Biwase’s General Meeting of Shareholders: Reorganization of Three Branches into Three New Companies in 2024

In addition to the reports from the Board of Directors and the General Director on the business results for 2023 and the business orientation for 2024, Biwase also approved several other notable proposals at the congress.

Firstly, Biwase approved the plan to pay a 14% stock dividend for 2023, to be executed from the second quarter to the third quater of 2024, and a projected 13% cash dividend for 2024.

As a result, if the stock dividend is completed, Biwase's charter capital is expected to increase to VND 2.199,3 billion.

Secondly, Biwase approved the restructuring and conversion of a branch into a new company under Biwase.

Specifically, the Chon Thanh Water Supply Branch will be terminated and replaced by Biwase Binh Phuoc Water One-Member LLC; the Urban Services Branch will be terminated and replaced by Biwase Production - Trading - Services One-Member LLC; and the Waste Treatment Branch will be terminated and replaced by Biwase Environment - Technology - Science Complex One-Member LLC.

Furthermore, the termination of the three branches and the establishment of the three new companies are expected to be completed in 2024.

Investors review the documents from Biwase's General Meeting of Shareholders. Photo by Le Toan.

Thirdly, Biwase also approved the regulations for organizing the General Meeting of Shareholders both online and in a hybrid format, combining in-person and online participation. The approval of these new regulations allows the company to establish a legal framework for conducting online and offline General Meetings of Shareholders.

Fourthly, at the General Meeting, Biwase approved a list of three auditing firms - Deloitte Vietnam Co., Ltd., A&C Auditing and Consulting Co., Ltd., and AASC Auditing Firm Co., Ltd. - from which one will be selected to audit the 2024 financial statements.

Depending on the conditions and actual circumstances in the 2024 fiscal year, Biwase will choose one of these three auditing firms to conduct the audit of the 2024 financial statements.

A shareholder asks a question at Biwase's General Meeting of Shareholders. Photo by Le Toan.

During the discussions at the 2024 Annual General Meeting of Shareholders, Chairman Nguyen Van Thien addressed all questions raised by the shareholders.

Regarding capital mobilization and investment, the management team is grappling with the investment plan. In 2024, the company is seeking M&A opportunities but has yet to find any, and it is likely that only one or two investments will be made.

Additionally, the investment in building a new plant appears feasible, with a total estimated investment of about VND 3.000 billion, to be allocated over three years. This year, only about VND 500 billion will be disbursed for the Nhi Thanh project, while smaller investments will receive about VND 100 billion per project.

Chairman Nguyen Van Thien answered all shareholder questions at the 2024 Annual General Meeting of Shareholders. Photo by Le Toan.

To ensure the investment plan, Chairman Nguyen Van Thien also shared that the company has received offers from various entities interested in purchasing bonds issued by the company, with a 10-year term and an interest rate of 8% per annum. The company is currently balancing and considering these offers to ensure reasonable costs.

"The company aims to balance its capital structure, prioritizing financial safety above all. This year, the investment demand is around VND 600-700 billion, with remaining working capital at about VND 500 billion. The bank loan limit is still available and can be utilized, and major financial institutions are eager to support the company," Mr. Nguyen Van Thien emphasized, highlighting the goal of financial safety despite the company's focus on expanding investments.

According to the 2024 investment plan, the company intends to expand the Chon Thanh water plant, increasing its capacity by approximately 30,000 cubic meters per day and night. Additionally, there are plans to expand the water supply network in the areas of Bau Bang, Phu Giao, Dau Tieng, Tan Uyen, and Chon Thanh – Binh Phuoc. The company also aims to improve infrastructure and increase the capacity of the Nhi Thanh water plant by an additional 60,000 cubic meters per day and night. Investment will also be made in a 500-ton-per-day incinerator combined with a 12MW power generation system, and efforts will be accelerated to compensate, support, and clear approximately 400 hectares of land for the construction of the solid waste treatment complex in Tan Long commune, Phu Giao district, Binh Duong province.

Regarding the recent announcement of the Binh Duong provincial plan for the period 2021-2030, with a vision to 2050, Mr. Nguyen Van Thien noted, "The leadership of Binh Duong province has had a broad, unique vision from an early stage, leading to a better provincial plan compared to many other localities across the country, particularly in terms of relatively developed and synchronized infrastructure. Binh Duong primarily invests in its own infrastructure with minimal reliance on state budget, and the government offers good compensation rates, often even higher than market prices."

"The potential for industrial development means that Biwase will benefit from the provincial plan, especially in water supply and waste treatment. We hope that other provinces like Long An and Quang Binh could achieve even a fraction of Binh Duong's development, as this would present opportunities for Biwase to grow," Mr. Nguyen Van Thien emphasized, underscoring the company's advantages gained from Binh Duong's synchronized development plan.
Additionally, during the discussion session, Chairman Nguyen Van Thien mentioned that the company has transitioned from VAS to IFRS accounting methods and is preparing to publish bilingual reports.
"By 2025, Biwase will fully comply with the new IFRS accounting standards," he emphasized.

Finally, regarding the restructuring results of the units in which the company has invested, Mr. Nguyen Van Thien shared, "After acquiring struggling companies, the initial results have been profitable. For companies that have not yet been audited, we may consider increasing our ownership or seeking additional strong shareholders to join the restructuring efforts."

Shareholders approved all the proposals at Biwase's 2024 General Meeting of Shareholders. Photo by Le Toan.

At the end of the meeting, all the proposals were approved.

Source: https://baodautu.vn/dhdcd-biwase-sap-xep-ba-chi-nhanh-thanh-ba-cong-ty-moi-trong-nam-2024-d211467.html