VINACHEM

In Apr 08, 2016 Vinachem held a conference to summarize the task of quarter I/2016 and deploy the task of quarter II/2016, to complete the Group’s targets in 2016. Attending the conference were Mr. Luu Hoang Ngoc, Deputy director of Chemical Department; representative of leadership of Industry and Trade Ministry, Vinachem and unit members. CEO and General Director Mr. Nguyen Gia Tuong preside over the conference in Can Tho City.

The delegates were heard Deputy General Director Mr. Bui The Chuyen report the results of quarter I/2016 and orienting the tasks of QII/2016.

According the first quarter of 2016, production and business of Group continued to face many difficulties in product sales, market demand is low, prices of some fertilizer products, rubber decreased greatly affect revenue and profit of unit members. But with the spirit of initiative in implementing Resolution 01/NQ-CP of the Government and by the effort of all the staff and employees, the Group basically production and business achieved positive results; ensuring balances of goods for the demand of the economy and agriculture production. Basically unit members remain stable production, Group’s production and business still effective; ensuring employment, incomes for employees. Investment construction continue to be promoted and in progress. Group's restructuring is implemented in plan, and achieved positive results, ensure environment safety in work. Communist Party, trade union, youth union still implement positive and effective. However, besides these results and some indicators exist as lower revenue, industrial production value at commodity prices fell, losses increased compared to the same period in 2015; Progress divestments in the joint venture company slowly; science technology did not meet development of the Group.

Some basic target achieved in quarter I/2016 as follows:

1. Production value calculated at constant prices in 2010 was estimated at 9,634 billion VND, up 2.3% from the same period in 2015; calculated at current prices estimated at 9,523 billion VND, down 2.5% compared to the same period of 2015. In particular: Fertilizers and pesticide group estimated at 5,031 billion VND, down 6.9% compared to the same period of 2015; Apatite estimated at 902 billion, down 5.8%; Rubber estimated at 1,777 billion VND, up 2.6%; electrochemical (battery) estimated at 594 billion VND, up 15.4%; detergent estimated at 630 billion VND, up 8.3%; basic chemicals, industrial gases estimated at 549 billion VND, up 1.7%; other products increased by 1.2% compared to the same period of 2015.

2. Revenue estimated at 9,636 billion VND, down 2.9% compared to the same period in 2015. Therefore: fertilizers and pesticide estimated at 5,074 billion VND, down 7.1%; Apatite estimated at 1,013 billion VND, down 4.4%; rubber estimated at 1,645 billion VND, down 2.5%; electrochemical (battery) estimated at 631 billion VND, up 16.5%; detergent estimated at 623 billion VND, up 1.2%; basic chemicals, industrial gases reached 597 billion VND, up 15.6%; other products increased by 30.1% compared to the same period in 2015.

3. Accumulated profit of quarter I/2016 reached 42.2 billion VND, therefore: accrual interest estimated 532.6 billion VND, accrual losses estimated 490.4 billion VND. Pay to state budget estimated 384.4 billion VND.

4. About the output of commodity: Production and supply to market of 856 thousands tons of fertilizer; 504 thousands automobile tires; more than 1.6 million motorcycle tires; 100 thousand tons of detergent and chemical products to the demand of production and social life. Some products increased over the same period: DAP up 6.9%, Urea up 22.3%, Truck tire up 7.0%, Apatite up 2.9%, automobile tires up 8.4%, Cell battery up 12.2%, Battery up 17.9%, Detergent up 6.1%. However, some products down, such as phosphate, NPK ...

Internal consumption within the Group need to push harder, strive to improve the proportion of internal purchase to support commodity consumption. Internal purchase value reached 313 billion VND; some commodity had a highly purchase rate such as: Nitrogen gas (100%), HCl (100%), Flotation aiding chemicals (100%), Caustic soda (99%) ... but some key commodities purchase rate was not reach expect such as: Urea (34%), DAP (46%), Ammonia (55%).

According to the report, production business and construction investment targets in quarter II / 2016 as follows: industrial production value striving 11,364 billion VND, down 6.3%, the Accumulated 6 months reach 20,887 billion, down 4 , 6% over the same period in 2015; revenue reach 12,032 billion VND, down 14.2%, the Accumulative 6 months reach 21,642 billion VND, down 9.5% compare to the same period in 2015; Gross profit quarter II reach 98.4 billion VND, therefore: Accrual interest reach 677.3 billion, Accrual losses reach 578.9 billion VND; total investment value reached 1,100 billion VND.

Mr. Nguyen Anh Dung, Chairman of the Group speeched at the conference and direct the results of quarter I/ 2016. He said that besides the positive results of production and business as maintain production, ensure jobs and income for employees .... in the current difficult conditions and also many problems that need to be overcome, such as some unit members losses, many projects was not in schedule. He requires unit members need to concentrate to execute the task, plans and focus on promoting production and business and commodity consumption especially rubber products and electrical goods; boosting investment in key projects, especially Laos salt mine projects, ensure in schedule, quickly promote investment efficiency; cost savings; striving to achieve the highest results in works ...

Speeching at the Conference Mr. Nguyen Gia Tuong has praised the efforts of unit members overcome difficulties to complete the task, maintain employment and ensure livelihood security for the employees thereby contributing to performance production and business plans of the Group. However, the situation especially difficult now, the task of the second quarter of both 2016 and is very heavy, to complete the tasks that require outstanding efforts. He requires unit members strictly implement the guidance of Mr. Nguyen Anh Dung and the action plan of the Group in the report to reach the highest result of target.