Coteccons AGM: Record-Breaking Revenue Plan of VND 30 Trillion, 10% Dividend Payout, and Strategic Move with VND 1.2 Trillion Bad Debt Provision

On October 20, 2025, Coteccons held its Annual General Meeting of Shareholders. For the fiscal year 2025 (ending June 30, 2025), the company reported consolidated revenue of VND 24,885 billion, an 18% increase year-over-year, achieving 99.5% of its target. Net profit reached VND 456 billion, up 47% and exceeding the goal by 6%.

Building on this success, the meeting approved a revenue target of VND 30,000 billion and a net profit goal of VND 700 billion for the 2026 fiscal year.

This ambitious plan is fueled by a record-breaking contract backlog of VND 51,600 billion, following an estimated VND 19,300 billion in new contracts signed during the first quarter of the new fiscal year.

The “7 CEO” Model

A key discussion point was the new Executive Committee (Excom) structure, featuring 7 key members, each overseeing a distinct business segment.

Addressing a shareholder’s question about CEO compensation—”With one CEO becoming 7, is the salary divided by 7 or multiplied by 7?”—Chairman Bolat Duisenov replied, “It’s not about dividing or multiplying by 7. Imagine our business as a cake. Our goal isn’t to slice it into pieces but to work together to make the cake bigger.”

Mr. Bolat did not elaborate on how this “bigger cake” would be achieved.

Expanding into international markets was another hot topic. Mr. Bolat noted, “In Saudi Arabia, it took Coteccons 18 months to complete legal entity registration and begin bidding. In Taiwan, obtaining an operating license also took 15 months.”

Currently, Coteccons is focusing on three strategic markets: the US, the Middle East, and Taiwan.

Deputy General Director Tran Ngoc Hai shared that Coteccons recently completed the VinFast project in India, managing over 1,000 local workers, and is executing three projects in Taiwan, including the Taipei Twin Towers, Hsinchu Complex, and Taipei University.

Concerns Over Negative Cash Flow

Despite meeting and exceeding business targets, the Supervisory Board raised critical concerns. The 2025 cash flow from operations was negative VND 1,153 billion, attributed to rapid revenue growth leading to slower debt recovery and increased inventory. Additionally, a decline in gross profit margin compared to the previous year indicated suboptimal cost control.

Mr. Tran Ngoc Hai acknowledged the challenge of achieving the VND 30,000 billion revenue target within 12 months but assured that the company has a plan to realize this goal, focusing on improving profit margins.

“In 2026, we’re concentrating on margin enhancement, a challenge given unfavorable input costs and labor/material fluctuations,” Mr. Hai stated.

Regarding the existing VND 1,200 billion bad debt provision, the company plans no additional provisioning this year and expects contributions from provision reversals.

10% Cash Dividend and Bonus Share Issuance

The meeting also approved significant financial and personnel decisions. Notably, a 10% cash dividend (VND 1,000 per share) for 2024-2025 was added, totaling over VND 101.4 billion.

Shareholders approved adjustments to last year’s bonus share issuance plan (over 5 million shares) and a new 20:1 bonus share plan (over 5.3 million shares), expected to increase chartered capital to VND 1,140.3 billion upon completion.

Additionally, 1.1 million treasury shares will be used for an ESOP program at VND 10,000 per share.

In personnel changes, the Supervisory Board saw the resignation of Mr. Tran Van Thuc and Mr. Doan Phan Trung Kien, with Mr. Ngui Gia Hoang (CFO of Eisai Vietnam, born 1985) and Mr. Vu Hoang Nam elected for the 2022-2027 term.