On May 8, 2023, An Phat Holdings (Ticker Symbol: APH) successfully held the Annual General Shareholders’ Meeting 2023. At the meeting, Mr. Pham Anh Duong – Chairman of the Board of Directors directly answered questions from shareholders regarding APH’s financial health, business plan, development strategy, as well as new project development plan.
Reporting business results in 2022, APH’s consolidated revenue reached VND 17,327 billion (~$737 million), an increase of 17.1% compared to 2021, due to the increase in plastic resin prices in the first half of 2022, resulting in an increase in sales and trade revenue. Gross profit reached VND 1,518 billion (~$65 million), fell by 8% compared to 2021, mainly due to the sharp drop in plastic resin prices in the second half of 2022, which reduced the profit of the commercial segment and the Company made provision for inventory to hedge against price fluctuations.
Meanwhile, production of packaging and plastic additives; Industrial park real estate remained stable, engineering plastics and precision molds recovered and grew. Gross profit of plastic product manufacturing segment in 2022 is estimated at VND 1,331 billion ($56.6 million), up 18% compared to 2021, gross profit of industrial real estate segment is estimated at VND 118 billion ($5 million), equivalent to 2021. Selling expenses in 2022 decreased by 9.3% compared to 2021 mainly thanks to sea freight costs drop sharply. APH’s net profit from business activities reached VND 159 billion ($6.7 million) and profit after tax reached VND 57 billion ($2.4 million).
Regarding business plan in 2023, the Annual General Shareholders’ Meeting approved target revenue of VND 14,900 billion (~$634 million) and profit after tax of VND 420 billion ($17,8 million).
At the meeting, Mr. Pham Anh Duong – Chairman of the Board of Directors directly answered questions from shareholders regarding APH’s financial health, business plan, development strategy, as well as new project development plan.
Regarding the revenue and profit plan for 2023, Mr. Pham Anh Duong said: “This year, APH has controlled the inventory problem effectively, plastic resin price is supported, therefore, the plastic resin trade segment will not be affected. In fact, at the beginning of 2023, APH’s plastic resin trade was recovered. Industrial real estate sector also has positive growth. That are reasons we believe that the revenue and profit plan in 2023 can be achieved as expected.”
In order to develop and increase the efficiency of production and business activities in the context of the global economic downturn, Mr. Pham Do Huy Cuong – CEO of An Phat Holdings said, the Group will continue to maintain the market diversification strategy, expanding potential emerging markets such as Australia, the U.S, South America…
Specifically, in 2023, An Phat Holdings will focus on implementing key projects in the core areas of bioplastics and industrial real estate. At the same time, continue to diversify products and services, expand customers and markets in the fields of supporting industries, construction plastics, seize opportunity from the wave of shifting supply chain to Vietnam and grasp the green consumption trend.
The industrial real estate segment is expected to start generating revenue and profit from An Phat 1 Industrial Park. After a long postponement due to the Covid-19 epidemic, An Phat 1 Industrial Park has basically completed the infrastructure and received a project deposit for 70% of the commercial land area in this IP. It is expected An Phat 1 IP will contribute to revenue and profit from the third quarter of 2023.
In the packaging segment, besides maintaining its position as the leading thin mono-layer film manufacturer in Southeast Asia, in 2023, the Group will consistently pursue the strategy of green transformation through restructuring production to environmentally friendly packaging products. The key markets will continue to be Vietnam, Europe and the US.
In the supporting industry and construction plastic segments, the Group will continue to cooperate with FDI manufacturers to implement production improvement programs for member companies, further participating in the global supply chain. The mold segment will be prioritized for development with the advantage of being one of the few Vietnamese enterprises that are well-invested.
Construction plastic segment with SPC flooring products will take advantage of export strengths, especially focusing on the US market.
The raw materials and chemicals for plastic industry segment will invest in more machines to increase the capacity of the additive manufacturing plant, expand and optimize warehouse management.
Another important issue was approved at the meeting was the dismissal of Mr. Dinh Xuan Cuong as member of the Board of Directors, and at the same time reducing the number of BOD members from 8 people to 7 people. Besides, Ms. Nguyen Thi Tien was re-elected to the position of Member of the Board of Directors after the end of 4-year term.
In the first quarter of 2023, APH announced a positive business result report. In detail, consolidated revenue for Quarter 1/2023 reached VND 4,118 billion ($175 million), profit after tax reached VND 35 billion ($1,5 million). Accordingly, APH reported a profit after reporting a loss in Q4/2022 thanks to business efficiency improvement, plastic resin price increased again and selling expenses dropped sharply.
