COTECCONS ANNOUNCES THE DECISION TO ADJUST BUSINESS PLAN FOR FISCAL YEAR 2024

On April 25, 2024, the Board of Directors of Coteccons Construction Joint Stock Company (stock code: CTD) approved the Decision to revise the business plan for fiscal year 2024 (spanning from July 1, 2023 to June 30, 2024). Specifically, Coteccons sets a new revenue target of 20,000 – 20,500 billion VND, replacing the earlier-approved goal of 17,793 billion VND. This adjustment also translates into a revised post-tax profit goal, shifting from the previous aim of 274 billion VND to 288 – 296 billion VND. 

Coteccons announced the decision to raise its new business goal after assessing positive results that maintained the growth trend during the first 9 months of the new fiscal year. 

By the end of March 2024, Coteccons’ revenue reached 14,400 billion VND, completing 81% of the planned target. Additionally, profit after tax amounted to 240 billion VND, occupying 88% of the proposed plan. Other financial indicators also demonstrate growth trends, both financially and operationally. Notably, Coteccons has enhanced the quality of accounts receivable by allocating provisions of 180 billion VND for bad debts. Moreover, general and administrative expenses have decreased by 16 billion VND, marking a 7% reduction over the same period. Based on the revised fiscal year, the reviewed financial statements for the first nine months of 2024 reflect Coteccons’ total assets amounting to 20,900 billion VND, of which cash and short-term financial investments account for 14%.

Furthermore, adding to its roster of successful bids, Coteccons – Unicons has secured a series of substantial bid packages valued at over 19,000 billion VND. Notably, on April 15, 2024, Coteccons was honored to be officially selected as the General Contractor for the comprehensive design and build of the Suntory PepsiCo Factory project in Huu Thanh Industrial Park, Long An Province. This project is another Mega-project, akin to the renowned LEGO® factory in Vietnam located at VSIP III Industrial Park, Binh Duong. Moreover, the preliminary outcomes of the “empowerment” promotion have led to the winning bids for other major projects in the Northern region, collaborating with prominent investors such as MIK Group Vietnam for the Imperia Smart City – The Sola Park project and Nam Khang Corporation for the Mandarin Oriental beach villa project in Da Nang. Additionally, Coteccons has embarked on infrastructure projects with new clients namely Viet Duc Steel Corporation for Legend City urban area project in Vinh Phuc province and Prodezi Long An JSC for Luong Hoa – Binh Chanh road in Long An.

These positive outcomes stem from Coteccons dedicated pursuit of the “Industry Leader” status, prioritizing key fundamentals such as people and sustainable values.

Mr. Bolat Duisenov, Chairman of Coteccons’ Board of Directors, said: “The biggest challenge for many companies is finding the right balance between authority and control. At Coteccons, we have a different perspective on this concept. We call it ‘potential unlocking’ and ‘risk management foundation’. To ensure comprehensive commitment from human capital, the company needs to have a stable business foundation with key indicators of revenue and profit, so that employees can earn a decent wage and have a secure income, which is a basic need for living that must be fulfilled. However, most importantly, the “PD Empowerment” was implemented in 2021 and promoted with the ‘Own It’ culture. The goal is to unleash the untapped potential of key staff and we recognize that people’s greatest needs are psychological factors – to feel understood, validated, acknowledged, and appreciated. Therefore, we focus on addressing these questions through daily actions like:

‘Who can help solve the toughest challenges of the Construction industry?’ or ‘You have to do it because the outcomes will bring great value to the organization and society’ and always finish with the question ‘Where is the red line?’.

These concerns steer us away from the win-or-lose conflicts that come with employee benefits in a fair bargaining mechanism, and we focus on encouraging unique problem-solving contributions from our employees. The main thing is to unlock potential, and this potential is regularly trained and shared, so that management, instead of controlling, will shift their attention to helping unlock the potential of the team they manage, and then exceptional results will follow.”

We believe that each of us has potential and one of our missions is to “UNIFY” the Company’s vision with that potential to create a meaningful working environment. That’s why we come to work every day.

The unwavering commitment of the Coteccons – Unicons team to their “Industry Leader” mission has fostered a robust and purposeful drive, inspiring all members to gaze steadfastly into the future, amplify latent value, and embrace change with open arms; to stand prepared to tackle challenges head-on, willing to embrace risks in pursuit of effective management and operations.

Following the integration of Sinh Nam Metal and UG M&E Vietnam into the Coteccons Family, on April 17, 2024, the Kusto Group declared its dedication to investing in the “future of Vietnam” by supplementing capital through a staged co-investment strategy with Coteccons, amounting to 200 million USD from 2024 to 2028. These collaborative efforts represent synergies aimed at diversifying operations to enhance value, thereby fortifying a sustainable future for the Coteccons ecosystem.

With an unwavering commitment to integrity, we persistently reaffirm our vision and goals of establishing a reputable, transparent business that adds value to the community.

Coteccons is a leading construction company with around 2,000 engineers and hundreds of projects across Vietnam’s North, Central, and Southern regions. With a total of around 700 completed and ongoing projects and packages, Coteccons’ reach extends beyond Vietnam’s borders, encompassing various international endeavors. The initiative to revise production and business plan to reflect a commitment to reinforcing the established strategy and ensuring timely updates on positive results within six months, as compared to the Annual General Meeting in October 2023.

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