On May 20, 2022, Kosy Joint Stock Company, with ticker symbol: KOS (a member of Kosy Group) held the Annual General Meeting of Shareholders and approved a number of resolutions and action plans in 2022.

Expected revenue in 2022 will increase by 38.6%, charter capital in 2022 will increase to more than 2,731 billion VND

At the 2022 Annual General Meeting of Shareholders, the Board of Directors of Kosy Joint Stock Company reported that its net revenue in 2021 reached 1,154.3 billion dong, its pre-tax profit reached 30.3 billion dong in 2021. The General Meeting also recognized a new target for business growth of Kosy Joint Stock Company in 2022, with total expected revenue of over 1,600 billion dong and pre-tax profit of 275 billion dong. In the period of 2022 – 2025, the company is expected to deploy 15 new real estate projects, bringing in profit of 5,000 – 6,000 billion dong.

Shareholders and the Presidium of the General Meeting also approved important resolutions and reports such as: business results 2021 and business plan 2022, unified regulations on internal corporate governance and operations of the Board of Directors, etc.

In particular, the General Meeting unanimously approved the Kosy Joint Stock Company to continue to issue shares for share swap of Bac Lieu Kosy Wind Electric Joint Stock Company, raising the ownership rate in this company to 90%. (The company owns Bac Lieu Wind Power Plant with a capacity of 40.5 MW).

Investing in electric energy companies helps to ensure a stable and steady flow of revenue and profit to Kosy for the implementation of potential energy and real estate projects such as: Kosy Bac Lieu wind power, phase 2 – 50 MW (offshore), Kosy Lam Dong power storage, Kosy Hanoi urban area, Kosy Ha Tinh urban area, Kosy Riverside Lao Cai urban area and other projects in many provinces and cities in the coming year.

The General Meeting discussed several important issues:

According to the plan in 2022, the profit after tax of Kosy JSC is 220 billion dong, so what is the feasibility of achieving this level of profitability and what sources does the profit structure come from?

Ms. Nguyen Thi Hang – Vice Chairwoman of the Board of Directors of Kosy Joint Stock Company, on behalf of the Presidium of the General Meeting said that: In terms of feasibility, completed old real estate projects with recognized revenue include Kosy Mountain View Urban Area, Kosy Eden Bac Giang Urban Area… Besides, in 2021, Kosy Joint Stock Company continues to deploy and start five new real estate projects: Kosy City Beat Thai Nguyen Urban Area, Kosy City Beat Ha Nam Urban Area, Kosy City Beat Ninh Binh Urban Area, Kosy City Beat Lao Cai Urban Area, Kosy City Beat Quang Binh Urban Area. In 2022, these 5 projects will be open for sale, record part of the revenue. Kosy Joint Stock Company plans to achieve revenue of 1,600 billion dong, pre-tax profit of 275 billion dong and profit after tax of 220 billion dong this year.

Consolidated profit structure from real estate accounts for over 80%, the rest is from other businesses.

Objectives and strategies of Kosy JSC in the coming time? Overview of Kosy JSC in 2025 and 2030?

Mr. Nguyen Viet Cuong – Chairman of the Board of Directors of Kosy JSC, Chairman of the General Meeting: Kosy Joint Stock Company is one of more than 20 members of Kosy Group, operating in multiple business lines, of which two main areas are real estate and renewable energy. Every year, Kosy will start and implement about 4, 5 new real estate projects, M&A of some energy projects to expand its scale.

In 2021, Kosy Joint Stock Company successfully issued shares to exchange for 98% of the shares of the company that owns Nam Pac Hydropower Plant (capacity of 34 MW). This year, Kosy Joint Stock Company continues issue shares for share swap of the company owning Kosy Bac Lieu wind power plant, raising the ownership rate in this company to 90%.  (capacity of 40.5 MW). Thus, after re-structure of these two energy companies, Kosy Joint Stock Company will have charter capital expected to increase to 2,731 billion dong and total assets expected to increase to about 5,181 billion dong.

