Hung Thinh Incons JSC (HSX: HTN) on October 17 held its 2021 annual general meeting of shareholders online, announcing a substantial raise in charter capital and new development orientations.
The Annual General Meeting opened at 9am with the participation of shareholders who own and represent 42,504,732 shares, equivalent to 85.85% of the total voting shares. At the Annual General Meeting, Board of Directors, Board of Supervisors and Board of Management gave overview reports on the management and business activities in 2020. In addition, the Board of Directors of Hung Thinh Incons submitted to the Annual General Meeting for consideration and approval many important contents such as: profit distribution plan for 2020, business plan for 2021, the Board of Directors election for the term of 2021-2026, new phase development strategy and some other important contents.
The Board of Directors of the Annual General Meeting of Shareholders 2021 of HTN: Mr. Truong Van Viet - Vice Chairman of Board of Directors; Mr. Tran Tien Thanh - General Director, Mr. Nguyen Dinh Trung - Chairman of Board of Directors, Moderate; Mr. Khuat Tung Phong - Independent Member of Board of Directors; Mr Vo Van Thu - Head of Supervisory Board
Dividend at the rate of 80%, issuing 25 million private shares
In 2020, the net revenue of Hung Thinh Incons JSC reached VND4.55 trillion ($197.83 million), with after-tax profit of VND357 billion ($15.5 million), up 23.7 and 91.1 per cent compared to 2019.
In the context of the economy being negatively affected by the trade war and disruption by the COVID-19 pandemic, Hung Thinh Incons had a successful business year when it has exceeded all business plans. To pay 2020 fiscal year dividend at the rate of 80 per cent, Hung Thinh Incons will issue more than 39.6 million shares from its after-tax profit, according to the audited 2020 financial report.
In 2021, the company targets a consolidated revenue of VND5.78 trillion ($251.3 million) and a consolidated after-tax profit of VND234 billion ($10.71 million). The general meeting approved the policy of issuing a maximum of 25 million private shares in 2022 with approval from the State Securities Commission.
The current charter capital of Hung Thinh Incons is VND495 billion ($21.5 million). It is expected that after dividends and private placement, the company's charter capital will increase to VND1.14 trillion ($49.57 million).
New faces on Board of Directors for new development orientations
Shareholders have also elected the Board of Directors (BoD) of Hung Thinh Incons for the new term 2021-2026 with six members: Nguyen Dinh Trung, Truong Van Viet, Cao Minh Hieu, Thieu Le Binh, Le Nguyen Hoang Minh, and Dang Van Vu Duy. After being elected, the BoD held a meeting to elect Nguyen Dinh Trung as chairman, Truong Van Viet as standing vice chairman and Cao Minh Hieu as vice chairman.
The new Board of Directors of Hung Thinh Incons appointed at the general meeting
Hung Thinh Incons continues to thrive with a new strategic orientation and an open vision, focusing on five priority strategies of the ecosystem, cooperation, infrastructure, value chain building, and technology. As a core member in charge of the construction sector of the Hung Thinh Group ecosystem and the constant flow of projects from Hung Thinh Land, the total value of the construction contracts of Hung Thinh Incons in 2022-2026 will reach VND95 trillion ($4.13 billion) and will increase further when the company's new strategy is fully implemented.
Strategic highlights of Hung Thinh Incons
With the "Turnkey" strategy, the company will strengthen its cooperation with investors outside the group in the form of exchanging products.
Accordingly, Hung Thinh Incons will execute projects with a small payment in cash (from 10-15 per cent of the total contract value) and accept payment for the rest paid by products. Thanks to PropertyX's outstanding advantages – the sales arm of Hung Thinh Group, Hung Thinh Incons can secure revenue from product sales and expand the construction market to the outside market, thereby increasing profits and value for the company and its investors.
Hung Thinh Incons is also actively expanding its business lines from civil and industrial construction to infrastructure construction associated with urban development, starting from urban areas developed by Hung Thinh Land to expand to other types of infrastructure constructions.
Simultaneously, the company continues to build and complete its organisational structure, governance and operating mechanisms according to the advanced models to reduce costs and optimise profits. It also actively invests and pioneers in applying new and advanced construction technologies and materials, cooperating with universities to conduct many research and training programmes for young human resources.
Nguyen Dinh Trung, chairman of the BoD shared: “With the addition of new leaders, the BoD will provide appropriate decisions and strategic development orientations for the company. Hung Thinh Incons will continue to break through the challenges of the construction market, anticipate potential opportunities and bring about good profits to shareholders and investors who have trusted in Hung Thinh Incons.”
Nguyen Dinh Trung, chairman of the Board of Directors of Hung Thinh Incons shared at the General Meeting
Hung Thinh Incons is currently constructing around 20 projects in many provinces and cities such as Ho Chi Minh City, Ba Ria-Vung Tau, Binh Duong, Dong Nai, Khanh Hoa, Binh Thuan, and Binh Dinh with a total construction contract value of nearly VND29 trillion ($1.26 billion). After a long time of being affected by the pandemic, the company's works in all provinces have resumed construction since the beginning of October 2021. The company is trying to complete the construction process on schedule.
Hung Thinh Incons accelerates the construction of projects after social distancing
Hung Thinh Incons was ranked among the "Top 50 most effective business companies in Vietnam 2020" announced by Nhip Cau Dau Tu Magazine in collaboration with Thien Viet Securities Company on October 11 based on its business results for the past three consecutive years. Accordingly, in 2018-2020, the company achieved an average revenue growth rate of 19 per cent, return on equity of 33.9 per cent, and profit margin for investors of 140.5 per cent, making it one of the leading construction companies in the market.
The Annual General Meeting also approved other contents, discussed important issues and noted the opinions of shareholders. Hung Thinh Incons 2021’s Annual General Meeting ended at 11:45 on the same day with the high consensus of shareholders.