An Phat Holdings’ Annual General Shareholders’ Meeting 2021: Approving target revenue of VND 12,000 billion, accelerating implementation of An Phat 1 Industrial Park and green material manufacturing plant project

25/06/2021

On the morning of June 25, An Phat Holdings (Ticker symbol: APH) successfully held the Annual General Shareholders’ Meeting 2021 which evaluates the efficiency of production and business activities in 2020 and approves significant plans for 2021.

According to the report on production and business activities in 2020, APH’s consolidated revenue reached VND 8,485 billion (~$ 361 million), consolidated profit after tax reached VND 242 billion (~$ 10.3 million), completing 71% and 37% of the plan, respectively. Evaluating the business performance in 2020, APH’s management said that although APH’s consolidated revenue and profit in 2020 decreased due to the impact of the COVID-19 pandemic, APH stably maintained core business areas.

In detail, the packaging segment still maintained stable growth, the output of thin mono-layer film packaging in 2020 reached 99,267 tons, up 4% over the same period in 2019, the export market for green packaging product also increased from 5 countries to 20 countries. In the field of supporting industry, besides maintaining business relationships with current partners, APH has successfully connected and cooperated with many new customers. In addition, the industrial real estate sector also recorded positive growth as An Phat Complex Industrial Park achieved an occupancy rate of nearly 90%.

APH successfully held the Annual General Shareholders’ Meeting 2021

In 2021, APH sets a target revenue of VND 12,000 billion (~$ 510.6 million), profit after tax of VND 590 billion (~$ 25 million) and an expected dividend payout ratio rate of 10%. APH’s basic priorities in 2021 will be to continue to improve production and business efficiency; ensure safety for workers, effectively prevent epidemic; improve the system of machines and production lines; researching and diversifying products, focusing on strategic products such as compostable products and engineering plastics; expanding export markets…

In particular, the important goal of APH is to accelerate the progress of two key projects to build the largest PBAT manufacturing plant in Southeast Asia and An Phat 1 Industrial Park with an area of 180ha (phase 1); maintain stable growth in core business areas such as packaging and supporting industries.

Answering questions about the revenue and profit plan for 2021, Mr. Dinh Xuan Cuong, Vice Chairman, Chief Executive Officer of An Phat Holdings said: “In 2021, we are determined to continue our business strategy flexible with the epidemic situation and ensure safety for workers, domestic and international production and business activities. The target revenue of VND 12,000 billion (~$ 510.6 million) and profit after tax of VND 590 billion (~$ 25 million) will certainly be achieved when the current strategic projects are on schedule. It is expected that in the second half of 2021, we will record strong profit growth when the An Phat 1 Industrial Park officially comes into operation and start commercial exploitation.”

Mr. Dinh Xuan Cuong, Vice Chairman, CEO of An Phat Holdings speaking at the event

Regarding the current progress of An Phat 1 Industrial Park, APH’s leader said that APH’s new industrial park in Hai Duong is in site clearance progress to prepare to start construction in the third quarter of 2021. Currently, APH is also in the process of negotiating with a foreign partner who wants to invest in An Phat 1 Industrial Park in particular and the industrial real estate segment. Meanwhile, the green manufacturing plant is accelerating the progress to ensure the construction plant will be carried out as planned.

Shareholders vote at An Phat Holdings’ Annual General Shareholders’ Meeting

At the end of the first quarter of 2021, APH’s member companies reported positive revenue and profit growth. In which, An Phat Bioplastics JSC (Ticker symbol: AAA) recorded consolidated revenue of VND 2,284 billion (~$ 97 million), profit after tax of VND 90 billion (~$ 3.8 million), increased 45% and 43% respectively over the same period in 2020; An Tien Industries JSC (Ticker symbol: HII) reported impressive consolidated revenue of VND 1,282 billion (~$ 54.5 million), profit after tax of VND 29.5 billion (~$ 1.3 million) in the first quarter of 2021, increased 61% and 286% respectively over the same period in 2020; Hanoi Plastics JSC (Ticker symbol: NHH) reported consolidated revenue of  VND 492 billion (~$ 21 million), increased 90% compared to the same period in 2020, profit after tax reached VND 12 billion (~$ 510.638), increased 36% over the same period in 2020.

Also at the meeting, the Annual General Meeting of Shareholders approved the plan to issue additional shares with a maximum of 20 million shares. The entire capital raised from the issuance will be used to invest in building PBAT green material manufacturing plant; prepare capital for M&A activities, purchase shares of subsidiaries to increase the ownership ratio and/or some other potential enterprises, having additional financing for the company’s business activities.

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