In the morning, 16, 2016 Duc Long Gia Lai Group (HOSE code: DLG) business plan that targets income of 2.800 million VND and profit of 220 million VND is approved in Annual shareholder general meeting.
In the meeting, BOD of DLGL reports that at the end of the financial year 2015, DLGL has income of 1,654 billion VND, increased 63.6%, and net profit before tax is 82.8 billion VND, increased 57.4% compared with 2014. Strategic restructuring of the company, which focuses on 4 main areas, has been successful and contributes a huge profit to the company as well as the growth rate of the company last year. Especially, in financial aspect, with M&A of Mass Noble (USA), DLG not only totally owns Electrical component factory, one of the top factory in Dongguan, Guangdong, but also being a leader in M&A activities by share trading.
2016, Chairman of BOD of DLGL, Mr. Bui Phap, confirmed that it is completely possible for DLG to achieve income of 2,800 bllion VND and income of 220 Billion VND even exceed the target. After restructuring, strategic business lines are agricultures, hydro energy, and infrastructure and consumer electronic component. Consumer electronic component is still the key investment to be focused in 2016. Besides, income from 4 BOT projects in Gia Lai, BOT ĐakNông bring about 2 Billion VND to DLG. Moreover, this figure will increase year by year due to the increase in total passing vehicles and price increasing plan from government. In addition, income from ANSEN that specializes in electric component production contributes billions VND to DLG. This area also promotes DLG brand and capacity in international market based on export activities.
On the energy sector, in addition to a number of hydroelectric power plants in operation, DLG has officially kicked off the Dak Po hydropower projects with a total capacity of 18MW Co, invested 525 billion at Dak To, Kon Tum, project average power output is 72 million kWh / year, annual sales of about 90 billion / year. Also, next month 6/2016, DLG will start the project in Lam Dong Tan ThuongHai, capacity 22MW, the average power output of 90 million kWh / year for a total investment of 750 billion VND.
In addition, the agricultural sector is expected to continue to bring about stable revenues from the activities of cultivation and animal husbandry.
In order to help increasing the scale of production, from the experience gained through the M & A company Mass Noble, expected DLG will perform M & A to add some leading electronics companies in China, Japan, South Korea and the electronic factory in Vietnam; and registered as a strategic investor to buy shares of agricultural companies in Gia Lai, Binh Duong: Tea, coffee, cattle breeding centre.
In 2016 Annual shareholders general meeting, DLG was officially adding real estate to DLG strategy area after restructuring. From now to 06/2016, real estate will start 3 projects in district 7,8 and Binh Tan which will provide about 2,500 apartments, total investment about 4,000 billion and forecast that it will bring back about 700-800 billion from sale activities.
To meet the investment requirements for the strategic areas, in addition to credit sources, in 2016 the Board has submitted to DLG Congress a plan of convertible bonds prior to maturity issued in 2015, while the plan offered sold 219 million shares to existing shareholders at the rate offered 1: 1 to add capital investment, improve the capacity and efficiency of capital. Those two plans are approved by 100% shareholder votes.
Mr. Bui Phapstates that “before the new opportunities, in 2016, we are determined to continue to make strategic investments in key points, focus areas determined for revenue recognition, cash flow, profit, ahead of the deep intergration national economy, and take steps to divest from those companies in the fields of business inefficiency. 2016 will be a year marked by strong growth through strategic DLG restructuring with 5 areas: Infrastructure, Manufacturing components, electronic devices, Agriculture, Energy and Real Estate "