VRG ensures sustainable growth and development goals

On September 30th, Mr. Nguyen Hoang Anh – Member of the Central Committee of the Party, Chairman of the State Capital Management Committee at Enterprises (the Committee) – worked with VRG on the implementation of the 2024 plan and the orientation for building the 2025 plan in conjunction with the medium-term plan tasks until the end of 2025. Mr. Nguyen Hoang Anh – Member of the Central Committee of the Party, Chairman of the State Capital Management Committee at Enterprises, delivered a directive speech at the meeting . In his speech, Mr. Nguyen Hoang Anh acknowledged and highly appreciated VRG's efforts. With a very wide operating area, spanning across the country and into neighboring Laos and Cambodia, VRG has affirmed its position as a strong economic group in the agricultural sector. “In the coming period, VRG will focus on developing decisive solutions and concentrating all resources to effectively implement the production and business plan, continuing to operate efficiently to contribute to the country's economic development. In particular, the Group needs to leverage land resources, including gray land, with appropriate calculations based on practical conditions to maximize operational efficiency in all areas. Continue to build on the results achieved in improving corporate governance quality in a modern and advanced direction, in line with international practices and standards…” – Mr. Nguyen Hoang Anh directed. Exceeding the assigned plan: Reporting at the meeting, Mr. Le Thanh Hung – Deputy Secretary of the Party Committee and General Director of VRG, stated that the Group is implementing its 2024 tasks in the context of a gradually recovering macroeconomic environment and the opening of policies and mechanisms for investment implementation. Based on assessments and proactive analysis and forecasting of the situation, the Group has proposed proactive, decisive, and synchronized solutions to achieve the highest possible completion rate of the 2024 plan. In the first six months of the year, due to objective factors such as climate change, especially prolonged drought affecting rubber latex production, and localized labor shortages in some areas, as well as continuously rising prices and input costs for production, the Group's business operations in the first half of the year faced difficulties, with production and business indicators not significantly higher than the same period in 2023. Mr. Tran Cong Kha – Secretary of the Party Committee and Chairman of the Board of Directors of VRG – stated at the meeting: Entering the third quarter, with rubber entering its main harvesting season and rubber prices showing signs of recovery more positively than planned due to weak and unusually declining supply in major producing countries in Southeast Asia such as Thailand and Indonesia, and increased demand from China and India, the core business operations of the Group in the rubber sector are facing many favorable conditions. However, in 2024, other sectors besides rubber will face significant challenges due to the complex and unpredictable global situation with many geopolitical uncertainties and escalating military conflicts in some countries and regions, causing instability and disruptions to the supply chain in some goods and industries in which the Group operates. For the first nine months of 2024, consolidated revenue and other income reached VND 16,207 billion (64.83% of the plan), consolidated pre-tax profit reached VND 2,850 billion (69.44% of the plan), and consolidated after- tax profit reached VND 2,386 billion (69.44% of the plan). The estimated figures for the whole year 2024 are consolidated revenue and other income reaching VND 26,307 billion (105.23% of the plan), consolidated pre-tax profit reaching VND 4,450 billion (108.43% of the plan), and consolidated after-tax profit reaching VND 3,746 billion (108.99% of the plan). With these results, the Group has completed and exceeded the production and business plan agreed upon by the Committee and the General Meeting of Shareholders. At the parent company – the Group, in the first nine months of 2024, revenue and other income reached VND 2,413 billion (60.51% of the plan); pre-tax profit/after-tax profit was VND 1,011 billion (69.53% of the plan). Estimated for the whole year 2024, revenue and other income will reach VND 4,287 billion (107.5% of the plan), and pre-tax profit/after-tax profit will be estimated at VND 1,670 billion (114.87% of the plan). Mr. Le Thanh Hung – Deputy Secretary of the Party Committee and General Director of VRG – reported at the meeting on ensuring the achievement of targets for the 2021-2025 period. Regarding the orientation for building the 2025 plan, the global and domestic socio-economic situation is forecast to continue to evolve rapidly, complexly, and unpredictably; the global