On May 21, HEM held an online Annual General Meeting of Shareholders, approved business results in 2022, plan for 2023, including dividend payment.

The report on production and business results in 2022 shows that the Company recorded consolidated net revenue of VND 521.2 billion, up by 16.9% compared to 2021. The consolidated profit after tax was VND 42.6 billion, a remarkable year-on-year increase of 6,894.8%.

The majority of the profits comes from the production results of the Parent Company (HEM) and SAS-CTAMAD Co., Ltd. – an affiliate of HEM (HEM holds 35%), operating in the hotels and leasing offices segment. SAS-CTAMAD is the investor of the Melia 5-star hotel and office building complex at 44 Ly Thuong Kiet, Hanoi. This joint venture is quite efficient, bringing in dividends for HEM every year. During the pandemic, the hotel and accommodation segment was severely affected, but after the epidemic was under control, SAS-CTAMAD’s operations flourished, exceeding 513.4% of the plan.

Regarding HEM’s operations in 2022, the company’s leadership shared that they have repaired various electrical equipment, including 4,194KWW generators for the oil and gas segment, 11.5 MW generators for the hydropower segment, which have been well received and highly valued by customers in the cement, steel, thermal power, and hydroelectric segments. In 2022, HEM achieved the first significant milestone by repairing a 15MW SIEMENS motor (made in Germany) with a voltage of up to 13.8 KV for a large Taiwanese (Chinese) corporation, Formosa. Typically, such motors must be sent back to the manufacturer abroad for repairs, which can be very costly.

According to Dang Xuan Tan, the CEO of HEM, the company’s products and services have an advantage in the northern and central regions of Vietnam, but they see the southern market as a large and potential market. Therefore, the company aims to cover the entire market. HECO, a subsidiary of HEM, represents the company in sales and service operations in the southern region.

“We will continue to invest in human resources, machinery, and equipment to enhance HECO’s capabilities in motor business and services in the Vietnamese market. Our goal is to build HECO into a strong maintenance unit, especially for industrial equipment in the oil and gas segment, and to promote the development of the motor business market,” said Tan.

At the HEM shareholders’ meeting, the company approved a dividend payout plan of 25% for 2022, which amounts to VND 96.7 billion.

For 2023, HEM aims to achieve consolidated revenue of VND 619.5 billion, an increase of 18.6% compared to 2022. However, the consolidated profit after tax is expected to be VND 35.7 billion, a decrease of over 16% compared to 2022.

Speaking about the company’s 2023 goals, Pham Tuan Tu, a member of the Board of Directors, said that HEM recognizes 2023 as a challenging year. In fact, in Q1, the revenue only reached 60% of the plan. Despite the lower revenue, the company’s profit still reached 107% of the plan thanks to cost savings, and the company will try to fulfill its plan for the year.

“The company is implementing an approved restructuring plan, which is a long-term and resource-intensive task. Some of the restructuring tasks include rearranging the workforce, continuing to rearrange the production lines to improve efficiency and product quality management, establishing a research and development department, focusing on researching new products, improving existing products, etc. We are continuing to introduce new products to the market, including the aluminum shell motor series and high-performance motor series,” said Tu.

Hanoi Electromechanical Manufacturing Joint Stock Company (HEM) has a charter capital of over VND 387 billion and its parent company is GELEX Power Joint Stock Company, a subsidiary of the GELEX Corporation.

Communications Department, GELEX Group