Son La Provincial People's Committee auctions more than 19 million shares at Son La Urenco

Currently, Son La Provincial People's Committee is holding 98.64% of the total issued shares of Son La Urenco. The volume of shares put up for auction is 19,080,876 shares, equivalent to 63.5% of the shares owned by Son La Provincial People's Committee and 62.64% of the outstanding shares of Son La Urenco. After the auction, Son La Provincial People's Committee is expected to hold nearly 11 million shares of Son La Urenco, equivalent to a reduction in ownership ratio to 36%. The starting price of the shares offered is VND 12,165/share.

Son La Urenco, formerly Son La Urban Environment Company, was established on July 1, 2004, transformed into Son La Urban Environment State-owned Company Limited owned by Son La Provincial People's Committee in 2006 and transformed into a joint stock company in 2017. As of December 2022, the company's actual contributed charter capital is more than 304.62 billion VND.

Son La Urenco's main revenue comes from activities of collecting, processing and disposing of non-hazardous waste (accounting for 40.84% in 2020 and 40.87% in 2021); construction of civil and public engineering works (accounting for 30.55% in 2020 and 23.71% in 2021); management and maintenance of lighting systems, urban decoration, management of urban advertising services, implementation of other urban services, planting, caring for, nurturing trees, protecting, cutting down, and moving urban trees (accounting for 23.11% in 2020 and 24.75% in 2021) and some other business activities.

Son La Urenco's production and business results in 2021 are similar to those in 2020, with net revenue reaching more than VND 194 billion, up 0.15% compared to 2020. However, the company's after-tax profit increased dramatically compared to 2020, from more than VND 988 million to nearly VND 2.65 billion. According to Son La Urenco's explanation, in 2021 there was a change in tax policy, so the amount the company had to pay administrative fines and late VAT payment for the period 2014 - 2016 decreased, so the amount the company had to pay in 2020 was VND 3.7 billion, and in 2021 it was VND 1.5 billion.

In 2022, according to the consolidated financial report for the first 9 months of 2022, the company's net revenue was over 113 billion VND, reaching about 60% of the plan. Profit after tax in the first 9 months of 2022 was 2.5 billion VND, reaching 51% of the plan. According to the business results up to now, the net revenue and profit after tax targets reached 100% of the 2022 plan. The company's total assets as of September 30, 2022 reached over 345.52 billion VND, an increase of 1.97% compared to 2021. Liabilities decreased to 35.61 billion VND, of which short-term financial leasing debt was 1.07 billion VND and long-term financial leasing debt was 905 million VND. In 2022, Son La Urenco publicly won about 20 bids, mainly in the public utility sector.

The transfer of State capital at the Joint Stock Company aims at a number of specific purposes. Firstly, this is an activity to implement the Government's policy on criteria for classifying State-owned enterprises and the list of State-owned enterprises to divest capital by the end of 2020 and to implement the restructuring project of State-owned enterprises managed by the People's Committee of Son La province. Secondly, the transfer of all State capital at the Company will collect capital for the State budget to invest in other important projects and industries, in accordance with the policies and guidelines of the Party and the State. The third purpose is to mobilize capital from domestic and foreign investors to improve financial capacity, innovate technology, management methods, and improve the efficiency and competitiveness of enterprises. And finally, the transfer of State capital at JSCs will enhance the role of real ownership, closely link the responsibilities, work and interests of shareholders, create motivation to promote effective production and business management and operation, increase the income of employees, shareholders and company profits./.

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