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The Board of Directors of Vitaly has approved Mr. Cao Truong Thu’s resignation as Chairman of the Board of Directors since March 12, 2024, according to his personal wishes and will submit to the General Meeting of Shareholders for approval of his resignation from the Board of Directors for the term 2020-2025.
Mr. Cao Truong Thu was born in 1983, with a Master’s degree in Economics (Finance). He was elected to the VTA Board of Directors and elected as Chairman of the Board of Directors since May 2020 as the representative of the owner of the Construction Material Joint Stock Corporation No. 1 (FiCO, UPCoM: FIC). After nearly 4 years in office, Mr. Thu will no longer serve as Chairman of the VTA Board of Directors.
At FiCO, Mr. Thu holds the position of Member of the Board of Directors and CEO of the Company. He also serves as Chairman of the Board of Directors of FiCO’s subsidiaries and affiliates such as Thanh Thanh Ceramic Joint Stock Company (HNX: TTC) and Hóa An Joint Stock Company (HOSE: DHA). In addition, he also serves as Chairman of the Board of Directors of LICOGI Dong Anh Mechanical Joint Stock Company (UPCoM: CKD).
Mr. Cao Truong Thu (left) and Mr. Pham Viet Thang. Photo: FiCO
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Based on the personnel recommended and nominated by FiCO, the VTA Board of Directors has also approved the election of Mr. Pham Viet Thang as Chairman of the Company’s Board of Directors, replacing Mr. Thu as of March 14, 2024.
Mr. Nguyen Viet Thang was born in 1978, with a Master’s degree in Economics. Similar to Mr. Thu, Mr. Thang was nominated and elected to the VTA Board of Directors since May 2020 as a Member of the Board of Directors. At FiCO, he serves as a Member of the Board of Directors and Deputy CEO, as well as Chairman of the Control Committee at DHA and a Member of the Board of Directors at TTC.
Prior to that, the FiCO Board of Directors passed a resolution on the reorganization of the representative of capital at VTA. FiCO nominated Mr. Vo Van Tung, General Director of VTA, to replace Mr. Thu as the representative of FiCO’s capital and recommended him to be a Member of the VTA Board of Directors for the term 2020-2025.
Therefore, the list of representatives holding 30.75% of the capital of VTA owned by FiCO includes Mr. Pham Viet Thang, Ms. Nguyen Thanh Ha, and Mr. Vo Van Tung, each holding 10.25%.
Regarding personnel matters, the VTA Board of Directors also approved the resignation of Mr. Luu Huu Thuy as Deputy CEO according to his personal wishes. At the same time, Mr. Nguyen Ngoc Dung was appointed as Deputy CEO – in charge of production activities, and Mr. Nguyen Van Son was appointed as Deputy CEO – in charge of business activities. The dismissal and appointment decisions take effect from March 6, 2024.
The replacement of VTA’s leadership team took place just before the Annual General Meeting 2024, scheduled to be held on April 12 at the Company’s auditorium – N1 Road, Binh Chuan IZ, Binh Phu Ward, Binh Duong Province. The ex-rights transaction date is March 4, 2024.
Personnel downsizing due to three consecutive years of losses
VITALY (VTA) was transferred from the state-owned enterprise Gach Op Lat So 1 under FiCO, with a charter capital of VND 80 billion. The company specializes in the production of high-quality tiles, including wall tiles, floor tiles, garden tiles, etc.
In terms of business performance, in 2023, VTA achieved net revenue of over VND 152 billion (mainly from tile sales), a decrease of 46% compared to the previous year. Due to business below cost, the company’s gross loss was nearly VND 11 billion, while it made a profit of VND 18 billion the previous year. Finally, the company could not achieve the set target of VND 300 million in net profit for 2023, instead incurring a net loss of over VND 28.5 billion.
| VTA’s business results in the past 5 years |
This is the third consecutive year VTA has incurred losses since 2021, bringing the total accumulated losses as of December 31, 2023 to nearly VND 51 billion. The company said that due to market factors, VTA had to reduce production capacity from 80% to 20% and cut part of the workforce on-site, resulting in increased costs for job loss and resignation benefits.
In addition, the use of old production lines, the production of multiple product lines, and frequent mold changes led to high repair costs and a high rate of wastage, making the product prices high and the price competition for the product very difficult. These factors directly affected the company’s 2023 business results.
In the stock market, VTA stock has decreased nearly 57% from its short-term peak at the end of August 2023, currently stabilizing at the reference level of VND 3,900/share. The average trading volume since the beginning of 2024 is just over 2,800 shares/day.
| Since trading on UPCoM, VTA’s stock price has remained below par |
