Hoa Sen Group (HSG) set an after-tax profit target of VND1.5-2.5 trillion (US$65.8-110 million) for the financial year 2021-22, depending on input material price movements, the pandemic situation and energy prices.
The business plan was approved at its shareholder meeting held in HCM City on Tuesday.
Accordingly, HSG targeted sales of 2 million tonnes and revenue of VND46.3 trillion in the financial year (from October 1, 2021, to September 30, 2022).
This year, the group said the economy would see unpredictable changes due to the COVID-19 pandemic and global political conflict, which would affect business operations.
In the first quarter of its financial year, its steel sales reached 604,518 tonnes, meeting 30 per cent of the whole year’s set target.
Its sales in the first quarter were increased by 86 per cent from the same period last year, reaching VND16.9 trillion. Its after-tax profit was VND638 billion, meeting 25.5 per cent of the set target.
HSG also submitted to shareholders for approval the policy on transforming the operating model of Hoa Sen Group Joint Stock Company.
Specifically, HSG will convert a member company into Hoa Sen Plastic Joint Stock Company, take the plastic segment’s overall production and business activities, and establish a new Hoa Sen Furniture and Building Materials Distribution JSC (Hoa Sen Home).
This unit will be in charge of all business activities of distribution, retail and supermarket chain of Hoa Sen Home.
After the outbreak of the COVID-19 pandemic, in the face of changes in consumer demand, HSG has adjusted its medium and long-term development strategy in production, business activities and project investment.
Accordingly, they have focused their resources on promoting the traditional business and production segments, including corrugated iron, steel and plastic. It also has diversified products and developed the Hoa Sen Home supermarket chain.
HSG brought nearly 90 Hoa Sen Home supermarkets into operation by the end of March, taking advantage of its retail and distribution system nationwide.
“The company has strictly implemented on-site production, proactively taking measures to respond to the COVID-19 pandemic, making the most of the logistics advantages of the system of 10 factories and 600 branches across the country. It has also promoted exports to make a great contribution to its business results for the year 2020-21,” it said. — VNS