Biwase Shareholders' Meeting: Becamex IDC commits to accompany and may contribute more capital if Biwase increases capital

In addition to the Board of Directors' and General Director's Reports on business results in 2024 and business orientation in 2025, at the Congress, Biwase also approved many other notable reports.

Regarding the profit distribution plan in 2024, Biwase has approved a plan to pay dividends at a rate of 13% in cash, equivalent to a total payment of more than VND 285.9 billion.

In addition, in 2025, Biwase also approved a minimum profit plan of VND 520 billion, while the cash dividend is expected to remain at 13% in 2024.

And finally, regarding the selection of an auditor for the 2025 Financial Statements, shareholders also approved the selection of one of three auditors, Deloitte Vietnam Co., Ltd., PwC Vietnam Co., Ltd. and AASC Auditing Firm Co., Ltd., to audit the 2025 Financial Statements.

In addition, at the General Meeting, shareholders also asked many questions related to the business results in 2024, the business plan in 2025, and the development strategy in the coming time. In particular, Mr. Nguyen Van Thien, Chairman of the Board of Directors, answered all questions from shareholders.

Mr. Nguyen Van Thien, Chairman of the Board of Directors, answered all questions from shareholders. Photo: Duy Bac

Regarding the business plan, Biwase is submitting a plan to increase clean water and waste treatment prices, so it is planning to make a profit of 640 billion VND in 2025 based on a cautious scenario. This business plan has not yet adjusted water prices and waste treatment prices.

“If the plan to increase prices of products and services provided including clean water, waste and wastewater treatment unit prices is approved, this will increase revenue and profit in 2025 compared to the plan just approved by shareholders,” Mr. Thien added.

It is known that in 2025, in addition to adjusting service prices, Biwase also plans to increase the capacity of many member units when investment projects are completed. In particular, starting the project to increase the capacity of Nhi Thanh Water Plant by 60,000 m3/day (reaching a total capacity of 120,000 m3/day), expected to be officially put into operation in the third quarter of 2025; Construction of Saigon - Mekong Water Plant, capacity of 50,000 m3/day with an investment capital of 100 billion VND, completed and put into use in the second quarter of 2025 and other capacity increase projects.

Regarding the investment expansion plan, Mr. Thien said that although other provinces are not as effective as Binh Duong province, it does not mean that Biwase does not participate in investment. In particular, the Company's profitable business results are mainly due to saving labor standards, automation in production, good equipment, choosing capable contractors with reasonable prices and good quality.

“Regarding the M&A plan, Biwase has covered Binh Duong, so it will look for M&A opportunities outside. If the profit from outside investment is around 10-12%, the Company will do it. If the profit rate is below that level, the Company will not make the investment,” Mr. Thien emphasized the cautious investment strategy, choosing carefully before deciding to invest.

In addition, in terms of investment capital, in 2024, Biwase and Vietnam Development Bank (VDB) - Transaction Office II signed a cooperation agreement to finance credit capital from VND 10,000 billion to no more than VND 16,000 billion with preferential interest rates for environmental protection projects invested by Biwase and its subsidiaries; At the same time, other familiar banks and international banks have committed to supporting capital for Biwase because they assess Biwase as a reputable company. Also in 2024, the Company's member unit successfully issued a VND 700 billion bond package, which is an AAA-rated bond, with the best cost in the market.

“The source of capital for investment is not a concern, many units are willing to support capital for Biwase to invest, so the source of investment capital is abundant. However, before deciding to borrow capital, the Company will determine the source of debt repayment, must ensure the source of debt repayment before deciding to borrow capital to borrow capital”, Mr. Thien emphasized that many units are willing to support capital for the Company to invest.

Mr. Quang Van Viet Cuong, Deputy General Director of Becamex IDC. Photo by Duy Bac

In addition, also at the Congress, regarding the long-term investment commitment of major shareholders, Mr. Quang Van Viet Cuong, Deputy General Director of Industrial Investment and Development Corporation - JSC (Becamex IDC, code BCM - HoSE floor) said that Biwase is the strongest member in the ecosystem of Becamex IDC, especially Biwase also operates in a field that does not overlap with other units in the ecosystem of 22 companies that Becamex IDC owns.

“For Biwase, Becamex IDC will continue to accompany, for sure, and can continue to participate or contribute more capital to maintain the current ownership ratio,” Mr. Quang Van Viet Cuong further emphasized.

It is known that as of December 31, 2024, Industrial Development and Investment Corporation - JSC (Becamex IDC, code BCM - HoSE floor) owns 19.44% of charter capital at Biwase.