The Vietnam Rubber Group JSC (GVR) targets increases of 8% and 5% in revenue and post-tax profit this year, respectively, reported Vietnam Plus.
The information was announced during the 2020 Annual General Meeting of Shareholders (AGM) held in Ho Chi Minh City on June 12.
This was the group’s first AGM after moving its listing from the Unlisted Public Company Market (UPCoM) to the Ho Chi Minh Stock Exchange (HoSE) on March 17.
The group targets to bring in approximately 24.7 trillion VND (1.05 billion USD) in revenue and more than 4 trillion VND in profit.
It plans to pay 2019 dividend in cash at a rate of 6 percent, equivalent to 2.4 trillion VND. Dividend pay-out ratio for 2020 is expected to also stay at 6%.
According to the Board of Directors, the prices of key export products, such as rubber and wood, all fell steeply and saw low sales due to lower demand.
“The rubber industry is facing difficulties due to the impacts of climate change, natural disasters, floods and storms. The unpredictable development of the COVID-19 pandemic is also a challenge for the group,” said GVR General Director Huynh Van Bao.
Upcoming plans for the group
Moving forward, the group plans to improve corporate governance, restructure its business activities to focus on five main traditional business areas: planting and processing rubber latex, processing rubber wood, manufacturing rubber industry products, and investing in rubber cultivation land and hi-tech agriculture.
The land fund, deemed unsuitable for rubber trees, will be converted into cultivation land for other crops, the group said.
As of December 31, 2019, the group had divested capital from non-core member units and collected nearly 2.4 trillion VND.
Bao said the divestment helped the group earned a significant source of capital to balance investment.
He said the group would proceed to convert 20 limited liability companies, in which it is holding 100 percent of capital, into joint stock companies.
This created transparency for businesses, thereby making it easier to attract foreign investment, Bao said.