The General Meeting of Shareholders of Viettel Works approved the 2018 after-tax profit plan of over VND 145 billion, an increase of over 30%; 10-20% dividend; elect additional BOD members and contracts with the parent company - Viettel Group.
This morning June 19, Viettel Construction Joint Stock Company (Code: CTR) organized the 2018 Annual General Meeting of Shareholders.
Ambitious business plan with network operation
In 2018, Viettel Works built a business plan with consolidated revenue of VND 4,168 billion, up 27% compared to last year; profit after tax 145.3 billion, up 33%. The company expects to pay 10-20% dividend.
The ambitious business plan of the board of directors of the company comes from promoting operation activities, when the construction sector is becoming more difficult. In the traditional construction field, Viettel Group's investment cuts in foreign markets hinder revenue growth and profit from the construction sector.
In 2018, it is expected that operating profit will account for 3.5% of revenue, an increase of 3 times compared to 2017, told Mr. Duong Quoc Chinh - Director of the company.
In 2017, mining operation reached 100% of the technical targets and brought a profit of 21.1 billion VND to the company, an increase of 8% compared to 2016.
At the meeting, the shareholders approved the Board's report on approving contracts and transactions with Viettel. Accordingly, the company will provide operators, operators, information rescue, management and fixed-line operators. The estimated contract value is VND 2,900 billion, one year term.
HR Strategy
Mr. Hoang Cong Vinh, Chairman of the Board of Directors resigned due to retirement after 14 years of working with Viettel Construction. Besides, 1 other Board member and 3 members of the Supervisory Board also resigned.
At the meeting, shareholders elected two additional members of the Board of Directors and three members of the Supervisory Board for the term 2015 - 2020. Mr. Tao Duc Thang was elected Chairman of the Board of Viettel Construction. Mr. Thang was born in 1973, currently is the Deputy General Director of Viettel Group.
Regarding shareholder questions related to the bulky apparatus with 9,000 people and personnel reduction plans. Mr. Duong Quoc Chinh said that the company has a strategy to build a team of experts, accounting for 10% of the total number, to build the operation and exploitation apparatus in foreign countries. In 2017, revenue increased, but the company didn't expand its workforce. In addition, the company's labor productivity is expected to increase by 5% to 20% thanks to the application of information technology.
In 2018, Viettel Construction has been demonstrating operation in Myanmar with 95% of the workforce in the country and 5% of the personnel from Vietnam. If successful, the company will expand the model to other markets, Chinh said.
Offer to be a strategic shareholder
Currently, Viettel Group is a major shareholder holding 34.5 million shares, equivalent to 73.2% of the company's charter capital.
Representative of a shared investment fund wants to become a strategic shareholder owning more than 10% of the charter capital of Viettel Construction. However, with a concentrated shareholder structure, it is difficult to "collect stocks" in large volumes. This representative proposed the company to issue convertible bonds to strategic shareholders.
Mr. Chinh said that the company currently has no need for capital, short-term debt of the company is only 34.4 billion and does not use long-term debt. Viettel Construction wants to cooperate with strategic shareholders with business ideas in the new field.
The meeting also approved the change of name to Viettel Construction Joint Stock Corporation and increased its charter capital to VND 518 billion by paying 10% of its dividends to shareholders by shares. Accordingly, the company expects to issue 4.7 million new shares from undistributed after-tax profit.