On 21/4/2017, Power Construction Joint Stock Company No 1 (PCC1) organized the Annual Meeting of Shareholders 2017. The Meeting has received common agreement from shareholders and passed many important issues.
Operating results in 2016 and the business plan in 2017
At the meeting, the Board of Management reported the results of business operations in 2016, business targets and plan in 2017. In 2016, the company’s production and business value was more than VND4,052 billion; it reached a total revenue of VND 3,008 billion; after-tax profit was VND 304,7 billion, and the profit over chartered capital ratio was 40%. With the achievement in 2016, the General Shareholders’ Meeting has approved to pay dividend at a rate of 30%, in the form of shares.
In 2017, PCC1 will continue to implement its strategic development with the motto: continuing to invest and develop its core business of power construction as well as in-depth manufacturing to support the power industry; Expanding investment, doing business in the field of development are many advantages and focus their resources to create breakthrough growth during the period from 2018 to 2020.
PCC1 sets a much higher target for production and business value in 2017 compared with 2016, at a value of VND 5,157 billion. Revenue is expected to reach VND 3,585 billion, which is a 19% growth compared with 2016; after-tax profit will be approximately VND 307 billion. Dividend in 2017 is expected to be 20%.
Energy investment:
The meeting has approved the investment in Bao Lac B hydroelectric power plant with a design capacity of 18 MW; total investment is estimated at VND568 billion. Until now, PC1 has invested in 4 hydroelectric power projects, of which the Trung Thu and Bao Lam 1 hydroelectric power plants have been completed and have operated since 2016. The two remaining projects, Bao Lam 3 and Bao Lam 3A projects are expected to be completed in Quarter 4 of 2017. Bao Lac B hydroelectric power plant project has just been approved together with Mong An project is expected to be inaugurated in Quarter 4 of 2017 and completed in Quarter 4, 2019.
Real estate investment:
The meeting has also approved the implementation of PCC1 Thanh Xuan project. This project is a complex of condominium apartments, office building and business centre built on an area of 6,098 m2. The project is implemented by Hoa Binh Automobile Mechanical JSC, 98.4% charter capital of which is held by PCC1. The total investment for this project amounts to VND 735 billion; the project is expected to be inaugurated in Quarter 2, 2017. The project will be completed and apartments will be handed over in Quarter 3, 2019.
Plan to increase charter capital
The company need to raise more owner’s equity required to invest in energy projects, increase charter capital for subsidiary companies and property projects such as My Dinh Plaza 2 and PCC1 Thanh Xuân, as well as invest and develop production, new factories, new equipment and machine for construction and installation, therefore, in 2017, it plans to issue more shares to increase its charter capital.
The meeting has approved the plan to increase Company’s Charter Capital in the two methods: pay dividend of 2016 at a rate of 30% in the form of shares and offer shares for private placement for under 100 investors, not including professional stock investors. For private placement, at most 17,611,522 shares will be issued (equivalent of 15.3% of charter capital after share issuance). The purpose of issuance: to invest in Mong An and Bao Lac hydroelectric power plant projects. The General Shareholders’ Meeting has authorized the Company’s Board of Management to be in charge of activities which are related to the issuance and ensure Shareholders’ and company’s benefits
With a high level of agreement from participants with issues raised in the meeting, PCC1’s General Shareholders’ Meeting in 2017 has been successful.
Some images from the meeting:
