GELEX changed its company name toward its goal of becoming a Multi-industry economic group

The Annual General Meeting of Shareholders 2021 of Vietnam Electrical Equipment Joint Stock Corporation (Gelex) took place on the morning of 18 June 2021 in the form of an online meeting and electronic voting.

The General Meeting of Shareholders (GMS) approved the production and business outcomes in 2020 and investment plan targets in 2021; elected the Board of Directors for the term 2021-2026 and approved other important contents.

The Annual General Meeting of Shareholders 2021 of Vietnam Electrical Equipment Joint Stock Corporation (Gelex)

Reporting to the GMS, Chairman of the Board Nguyen Hoa Cuong said that 2020 was a challenging year for the world economy in general and Vietnam in particular due to the impact of the Covid-19 pandemic. Facing difficulties caused by the pandemic, GELEX and its members still successfully overcame and affirmed their inner strength with impressive achievements.

Specifically, GELEX’s consolidated net revenue in 2020 reached VND 17,949 billion, exceeding 2.6% of the plan and increasing by 17.2% compared to 2019, consolidated profit before corporate income tax reached VND 1,197 billion, exceeding 62.8% of the plan and increasing by 11.8% compared to 2019. With this positive result, the GMS also approved the dividend allocation rate for 2020 by shares of 9% after the capital increase (equivalent to 14% before the capital increase).

In 2020, GELEX continued to record strong growth in production and business segments. In particular, the electrical equipment segment in industrial production area recorded VND 16,098 billion in net revenue, an increase of 27.1% compared to 2019, accounting for 90% of net revenue of the entire system. The infrastructure area continued to have outstanding growth with revenue of VND 898 billion, an increase of 26% compared to 2019 and contributing 5% of the consolidated net revenue of system.

With the goal of becoming a multi-industry economic group, managing investment capital in businesses in the segments of electrical equipment, building materials, real estate investment, energy, and clean water, 2021 was considered a transitional year for the group with ambition-filled investment plans.

Specifically, in 2021, GELEX continued to plan to invest in two main business areas, including industrial production with two segments of electrical equipment and building materials as well as infrastructure with electricity, water production, industrial parks, and ecosystems around industrial parks. With the consolidation of business outcomes of Viglacera Corporation – JSC in the second quarter of 2021, the GMS unanimously approved the annual business plan with the consolidated profit before tax of VND 1,285 billion and total consolidated revenue of VND 28,540 billion. The Group also submitted to shareholders the dividend allocation plan in 2021 at the maximum rate of 10%.

Regarding industrial production, GELEX continued to implement the strategy of strengthening market and expanding market share as well as intensive investment, production optimization, promotion of R&D, and improvement of management level according to the modern industrial management model…, in order to enhance the production and business efficiency of enterprises in this business area.

In regard to infrastructure, GELEX expanded investment and development toward its goal of stably contributing to long-term revenue and profit growth, specifically:

In the segment of energy and clean water, GELEX would continue to invest, complete investment in transition projects, search and select investment opportunities in potential renewable energy projects, research and develop projects on efficient production and supply of clean water, in accordance with the Group’s investment strategy.

For the real estate segment, GELEX aims to develop the business of industrial parks, industrial parks combining urban areas, services and infrastructure, ancillary services through member units in the system. At the same time, it was necessary to continue to review and rearrange the existing land fund, complete legal procedures for the land areas to be converted land use purposes that the system was managing, and at the same time develop commercial real estate for low-income people. In addition, the Group would complete the investment in the CADIVI Tower project in the fourth quarter of 2021 and continue to invest in the project of a complex of trade centers and hotel services at No. 10 Tran Nguyen Han.

In 2021, GELEX would continue to seek and pursue potential investment opportunities, achieve the expected performance with an acceptable level of risk in the ecosystem of the Group’s core businesses segments, conduct IPO and list companies at each level when necessary, on the basis of still holding the dominant percentage to create financial resources to focus on implementing strategic investments.

With the orientation of multi-sector investment and development, the General Meeting of Shareholders unanimously approved changing the company name to GELEX Group Joint Stock Company (GELEX Group) to be suitable in terms of scale, nature, and orientation for restructuring, enhancing its position as a Private group investing and managing capital in businesses associated with national brands, reaching international standards.

The General Meeting of Shareholders approved the continued implementation of the plan to offer shares to existing shareholders with the aim of increasing charter capital according to the Resolution at the end of 2020. Implement the plan to pay a stock dividend at the rate of 9% in 2020. Gelex was expected to issue a maximum of more than 70 million shares to pay dividend after the Corporation completed its share offering in the third and fourth quarters of 2021.

The GMS also approved the election of the following members to the Board of Directors for the term 2021-2026: Mr. Nguyen Van Tuan, Mr. Nguyen Hoa Cuong, Mr. Nguyen Trong Tieu, Mr. Vo Anh Linh, Mr. Nguyen Trong Hien, Mr. Luong Thanh Tung, and Mr. Dau Minh Lam./.

Hieu Phuong – Economy & Forecast Review

Ministry of Planning and Investment