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Hoa Sen (HSG) plans to issue 5 million ESOP shares at a 56% discount 

 Monday, March 11,2024

AsemconnectVietnam - Hoa Sen Group Joint Stock Company (HSG code - HOSE) announced additional documents for the Annual General Meeting of Shareholders on March 18, 2024, the meeting is expected to be held in Ho Chi Minh City.

First, Hoa Sen Group added a proposal for the employee incentive stock issuance program (ESOP) for leaders, administrators, executives, managers, and key personnel.
In particular, Hoa Sen Group will issue 5 million ESOP shares at a price of 10,000 VND/share and the shares will be restricted from transfer for 1 year.
With the closing price on February 29 of 22,750 VND/share, Hoa Sen Group's Board of Directors will buy shares at a 56% discount compared to the currently trading market price.
The second additional proposal, Hoa Sen Group submitted to shareholders to approve policies related to investment in expanding industries and fields. In particular, through the policy of researching, promoting, and deploying investment to expand new industries and fields with potential and feasibility in many fields including finance; bank; stock; insurance; real estate; exact mechanics; mechanical engineering; semiconductor technology; developing office, housing, residential and urban area projects; educations; health care; tourism, ecology, relaxation...
Hoa Sen Group added that the maximum total investment for the expanded field does not exceed VND5,000 billion.
Hoa Sen aims to increase profits by 10 times in the 2023-2024 fiscal year and plans to list a series of subsidiaries.
Previously, in the upcoming General Meeting of Shareholders document, in the fiscal year 2023-2024 (from October 1, 2023 to September 30, 2024), Hoa Sen Group set a business plan with two script. In particular, scenario 1 with consumption output of 1,625 thousand tons, up 13.3% over the same period, expected revenue of VND34,000 billion, up 7.4% over the same period and expected profit after tax of VND400 billion, an increase of 12.33 times compared to implementation in the 2022-2023 fiscal year.
Scenario 2, total consumption is estimated at 1,730 thousand tons, up 20.7% over the same period, estimated revenue is VND36,000 billion, up 13.7% over the same period, and expected profit after tax VND500 billion, an increase of 15.67 times compared to implementation in the 2022-2023 fiscal year.
Previously, in the fiscal year 2022 - 2023 (from October 1, 2022 to September 30, 2023), Hoa Sen Group recorded revenue of VND31,650.7 billion, down 36.3% compared to same period and profit after tax recorded VND30.06 billion, down 88% over the same period. In particular, gross profit margin decreased from 9.9%, to only 9.7%.
It is known that in the 2022 - 2023 fiscal year, Hoa Sen Group sets its business plan based on two scenarios.
In the first scenario, with a finished product output of 1.4 million tons, the Company plans a revenue of VND34,000 billion, down 32% over the same period and an expected profit after tax of VND100 billion, down 60% over the same period last year.
The second scenario is more positive with finished product output of 1.5 million tons, estimated revenue of VND36,000 billion, down 28% over the same period and expected profit after tax of VND300 billion, up 20% over the same period last year.
Thus, at the end of the fiscal year 2022 - 2023, with a profit of only VND30.06 billion, Hoa Sen Group completed 30.1% of the conservative plan of VND100 billion and completed 10% compared to the positive plan of profit of VND300 billion.
By completing only 30% of the conservative plan and 10% of the aggressive plan, in the upcoming General Meeting, Hoa Sen Group will present shareholders with a dividend payment plan for the 2022-2023 year at a rate of 5% in cash.
Continue restructuring to soon list Hoa Sen Plastic Joint Stock Company
In addition, also in the upcoming Congress, Hoa Sen Group will also submit to shareholders to approve the policy of restructuring and specializing in steel pipe production and trading. In particular, Hoa Sen Plastic Joint Stock Company, after receiving the transfer of the plastic production and business segment, has come into effective operation, showing high proactiveness in management and operations for the production and plastic business segment.
In the future, Hoa Sen Plastic Joint Stock Company will issue shares to the public and list shares on the Stock Exchange.
Therefore, Hoa Sen Group submits to shareholders to consider converting Hoa Sen Phu My One Member Company Limited to Hoa Sen Steel Pipe Joint Stock Company with 99% of charter capital owned by Hoa Sen Group, which will take over entire infrastructure serving steel pipe production and business activities, expected implementation time and roadmap from 1 to 5 years.
After Hoa Sen Steel Pipe Joint Stock Company completes taking over the steel pipe production segment and enters stable and profitable operations, the Company will submit to shareholders for consideration and approval of the plan to issue shares to the public and list them.
For the Hoa Sen Home system, Hoa Sen Group will continue to consolidate and improve operational efficiency, production and business efficiency, and prepare the best conditions for the transformation of the Hoa Sen Home system into Hoa Sen Home Joint Stock Company.
Regarding personnel, after the end of the 2018-2023 term, Hoa Sen Group will also re-elect the Board of Directors for the new term 2024-2029.
Source: VITIC/Tinnhanhchungkhoan


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