On November 1, 2021, Deo Ca Transport Infrastructure Investment Joint Stock Company (HHV) held an Extraordinary General Meeting of Shareholders in 2021 in an online form.

The Board of Directors, Supervisory Board and Executive Board of the Company have reported the results of production and business for the first 6 months of 2021 and the development strategy of HHV for the period of 2021 – 2025 with a vision to 2030, plan to increase charter capital and the plan to offer preferred shares to existing shareholders, along with some other contents.

HHV’s 2021 Extraordinary General Meeting of Shareholders was held online.

The outbreak and prolonged Covid-19 epidemic had an effect on the Company’s operations, however, HHV soon assessed the situation and made good efforts to fulfill the dual goals: “both to prevent epidemics and to ensure production and business activities”, complete the set plans. The construction progress at the project sites was maintained stably, without interruption, the construction and installation work was carried out according to the committed schedule.

According to the business plan approved by the General Meeting of Shareholders at the annual meeting, consolidated revenue in 2021 was 1,285 billion VND, profit was 216 billion VND. At the end of the third quarter of 2021, revenue reached 1,245 billion VND (completed 96.8% of the whole year plan), profit after tax reached more than 218 billion VND, exceeding the whole year plan.

With successful business results in the first 9 months of 2021, HHV continues to “raise” its revenue target for the whole year of 2021 to VND 2,000 billion (up 65% compared to the plan approved by the General Meeting of Shareholders) and raised the target profit after tax to 283 billion dong (up 76% compared to the original plan).

Development strategy for the period 2021-2025, vision to 2030 of HHV is to continue to maintain the No. 1 position in the field of transport infrastructure investment in Vietnam marke, towards integration and international approach in the field of infrastructure investment. In particular, the period 2021 – 2025 continues to focus on the field of road transport infrastructure, providing closed services with 4 key activities including: Investment activities; Construction and installation activities; Management, operation and exploitation of road traffic infrastructure works and the investment and development of real estate and services associated with highways.

The 2021 Annual General Meeting of Shareholders has approved the plan to increase HHV’s charter capital to 3,533 billion VND. However, reviewing the medium-term business development strategy and considering potential new investment opportunities in the period 2021 – 2022, the meeting unanimously approved the plan to increase the charter capital of HHV to 5,347 billion VND and to offer preferred shares to existing shareholders, the expected implementation time after being approved by the State Securities Commission.

Mr. Ho Minh Hoang – Chairman of Deo Ca Transport Infrastructure Investment Joint Stock Company answered questions from shareholders at the General Meeting

In the past 10 years, HHV and Deo Ca Group have been building more than 22km of road tunnels, 275km of highways and national highways, 6 large bridges and organizing the management of 7 toll stations across the country.

In 2022, HHV is expected to invest in Cam Lam – Vinh Hao expressways, Trung Luong – My Thuan highways, Dong Dang – Tra Linh highways… as well as a number of other real estate projects through multi forms such as direct investment capital contribution, business cooperation, share transfer, etc. Total investment capital is expected to be nearly 4,000 billion VND.

Regarding the credit issue, the Congress once again affirmed that HHV is an investor in major and key road infrastructure projects across the country such as the Deo Ca tunnel project, Co Ma tunnel, Cu Mong tunnel, Hai Van tunnel, Phuoc Tuong – Phu Gia road tunnel, Bac Giang – Lang Son expressway, improving Highway 1 section through Khanh Hoa province. These projects have the characteristic that the total investment is very large (from a few thousand to tens of thousands of billion VND), in which equity usually only accounts for about 20% of the total investment, the rest is other mobilized capital, including loans.

With equity accounting for 30% of outstanding debt, HHV’s financial capacity is very good. For HHV’s long-term loans from credit institutions to invest in BOT projects, the loan repayment period has been calculated to match the project’s revenue. Currently, all investment projects have been put into operation, generating stable income, so HHV’s ability to pay due loans is guaranteed. Projects built by enterprises with the investment of Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), Viet A Commercial Joint Stock Bank (VietABank) have been completed and put into operation with stable revenue.

The strength that led to the success of HHV was the way to organize and manage the implementation of scientific projects, modern construction technology equipment, a team of experienced and enthusiastic experts – engineers… Therefore, most investment projects of enterprises always reduced the total investment, exceed the progress, ensure quality, and ensure investment efficiency. Many works of HHV have been recognized and honored by the State Council for Acceptance of Construction Works (Ministry of Construction) and honored as national typical works on the occasion of the anniversary of the establishment of Vietnam’s construction industry.

BY MINH ANH