Lilama Held Annual General Meeting of Shareholders 2022 Successfully

Attending the conference, there were senior representatives of the Ministry of Construction, leaders of Lilama including Mr. Bui Duc Kien – Chairman of BOM, Mr. Le Van Tuan – President & CEO, Mr. Nguyen Van Hung – Member of BOM-Vice Executive President, Mr. Nguyen Manh Dung - Vice Executive President, members of the Supervisory Board and the Secretary Board, the Voting counting and shareholders.

At the meeting, shareholders listened to the presentation for the Business Reports of the year 2021 and the Performance Plan of the year 2022 by the Board of Management, the Board of Managing Directors, the Board of Supervisory respectively, and also other important documents.

In 2021, the outbreak of the Covid-19 pandemic worldwide especially for the last two quarters had caused bad impacts on the economy of the world as well as of the Asian region and Vietnam, which posed Lilama into a very hard situation and facing many difficulties in the business performance. Despite that, with great efforts, the company still overfulfilled all main targets beyond the assigned year plan. So far, projects executed by Lilama all met schedule, safety and quality as required by the Client/ the EPC Contractor/the main contractor.

Particularly, the revenue of 2021 gained 3,388 billion dong and the profit before taxes were 24.1 billion dong, equivalent to 110% and 120% of the year plan respectively; and the paid to National Budget was 47 billion dong.

At present, such projects as Song Hau 1 and Nghi Son 1 Thermal Power Plants, Nam Con Son 2 Gas Pipelines were handed over the Owner for commercial operation, and there just remained with contract settlement; the A/U Fertilizer Factory Project was completed and received PAC by last November 2021; the Long Son Prochemical Refinery Plant Project which Lilama took over the package G and B now has finished the construction work and the package A1, that Lilama signed contract with TPSK, shall be expected to complete by the 4^th quarter of 2022; the Van Phong 1 TPP Project has basically met the schedule and so far 45% of the work volume has been done under the signed contract.

Despite of overfulfillment of business targets in 2021, Lilama Corporation is still facing big challenge identified by unfavourable conditions from the current situation such as harsh competitiveness in the machinery installation and fabrication market, matter of schedule suspending or stretching that public investment projects encountered, low rate of return-on-each -project revenue when executing large projects. Besides, the facts of low capital and big loans structure in the owner’s equity, high expense of loan interest, slowness in cash flow received from revenues, liabilities and bad debts remained, cash flow deficits and other existing bottlenecks … were the disadvantageous factors affecting Lilama, causing difficulties in financial balancing and arrangement for the corporate business operation.

Basing on pros and cons assessment of the economy, in-built and potential projects and works, others factors affecting the industry market (i.e conflict between Russia and Ukrain, Covid-19 pandemic spreading), along with practical situation of Lilama’s business, all the values of performance plan of 2022 shall be estimated lower than that of 2021, in which the total revenue is 86%, the paid to the National Budget 83.8% and the profit before taxes 120%...

After an active and effective working session with high responsibility, all shareholders agreed and voted for approval of the submitted reports with 100% in favour. The Lilama’s Annual General Meeting of Shareholders 2022 was closed successfully at 11h10 on the same day.

Duy Tình, ảnh: Đức Bảo