SCIC discloses year -end income report

Wednesday, Jan 11, 2017 15:00

Inside SCIC’s headquarter in Ha Noi. The company’s 2016 reported income had doubled that of 2015 with great prospect for 2017. — Photo

State Capital Investment Corporation (SCIC) recently announced its report for 2016 and plans for 2017, in which it claimed to have nearly doubled its 2015 post-tax income.

The company’s reported income for 2016 reached VND15.826 trillion (US$713.94 million), accounting for 107 per cent of its planned earning and 197 per cent of its 2015 income.

SCIC’s rate of return on equity in 2016 was 19.9 per cent, 1.24 times more than its annual target.

According to the company’s year-end report for 2016, its business goals were all surpassed and bettered in comparison with 2015.

These results were achieved through SCIC’s listing of Vietnam Dairy Products Joint Stock Company (Vinamilk), which sold 5.4 per cent of total shares and earned VND11.286 trillion, 28 times more than the initial price. With each share being sold at VND144,000, SCIC raked in an added value of more than VND800 billion, higher than the market price of VND133.700 at the end of the session. Its total earning from the Vinamilk deal was valued at more than VND11 trillion.

In addition to its sale of State capital for annual listed enterprises, SCIC also traded shares at several other major businesses following instructions from the prime minister’s office.

In 2016, the company successfully divested 73 businesses, with 71 being completely sold, and even took on 37 difficult ones, with total earning of VND16.112 trillion ($726.84 million) over the initial capital amount of VND3.083 trillion. SCIC reached a 5.2 times rate of return and a recorded difference of VND13.029 trillion for 2016.

Compared with the plan laid out at the beginning of the year by the Board of Members, the company witnessed great success and earned 4.5 times more than 2015’s results.

For the year 2017, SCIC has announced the path forward for major projects, such as a proposal for industrial scale vaccines production and a construction project on 29 Liễu Giai Street, Hà Nội, for a high end residential, commercial and office complex.

The latter has been invested by the Ecology Investment and Development JSC with 50 per cent of total capital, SCIC with 30 per cent and Dai Hoang Long Company with 20 per cent. The project is managed and operated by the Vietnam Investments Consulting and Construction Designing JSC, which has also completed the Vinhomes Metropolis project. Construction is currently ongoing at a swift pace.

SCIC also announced its investment in Thai Nguyen, Hoa Binh and Dong Thap provinces and its interest in projects needing investors, such as the Song Da 2 water factory, the Long Thanh Airport and the Lach Huyen commercial port in Hai Phong.

Regarding SCIC’s management, the company has made improvements to the inspection of state shareholders, as well as enhancements to businesses’ performance.

Established in 2005 and officially operational in 2006, SCIC functioned under directions from the prime minister and managed investment sectors with various businesses, such as financial, energy, technology and telecommunication, as well as construction, transportation, healthcare and household goods. — VNS

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