LILAMA held the Annual General Meeting of Shareholders 2021

The attendees of the meeting were representatives of the Ministry of Construction, leaders of Lilama Corporation including Mr. Bui Duc Kien – Chairman of the Board of Management (BOM), Mr. Le Van Tuan – President & CEO and Member of BOM, Mr. Nguyen Van Hung – Vice President and Member of BOM, members of the Supervisory Board, Vice Presidents, the Secretariat of the Meeting, and the Board of Obtaining opinions. All shareholders joint the Meeting online in order to keep distance for safety requirement (not exceeding 20 persons in a same place).

During the online meeting, Lilama’s shareholders agreed and voted for approval of such important documents as the Board of Management’s Report on the company’s performances of the year 2020, the Performance Plan of the year 2021, the Chief Executive Officer  Business Report 2020 and the Business Plan 2021, the Supervisory Board Report on supervisory activity during the year 2020 and the Plan for the year 2021; and others related.

During the year of 2020, the outbreak of the Covid-19 pandemic had caused overall negative impacts on the economy of the world as well as Vietnam in which Lilama was also affected by facing countless difficulties. However, the Corporation overcame this hard situation with great efforts and overfulfilled all assigned targets of the business plan under the decisive and flexible direction and management of Lilama’s Leaders to ensure the stability of the Corporation’s operation and development while adapting to the circumstance of pademic-economy-society.

Particularly, the main targets of the Business Plan 2020 assigned from the Annual General Meeting of Shareholders last year were gained as follow: the revenue of the year, the profit before taxes and the paid to National Budget were 4,785.2/ 3,054.5 billion dong, 32,6/30 billion dong and 122.8/80 billion dong respectively equivalent to 156.6%, 108.7%, and 153.5% of the year plan of 2020; the annual divident distribution was expected 2% a year.

The total capital investment for the corporation’s external business at the time of December 31^st, 2020 was statistically 617.1 billion dong, in which the value of stocks held by Lilama at 05 sub-companies, 10 affiliated and 07 others were 96,9, 271.2 and 248.9 billion dong respectively.

Despite the positive business results in 2020, Lilama Corporation still has faced big challenges and disadvantages in 2021 i.e the increasingly keen competition on the installation and fabrication market, the problems of suspending or stretching schedule in the projects being performed, the matter of low rate of return on each project revenue. Besides, the fact of the low capital and big loans structure in the owner’s equity, high expense of loan interest, the slowness in cash flow received from the revenues, liabilities and bad debts remained, cashflow decifits and many other bottlenecks during performing such projects as Song Hau 1, Thai Binh 2, Long Phu 1, A/U Fertilizer Factory (Brunei)… are the critical causes that made the corporation’s efforts in financial arrangement for operating the business and production become the utmost difficults in this period of time.

This year of 2021 is forecast to be a really challenging and difficulty time for Lilama. The goal on revenue assigned in the Business Plan 2021 is expected to be much lower than that of 2020 (equal to 63.9%). The main reason is that all large national projects implemented by Lilama as an EPC Contract/ Subcontractor shall be completed in which all work quantity on equipment importing and installation had been done in 2020 and before, so the value of the remainings is insignificant. Within the context of the domestic economy facing comprehensive difficults along with the negative influences of  the pademic Covid-19, most of existing projects  have been in a situation of the schedule detering, delay or pending, while the new ones still in the process of discussion, negotiation or waiting the notice of bidding result… Therefore,  LILAMA has built the Business Plan for the year of 2021 so carefully aiming at achieving the effective performance and best result of completion.

Lilama Board of Management and Board of Supervisory for the term 2021-2026 debuted at the meeting

In addition, as the Reports mentioned above were approved by the Ministry of Instruction and the Meeting of Shareholders, Lilama Corporation would realise contents of the Project on Corporate Restructuring and Management Capability Enhancing in the period of 2021-2025 and the next years afterward.

After a positive and effective working process with high responsibility at the meeting, all Lilama’s shareholders voted for approval of all the stated reports with the high number of votes in favour. The Annual General Meeting of Shareholders 2021 was closed successfully at 11h35 on the same day.

Tin: Thảo Chi- Ảnh: Đức Bảo