’s visitor numbers

Sharing DSN’s business performance, Mr. Tuan said that the company faced challenges entering 2025, as they only achieved 69% of their revenue target during the recent Tet holiday due to the city’s flu outbreak and cold weather during the holiday season.

Additionally, due to the impact of Decree 168, DSN did not record any group bus arrivals from the Mekong Delta during Tet, and it wasn’t until the 6th day of the new year that buses started arriving. Mr. Tuan added that there was a case of a customer from Dong Nai contacting the company to help find a bus operating in Ho Chi Minh City to avoid penalties, but DSN does not have this function. As a result, the management is seeking solutions to address the issue of passenger transportation from the provinces to the water park.

While the nature of water attractions is similar across competitors, newer water parks offer more attractive and larger facilities than DSN. Therefore, the company’s management has decided to explore new directions and invest in family-oriented facilities and games.

Mr. Tuan praised the water attractions in China for their quality and affordability, and according to DSN’s survey, they would need to spend about 600,000 USD to acquire four games, excluding construction costs.

As summer revenue accounts for 70% of DSN’s annual revenue, the company is planning to collaborate with the Department of Education and Training to organize programs for students. Additionally, DSN is also targeting workers in export processing zones, although this depends on the business performance of these enterprises. In the meantime, at the beginning of March, DSN will launch tickets targeting families.

Sharing the company’s current investments, the Chairman of DSN stated that with over VND 300 billion in cash, the company is depositing money in banks and investing in stocks with a focus on safety. Each time they deposit money in a bank, the management conducts a survey of interest rates across all banks before making a decision. Regarding stock investments, DSN prioritizes companies with stable growth, those producing essential goods for daily life, and stocks with good liquidity to easily realize profits, which can then be reinvested in their core business.

However, he noted that DSN’s primary business remains the operation of the water park, and financial investments are only a temporary solution while they seek land funds. Specifically, DSN is looking for a land fund of about 6-7 hectares to build a second water park.

Explaining why idle cash is not used to buy treasury stocks or pay higher dividends to shareholders, Mr. Viet Anh said that the purchase of treasury stocks must comply with securities laws, and even if allowed, only a small amount could be purchased, not the entire VND 300 billion. As for maintaining high dividends, it is essential, but the company also aims for investment development, and if all profits are distributed, there would be no funds left for investment.

Regarding the Institute of Applied Biotechnology Research Lotus Aroma, DSN’s representative shared that this was a new business area the company once wanted to develop but decided to shut down and dissolve last year due to unmet expectations. Currently, the project still has inventory in the form of a factory in Binh Thuan, and DSN is looking for opportunities to sell this factory.

Reason for discontinuing the practice of issuing park entry tickets to shareholders

Chairman Tran Viet Anh explained that the company no longer issues water park tickets to shareholders because the management agreed to separate business operations from the activities of the AGM. Shareholders already have benefits in the form of dividends. Additionally, the current ticket issuance is controlled through an online system under the supervision of a third party, so it cannot be freely distributed as before.

At the meeting, shareholders approved the dismissal of Ms. Le Thi Ngoc Lan from her position as an Independent Member of the Board of Directors due to her previous resignation request for personal reasons. Additionally, Mr. Hirotaka Yabe, born in 1999, a Japanese national with a Bachelor’s degree, was elected to the Company’s Board of Directors.