Biwase Shareholders' Meeting: Becamex IDC commits to partnering with Biwase and may contribute additional capital if Biwase increases its capital.

Besides the Board of Directors' report and the General Director's report on business results in 2024 and business orientation for 2025, Biwase also approved several other noteworthy proposals at the General Meeting.

Regarding the profit distribution plan for 2024, Biwase has approved a dividend payment plan at a rate of 13% in cash, equivalent to a total payout of over 285.9 billion VND.

Furthermore, in 2025, Biwase also approved a plan for a minimum profit of VND 520 billion, while the expected cash dividend rate remains at 13%, but in 2024.

Finally, regarding the selection of an auditing firm for the 2025 financial statements, shareholders also approved the selection of one of three auditing firms: Deloitte Vietnam Co., Ltd., PwC Vietnam Co., Ltd., and AASC Auditing Firm Co., Ltd. to audit the 2025 financial statements.

Furthermore, at the General Meeting, shareholders also asked many questions related to the business results for 2024, the business plan for 2025, and the development strategy for the future. Mr. Nguyen Van Thien, Chairman of the Board of Directors, answered all of the shareholders' questions.

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

Regarding its business plan, Biwase is presenting a plan to increase the price of clean water and waste treatment, and is therefore setting a profit target of 640 billion VND in 2025 based on a conservative scenario. This business plan does not yet include adjustments to water prices or waste treatment prices.

"If the plan to increase prices for products and services including clean water, waste disposal, and wastewater treatment is approved, this will increase revenue and profit in 2025 compared to the plan recently approved by shareholders," Mr. Thien added.

Reportedly, in 2025, in addition to adjusting service prices, Biwase also plans to increase the capacity of many member units when investment projects are completed. These include launching a project to increase the capacity of the Nhi Thanh Water Treatment Plant by an additional 60,000 m3/day (reaching a total capacity of 120,000 m3/day), expected to officially begin operation in Q3/2025; constructing the Saigon - Mekong Water Treatment Plant with a capacity of 50,000 m3/day and an investment of VND 100 billion, to be completed and put into operation in Q2/2025; and other capacity expansion projects.

Regarding investment expansion plans, Mr. Thien stated that while other provinces may not be as profitable as Binh Duong , this does not mean Biwase will not participate in investment. The company's profitable business results are primarily due to labor cost savings, automation in production, good equipment, and the selection of capable contractors with reasonable prices and good quality.

"Regarding M&A plans, Biwase has already established a presence in Binh Duong, so we will seek M&A opportunities elsewhere. If the return on investment is around 10-12%, the company will proceed; otherwise, if the return is below that level, the company will not invest," Mr. Thien emphasized, highlighting the cautious investment strategy and careful selection before making investment decisions.

Furthermore, regarding investment capital, in 2024, Biwase and the Vietnam Development Bank (VDB) - Branch II signed a cooperation agreement to provide credit financing ranging 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 affiliated enterprises; at the same time, other familiar banks and international banks have committed to supporting Biwase with capital because they consider Biwase a trustworthy company. Also in 2024, a member unit of the company successfully issued a VND 700 billion bond package, which is an AAA-rated bond with the best cost on the market.

"There's no need to worry about investment capital; many entities are willing to provide funding for Biwase's investments, so investment capital is abundant. However, before deciding to borrow capital, the company will determine the repayment source. Only when the repayment source is secure will we decide to borrow capital," Mr. Thien further emphasized that many entities are ready to support the company's investments.

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

Furthermore, at the General Meeting, regarding the long-term investment commitment of major shareholders, Mr. Quang Van Viet Cuong, Deputy General Director of Becamex IDC (BCM - HoSE), stated that Biwase is currently the strongest member in Becamex IDC's ecosystem, especially since Biwase operates in a field that does not overlap with other units in the ecosystem of 22 companies owned by Becamex IDC.

"For Biwase, Becamex IDC will continue to be a partner, that's for sure, and may continue to participate or contribute more capital to maintain the current ownership stake," Mr. Quang Van Viet Cuong further emphasized.

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