A Letter to CC47 shareholders, about vision & strategy 2021 – 2025

Quy Nhon, September 27, 2021

 

Dear Shareholders,

On the occasion of the 46th anniversary of the establishment of Construction Joint Stock Company 47, I would like to express my sincere gratitude to all shareholders on behalf of the Board of Directors, Leaders, and the entire staff of the company. Best wishes and good luck!

Established on September 8, 1975, formerly known as Irrigation Construction Company 7 under the Ministry of Irrigation, now the Ministry of Agriculture and Rural Development. On February 3, 1996, Irrigation Construction Company 7 was merged into Construction Corporation 4 and changed its name to Construction Company 47. On July 1, 2005, the company officially changed its operating mechanism from a State-owned enterprise to a Joint-stock company according to the business registration certificate No. 4100258747 issued by the Department of Planning and Investment of Binh Dinh province. On March 30, 2011, the Company officially traded for the first time at the Ho Chi Minh City Stock Exchange with the code CC47.

CC47 has gradually mastered the construction technology of irrigation, hydropower, civil and industrial works throughout the country over the course of 46 years of establishment and development. CC47 was also the first to implement new technologies such as roller compacted concrete (RCC), tunneling technology using TBM Tunneling Robot (more than 15km has been implemented), and so on, with many key projects worth trillion dong, which were highly valued by investors and agencies. In the last 15 years, the company has completed more than 30 irrigation and hydropower projects across the country worth more than 20,000 billion VND. Some typical capabilities of CC47 include: capacity to excavate soil and rock 4 million m3/year, capacity of concrete 1.5 million m3/year, capacity to supply sand and gravel 1.3 million m3/year, …

Furthermore, the Company also expands its lines of business into other industries such as restaurants, hotels, travel, and tourism: 100% ownership of Seagull hotel of 4-star standard (169 rooms – 5,183 m2 land area), 3-star standard Hai Au Bien Cuong Hotel (80 rooms – land area of 1,095 m2) in the coastal city of Quy Nhon, Dinh Binh guesthouse and restaurant service area (area of 12,500 m2) in Vinh Thanh district, Binh Dinh province, Dinh Binh eco-tourism area (area 111,500 m2) in Vinh Thanh district, Binh Dinh province; Overhaul of construction motorcycles, production of mechanical engineering products, production of fresh concrete and precast concrete components (100 percent ownership of Phuoc An Enterprise with a land area of 48,743 m2 in the industrial complex in Phuoc An – Tuy Phuoc district); training and labor export (100 percent ownership of the training center with an area of 8,775 m2 in Quy Nhon); testing the mechanical strength of structural concrete, exploiting and transporting construction materials… These sectors all significantly contribute to the company’s annual revenue. In terms of fixed assets, primarily vehicles, machinery, and construction equipment, data from the financial statement dated June 30, 2021 show that the company’s historical cost of tangible fixed assets reached 1,230 billion VND, with accumulated depreciation amounting to 795 billion VND.

Dear Shareholders,

I have been with CC47 since 2017 through the process of participating in investment and learning about the company. On June 28, 2020, I officially joined the Board of Directors as Vice Chairman, and on August 14, 2020, I was recently elected as Chairman of the Board of Directors for the 2020-2025 term in 2021. This is both an honor and a huge responsibility for me. I received my bachelor’s degree in mechanical and automotive engineering from Ho Chi Minh City University of Technology, my master’s degree in business administration and marketing from Solvay School in Belgium, and my bachelor’s degree in quality management from the University of Economics in Ho Chi Minh City. I have held senior management positions in European and American corporations, and I am the founder and Chairman of Vu Phong Energy Group, which has been a pioneer in Vietnam’s renewable energy industry since 2009. The members of the Board of Directors for the term 2020-2025 of CC47 company are individuals with extensive experience in business operation management and financial management. The cohesion and consensus among the Board of Directors, Executive Board and employees after more than 1 year in the new term has created positive changes in the model of governance and management more effectively, creating the premise for the implementation of CC47’s 2021-2025 strategy.

The two years 2020 and 2021 are challenging years for the construction and tourism industries due to the Covid-19 pandemic, but thanks to the proactive response, CC47 still achieved positive results. In 2020, the company achieved sales of 1,233 billion VND and more than 21.7 billion VND in profit after tax. In the first 6 months of 2021, total revenue reached VND 572 billion and profit after tax was VND 17.1 billion, reaching 52% of the revenue plan and 55% of the year’s profit plan. It is clear that, as a result of the use of technology in improving management and supervision capacity, deploying ERP systems for businesses, optimizing production and business efficiency, cutting costs, particularly interest expenses and loans, the company’s profit in the first six months of 2021 increased by 29.45 percent over the same period in 2020. According to the General Director’s quick report, it is expected that the company will continue to achieve high profits in the third quarter of 2021 compared to the same period last year, and the company’s employees are determined to exceed the profit target of 2021 approved by the General Meeting of Shareholders.

