ANNUAL REPORT 2024
TOGETHER IN BELIEF, LEADING IN INNOVATION
110
111
Pertaining to Financial structure
Social Responsibility
The Company sustained a robust balance sheet in 2024, evidenced by a low debt ratio and strong cash position. Total assets also expanded to exceed VND 5,600 billion. Financial structure remained secure, with a low debt-to-capital ratio of 0.17 times. Only short-term loans were utilized to finance working capital, ensuring financial prudence. Additionally, payout ratios remained stable throughout the year. As of December 31, 2024, the balance of cash and cash equivalents surpassed VND 2,458.7 billion, accounting for 43.6% of total assets. According to the profit distribution plan approved by the 2024 AGM, the Company disbursed the 2nd tranche of the 2023 cash dividend at a payout ratio of 8% (equivalent to VND 800 per share). In Q4 2024, the Company also proceeded the 1st tranche of the 2024 cash dividend at the same payout ratio of 8% (equivalent to VND 800 per share). Strictly adhered to all legal requirements for environmental protection, stayed informed and consistently implemented the latest environmental management guidelines, with a strong emphasis on ensuring compliance within manufacturing facilities. Ensured the implementation of environmental management standards and certifications that the Company had been accredited with and maintained compliance throughout. Organized socio-environmental activities to spread the message of environmental protection to partners, customers, and employees. Accelerated the energy transition at manufacturing facilities by increasing the use of solar energy and gradually converting fuel-powered vehicles to electric ones. Conducted a review and reorganized production processes, contributing to the reduction of raw material waste. Regarding the objective of reducing GHG emissions per unit of revenue by 2% annually (calculated as tons of CO2 equivalent per billion VND of revenue), the Company faced challenges in data collection for the greenhouse gas emissions inventory. In particular, differences in the basis of data between two years made year-to-year comparisons inappropriate. As a result, by the end of 2024, the Company was unable to establish a reliable comparison. However, it is anticipated that the data will be sufficient for meaningful analysis during the 2025 inventory period.
Amid the industry's widespread challenges in 2024, the Company made dedicated efforts to secure stable employment and consistent income for the workforce. Additionally, the Company remained committed to contributing to local communities and ensuring long-term, sustainable returns for its shareholders. These outcomes were achieved through decisive measures to optimize human resource allocation and streamline operations, aligning effectively with the Company's digital transformation strategy and evolving business needs. The Company established Compliance Control Department, primarily focused on occupational safety, hygiene, fire prevention and fighting (FPF), and environmental protection. Training sessions on these topics were conducted more frequently to enhance employees' awareness of occupational safety and FPF. These initiatives not only ensured compliance but also cultivated safe work habits and practices, protecting the health and well-being of employees. In addition, the Company collaborated with partners and distributors to enhance corporate social responsibility programs and actively engage in charitable initiatives. These efforts focused on improving living standards in local communities, promoting reforestation, and reinforcing the Company's image as a responsible and sustainable enterprise. The BOD acknowledged the Company’s dedication to enhance governance capabilities through the successful execution of several internal initiatives, particularly the digital transformation projects undertaken in 2024. The BOM and employees across all levels demonstrated a proactive mindset and adaptability, aligning effectively with evolving industry trends to drive operational efficiency. The official implementation of the SAP S/4HANA system in early 2024 has proven effective in streamlining information management, ensuring data transparency, and accelerating decision-making processes.
Pertaining to Profit Distribution and Dividend payments in 2024
Corporate Governance
Pertaining to ESG activities
Environmental Responsibility
In 2024, the BOD observed that the Company implemented numerous plans and initiatives to translate the BOD's strategic guidance—centered on minimizing environmental impact—into action plans, aligning with the Government's carbon neutrality goal.
Evaluation on the performances of the Board of Management
In 2024, the BOM diligently executed the strategies and guidance set forth by BOD. Business strategies and plans were implemented with strong determination and innovative approaches. The team demonstrated seamless coordination and adaptability in responding to volatile market conditions, while maintaining strict compliance with legal requirements and the Company's operational regulations. Although the reported figures indicated that the Company fell short of the profit target approved by the GMS due to extraordinary expenses, specifically the provision related to Novareal, the BOD acknowledged the proactive efforts of the BOM in negotiating with relevant parties to facilitate the recovery of the aforementioned receivables. The BOD further recognized that, despite these challenges, the BOM demonstrated commendable performance by driving export growth amidst subdued domestic demand and decisively optimizing production processes to enhance overall profit margins. Furthermore, the BOD highly commended the BOM for their strategic leadership in implementing and integrating advanced information technology and automation into the Company’s operations. These efforts have driven continuous operational improvements, resource optimization, and enhanced risk management. The BOD also acknowledged the relentless determination of the BOM and all staff in overcoming unprecedented challenges. Their efforts ensured uninterrupted business operations, safeguarded employment and employee well-being, and upheld responsible business practices with stakeholders. These achievements played a pivotal role in delivering An Cuong’s impressive performance over the past year.
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