On July 6, 2024, Hai Long Construction JSC held a conference to review business performance for the first 6 months of 2024 and implement the business plan for the last 6 months of 2024.
Attending and directing the conference was Mr. Pham Anh Tien, Chairman of the Board of Directors of Taiyo Group Holdings – the parent company of Hai Long Construction JSC. Mr. Pham Tien Dung – Vice Chairman of the Group – General Director of the Company, chaired and moderated the conference.
…Continuing to maintain jobs and stable income for employees and affirming many positive signals for completing the 2024 plan…
(Mr. Pham Tien Dung – General Director of Hai Long Construction JSC speaking at the conference)
The conference opened with the announcement of several decisions to continue perfecting the organizational structure and apparatus, aiming to improve management and operational efficiency. Following the program, Mr. Pham Tien Dung, on behalf of the Board of General Directors, informed the conference of the results of the meeting to adjust the 2024 plan, which had been approved by the Company's Board of Directors and the Group, as follows: The total contract value target for 2024 was adjusted down from the planned 4,350 billion VND to 3,680 billion VND, output value adjusted down from 3,600 billion VND to 3,100 billion VND, revenue value adjusted down from 3,000 billion VND to 2,660 billion VND, capital recovery adjusted down from 3,000 billion VND to 2,750 billion VND, steel structure production adjusted down from 32,000 tons to 30,000 tons…, other targets remain unchanged according to the beginning-of-the-year plan.
The reason for the downward adjustment of the plan targets is the fierce market competition. Due to various reasons, many competitors have deeply discounted their prices, forcing the Company to decline many contracts to avoid the risk of losses during execution. On the other hand, many signed contracts have been delayed in implementation because the Investors changed designs and needed time to complete legal procedures, which was not as expected when the plan was made. At the same time, the company's leadership also advocates not chasing revenue, but dedicating more time and resources to consolidating and perfecting the apparatus, and improving management mechanisms to increase productivity, quality, efficiency, and competitiveness.
With the results achieved in the first 6 months of 2024, the leadership is fully confident that there is a basis to complete this adjusted plan. The plan targets achieved as of June 30 are as follows: Total contract value reached 2,347 billion VND, reaching 64% of the adjusted plan. Total output value reached 1,647 billion VND, equivalent to 53%. Total revenue reached 1,108 billion VND, equivalent to 41.6%. Capital recovery value reached 1,349 billion VND, equal to 49% of the annual plan. Steel structure production output is also very encouraging, with 21,130 tons already produced and continuing to be produced until the end of 2024. In addition, Hai Long Steel Structure Factory has signed contracts and is in the stage of producing samples for export to many large corporations in Japan and South Korea, opening up opportunities for stable export orders in the near future. The company is determined to complete the construction of the No. 3 Steel Structure factory on an area of 5.2 hectares with two of the most modern automatic steel structure production lines in Vietnam by September 2024, raising the total production capacity of steel structure factories to 45,000 tons by 2025 and subsequent years.
Besides the targets achieved above, credit relations with credit institutions continue to be consolidated and strengthened. Hai Long Construction has consistently been ranked as one of the customers with the highest credit rating in the system for many years. Credit limits always ensure all production, business, and investment needs. Jobs for employees are always guaranteed, and income and working conditions are continuously improved and enhanced. In the first 6 months of the year, the Company's Trade Union also successfully organized tours to Europe and China for employees as part of the 25th-anniversary celebration program, together with the “younger sibling” company, Taiyo Tourist. It is expected that in August – September, there will be trips to Thailand for direct laborers, with 100% of the costs covered by the Company.
Following Mr. Pham Tien Dung's remarks, the Deputy General Directors, heads and deputy heads of departments, factory directors, and site managers discussed enthusiastically and reached a high consensus on the General Director's adjusted plan. They determined that adjusting the 2024 plan downward is necessary and are determined to unite, join forces, and persevere in following the centralized management model because it always ensures quality and progress, is always highly appreciated by investors, and overcomes the downsides of the centralized management mechanism, such as waste of materials, vehicles, machinery, and construction equipment… The members at the conference affirmed their determination, decisiveness, and efforts to work and learn for an increasingly strong Hai Long Construction brand, confident in completing the adjusted 2024 plan targets that the General Director just presented.
Mr. Nguyen Van Thiet – Site Manager speaking at the conference
Panoramic view of the conference
Speaking at the conference, Party Cell Secretary – Chairman of the Board of Directors Pham Anh Tien highly appreciated the results that the collective of Construction employees achieved in the first 6 months of the year. Although adjusted downward, the 2024 plan targets are still very large and impressive in the context of a market that still faces many difficulties, potential risks, unpredictability, and increasingly fierce competition…. Over the past years, Hai Long Construction has risen to become a leading enterprise in Vietnam in the field of industrial construction, contributing positively and significantly to the country's renewal process. Achieving that result, besides luck and the high determination and unity of all employees, is due to the correct development strategy, the result of labor, and the accumulation of generations of leaders and employees over the past 25 years since its establishment. Let us be proud and continue to cultivate the Hai Long Construction Brand, which for a quarter of a century has always maintained its growth momentum, kept its word to customers, always maintained jobs and stable income for employees, always fully paid taxes, social insurance, health insurance, party dues, and trade union fees… to the state budget and management agencies, never once delayed salaries or insurance for employees, never overdue any debt to the Bank, and is always trusted and accompanied by shareholders. That result and tradition will add confidence and serve as a basis for the collective of Hai Long Construction employees to be confident, united, and work together to overcome all difficulties, continue to complete the 2024 plan and subsequent years, continue to be the leading flag, the eldest brother in the parent company Taiyo Group, and also practical actions to celebrate the 25th anniversary on November 2.
Mr. Pham Anh Tien – Chairman of the Board of Directors of Taiyo Group speaking at the conference
Mr. Pham Anh Tien also emphasized that he himself will keep the entrepreneurial spirit forever and called on all employees to constantly learn, innovate, unite, and persevere in building the Group and its subsidiaries to be increasingly clean, strong, clear, and transparent. The Group itself has also based on the actual situation to change the model accordingly, having completed the transition to a Holding model, only managing subsidiaries through Capital and Organizational work, without generating revenue (the Group's Revenue report is simply the audited consolidated report of the subsidiaries), while simultaneously focusing on perfecting the Supervisory Board to support subsidiaries better and better….. Besides the eldest brother – the leading flag Hai Long Construction, the “younger” companies in the parent company Taiyo Group are also striving to have a year of completing the set plan targets.
