SOTRANS Group Overcomes The Covid-19 Pandemic With A Record Growth Of 42% In 2021

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SOTRANS Group Overcomes The Covid-19 Pandemic With A Record Growth Of 42% In 2021

05/16/2022

SOTRANS Group and the member companies Sowatco and Vietranstimex successfully organized the Annual General Meeting of Shareholders (AGM) with all ratifying BOD’s reports and proposals with the high approval rate on May 11th and 12th, 2022.

2021 has been a tough year! The transportation market has not recovered stably yet, even has many periods of deep decline with rocketing fuel prices and the ongoing Covid-19 pandemic. So, SOTRANS Group's business performance was significantly affected. However, the available response scenarios and flexible business plans has helped SOTRANS Group adapt well to each period and achieve positive revenue results.

According to the BOD’s report of SOTRANS Group, as of December 31, 2021, Sotrans recorded a record revenue of VND 2,886 billion with an increase of 42% compared to 2020 and 24% compared to the 2021 plan. Profit before tax and profit after tax reached VND 302 billion and VND 246 billion, up 17% and 15%, respectively.

It is noticeable that almost investments in earlier years also contributed significantly to grow SOTRANS Group's total assets from 2,339 to VND 2,684 billion, up 15% over the beginning of the year.

This is a business result that exceeds the targets assigned by shareholders when SOTRANS Group and the member companies Sowatco and Vietranstimex focus on the core business activities in accordance with SOTRANS Group‘s the development orientation.

In 2021, SOTRANS Group will continue to invest in production and business activities at its subsidiaries, such as: building 2 new 300-Teu container ships; construction and upgrading infrastructure and purchasing new equipment for Long Binh port: Liebherr crane, fleet of tractors for transportation and 800T crane for wind energy projects…; completing and putting into use the management software for Ports, Logistics and Accounting...

Current ratio of SOTRANS Group stabilized at over 1.7 times - a safe level for both fiscal years 2020 and 2021. Leverage ratios was used for investment and business activities in order to bring the best benefits to shareholders, but still ensure a safety with a debt ratio which leveled off at 0.3 times of total assets in 2021 and 2022.

At the AGM of member companies Sowatco and Vietranstimex on May 11th and of SOTRANS Group on May 12th, shareholders discussed SOTRANS Group's transformation strategy and approved the major business goals and orientations for the period of 2021-2024, to anticipate the post-COVID-19 economic recovery and speed up business operations according to the set goals.

In particular, the Board of Directors submitted the 2022 business plan to the meeting for approval, including 5 main pillars:

(1) Transforming the business model in the direction of focusing on specializing some main business fields of each member company, such as: (i) Sotrans Logistics focuses on the International and Domestic Freight Forwarding and Warehouse Service; (ii) Vietranstimex focuses on the Oversize, Overweight Multimodal Transportation Services for many important industries, such as: Electricity, Oil and Gas, Petrochemical, Cement, Transportation, especially, transportation and assembly for the wind power systems…; (iii) Sowatco focuses on Port Operation and Waterborne Transport in Vietnam.
(2) Transformation of personnel and organization: Focus on restructuring personnel and organizational structure to meet human resources for business model transformation and SOTRANS Group’s strong development needs in the next time.
(3) Restructuring and optimizing assets.
(4) Effective operation through the regulatory and process system optimization and digital transformation of business management systems.
(5) Business Integration.

Environmental protection and company social responsibility was also approved by shareholders to achieve SOTRANS Group's sustainable and high-quality development goals.

With a tradition of 47 years in Logistics industry with the persistent efforts and consensus of all members of SOTRANS Group, the success of the 2022 AGM will shape SOTRANS Group and its member companies Sotrans Logistics, Sowatco and Vietranstimex into a new phase of innovation and growth according to the set strategy.

(SOTRANS Group News)

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