Arrange three branches into three new companies in 2024

Biwase Shareholders' Meeting: Arrange three branches into three new companies in 2024

On the morning of March 25, Binh Duong Water and Environment Corporation (Biwase, code BWE - HoSE) held the 2024 Annual General Meeting of Shareholders.

In addition to the Board of Directors' and General Director's Reports on business results in 2023 and business orientation in 2024, at the Congress, Biwase also approved many other notable reports.

First, Biwase approved a plan to pay 2023 dividends at a rate of 14% in shares, implemented in the second to third quarters of 2024, and an expected 2024 dividend at a rate of 13% in cash.

Thus, if the stock dividend payment is completed, Biwase's charter capital is expected to increase to VND 2,199.3 billion.

Second, Biwase also approved the arrangement and conversion to terminate the operation of a branch and transfer to establish a new company under Biwase.

In which, the Chon Thanh water supply branch was terminated to establish Biwase Binh Phuoc Water Company Limited; the Urban Services branch was terminated to establish Biwase Production - Trade - Service Company Limited; and the Waste Treatment branch was terminated to establish Biwase Science - Technology - Environment Company Limited.

In addition, the termination of 3 branches and establishment of 3 new companies is expected to be completed in 2024.

Investors refer to Biwase's General Meeting of Shareholders documents. Photo by Le Toan

Third, Biwase has also approved the regulations for organizing online General Meetings of Shareholders and combining in-person and online meetings.

The approval of the new regulations on organizing the General Meeting of Shareholders helps the Company to complete the legal basis for organizing the General Meeting in person combined with online.

Fourthly, also at the Congress, Biwase approved the list of three auditing units including Deloitte Vietnam Co., Ltd., A&C Auditing and Consulting Co., Ltd. and AASC Auditing Company Limited to be selected to audit the 2024 Financial Statements.

Depending on the actual conditions and situation, in fiscal year 2024, Biwase will select one of the three above-mentioned auditing units to audit the 2024 Financial Statements.

Shareholders ask questions at Biwase's General Meeting of Shareholders. Photo by Le Toan

Speaking at the 2024 Annual General Meeting of Shareholders, Chairman Nguyen Van Thien answered all questions from shareholders at the meeting.

Regarding capital mobilization and investment, the Board of Directors is also having a headache to solve the investment plan. In 2024, the Company is looking for M&A opportunities but has not found any, it is likely to invest only one or two investments. In addition, the investment in building a new factory is feasible with a total expected investment of about 3,000 billion VND, allocated for 3 years, this year only disbursed about 500 billion VND for the Nhi Thanh project, small investments only disbursed about 100 billion VND/investment project...

Chairman Nguyen Van Thien answered all questions from shareholders at the 2024 Annual General Meeting of Shareholders. Photo: Le Toan

To ensure the investment plan, Chairman Nguyen Van Thien also shared that the Company is currently being offered by many units to participate in buying bonds issued by the Company with a term of 10 years, interest rate of 8%/year. In which, the Company is balancing and considering with a reasonable cost level.

“The company aims to balance its capital structure, placing financial security as the top priority. This year’s investment needs are around VND600-700 billion, the remaining working capital is currently around VND500 billion, the bank’s lending limit is still available and can be used, and large financial institutions are looking to support the company with capital,” Mr. Nguyen Van Thien emphasized the goal of financial security as the top priority despite the current investment push.

It is known that according to the 2024 investment plan, the Company plans to invest in expanding the Chon Thanh water plant, increasing capacity by about 30,000 m3/day and night; expanding the water supply network in Bau Bang, Phu Giao, Dau Tieng, Tan Uyen, Chon Thanh - Binh Phuoc areas; investing in improving facilities, increasing the capacity of Nhi Thanh water plant by 60,000 m3/day and night; investing in a 500-ton/day incinerator combined with 12MW power generation; speeding up the progress of compensation, support, and site clearance of about 400 hectares to serve the construction of a solid waste treatment complex in Tan Long commune, Phu Giao district, Binh Duong province.

Regarding the recent announcement of Binh Duong province's planning for the 2021-2030 period, with a vision to 2050, Mr. Nguyen Van Thien said: "From very early on, the leaders of Binh Duong province had a broad, unique vision, with an overview, so they planned Binh Duong province better than many localities across the country when investing in relatively developed and synchronous infrastructure compared to other localities. In particular, Binh Duong mainly invests in infrastructure itself, uses little budget, the state announces good compensation prices, compensation prices are even higher than market prices."

“With potential and industrial development, Biwase will benefit from the planning and development of water supply and waste treatment. The company hopes that other provinces such as Long An and Quang Binh will have a part like Binh Duong. This is an opportunity for Biwase to develop,” Mr. Nguyen Van Thien emphasized that the company benefits from the synchronous development planning of Binh Duong province.

In addition, during the discussion of the Congress, Chairman Nguyen Van Thien also shared that the Company has converted its accounting method from VAS to IFRS, is preparing for publication, and has also prepared a bilingual report.

“By 2025, Biwase will definitely make full disclosure according to the new accounting standard IFRS,” Mr. Nguyen Van Thien further emphasized.

And finally, regarding the results of restructuring the units in which the Company has invested, Mr. Nguyen Van Thien shared: “After purchasing companies in difficulty, the purchased units initially made profits. In particular, for unaudited companies, the Company can plan to increase ownership or will look for more potential shareholders to participate in the restructuring.”