ANNUAL GENERAL MEETING OF SHAREHOLDERS 2023: FECON SETS REVENUE TARGET OF 3.800 BILLION VND, EXPECTS TO DISTRIBUTE DIVIDENDS IN CASH WITH A MAXIMUM RATE OF 5%

Today (April 27^th), in Hanoi, FECON successfully held the annual General Meeting of Shareholders, approving many vital contents related to the business situation in 2022 and development orientation in 2023.

At the congress, Pham Viet Khoa - Chairman of the Board of Directors of FECON said that, in 2022, the economy was subject to many fluctuations due to the influence of the corporate bond market, frozen real estate as well as tight cash flow, making the construction and real estate industry face many difficulties. However, in recent years, the Government has issued many directives and policy mechanisms to support the market. Therefore, according to Mr. Khoa, Vietnam's construction market will have a lot of room for development when the market has many positive signals.

“With the solidarity and unanimous will of the Board of Directors and more than 1.200 employees, and the support of all shareholders, I firmly believe that FECON will overcome the challenge of 2023, sustainable profit growth in the next years and stick to the goal of becoming a leading corporation in infrastructure construction and development in Vietnam by 2025”, Chairman Pham Viet Khoa said.

In 2022, FECON continued to maintain its position in the market

At the congress, Chairman Pham Viet Khoa said that in 2022, FECON signed and implemented many projects such as Vung Ang 2 - Ha Tinh Thermal Power Project, Nhieu Loc – Thi Nghe – Ho Chi Minh City Project, Lach Huyen 5 & 6 - Hai Phong Port Project; Nhon Trach 3 & 4 - Dong Nai Thermal Power Project; Hoa Phat Dung Quat Steel Complex (Phase 2 - Quang Ngai)… These projects have helped FECON maintain its operations and position in the market, demonstrating the recognition and appreciation of customers for the group's capacity in the construction industry, especially for large projects with high-quality requirements.

Previously, according to the announcement of the Vietnam Report on March 31^th, FECON continued to be in the "Top 10 Vietnam Building Contractors Reputation Award 2023". The results are surveyed and voted from the opinions of experts in the construction industry and based on professional capacity and communication evaluation factors throughout 2022. This is the sixth consecutive year that FECON has been shortlisted in addition to reputable construction groups such as Coteccons, Hoa Binh Group, Ricons... This further strengthens FECON's position and productive capacity in the construction market.

According to the report on business results in 2022, as of December 31th, the total assets of the FECON reached 7.581 billion VND, the value of new contracts reached 3.500 billion VND, consolidated revenue in 2022 reached 3.046 billion VND and consolidated profit after tax reached 52 billion VND.

In 2023, FECON set a revenue target of 3.800 billion VND, an increase of 25% compared to 2022

In the first quarter of 2023, although the economy has not recovered as expected due to the double impact of the real estate market, corporate bonds and securities, FECON's business activities still recorded many positive results.

For example, in March 2023, FECON won 4 bidding packages with a total value of nearly 400 billion VND in foundation construction and underground works. Specifically, the package "supply, construction of mass piles and pile testing" at Nhon Trach 3&4 Power Plant project with a total contract value of 179 billion VND; the package "Construction of the southern diaphragm wall of Terminal 11" worth more than 62 billion VND, after many bidding packages were signed under the urban railway project (Metro Line 3); a new contract worth 75 billion VND at Vung Ang II Thermal Power Plant project; the package "Construction of the section Km91 +800 – Km114 +200" with the value of 147 billion VND under the Hau Giang – Ca Mau section component project of the North-South Expressway project. The succession of winning high-value bidding packages proves that FECON's prestige and capacity in the fields are inherently strong.

From the second quarter of 2023, FECON will continue to stick to its business strategy. In 2023, FECON set a consolidated revenue target of 3.800 billion VND, an increase of 25% compared to 2022. In particular, Infrastructure and Underground Construction revenue are 1.000 billion VND; Foundation and Construction are 2.800 billion VND. Also in 2023, FECON set a consolidated after-tax profit target of 125 billion VND, with the after-tax profit of the parent company's shareholders up to 110 billion VND, up 140% and 175% respectively compared to 2022.

The enterprise expects to pay dividends in 2023 in cash with a maximum rate of 5%, equivalent to 500 VND/share. In the context that the construction industry is rife with difficulties today, FECON's commitment to dividends to ensure minimum legitimate interests for shareholders is something that not all businesses dare to do. This shows that FECON is confident in its business plan and cash flow in the coming period.

Some other photos at the conference: