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Mai Linh Shareholders' Meeting: Profit plan for 2024 is 15 times higher 

 Wednesday, May 8,2024

AsemconnectVietnam - In 2024, Mai Linh sets a goal of investing in 2,224 vehicles in the 9,999 vehicle project and expects to complete this project in 3 years, including 1,000 new hybrid vehicles for major markets such as Ho Chi Minh City and Hanoi.

Mai Linh Group's 2024 annual shareholder meeting, held on April 29, approved the entire report, including the 2024 plan with consolidated net revenue of VND1,650 billion, consolidated profit of VND60 billion, 15 times compared to implementation in 2023.
According to the 2023 consolidated financial report, net revenue in 2023 will reach VND1,585.96 billion, reaching 97% of the plan; pre-tax profit reached VND14.17 billion; Profit after tax reached VND3.94 billion, only completing 6.35% of the plan.
Mai Linh's leader said that the non-negative profit figure is positive, and does not fully reflect the group's restructuring efforts. In 2023, technology car companies and newly established car companies will enter the market, causing the "transportation pie" to be "divided" and creating a lot of pressure, forcing Mai Linh to implement business plans, operating and marketing costs to ensure service quality and business stability.
At the congress, shareholders asked why Mai Linh has not invested in electric cars? According to the Group's leaders, the electric vehicle trend is gradually becoming popular in many countries around the world. In Vietnam, this trend is also "shifting" and "favoring" electric vehicles because of the many innovations and benefits they bring. However, after in-depth research and analysis, electric vehicles are not really suitable and optimal in the Vietnamese market, because of infrastructure inadequacies that do not meet the requirements for convenient operation when traveling. Using electric vehicles, the amount of battery waste affects the environment.
Mai Linh is gradually switching from cars using pure gasoline fuel to hybrid cars. Mai Linh has successfully cooperated with Toyota Vietnam and Toyota Finance Company in an investment project of 9,999 vehicles. In just the last 4 months of 2023, Mai Linh has invested in nearly 1,000 new vehicles of the Avanza and Vios lines. In 2024, Mai Linh sets a goal of investing in 2,224 vehicles in the 9,999 vehicle project, and expects to complete this project in 3 years, including 1,000 new hybrid vehicles for major markets such as Ho Chi Minh City and Hanoi.
With hybrid cars, Mai Linh will realize the goal of protecting the environment, reducing CO2 emissions, and gradually replacing vehicles using fossil fuels. Hybrid cars do not need to be charged and can be filled with gasoline/diesel at normal fuel stations.
Based on EY's advice and the Group's orientation, Mai Linh determined that the main goal is to develop a transportation business network covering all provinces and cities across the country. But facing the challenge of fierce competition from transportation businesses, the birth of Vinfast electric vehicles has seriously affected the Company's invested units. The Group's units have not really brought about the desired results for many objective reasons.
Currently, Mai Linh owns 51% of capital in business units in the group. To optimize investment capital, Mai Linh's Board of Directors will restructure investment capital in subsidiaries in the direction of increasing ownership to 61% in subsidiaries.
With an ecosystem stretching across the country, Mai Linh sets big goals and expects to reap sweet fruits with diverse and stretching products and services: insurance, Logistics, tourism, labor export, Express high-speed transport trains, insurance products suitable for studying abroad, labor export, trade...
A pending content of Mai Linh for many years is the registration of a public company. Specifically, Mai Linh Group (MLC) was established on the basis of merging 3 businesses including Mai Linh Group, Northern Mai Linh Company, Central Mai Linh Company, and was granted a business registration certificate at the first change on October 29, 2019. Charter capital is VND1,246.66 billion.
At the 2020 Shareholders' Meeting up to now, the Company still has some problems in terms of administrative procedures, and has not been approved by the State Securities Commission to register a public company, leading to delays for shareholders in share transfer transactions. Accordingly, Mai Linh will continue to complete the public registration and seek opinions from the General Meeting of Shareholders to allow shareholders the right to transfer common shares of the merged company in accordance with the current Enterprise Law and Securities Law regulations.
At the same time, Mai Linh's Board of Directors is also authorized to decide on the time and implementation of listing shares on the stock exchange.
Source: VITIC/Tinnhanhchungkhoan


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