In the morning November 10th, at the headquarters of An Tien Industries Join Stock Company (HOSE: HII) in Yen Bai city, Yen Bai province, the company held an Unusual General Meeting of Shareholders in terms of adjustment to improve business plan and increase dividend in 2021.
Accordingly, the Board of Directors, Supervisors Board and Managers Board of the company approved the plan to lock foreign room and increase the charter capital to expand business activities
Approving the adjustment of business and dividend plan in 2021
At the Unusual General Shareholders’ Meeting, the Board of Directors accepted to increase the targets in business plan 2021. HII grew the total consolidated revenues from VND 4,000 billion (~ $176 million) to VND 7,000 billion (~ $300 million); rise the target of consolidated revenue after tax (NPAT) from VND 70 billion (~ $3 million) to VND 90 billion (~ $4 million).
Regarding to positive business result and strong growth prospect in the fourth quarter of 2021, HII also adjusted this year’s dividend payment plan to the rate of 20% to ensure the benefits and attachment of shareholders. Previously, the company expected to pay dividends at the rate of 10-15%.
For 9 months, HII recorded the consolidated revenues of VND 5,508 billion (~ $240 million), NPAT of VND 79 billion (~ $3,4 million), respectively, grow of 88% and 89% over the same period in 2020; exceeded 30% of revenue target and 13% of NPAT target approved in the Annual General Shareholders’ Meeting.
HII is leading the production of additives for the plastic industry and has the second largest scale of plastic resins trading activities in Vietnam (plastic consumption output is about 250,000 tons/year). HII currently owns an additive manufacturing and a CaCO3 ultra-fine stone powder factory with a designed capacity of about 150,000 tons/year and 222,000 tons/year, respectively. At present, HII’s main export markets for plastics resins are to the EU, UAE, Russia, and India.
Deal the rate of foreign ownership at 25%, increase the charter capital
In this Meeting, HII also approved the plan to lock foreign room at 25%. There have been foreign investors negotiating to contribute capital to expand HII’s compound and colour grain production. Additionally, they also brought HII into Japanese market via a few off-take contracts.
This cooperation will help scale up the production of additives by 2 times, at the same time, give HII an opportunity to participate in this serious market. The offering price for foreign strategic investors is guaranteed not to be lower than 165% of HII shares’ value at the time of issuance, nor lower than the market price at the time of issuance.
Following to Board of Managers, when it is forecast that the plastic resin price will remain at a high level and the CaCO3 stone powder market has strong growth prospects in the coming period, HII will seek and select foreign investors in line with the company’s long-term development strategy.
HII is currently considered to have a small capital size compared to production and business needs, while this enterprise owns the number of potential business segments such as trade and logistics with the total expected consolidated revenue of VND 7,000 billion (~ $300 million) in 2021; and this number is expected to reach VND 10,000 billion (~ $440 million) in 2022. Therefore, raising capital is necessary and appropriate, helping to increase financial capacity and reduce interest pressure at this time.
Accordingly, HII plants to issue more than 36 million shares. After this issuance, HII’s charter capital will double to around more than VND 736 billion (~ $32 million), the amount of mobilize money is expected to reach more than VND 368 billion (~ $16 million). This amount will be used about 40% to restructure short-term and long-term loans and the remaining 60% to supplement working capital for production, business and management costs of the company. Expected time for shares’ issuance will take place in 2022.
HII will issue shares in the form of the public offering of shares for existing shareholders by the method of exercising the right, the ratio 1:1 with the issue price of 10,000 VND/share (~ $0,44/share). All shares are offered for sale to existing shareholders in proportion to the exercise of the right of free transfer. If the existing shareholders do not exercise the right to buy, the shares will be offered to other investors at a price not lower than the selling price for existing shareholders and the transfer will be restricted within 01 year from the date of the offering.