economy continues to face many difficulties and challenges. Economic growth and consumer demand in many major economies are recovering slowly; inflation in some countries around the world; fluctuations in world commodity prices (gasoline, gold, etc.), natural disasters, epidemics, climate change… are unpredictable. In this context, based on assessments, analyses, research, and identification of opportunities, advantages, challenges, and risks, the Group has developed a plan and implemented development goals for 2025 that are consistent with the actual situation. At the same time, we strive to complete ahead of schedule the medium-term plan targets agreed upon by the Committee and assigned by the Annual General Meeting of Shareholders, in conjunction with the targets set by the Group's Party Congress for the 2020-2025 term. Mr. Nguyen Canh Toan – Vice Chairman of the State Capital Management Committee at Enterprises, spoke at the meeting. Accordingly, the consolidated production and business targets for the entire Group in 2025, including revenue and other income of approximately VND 27,490 billion/2024 performance of VND 26,307 billion (equivalent to 110% of the 2024 plan and 104.5% of the 2024 performance); Consolidated pre-tax profit reached VND 4,632 billion/actual profit for 2024 is VND 4,450 billion (equivalent to 113% of the 2024 plan and 104.10% of the 2024 actual profit) and consolidated after- tax profit reached VND 3,900 billion/actual profit for 2024 is VND 3,746 billion (equivalent to 113.5% of the 2024 plan and 104.1% of the 2024 actual profit). At the parent company – the Group, the revenue and other income plan is VND 4,424 billion/actual profit for 2024 is VND 4,287 billion (equivalent to 111% of the 2024 plan and 103.2% of the 2024 actual profit); Pre-tax/after-tax profit of VND 1,720 billion/actual profit for 2024 is VND 1,670 billion (equivalent to 118% of the 2024 plan and 103% of the actual profit for 2024). Regarding the medium-term plan for the period 2021-2025, with the results achieved in 2021, 2022, and 2023, the estimated results for 2024, and the proposed plan for 2025, the Group will ensure that it exceeds the targets set by the Committee and the General Shareholders' Meeting for the 2021-2025 period, and that it fulfills the Resolution of the Group's Party Congress for the 2020-2025 term. "In addition to traditional production and business areas, the Group will continue to expand investment areas outside of rubber according to the development strategy to 2030 and vision to 2035 approved by the Committee, including high-tech applied agriculture and renewable energy other than hydropower. It will continue to implement strategies and solutions for green growth and sustainable development; focusing on completing the production of goods that meet the requirements of the Alliance." "European Union Development Fund (EUDR) aims to bring high brand value and economic value. Strengthening the role and responsibility of business leaders, capital representatives, and Group-appointed auditors participating in member units in implementing plans, managing and utilizing capital, assets, and land effectively and in accordance with State regulations; carrying out anti-corruption and anti-negative practices; and strengthening the implementation of austerity measures and combating waste in production, business, and investment activities in accordance with the Party and State's policies..." – VRG's General Director stated. Speaking at the meeting , Mr. Nguyen Canh Toan – Vice Chairman of the State Capital Management Committee at Enterprises – requested VRG to direct its member units to base their operations on the cost plan (maximum cost limit/ton of rubber latex harvested, processed, and consumed) assigned by the Group, aiming for cost savings and efficiency. This will be a mandatory indicator for classifying enterprises and evaluating managers according to regulations. “In addition, VRG needs to monitor and supervise the implementation and settlement of 2024 finances at its member companies to ensure that the parent company's and the Group's consolidated business results exceed the plan agreed upon by the Committee and the Annual General Meeting of Shareholders. The 2024 results are an important basis for building a suitable growth plan for 2025, ensuring the Group's sustainable growth and development goals for the 2026-2030 period. VRG also needs to urgently coordinate with the Department of Agriculture to review and adjust the charter capital for member units to suit the needs and conditions of each unit in order to regulate resources throughout the Group,” Mr. Nguyen Canh Toan emphasized. The delegation from the State Capital Management Committee at Enterprises and VRG took a commemorative photo at the working session. Source: https://vnrubbergroup.com/tin-uc/VRG-am-bao-muc-tieu-tang-truong-va-phat-trien-ben-vung