On the morning of October 12, 2021, IDICO Corporation (HNX: IDC) successfully held the Extraordinary General Meeting (EGM) in 2021 in the online form. The meeting approved important contents bringing many benefits to shareholders: adjusting the business plan, increasing dividend rate in 2021, electing members of the Board of Directors and other contents. Specifically contents are as follows:
The meeting approved the adjusted business plan: Increase the total revenue of the holding company in 2021 from 996 billion VND to 1,711.4 billion VND; profit after tax increased from 460.3 billion VND to 1,032.3 billion VND. The dividend rate in 2021 will also be increased from 10% to 40%, including 30% in cash and 10% in shares.
The General Meeting voted to dismiss the member of the Board of Directors with Mr. Vu Quang Bao and elected Mr. Nguyen Duy as a new member of the Board of Directors, representative of a group of shareholders owning 10.19% of the capital. Mr. Nguyen Duy was born in 1989 and is currently the General Director of Kova Trading Joint Stock Company.
In order to increase the liquidity of IDC shares, create a higher level, more transparent and professional playing field to attract foreign capital flows; The General Meeting of Shareholders approved the adjustment plan to remove unnecessary business lines which restrict foreign investors to open foreign room and move IDC shares to HOSE stock exchange.
Good news for shareholders from the extraodinary general meeting in 2021. Image: IDICO
On the discussion part of the General Meeting, when discussing and answering the questions of Shareholders and sharing about IDICO's development strategy, Mr. Dang Chinh Trung, General Director of IDICO said:
- IDICO will focus on main business lines and keep controllable subsidiaries only. This means that IDICO will divest out-of-industry sectors and companies that IDICO do not hold control.
Recently, IDICO has divested all 30% of registered capital in Phu My Ultra Clear Float Glass Co., Ltd to Viglacera Corporation with the transfer value of about 350 billion VND; Previously, IDICO also transferred all 26 million shares, equivalent to 26% of registered capital in Dak Mi Hydropower Joint Stock Company to Bitexco Group, with the transfer value of 520 billion VND. This divestment brought IDICO a profit of about VND 525 billion VND.
- IDICO will also focus on expanding industrial zone area; developing factories/warehouses for lease in industrial zones, combined with developing rooftop solar energy on factories and warehouses to create long-term stable income. In addition, IDICO will also focus on developing residential areas, utilities, and social infrastructure around industrial zones to serve the lives of workers, labors, and experts working in industrial zones; creating a sustainable development ecosystem around the IDICO industrial zones.
Currently, IDICO has a clean land fund of about 700ha which has been cleared for compensation, 400-500 ha has completed infrastructure and be ready for lease. The goal in the next 5 years is to expand the land fund to about 1,400ha, the plan is 1ha leasing out will be replaced by another 2ha. IDICO will invest in industrial parks located in strategic locations to attract investment, avoid risks and limit competition with other industrial zones in Vietnam.
Sharing more about business results, the General Director said that in the 9 months of 2021, IDICO has leased 85ha/140ha of the year plan. In addition, in order to create more value to Shareholders, in the next 5-7 years, IDICO will study to account the revenue of sublessors in lump sum instead of dividing into 50 years. This plan will apply to industrial zones that meet the conditions prescribed by law. IDICO also aims to maintain a dividend in stock and cash of 30%-45% in the next 5-7 years;