Currently, Kosy Joint Stock Company is continuing to plan to buy shares of Pa Vai Su and Muong Tung hydropower companies with a total capacity of 82.5 MW after these two companies have completed the construction and put into operation, generating electricity.

In addition, in the coming years, Kosy Joint Stock Company will implement M&A with a number of other energy companies, aiming to increase its scale to be capable of implementing large-scale-and-capacity real estate and renewable energy projects.

Currently, Kosy is completing the legalization of a number of large-scale real estate projects of several hundred hectares and a number of energy projects with a capacity of over 1,000 MW. With target to 2024 – 2026, Kosy will focus on implementing a number of large projects such as a real estate project with a scale of up to 500 hectares, a hydroelectric power project with a capacity of 1,200 MW, an offshore wind power project with a capacity of 500 MW.

We are confident that Kosy Joint Stock Company will grow up and become a big enterprise in Vietnam.

It is known that Kosy Joint Stock Company has been implementing many real estate and renewable energy projects in many provinces and cities, but the business results are not good. Can you explain this? And what are the expected business results in 2022 and some subsequent years?

Mr. Nguyen Viet Cuong – Chairman of the Board of Directors of Kosy JSC, Chairman of the General Meeting: Nam Pac Hydropower Plant and Kosy Bac Lieu Wind Power Plant have just been restructured into Kosy Joint Stock Company and these two plants are in the payback period, so they have not yet made a profit.

In the previous real estate projects, Kosy did not have much experience in implementation, so there are still limitations in the selection of project locations, planning, site clearance, as well as in construction and business… resulting in slow project implementation, low efficiency and slow revenue recognition process, leading to low profit.

Besides, over the past time, with review, change of mechanisms and policies, and developments of the Covid-19 pandemic, in general, enterprises have very few newly implemented projects and so does Kosy. This also explains why business results in the past few years have not been good.

Currently, Kosy Joint Stock Company has a lot of experience in developing real estate projects, the speed of project implementation is much faster than before. Kosy is constantly improving its capacity so that real estate projects are deployed more quickly, aesthetically, efficiently, and with prestige to customers and partners.

In 2022, according to the plan, Kosy Joint Stock Company will have pre-tax profit of 275 billion dong, profit after tax of 220 billion dong. In 2023, profit after tax will reach about 600-800 billion dong. From 2024 onwards, Kosy Joint Stock Company will achieve a profit of 1,000 – 2,000 billion dong/year.

In 2021, Kosy Joint Stock Company completed the issuance of shares to exchange for 98% of the shares of TVX.,JSC (the company owning Nam Pac Hydropower Plant – with capacity of 34 MW). By 2022, according to the report of this General Meeting, Kosy Joint Stock Company will continue issue shares to exchange for shares of Bac Lieu Kosy Wind Electric Joint Stock Company, raising the ownership rate in this company to 90% (the company owning the wind power plant Kosy Bac Lieu – with capacity of 40.5 MW). How does investing in these energy companies bring value and efficiency to Kosy JSC?

Mr. Nguyen Viet Cuong – Chairman of the Board of Directors of Kosy JSC, Chairman of the General Meeting: Before investing and buying shares in energy companies, Kosy Joint Stock Company only operated in the field of real estate. Thus, in the long-term, the enterprise will not be sustainable, with few fixed assets, without much great value, etc.

In addition, TVX.,JSC (the company owning Nam Pac Hydropower Plant – 34 MW) and Bac Lieu Kosy Wind Electric Joint Stock Company (the company owning Kosy Bac Lieu Wind Power Plant – 40.5 MW) has been completed, generated and connected to the national grid. These two companies experienced many difficulties and risks during the construction process such as: construction progress, geology, engineering, machinery and equipment, arrangement of sufficient capital…, finally overcome all challenges to complete the project. Currently, these two projects both generate stable revenue of nearly 400 billion VND/year and will remain stable for the next long period.

