On April 28, Sonadezi Corporation (stock ticker SNZ) held its Annual General Meeting (AGM) 2022 with all Reports and Proposals adopted.

According to audited consolidated data for 2021, the Sonadezi system achieved strong growth results with total revenue of VND 5,556 billion, reaching 116.48% of the target; profit after tax reached VND 1,498 billion, 148% of the target; contributions to the state budget reached VND 1,051 billion, reaching 188.81% of the target; the ROE reached 19.58% or 142.6% of the plan. Compared to 2020, Sonadezi’s revenue exceeded by 4.08% and profit after tax by 17.94%.

Sonadezi’s 2022 Annual General Meeting

The parent company achieved a revenue of VND 581 billion, reaching 92.3% of the target; profit after tax reached VND 419 billion, 94.81% of the target; pay the state budget 65.4 billion dong, reaching 86.51% of the plan; the ROE reached 10.96%, reaching 94.83% of the target; and the dividend rate was 10% of par value of shares in issue.

Sharing with shareholders about the parent company’s 2021 results, the Sonadezi management said that, due to the impact of Covid, finding customers and marketing factories for rent in industrial parks faced many difficulties. At the same time, the divestment from other enterprises has not been carried out as planned.

At the meeting, Mr. Vo Tan Duc – Vice Chairman of Dong Nai People’s Committee, representative of the State-owned capital in Sonadezi remarked: Despite the many difficulties and challenges in 2021, Sonadezi’s performance shows great and praise-worthy efforts.

In 2022, Mr. Vo Tan Duc requested Sonadezi to continue to divest state capital from the Corporation under the Prime Minister’s Decision and to complete divestment from Industrial Urban Development Joint Stock Company No. 2 (D2D) to less than 50% as well as properly manage and operate Bien Hoa 1 Industrial Park.

Mr. Vo Tan Duc – Vice Chairman of Dong Nai People’s Committee requested Sonadezi to pay attention to completing divestment and making investments in new projects.

In addition, Sonadezi needs to promote the effective implementation of existing projects, ensuring the completion of the set targets such as Investment in the construction and operation of sites and factories for rent in Chau Duc Industrial Park; cooperation in the construction and operation of Buu Long 3 residential area projects. At the same time, the Corporation is to conduct market research, exploit new development potentials and develop new projects in the province and beyond.

Sonadezi prepares a business plan for the parent company for 2022 with total revenue of VND 682 billion and a profit after tax of VND 446 billion, equivalent to a YOY growth of 17.42% in revenue and 6.42% in profit after tax. Sonadezi also expects a return on equity of 11.6%.

Regarding the consolidation plan, the revenue of the companies in the Sonadezi system is expected to grow, but the target profit after tax of some entities sees big decreases due to the rising cost of products and services in 2022. On the other hand, the political situation in the world continues to be tense with war escalating and the end of Covid-19 remaining unknown. This will greatly affect the global supply chain, affecting the costs of fuel, and production materials as well as inducing the risks of high inflation.

Sonadezi Chairman Do Thi Thu Hang shared with shareholders about the Corporation’s development goals in 2022

In the face of challenges and fluctuations, Sonadezi has built its 2022 plan with prudence. The Corporation sets a target consolidated revenue of VND 5,516 billion, profit after tax of VND 1,067 billion, payment to the state budget of VND 572 billion and return on equity of 14.16%. This plan does not include the data of D2D because in 2022 Sonadezi expects to complete the divestment from this company to less than 50%.

In the discussion part of the meeting, the issue of divestment of state capital from the Parent Company and the divestment of Sonadezi from other enterprises continued to be of interest to shareholders. Responding to questions from shareholders about why the divestment could not be carried out in 2021 and about the plan to divest from the parent company, subsidiaries and affiliates in 2022, the Chairman of the meeting directly gave answers and clarification.

Shareholders are interested in Sonadezi’s divestment plans

The chairman of the meeting said: “Divestment is still faced with many obstacles and difficulties and Sonadezi’s position is to implement the divestment in accordance with the process and regulations stipulated by law. We will not do this in haste since haste may lead to errors that may affect the value of the State’s capital as well as shareholders’ investment efficiency and Sonadezi’s the reputation”. Shareholders at the meeting completely agreed with the Chairman’s answers.

At the meeting, the Sonadezi management affirmed that they will persist with the strategy of sustainable and safe development. During the year, the Corporation focused on creating new investment and business opportunities through investment cooperation, joint implementation of projects and acceleration of the research and development of new projects. At the same time, Sonadezi also improved governance capacity and operational efficiency at its member companies. The Corporation continued to aim to increase the value of products and services in its development plan.

Another goal Sonadezi is aiming for is application of technology, digital transformation and digitization of data across the entire Sonadezi system to improve transparency, operational efficiency, governance and better realize the core motto: customer centricity. Sonadezi also said that it will continue to dedicate resources to promoting social responsibility.

Sonadezi’s Annual General Meeting unanimously adopted Reports and Proposals at the meeting