GMS 2022: GELEX set a consolidated profit plan of VND 2,618 billion

On the morning of May 12, 2022, the 2022 Annual General Meeting of Shareholders of Gelex Group Joint Stock Company (GELEX) was successfully held virtually and electronic voting. With high consensus, the General Meeting approved all reports, proposals and many other important contents.

Attendees of the online meeting were the members of the Board of Directors, shareholders and legal representatives of the Company’s shareholders.

Accordingly, the General Meeting approved GELEX’s production and business plan 2022 with the target of consolidated revenue reaching VND 36,000 billion, consolidated profit before tax of VND 2,618 billion, a high growth rate, respectively 26%. and 27% compared to 2021. Expected dividend payout ratio in 2022 would be at most 15% of Charter Capital.

Regarding development orientation, in the next phase, GELEX focused on the development of Industrial Production and Infrastructure, defining specific development strategies in each segment. For industrial production, the Group oriented units to promote investment in technology, develop new products as well as increase the application of technology in management, improving the efficiency of production and business activities, expanding the market, market share, and maintaining the position as the leading unit in the segment of electrical equipment. In the segment of Infrastructure, through its member units, GELEX focused on investing in real estate in industrial parks, real estate for low-income people, developing and investing in clean energy projects, production and trade of water, building materials, etc., as well as continued to implement commercial real estate projects on schedule, optimize the use of the system’s land bank in order to create a stable and firm income in the long term. In addition, GELEX continued to pursue the growth strategy of core business segments through appropriate M&A activities.

Pursuing those strategic goals helped GELEX record a surge. It could be affirmed that, 2021 was a turning point for GELEX when it successfully implemented M&A of Viglacera Corporation – JSC, completed restructuring of two sub-holdings and exceeded revenue and profit targets, building a solid foundation for the next stages of the Group’s development. Accordingly, GELEX recorded VND 28,578 billion in consolidated net revenue and VND 2,057 billion in consolidated profit before tax in 2021, increased by 59% and 72% respectively compared to 2020, exceeded 60% of the profit before tax target of VND 1,285 billion. Agreed with this result, the AGM agreed to approve the 2021 cash dividend payout ratio of 5% of Charter Capital.

One of the Group’s important plans in 2022 was listing or registering for trading shares at GELEX Infrastructure and IPO, registering to list GELEX Electric shares on the basis of holding controlling rate, supplementing financial resources to implement strategic investment objectives, and at the same time further improving the transparency in the operations of the units. At once, GELEX and its units would continue to “renew” themselves, maintaining corporate governance on the following criteria: Efficiency – Transparency – Risk Control – Towards International Standards would continue to develop sustainably in the context of domestic and international market fluctuations.

Updating the recent results of GELEX, the Group’s revenue in the first quarter of 2022 reached VND 8,682 billion, completed 24% of the year target and increase by 95% over the same period. Alongside with the increase in revenue, the Group’s profit before tax in the first quarter reached VND 901 billion, completed 34% of the year plan. Compared to the same period in 2021, profit before tax increased by VND 567 billion.