Hoa Sen Group Joint Stock Company (HSG) plans to contribute more capital to its real estate arm in the northern province of Yên Bái to serve production and project implementation.

 

Hoa Sen is expected to contribute another VNĐ81 billion (US$3.4 million) to Hoa Sen Yên Bái Joint Stock Company to raise its charter capital from VNĐ340 billion to VNĐ421 billion in time to complete the capital contribution on February 21, 2023.

 

After the capital contribution, Hoa Sen Group will own 95.96 per cent of the charter capital of Hoa Sen Yên Bái. The remaining 4.04 per cent of charter capital will belong to other groups of shareholders.

 

Hoa Sen Yên Bái Joint Stock Company was established on May 5 2016, at Group 11, Đồng Tâm Ward, in Yên Bái Province and operates in hotels, catering and commercial centres.

 

In 2023, Hoa Sen set a business plan based on two scenarios.

 

In the first scenario, with the finished product output option of 1.4 million tonnes, the company plans a revenue of VNĐ34 trillion, down 32 per cent year-on-year and a profit of VNĐ100 billion, down 60 per cent compared to the same period last year.

 

The second scenario is more positive, with a finished product output of 1.5 million tonnes, estimated revenue of VNĐ36 trillion, down 28 per cent and expected profit of VNĐ300 trillion, up 20 per cent compared to the same period last year.

 

Hoa Sen's Board of Directors said that steel exports in 2023 still see many potential uncertainties and uncertainties in the context of increasing competition challenges and trade barriers.

 

In addition, fierce competition in the domestic market, tight monetary policies, increasing interest rates, and escalating exchange rates may negatively affect steel companies' demand, production, and business activities.

 

For the plastic production and business segment, the group will continue to strengthen the production and business efficiency of Hoa Sen Plastic JSC and, at the same time, prepares the necessary conditions for the IPO at a suitable time, expected to take place in 2024 to 2026 if the economic situation is favourable. — VNS