In 2021, in addition to having completed and will complete the handover of works on large projects such as the Bac Ai Pumped-Storage Hydropower Project (Ninh Thuan), the Expanded Da Nhim Hydropower Project (Lam Dong), the Tan My Irrigation Project (Ninh Thuan), and the Dong Mit Irrigation project (Binh Dinh), CC47 has also begun and will complete the construction of the Hoa Binh Hydropower Plant Extension (Hoa Binh), repair and improve the safety of WB8 dam in Lam Dong province (Lam Dong), and continue to build the Phu Phong Rolling weir project (Binh Dinh) in October 2021. The total value of new construction works in 2021 will reach more than 1,500 billion VND, the total value of the bidding packages to be participated in at the end of 2021 and in 2022 is more than 5,000 billion VND, which will ensure the company income next year.

In terms of vision and strategy for the period 2021-2025, particularly in the post-pandemic recovery period, CC47 with the advantage of current capacity in the construction of large – scale projects and the policy of government funding,  will be able to participate in a variety of projects across the country, including:

– Projects in the irrigation, transportation, and infrastructure sectors under the medium-term bond capital 2021-2025.

– Projects financed with ODA loans.

– Major irrigation projects financed by the state budget, particularly in the Central and Central Highlands provinces.

– Large hydropower projects in Vietnam and neighboring countries that are being built or expanded.

With the above investment capital sources in the period of 2021 – 2025, especially large projects, with a total investment capital of more than 200 trillion, CC47’s job opportunities will be very feasible. Besides the traditional segments, the company will promote participation in new segments to gradually increase the proportion of revenue such as:

– Highway projects; anti-flood, anti-salinity projects; river and sea embankment

– A metro project utilizing TBM tunneling robot technology, as well as airport and port infrastructure.

– Projects involving renewable energy sources such as wind power, solar power, and other power plants.

– Civil building and factory projects, as well as industrial park infrastructure.

The company is expected to set an average revenue and profit growth target of 25% per year beginning in 2022, aiming for sales of over 3,000 billion dong by 2025 and eventually reaching a market capitalization of trillion dong and becoming a listed enterprise on the Ho Chi Minh Stock Exchange with a medium capitalization (MidCap) and high liquidity. CC47 will strengthen and improve its investor relations (IR) activities, provide transparent and timely information, and strive to maintain a high dividend payout ratio and bonus shares averaging more than 15% per year. The company’s Board of Directors and Board of Management have a fairly detailed plan for the period 2022-2025, and the Company hopes to organize a meeting soon, both in person and online, to share more details about the vision and strategy for the new period, as well as discuss in detail questions and acknowledge shareholder comments.

On behalf of the CC47 Board of Directors, we have always prioritized CC47’s long-term development and financial stability in order to provide long-term benefits to shareholders and employees while contributing to the company’s growth. Sustainable development that adds value to the community is an important component of the overall picture of a modern, dynamic, and powerful Vietnam in the future. We also look forward to gaining the trust of our shareholders, as well as the support and long-term companionship of CC47 in the integration journey, as well as to welcoming new opportunities and developing strongly on a new journey.

At the end of the letter, I would like to wish you and your family always happy, healthy and successful.

Best regards!

Chairman of the Board

M.A Phong, Pham Nam

 LETTER OF CONGRATULATION

THE 46^TH ESTABLISHMENT ANNIVERSARY

OF CONSTRUCTION JOINT STOCK COMPANY 47 (CC47)

Quy Nhon, September 8^th, 2021

Dear all Company’s former and current leaders, staff and laborers

On the occasion of the 46th birthday of the Company (08/09/1975 – 08/09/2021), and behalf of the Board of Management, Board of Directors, I would like to express my sincere thanks and best regards to all the leading generations, staff, and laborers of CC47.

On September 8, 1975, the Ministry of Irrigation issued Decision No. 888 QD/TCCB to establish the Mechanized Construction Team Zone V, tasked with building irrigation works to serve agriculture and people’s economic lives in the Central and Central Highlands provinces. Having witnessed the development process as well as the history of the irrigation industry, the Zone V Mechanized Construction Team has consistently thrived, expanded its scale, purchased new technical equipment, accumulated resources, laid the groundwork for the establishment of Construction Company 47 on February 3, 1996.

