On the morning of June 9, Gemadept Corporation (stock code: GMD) held the Annual General Meeting of Shareholders in 2023.
In 2023, Gemadept set the business plan with revenue of VND 3,920 billion, equal to 103% of the plan in 2022 (revenue plan of VND 3,800 billion) and expected profit before tax of VND 1,136 billion, equal to 114% of the plan in 2022 (profit plan of VND 1,000 billion).
Extend investment to expand Gemalink Port and Nam Dinh Vu Port
Regarding business orientation in 2023, Gemadept said that it will continue to implement key projects to expand its scale and create a premise for long-term growth plans for the period 2021-2025, with a vision to 2030.
Gemalink Deep-sea Port project – Phase 2 with a scale of 39ha, capacity of 1.5 million TEU/year, and ability to receive vessel sizes up to 250,000 DWT, is expected to start construction in 2023 and complete Phase 2.1 in 2025 and Phase 2.2 in 2027.
Nam Dinh Vu Port project – Phase 3 with an area of more than 25 hectares, a capacity of 600,000 TEU/year (for container cargo) and 3 million tons/year (for general cargo), and able to receive vessel sizes up to 48,000 DWT, is expected to start construction in Q4/2023, with the goal of putting it into operation from the end of 2025.
Gemadept shared the plan to continue divesting real estate projects and afforestation projects in Cambodia to potential partners, thereby ensuring the focus of resources and cash flow for projects in its core business.
It is known that Gemadept's afforestation project in Cambodia has the advantage of scale, having an area of nearly 30,000 hectares and ensuring good productivity.
The cash dividend of 20% in 2022
Regarding dividends, in 2022, the Company approved the cash dividend plan at the rate of 20% and authorized the Board of Management to implement the payment.
Regarding the capital raising plan, Gemadept approved the suspension of the plan to offer shares to existing shareholders on April 25, 2022. The reason given by the Company was that the market conditions were not favorable for the continuation of the issuance plan; on the basis of business results in 2022 and the completion of the transfer of Nam Hai Dinh Vu Port, the Company can ensure cash flow and capital to implement projects and business plans in 2023. The Company has assigned the Board of Management to study and submit to the General Meeting of Shareholders for consideration and approval of a new issuance plan when market conditions are favorable and suitable to the Company's capital needs.
On May 31, 2023, Gemadept announced the completion of the divestment of all shares in Nam Hai Dinh Vu Port to focus resources on developing the Nam Dinh Vu Port Cluster into the largest river port in the Northern region, this is a Win–Win deal.
In another remarkable development, on May 24, 2023, Gemadept held the opening ceremony of Phase 2 of the Nam Dinh Vu Port Cluster, which, the total area is 65ha, the total design capacity of the 3 phases is 2 million TEU/year. Owning 7 berths with a length of 1.5 km and a capacity to receive container vessels of up to 48,000 DWT, when completed, Nam Dinh Vu Port Cluster will be the largest river port in the Northern region, able to receive feeder vessels and the largest intra-Asian vessels in the river port area.
Regarding personnel, for the new term from 2023 to 2028, Gemadept elects a Board of Management consisting of 10 people, including 3 independent members and the Supervisory Board.
Discussion session of the AGM:
Does Gemadept have the plan to mobilize green credit?
Gemadept's representative shared about the growing interest in the topic of ESG (Sustainable Development), the Government set a roadmap for Carbon Neutral by 2050, and the specific actions Gemadept has been taking to develop a Greener and Smarter Port-Logistics ecosystem.
Mr. Nguyen Thanh Binh, General Director, talked about the goal of mobilizing green capital. The Company is currently one of the leaders in ESG in Vietnam, doing both internal works, as well as associated with partners and customers for green development.
Currently, the Company has been one of the pioneers in Vietnam to inventory greenhouse gas emissions at Nam Dinh Vu Port and Gemalink Port and is expected to apply that to the remaining ports in the near future.
"There have been organizations and banks working with Gemadept to grant green credit, which the Company will announce in the near future", Mr. Binh added.
Is there a special dividend after divesting Nam Hai Dinh Vu Port?
With the divestment of all shares in Nam Hai Dinh Vu Port, the Company estimates the parent company's profit of over VND 2,000 billion, the recognition of profit is expected to be recorded in the third quarter of 2023.
Regarding dividends, in 2023, the Company approved the profit plan of VND 1,136 billion, adding Nam Hai Dinh Vu's profit of more than VND 2,000 billion, the profit will be more than VND 3,000 billion, The Company will consider whether there is a special dividend at the end of the fiscal year and submit it to the next AGM.
The expectation of special dividends like 2018, if there are any, will not be a lot. Since the Company has not issued more shares, it will use the capital and cash flow from the divestment to supplement capital to restructure cash flow, implement large projects such as Nam Dinh Vu Phase 3 and Gemalink Phase 2, and study M&A activities. The money accumulated and divested from Nam Hai Dinh Vu Port will be used to supplement capital for project development.
Does the company plan to reduce service prices at Hai Phong Port Group?
Mr. Nguyen Thanh Binh shared that until now, the Company has had no policy to reduce service prices. It is very flexible in operating, hence has many other solutions. Service price reduction is the very last step. The Company will develop the ecosystem to maximize total profit and apply digital transformation to production. When the business scale is large, this will reduce the cost of capital and increase the competitive advantage of the Company.
When will Gemadept divest the rubber plantation in Cambodia?
Mr. Nguyen Thanh Binh shared that for the rubber project, the Company is trying to divest the capital as quickly as possible, hopefully, in 2023, if not then 2024. Gemadept has revamped the project, completed the profile, prepared documents and actively trying to divest it within 2023.
