The Chairman of Hoa Binh Construction said that he always puts the interests of shareholders first, does not control the structure of the Board of Directors "how many people are on his side", leading to the situation of forming cliques when there is a conflict.
The annual meeting of Hoa Binh was scheduled to open at 2:30 p.m. this afternoon, but almost failed and could not begin until 4:30 p.m. because it had to wait for more than 50% of shareholders with voting rights to attend.
In the opening sharing session, Mr. Le Viet Hai, Chairman of the Board of Directors of Hoa Binh, accepted responsibility for some unfortunate incidents that seriously affected the reputation of the board of directors and the Hoa Binh brand.
Specifically, at the end of 2022, Mr. Hai submitted his resignation as Chairman of the Board of Directors to ensure the appointment of his son as General Director. However, due to internal disagreements on personnel management, he withdrew his decision to leave the Board of Directors and remained as Chairman. His son continued to be Deputy General Director. The "seat" of General Director of Hoa Binh was only added in mid-May 2023.
Chairman Hoa Binh acknowledged that the recent conflict at the top stemmed from his management style, when he was willing to let people with capacity, qualifications and vision join the Board of Directors without controlling the membership structure. Therefore, there was a period when independent members accounted for half of the Board of Directors, exceeding the 30% required by the company charter.
"I don't care how many people are on my side, I only care that the Board of Directors' decisions must serve the interests of the company, not any personal interests. This is why when there is a conflict of interest, members form cliques," said Mr. Hai.
However, the Chairman of Hoa Binh shared that he is not ashamed of his efforts and doing everything he can to help the company overcome difficulties. "Every decision I make in any situation is made based on the principle of the highest interests of shareholders, even if sometimes I have to sacrifice my own interests," he said.
Mr. Le Viet Hai at the annual meeting on the afternoon of June 27. Photo: HBC
As the "helmsman of the Peace ship", Mr. Hai also takes responsibility for not fulfilling his duty to develop the company as expected, not worthy of the trust and expectations of shareholders.
According to the unaudited 2022 business results, the company recorded net revenue of VND 14,148 billion and a net loss of VND 2,575 billion, failing to meet the set plan. The total bid value reached VND 15,885 billion, less than 80% of the plan.
The company's leader reassured shareholders that the current difficulties are only temporary and that he is confident that once the storm passes, the company will regain its position and make a strong breakthrough. He said that there have been many positive signs, so he decided to keep the revenue target set at the beginning of the year at VND12,500 billion and profit at VND125 billion. This plan is VND5,000 billion higher in revenue and VND25 billion higher in profit than the information announced in the shareholder meeting documents.
"This is a challenging plan, but with many initiatives and outstanding efforts, we consider it not an impossible goal," said Mr. Hai.
Shareholders waiting for the annual meeting of Hoa Binh Construction Group to begin. Photo: Phuong Dong
According to General Director Le Van Nam, Hoa Binh's business plan is built on the current normal economic conditions. If things get worse, the company has prepared for the most pessimistic scenario, in which revenue will only reach VND9,500 billion, a decrease of about 33% compared to last year.
Mr. Nam added that Hoa Binh's goal for the next three years is to improve two important financial indicators: net profit equal to 2% of revenue and non-negative cash flow from production and business.
The head of the executive board said that a comprehensive restructuring plan is being vigorously implemented to restore its inherent position. This plan includes restructuring finance, human resources, products, markets, management systems, and the portfolio of member and affiliated companies.
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