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On the morning of June 25, 2024, Gemadept Corporation (Stock code: GMD) organized the Annual General Meeting of Shareholders (AGM) at the Lotus Ballroom on Floor 1 of the REX Hotel, located at 141 Nguyen Hue, District 1, Ho Chi Minh City. The meeting summarized the Company's achievements in 2023, set growth goals for 2024, and marked a year of great significance in the Company's efforts to complete the 2021-2025 Vision, ushering in a new development phase.
Attending the AGM were 182 shareholders and authorized representatives, holding and representing 219,297,201 shares, accounting for 70.63% of the total number of voting shares currently in circulation of the Company.
2023 – Impressive results
In recent years, particularly 2023, the world has faced continuous major upheavals due to escalating geopolitical conflicts. Major import and export markets like the US, Europe, and China, still reeling from the Covid-19 pandemic, have been further impacted by wars. Vietnam's economy is also not outside this vortex. The negative impact is reflected in the sharp decline in import and export volumes in the first half of 2023.
From the beginning of the year and in implementing the Resolution of the General Meeting of Shareholders and the Board of Management, the entire leadership team and every employee have always been prepared to proactively and creatively pursued the dual goals of ensuring effective business operations while urgently implementing key projects to prepare for a new growth phase.
Through efforts to enhance service quality, attract cargo sources, and reduce costs, Gemadept achieved net revenue of VND 3,846 billion in 2023, with port operations being the primary contributor. Profit before tax reached 3,147 billion VND (profit from the transfer of capital at Nam Hai Dinh Vu Port was 1,840 billion VND). The business results achieved in 2023 excellently met the targets registered with the General Meeting of Shareholders.
Over the past year, the Company continued to strengthen the strong support of customers and partners, maintain and develop market share, and enrich the service chain in key markets. Additionally, the Company has collaborated with the Government in investment efforts, leveraging the advantages of the national port system.
Gemalink Deep-sea Port, the southern gateway, continuously welcomes the world's largest and most advanced vessels. Thanks to ongoing dredging of the Cai Mep - Thi Vai channel by supportive agencies and ministries, super container ships exceeding 250,000 tons will soon be able to enter and exit the Port with ease. Since its operation began, Gemalink Port has consistently achieved records in operations, maintaining some of the highest cargo handling productivity in the region. The Company is actively pursuing the necessary procedures to commence Gemalink Phase 2A, which is expected to be operational by 2026.
Following the achievements in the South, at the gateway of Hai Phong City, Nam Dinh Vu Port Phase 2 was put into operation in mid-2023, doubling its capacity and significantly contributing to the growth in volume of Gemadept's northern ports over the past year. Committed to its responsibility, Gemadept collaborates with ministries and agencies to contribute to Vietnam's maritime infrastructure development and enhance national competitiveness. A prime example is the Ministry of Transport's approval for Gemadept to dredge the Ha Nam canal, increasing its depth to accommodate fully loaded 48,000 DWT vessels without tidal restrictions. Upon completion in June 2024, Gemadept will hand over the project to the designated state agency for ongoing maintenance and management. With the improved channel conditions, fully loaded intra-Asia ships, which have been developing robustly, are expected to continue increasing the frequency of voyages, creating a bustling and thriving "port market" in the Dinh Vu area. This transformation will solidify its status as a vital trade gateway of the key economic region in the North.
Mirroring the success of the Port operation sector, Gemadept's Logistics division also achieved positive results, exceeding business goals despite a challenging year. They proactively offered new measures and solutions to optimize production. By developing and enriching the Port-Logistics ecosystem, the Company actively contributes to Vietnam's deeper integration into the global value chain.
Striving for growth in 2024, geared towards sustainable development
Looking at the "picture" of Vietnam’s economy in the first 5 months of 2024, we can see gradually brighter signs with industrial production, exports to most markets growing progressively, and global inflationary pressures are starting to show signs of cooling down.
Despite these positive signs, the global outlook remains complex and uncertain, with numerous risks and potential disruptions. Prolonged geopolitical conflicts, particularly in the Red Sea region, have forced most shipping companies to reroute via the Cape of Good Hope, leading to longer transit times, increased costs, and localized congestion at regional ports.
Fueled by a spirit of overcoming challenges, particularly in 2024, a crucial year for achieving the 2021-2025 Vision, Gemadept's General Meeting of Shareholders approved ambitious targets for 2024. The plan sets revenue and profit-before-tax (PBT) targets at VND 4,000 billion and VND 1,686 billion respectively, representing a 102% and 148% increase over the 2023 plan. To achieve these goals, the Company is actively investing in modern equipment, developing inland waterway projects, and moving forward with Phase 3 of Nam Dinh Vu Port. Additionally, they are preparing for Phase 2 of Gemalink Port. Shareholders overwhelmingly approved a cash dividend payout ratio of 22% (equivalent to VND 2,200 per share).
To secure funding for its strategic development goals and business plans through 2025, the AGM approved a capital increase plan. This will provide the necessary capital to expand production and business activities, and to strengthen the Company's financial capacity in 2024 and beyond. The plan involves a public offering of additional shares to existing shareholders in 2024. The offering is expected to include a 33.33% issuance rate, a price of VND 29,000 per share, and generate approximately VND 3,000 billion in revenue. Additionally, the AGM approved selecting an auditing unit for the 2024 Financial Statements and amendments to the Company charter, ensuring compliance with regulations.
Building on past successes and seizing new opportunities, Gemadept remains committed to investing in and enhancing its Port and Logistics ecosystem. In the Northern market, the Nam Dinh Vu Port Cluster is on track to reach full capacity in both phases by the end of 2024. This achievement will pave the way for the implementation of Phase 3, with an expected operational launch in early 2026. Upon completion of all three phases, the Nam Dinh Vu Port Cluster, leveraging its position as the largest river port in the North and its exceptional competitive advantages, will be well-positioned to serve the customers' growing needs.
In the South, affirming its potential and outstanding advantages, Gemalink Deep-sea Port will soon commence phase 2A construction. This expansion will contribute to the development of seaport infrastructure and meet the growing market needs, especially as Gemalink Phase 1 is expected to reach over 90% capacity this year.
On June 4, 2024, the World Bank and S&P Global Market Intelligence published a report on the 2023 Container Port Performance Index (CPPI). Notably, Vietnam's Cai Mep Port Cluster achieved a significant milestone, entering the top 10 most effective container ports in the world for the first time. It ranked 7th overall, 5th in Asia, and 2nd in Southeast Asia. This impressive ranking can be attributed, in part, to the Cai Mep Port Cluster's adoption of a smart port model, which utilizes modern equipment, digital transformation strategies, and high-tech applications. As a leading example of this model, Gemalink International Port is proud to have played a significant role in elevating the CPPI index of the Cai Mep Port Cluster.
In 2024, to achieve the 2025 Vision, Gemadept remains focused on prioritizing key activities and fostering synergies to accelerate growth. The Company will push for digital transformation to enhance operational capacity and implement smart management practices. Additionally, embracing green transformation and sustainable development as core objectives will create momentum for a new phase of growth and development – Vision 2026-2030.
Gemadept's 2024 General Meeting of Shareholders fostered a spirit of high consensus and solidarity. Participants joined hands in a commitment to elevate the reputation and position of Vietnam's maritime industry, delivering sustainable value to shareholders, the community, and society at large. Gemadept remains steadfast in its mission to contribute to the economic flow, creating incremental value for the nation, businesses, and partnering companies through its superior chain of services and solutions.
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