HOA SEN GROUP ANNOUNCED ANNUAL GENERAL MEETING OF SHAREHOLDERS FISCAL YEAR 2016 – 2017 AND RECEIVED AWARD FOR “BEST MANAGED COMPANY IN ASIA 2016”

At the beginning of the ceremony, for the purpose of ensuring the conditions for the program implementation, the shareholders of the Group voted on the main contents of the “Hoa Sen Group Annual General Meeting of the General Assembly of Shareholders in Fiscal Year 2016 – 2017”.

Shareholders voted on the main content of the program

At the 100% rate of shareholders voting at the ceremony, the meeting approved the list of delegates including Mr. Tran Ngoc Chu – Vice Chairman of the Board of Directors, General Director of Hoa Sen Group; Mr. Le Phuoc Vu – Chairman of the Board of Directors of Hoa Sen Group and Mr. Pham Gia Tuan – Independent Member of the Board of Directors presided at the ceremony.

The delegation of Hoa Sen Group at the ceremony: Mr. Le Phuoc Vu – Chairman of the Board of Directors of Hoa Sen Group; Mr. Tran Ngoc Chu – Vice Chairman of Board of Directors, General Director of Hoa Sen Group; Mr. Pham Gia Tuan – Independent Member of the Board of Directors

Fiscal year 2016 has marked 15 years of formation and development of Hoa Sen Group. With the Efforts and Determination of the Board of Directors, and nearly 8,000 employees, Hoa Sen Group has become the leading group in steel market in Vietnam and region, bringing the good value for consumers, community and society. Given the difficult economic context, fiscal year 2015-2016 has closed with proud results. Specifically, Hoa Sen Group has exceeded the target and increased strongly compared to the previous fiscal year: consumption of finished products reached 1,242,579 tons, exceeded 13% of plan and growth of 22% over the same period. Revenue reached VND 17,894 billion, exceeded 25% of plan. The most prominent is the after-tax profit target reached VND 1,504 billion, growth of 130% compared to the previous fiscal year. With these results, Hoa Sen continues to affirm its leading position in the domestic market of steel sheet and steel pipe, while also achieving great strides in the international market, enhancing export to more than 65 countries and territories all over the world, the export turnover accounts for nearly 40% of the total revenue of the Group. With these achievements, the Group expects to pay dividends in cash of up to 10% of its par value shares, existing shareholders account for up to 75%, in which 55% of the after-tax profits are not distributed cumulatively until September 30^th, 2016, the remaining 20% ​​comes from the share premium of equity. For the last 5 fiscal years, Hoa Sen Group’s average annual growth rate in terms of output and net sales has grown at 29% and 15%, respectively.

Overview of the Annual General Meeting of the General Assembly of Shareholders of Hoa Sen Group fiscal year 2016 – 2017

At the meeting, after the presentation about the results of the past fiscal year, the Board of Directors and the Board of Supervisors have proposed the General Assembly of Shareholders to approve the business plan and a number of important operational orientations of Hoa Sen Group in fiscal year 2016 – 2017 and in the future. In order to maintain the leading position and promote its achievements, Hoa Sen Group defined that the main objective of the fiscal year 2016-2017 would consolidate the existing competitive advantages to build the stable foundation in domestic market, complete vertically integrated value chain, diversify products and well-prepare to breakthrough the subsequent stages of development. Constantly improving production capability, Currently, Hoa Sen is determining to implement the plan of fiscal year 2016 – 2017 including: consumption reached 1,575,000 tons/year, revenue 23,000 billion VND, consolidated after-tax profit 1,650 billion VND. In addition, at the meeting, shareholders approved the policy of issuing shares under the selective program on the occasion of the 15th anniversary of Group. Specifically, it will issue 3.5 million common shares with a par value of VND 10,000/share, equivalent to 1.76% of the total number of outstanding shares, the offerees are key staffs and senior staffs at HSG. As estimated, after the issuance, the authorized capital of HSG will increase to VND 3.473 billion. 

Mr. Le Phuoc Vu, Chairman of the Board of Directors of HSG, spoke at the meeting

Within the framework of the meeting, Mr. Marcus  H. Langston – Asian Director of Euromoney Magazine on behalf of the magazine awarded Best Managed Company – Metal and Mining, Asia 2016 to Hoa Sen Group. At the meeting, Mr. Marcus – Representative of Euromoney Magazine said: “We received 451 nominations for Asian companies as the best companies in each business field, with criteria including strong market, profitability, growth potential and quality of management. Hoa Sen Group was honored to lead Asia’s Best Managed Company in the Metal and Minerals Sector in 2016. Besides 6 strict criteria including: (1) tightest and most persuasive strategy; (2) best corporate governance system; (3) the most accessible senior management; (4) the most transparent financial books; (5) maximize shareholder value; (6) the most informative and useful website, the latest point this year is community responsibility”. Always pioneering the responsibility of the business to society through diverse and practical philanthropic programs, Hoa Sen is known for its strong, friendly and community-oriented brand image.  By continuing to win the award, top analysts also confirmed “The leadership of Hoa Sen Group continues to demonstrate the superior and excellence, prudence, transparency governance and clear strategy.” 

Mr. Marcus  H. Langston – Asia director of Euromoney magazine, spoke at the ceremony

The “Best Managed Company in Asia” award was evaluated by Euromoney Magazine based on votes cast by market analysts at leading investment banks and research institutions in the Asia Pacific region.  Clive Horwood, Editor-in-Chief of Euromoney Magazine, said: “This is the 17^th time that Euromoney Magazine has issued this award and it is considered a benchmark survey based on the views of leading analysts in the region. Hoa Sen Group is the pioneer in investing in technology and optimization to bring best value to shareholders, employees and society. That vision has made Hoa Sen to be the leading corporation in Vietnam and Asia.”

This is the second times that Hoa Sen Group has been voted and awarded “Best Managed Company – in the Metal and Minerals Sector, Asia 2016” 

Mr. Marcus – Representative of Euromoney Magazine awarded the certificate, “Best Managed Company – in the Metal and Minerals Sector, Asia 2016” to the Board of Directors of Hoa Sen Group.

With steady development, Hoa Sen Group has been promoting its existing competitive advantage, creating a strong position to be ready to rise to new heights, worthy of the title of Global Growth Company of the World Economic Forum.