Ho Chi Minh City, April 5th, 2022 - Viet Dragon Securities Corporation (VDSC) (HOSE: VDS) successfully held the Annual General Meeting of Shareholders (AGM) for the fiscal year 2021 at New World Hotel Saigon, No. 76 Le Lai, Ben Thanh ward, District 1.
The VDSC’s AGM of fiscal year 2021 was attended by more than 110 shareholders, owning and representing more than 81.67% of the total voting shares of VDSC. The meeting went on with the Company's Board of Directors presenting reports and motions on business results in 2021, business plan in 2022 and issues related to profit distribution, issuance of shares to increase charter capital… The meeting discussed and unanimously approved the business results in 2021 and the profit distribution plan in 2021, the business plan in 2022 and the plan to issue shares to increase charter capital to 2,100 billion, development orientation and important goals for the term of 2022-2026 and elected members of the Board of Directors and Supervisory Board for the new term 2022-2026.
In 2021, VDSC has tried to seize business opportunities to exceed the planned targets in terms of revenue and profit assigned by the AGM. Specifically, the total consolidated revenue reached VND 1,054.1 billion (equivalent to 199.6% of the year plan), consolidated profit after tax reached VND 426.7 billion (equivalent to 296.3% of the year plan). Along with the record business results since the establishment, VDSC continued to achieve a significant improvement in operational efficiency with ROAa of 12.9% and ROEa of 30.4% and EPS reached VND 4,050/share.
2021 is also the last year of 2017-2021 term of the Board of Directors (BOD) with many outstanding milestones and achievements. The average growth rate of revenue and profit reached 34.9% and 54.2%/year, respectively. The market capitalization of VDSC also exceeded VND 3,600 billion, an increase of more than 260% compared to the beginning of 2021 and 505% compared to the beginning of the term. In addition to impressive business results, VDSC has also gradually affirmed its brand and position on the Vietnamese stock market through many prestigious awards on business activities, corporate governance and the contributions to the financial market as well as to the community and society.
Entering the new term of 2022 – 2026, VDSC's Board of Directors continues to establish a vision to make VDSC one of the leading, most modern and effective financial institutions in Vietnam. Accordingly, the orientation throughout the 2021 - 2030 development journey of VDSC is to "BUILD PROSPERIOUS FUTURE" through "successfully creating an ecosystem of finance and investment for the Vietnamese business community and investors by creating and providing suitable solutions, financial instruments and suitable investment products, which brings the best efficiency to customers with excellent operating system and customer service quality”.
VDSC’s business activities are determined to focus on 5 main pillars: Brokerage, Financial Services, Investment, Investment Banking and Asset Management to target 5 main groups of clients, including individual clients, institutional clients, corporate clients, financial institutions and foreign clients.
Regarding the consolidated business plan in 2022, the AGM agreed to the revenue target of VND 1,193.6 billion and profit before tax target of VND 504 billion. The plan is built on the 2022 forecast that VN-Index will fluctuate around 1,340 to 1,750 points and the average market liquidity is about VND 25,000 to 30,000 billion per session.
VDSC’s AGM also approved the plan to issue 104.9 million shares to double the charter capital to VND 2,100 billion. Specifically, the Company is expected to issue 36.8 million shares to pay dividends (ratio 100:35); issue 10.5 million shares to increase share capital from equity (ratio 10:1). The capital for implementation is extracted from undistributed after-tax profits, share capital surplus and other reserves of equity as of December 31st, 2021. At the same time, VDSC will offer to sell additional 52.6 million shares to existing shareholders through the method of exercising rights (ratio 2:1) and issue more than 5 million shares under the employee stock ownership plan (ESOP), both at the price of VND 10,000/share. The capital raised from the issuance will be used to supplement business capital for underwriting, investment and margin lending/advance activities.
In order to meet the needs of building a branded-house identity system and in line with the development orientation in the coming period, the AGM also approved the renaming of the subsidiary, of which VDSC owns 51%. Specifically, Viet Long Securities Investment Fund Management Corporation (VDFM) will be renamed as Viet Dragon Asset Management Corporation (VDAM).
Board of Directors and Supervisory Board of 2022 – 2026 term
The remaining matters of the AGM were also approved by shareholders, including: Profit distribution of FY 2021 and plan for FY 2022; Selection of auditor for the financial statements of FY 2022; Report on remuneration for Board of Directors and Supervisory Board in 2021 and plan for 2022; Amendment of the Company Charter; Adjustment of the Head Office address.