To preserve the cultural identity and promote the traditional values of a Heroic Unit, the leaders and staff of CC47 have chosen September 8th as the annual Company’s traditional day. This is a historic milestone with special significance for generations of CC47 leaders, officers, and employees to look back on the history, roots, and be grateful for previous generations’ dedication and hard work. And today is also an opportunity for all of us to commit to preserving and promoting that glorious tradition with a strong determination to create a more successful version of CC47.

CC47 has gradually mastered the construction technology of irrigation, hydropower, civil and industrial works across the country over the course of 46 years of establishment and development. Our company was the first to implement technologies such as RCC roller compacted concrete technology and tunneling technology using TBM tunneling machines. The company is also well-known for its role as a contractor in many key projects worth trillions of dongs, including the Dinh Binh Reservoir in Binh Dinh province, the Nuoc Trong Reservoir in Quang Ngai province, the Dong Nai 4 Hydropower in Dak Nong province, the Thuong Kontum Hydropower plant in Kon Tum province, and the Trung Son Hydropower plant in Thanh Hoa province. CC47 is also constructing the projects of Dong Mit Reservoir – Binh Dinh province, Tan My Irrigation system – Ninh Thuan province, Hoa Binh expanded Hydropower plant – Hoa Binh province, Bac Ai Pumped-storage Hydropower plant – Ninh Thuan province. … In addition, the company is also successfully operating business in the field of hotels and restaurants such as Seagull Hotel – Binh Dinh (4 stars), Hai Au Bien Cuong Hotel – Binh Dinh (3 stars), and the Seagull brand has become a tourist symbol of the beautiful coastal city of Quy Nhon.

Dear all,

Looking back in time, our CC47 was born at the most difficult time in the country’s history, when it had just been liberated with so many war remnants. Despite poor equipment conditions, difficult roads… previous generations were not afraid to overcome numerous obstacles to complete the task of constructing irrigation works, hydropower, contributing to ensuring the people’s livelihood, and restoring the country’s economy…

I believe that by inheriting the core values of their forefathers, the determination of current employees, as well as the confidence of investors, the support of relevant agencies, customers, etc, we will be ready to integrate, welcome new opportunities, and thrive on a new journey to become a leading enterprise locally and reaching out globally in the role of the 46-year-old brand – CC47.

At the end of this letter, I would like to wish all generations of CC47 leaders and employees, as well as their families, happiness and success!

Wishing Construction Joint Stock Company 47 continued success and many major milestones in the coming years!

Best regards,

The Chairman of the Board of Management

M.A Phong, Pham Nam

 

 

It has been one month since the Hotel implemented the directive to provide lodging for guests returning from epidemic areas (these guests do not meet the requirements for self-isolation at home to ensure safety for their family members). Seagull Hotel welcomed approximately 40 guests and provided more than 30 rooms in a 5-story independent unit, which ensures high-quality facilities, nutrient-rich meals, and commitment to Covid-19 prevention safety measures. With the aforementioned elements, Seagull Hotel promises to provide clients with the best service and experience possible.

“Self-isolation in a private room is very different from community isolation because food is provided in rooms with a sea view, hygiene, and comfort. Customers may feel like taking a vacation”, Mr. Khanh reflected on his isolation period at the Seagull Hotel.

Seagull Hotel will work with Binh Dinh Province to welcome guests from epidemic areas and provide lodging in a 5-story standalone unit. At the same time, the Hotel provides staff accommodations to local enterprises and businesses, ensuring that the business follows the “One route, two destinations” strategy.

8 Reasons to Stay at Seagull Hotel:

• As a forerunner with extensive experience in epidemic prevention,
• There is a separate and independent area for residents returning from epidemic areas to be cleaned and disinfected in accordance with Ministry of Health regulations.
• All employees have received two Covid-19 vaccinations.
• There is free drinking water in the room.
• Serving nutritious meals three times per day
• Reasonable and affordable lodging costs
• Medical examinations on a regular basis
• Security personnel and a front desk open 24 hours a day, seven days a week to meet the needs of guests

Furthermore, Seagull Hotel continues to serve business guests…, long-term guests, and employees of enterprises implementing the plan “One route, two destinations” to serve stable production and business in the 11^th  floor, which is completely separated between the two areas, and is dedicated to ensuring the safety of guests staying there.

“I went on a business trip to the Seagull hotel; I had heard that the hotel serves people returning from epidemic areas, but when I arrived, it was not what I expected; my area is for business guests staying on the 11th floor which is separate from the 5-story area, is strictly controlled by management, and is difficult to contact, so I am confident that the epidemic will pass quickly.” Mrs. Minh reflected on her business trip at Seagull Hotel during the pandemic.

Contact us for support and advice:

(Ms. Tuyet): 0347 892 288 | Hotline: 0942 70 74 75