On May 24, 2024, Construction Corporation No. 1 - Joint Stock Company (CC1) successfully organized the 2024 Annual General Meeting of Shareholders (AGM) with the theme "Effective thinking - Disciplined action" through online form.
By the end of 2023, Vietnam's economy will have positive growth, higher than the world's overall growth rate; Although still affected by the global economic downturn, this is the result of the efforts of the entire economy in which the Government plays a central role. Experiencing fluctuations, the business community in general and construction businesses in particular have great expectations for 2024 with a series of policies to remove difficulties and shape each step of market development, opening up opportunities. for reputable businesses to affirm their role and position.
Accordingly, CC1 will focus resources to participate in the field of transportation - technical infrastructure and other public investment projects. This not only helps grow revenue and create value chains with strategic partners but also contributes to ensuring and completing the set goals for 2024.
Talking about CC1's business highlights in 2023, although Net Revenue on CC1's separate report only reached 58%, there was still a growth of 7% compared to 2022. In 2023, business cash flow is positive to 2,957 billion VND, highest since going public, thanks to a reduction in receivables, inventory and payables. Although the profit plan was not achieved as expected, this is still a remarkable result in the context of a significant decline in the construction and real estate sectors.
Explaining the challenges in the past year, CC1's Board of Directors said that the disruption of the supply chain due to political conflicts has caused the price of input materials to increase, and competition is increasingly fierce, causing construction businesses to under more pressure.
Besides, with the majority of CC1 implementing traffic projects in 2023, to ensure the promotion of output and increase revenue for the transport sector often depends on two factors: site clearance and materials. backfill materials, especially backfill materials for loading and treating weak soils. The lack of materials caused CC1 to face many difficulties and the project implementation plan was delayed compared to the original. Therefore, output and revenue realized in 2023 will not meet the plan.
However, by the end of 2023 and the first quarter of 2024, with the participation of the Government and the determination of local government agencies, backfill materials for CC1 traffic projects have been resolved. CC1 was assigned sand and soil material mines by the provinces of Dong Thap, Phu Yen, Soc Trang, etc. according to a specific mechanism. Up to now, construction progress has basically been accelerated and output has increased in transportation projects
CC1 overcame the "headwind" of the market by signing 16 new projects, synchronously implementing more than 80 projects, and continuing to promote recruitment and attraction of talent to serve investment needs. , expanding business activities, as well as synchronously implementing many projects that have been and will continue to win bids in the near future. In particular, only at the end of 2023 and the first months of 2024, CC1 consecutively won many large-scale projects such as: Na Duong II Thermal Power Plant, Ring Road 3 through Binh Duong Province, Ring Road 3 through Thu Duc City,... Consecutively winning high-value bidding packages is proof of CC1's reputation and capacity in areas where it is a strength.
Entering 2024, CC1 sets a business plan with consolidated net revenue of 11,600 billion VND, an increase of 207% over the same period. Of this amount, about 9,000 billion VND is expected to come from construction projects that have been awarded bids before 2024. This is an ambitious goal that the CC1 Labor Leadership Team has committed to devote their entire efforts to. force to perform. In addition to the revenue plan, CC1's concurrent target is to transfer CC1's stock exchange from UPCOM to HOSE and expand its business lines.
Mr. Phan Huu Duy Quoc was born in 1973, has 8 years of study and research at Tokyo University (Japan), and holds a PhD in Construction. Since 2006, Mr. Quoc has worked at Shimizu - one of the largest and oldest Construction Corporations in Japan. After 7 years working at Shimizu, Mr. Quoc became the first foreigner to be chosen as an official employee in the Group's 210-year history. After 20 years of training in Japan, Mr. Quoc was sent by the Group to Vietnam and became the Deputy Chief Representative of Shimizu Group, promoting the Metro No. 1 project (Ben Thanh - Suoi Tien) and a number of projects with other large scale. Currently, Mr. Quoc is Chairman of the Board of Directors at Searefico Engineering and Construction Joint Stock Company and Vice Chairman of the Board of Directors of Greenpan Vietnam Joint Stock Company.
The Congress also set aside time for CC1 shareholders and leaders to discuss, exchange and clarify related contents. Most of the opinions revolve around CC1's development strategy in the coming time, progress of construction investment projects, and production and business situation in 2024. In the explanation to shareholders, CC1's Board of Directors stated affirmed that it will absorb shareholders' opinions, build and sustainably develop the CC1 brand, affirm its position as a leading investment and construction enterprise in Vietnam and aim to become an international construction contractor. At the end of the Congress, all reports and proposals were approved by shareholders with high consensus, opening up development opportunities for CC1 with a new dimension, which will certainly bring customers, shareholders and investors with outstanding added value.
