“Shareholder Meeting of Tôn Đông Á: Steel Trade Flows are in Turmoil, with a Focus on the Domestic Market Aiming for a 75% Share.”

 On the morning of June 12, 2025, GDA, a leading steel company in Vietnam, held its annual general meeting to approve business targets, investment plans, and crucial proposals related to a stock exchange transfer.

Mr. Nguyen Thanh Trung, Chairman of the Board, shared insights into the dynamic and turbulent global steel trade, marked by political instability and rising protectionism. He noted that steel protectionism is prevalent in various regions, including the US, Europe, and Southeast Asian countries.

In contrast, the domestic market in Vietnam is witnessing a country in ascension, with a streamlined administrative system and significant infrastructure investments. This presents a strategic opportunity to strengthen our position and leverage our advantages in a new phase of development. Additionally, there are signs that the real estate market has bottomed out and is on the path to recovery.

Focusing on the Domestic Market with a Target of Over 75% Market Share

GDA has strategically decided to shift its focus to the domestic market, aiming for a market share of over 75% (up from 41.16% in 2024). This shift entails concentrating on the high-quality segment and exploring previously untapped domestic market segments. By the end of 2025-2026, when global relationships and trade flows stabilize, the company aims to formulate an even more comprehensive sales strategy.

“I am confident in our ability to stabilize production, maintain our market share, and enhance our business efficiency. We will also focus on safe management during this period of unpredictable fluctuations in 2025,” added Mr. Trung, emphasizing the company’s resilience.

Regarding financial targets, GDA has set ambitious goals for 2025: a total output of 780,000 tons, expected revenue of VND 18,000 billion, and a projected profit after tax of VND 300 billion, with a maximum dividend rate of 20%.

For the first half of the year, Chairman Nguyen Thanh Trung reported a projected profit of VND 120 billion out of the planned VND 300 billion. In the second half, GDA will focus on expanding its domestic market presence in previously untapped segments and strengthening its export presence in select markets.

Construction of Factory No. 4 to Commence in Q4 2025, with a Capacity of 1.2 Million Tons/Year

Mr. Pham Quoc Thang, a member of the Board of Directors, shared insights into the company’s investment plans. In addition to their current capacity of 800,000 tons/year (with an efficiency rate of over 90% in 2024), GDA is planning to construct Factory No. 4 to increase their galvanized steel capacity by 1.2 million tons/year. They are also investing in Factory No. 5 to boost their box tube production by 150,000 tons/year and expanding Factory No. 3 to increase steel pipe output by 50,000 tons/year. Additionally, they are exploring foreign investments and venturing into new business areas.

“Regarding Factory No. 4, we are finalizing the legal procedures and paperwork, and we anticipate completing the process and officially commencing construction in the fourth quarter of 2025,” shared Mr. Thang about the timeline for the new project with a capacity of 1.2 million tons/year.

Addressing shareholders’ concerns about the new factory, Chairman Nguyen Thanh Trung emphasized: “The new project, with an estimated construction-to-market timeline of 1.5-2 years, is part of a long-term investment plan spanning 5-8 years. By the time we introduce our products to the market, we expect the economy to be in an expansionary cycle, ensuring a strong absorption capacity for our offerings.”

GDA representatives assured that the new factory’s products would cater to diverse industries, including construction, household appliances, automotive, and critical components for the North-South railway project. The company is implementing a phased investment approach, carefully pacing its progress to ensure the utmost safety and alignment with market demands.

Plans to List on the HoSE in 2025-2026

Notably, shareholders approved the plan to list the company’s shares on the Ho Chi Minh Stock Exchange (HoSE). The timing of the listing will be decided by the Board of Directors, ensuring compliance with legal requirements and strategic alignment.

The Chairman emphasized: “We aim to make the transfer in 2025-2026. While the financial market is currently challenging, the economy is not in a state of significant difficulty. By obtaining shareholder approval, we can choose the most suitable timing, taking into account the company’s development strategy, to maximize benefits for our shareholders.”

At this year’s meeting, shareholders also approved the 2024 dividend plan with a maximum rate of 40% (10% in cash and 30% in shares). The share dividend is expected to total 34.41 million shares and will be implemented in the third quarter of 2025.

If the share dividend is successfully issued, the charter capital is expected to increase from VND 1,147 billion to VND 1,491 billion.

Regarding capital mobilization plans, GDA intends to offer shares at a ratio of 3:1 in 2025-2026 to supplement working capital and support production and business activities.

Ahead of the meeting, GDA announced the appointment of new leadership positions for the 2025-2029 term, including Mr. Ho Song Ngoc as Vice Chairman of the Board, Mr. Pham Quoc Thang as General Director of Dong A – Phu My One-Member Limited Company, Mr. Doan Vinh Phuoc as General Director, Mr. Nguyen Van Dai as Deputy General Director of Domestic Business, Mr. Nguyen Thanh Vinh Nhat as Deputy General Director of Planning – Supply, Mr. Lam Vinh Hao as Deputy General Director of Production, Mr. Do Huu Van as Deputy General Director of Internal – External Affairs, and other key leadership positions.