When Kosy Joint Stock Company invests to buy shares in these two energy companies, it means that Kosy will operate in two main fields of real estate and energy with mutual support. Energy has stable cash flow, supplementing real estate with unstable revenue stream. This supports the enterprise’s sustainable growth.

In 2021, after completing the share swap of TVX.,JSC, the scale of Kosy Joint Stock Company has increased significantly. KOS’s charter capital increased by 514.5 billion, from 1,650 billion dong to 2,164 billion dong. Total assets after consolidation increased by 752 billion, from 3,120 billion dong to 3,875 billion dong.

In 2022, it is expected that, after successfully swapping shares of Bac Lieu Kosy Wind Electric Joint Stock Company, KOS’ charter capital is expected to increase by 566.7 billion dong, from 2,164 billion dong to 2,731 billion dong. Total assets after consolidation is expected to increase by 1,314 billion dong, from 3,875 billion dong to 5,189 billion dong.

Thus, Kosy Joint Stock Company will have the growth in scale, create prestige with partners and customers. Especially, Kosy will have enough capacity to implement real estate and energy projects with large scale and capacity as set goals and strategies.

In 2021, Kosy company does not have a new project for sale, so what is the reason? What is the plan to deploy, construct and sell real estate projects in 2022?

Mr. Do Quoc Viet – Member of the Board of Directors of Kosy Joint Stock Company, the Chairman of the General Meeting: In the past few years, due to policy adjustments, the impact of the Covid-19 pandemic and many other factors, the legal completion of real estate projects to qualify for start-up has been very slow. Therefore, in 2021, Kosy has no new projects to open for sale and mainly focuses on selling old on-going projects.

In addition to completing old real estate projects, in 2021 Kosy also continues to deploy and start new real estate projects in Ha Nam, Ninh Binh, Lao Cai, Quang Binh, …. Kosy Ha Nam urban area project has a scale of 23 hectares, has completed 100% of site clearance and is focusing on construction. The project is expected to be completed by the end of this year. Kosy Ninh Binh urban area project has a scale of 41 hectares, currently has cleared about 85% of the whole project area, the project is expected to be basically completed by the end of 2023. Kosy Quang Binh urban area project has a scale of nearly 10 hectares, currently has completed 100% of site clearance and is focusing on construction, the project is expected to be completed by October 31, 2022. Kosy Riverside Lao Cai urban area project has a scale of 43 hectares, currently has cleared and implemented, the project is expected to be completed by the end of 2024.

In 2022, Kosy will open these projects for sale. According to the plan, Kosy continues to start a number of new real estate projects in Bac Lieu, Ha Tinh, Thai Nguyen, Phu Tho and some other provinces this year and 2023.

The business environment is increasingly competitive and potentially risky. As the head of the business, what are your orientations, strategies or business philosophies to build Kosy for stable and sustainable development?

Mr. Nguyen Viet Cuong – Chairman of the Board of Directors of Kosy JSC, Chairman of the General Meeting: Kosy Joint Stock Company has the orientation to develop into a strong, sustainable development corporation for hundreds of years. As the head of the business, I think it’s important to understand its destiny, times and its business to come up with strategies and plans accordingly.

Kosy is doing multi-industry business but multi-industry at an appropriate level. Currently, Kosy operates in two main fields: real estate and renewable energy. In the coming years, when appropriate and under permissible conditions, we will expand to other business areas, ensuring that the fields support each other and develop sustainably.

What Kosy did not do well before, now has to do well. Kosy strives in the coming time, there will be no more customers to complain and solve definitively the problems; not cause difficulties or abuse the contractor’s capital, the suppliers, the point of view can do it, ensure the correct and sufficient payment for the contractors and partners to cooperate with Kosy to develop together.

Kosy strives to become a reputable and responsible business, a place to give the trust of partners, customers and localities.