THACO holds Annual General Meeting
1. THACO’s 2017 business results
The Vietnamese economy expanded 6.81% in 2017. However, due to the effect of the zero-percent ASEAN auto import tax from 2018, customers tended to wait for 2018 for better car prices. Therefore, the total market volume only reached 297,000 vehicles, down 13.4% compared to 2016. Under the same market impacts, however, THACO still held the leading position with market share of 35.8%, and car sales of 88,820 vehicles, including:
Passenger cars: reached 47,791 vehicles, accounting for 22.9% of the market share, including 21,444 Kia cars (10.3% of the market share), 26,242 Mazda cars (12.5% of the market share) and 405 Peugeot cars.
Mazda passenger cars: occupy the second position among the Japanese auto brands in Vietnam. In addition, in 2017, THACO started the construction of THACO Mazda car factory with a capacity of 100,000 cars per year (phase 1: 50,000 cars per year) with an investment capital of VND12 trillion. The factory was invested in the direction of automation in line with 4.0 Industrial Revolution, ensuring that the Vietnamese-made Mazda vehicles are of equal quality to the Japanese ones, easing the mind and earning the confidence of customers in the domestically manufactured Mazda cars.
Peugeot passenger cars: THACO developed and introduced Peugeot next-generation products with PEUGEOT 5008 and PEUGEOT 3008 SUVs. So far, the company has received more than 1,500 car orders since their launch in early December 2017, marking a new stage of development for Peugeot brand in Vietnam.
BMW passenger cars: Also in 2017, THACO and BMW Group signed the agreement in distributing BMW, MINI and BMW Motorrad brands in Vietnam. THACO has acquired and taken over the business facilities from Euro Auto (from January 01, 2018). "The relaunch of BMW / MINI / BMW Motorrad brands distributed by THACO in Vietnam" (January 12, 2018). Being chosen by the German luxury auto brand as its distributor has demonstrated THACO's competence of governance, management and its capability to develop the dealership and customer service system.
Trucks and buses reached 41,029 vehicles, accounting for 43% of the market share, including: 38,024 trucks which qualify the Euro 4 emission standards and 3,005 buses. Inaugurated and put into operation Bus THACO Factory, the largest bus factory in Southeast Asia, developed a whole new bus which was studied and designed by THACO under the brand name THACO Bus. During the grand opening ceremony of Bus THACO factory, we have signed contracts to export 1,150 buses to Thailand, the Philippines, Singapore, Taiwan, etc. In particular, on December 01, 2017, THACO signed the agreement of FUSO truck manufacturing technology transfer and FUSO truck distribution in Vietnam with Mitsubishi (Japan) & Daimler (Germany).
Retail distribution system: As of December 31, 2017, THACO has had 158 selling points nationwide, including: 69 passenger showrooms (29 Kia showrooms, 29 Mazda showrooms, and 11 Peugeot showrooms), 31 trucks and buses showrooms and 58 dealerships.
Logistics in Chu Lai: In 2017, THACO invested to expand 173m more for the wharf, raising the total length of the wharf to nearly 500m to make it capable of receiving 3 vessels of over 20,000 DWT at the same time, topping its capacity to 3 million tons per year.
In addition, THACO will also expand the main road from Chu Lai Port to the expressway and construct a two-level roundabout at the intersection of National Highway 1A and North-South Railway with the above-mentioned main road at around VND600 billion. THACO will donate this project to the central province after its completion on the 15th anniversary of Chu Lai Open Economic Zone.
In 2017, THACO’s consolidated revenue (including Dai Quang Minh Corporation’s revenue) reached VND55,268 billion, while its after-tax profits reached VND4,898 billion. Particularly, THACO's profit was VND4,774 billion and Dai Quang Minh’s was VND125 billion. THACO’s total contribution to the national budget in 2017 was VND14,972 billion, of which VND12,372 billion was paid in Quang Nam Province.
2. THACO’s 2018 auto business plans
Sales: 116,872 vehicles, up 31% over 2017, including: 42,250 trucks, 5,062 buses and 69,260 passenger cars (including 28,000 Kia cars, 35,000 Mazda cars and 5,010 Peugeot cars).
Export: Exported car parts and components are estimated at USD6.4 million while 400 buses and 150 bus chassis total USD26 million.
Distribution system: 21 showrooms /dealers will be established, bringing the total number of showrooms / dealers nationwide to 179.
Investment: Investment projects in Chu Lai will be expedited, including: putting into operation Thaco Mazda passenger car factory, plastic component factory, establishing premium specialized passenger car factory, constructing Truck factory, renovating Thaco Kia passenger car factory and Thaco Premium passenger car factory (Thaco Premium Auto) and Mechanical Engineering factory. With big investment from production, product development to retail system, THACO’s investment expenditure in 2018 is VND4,600 billion. THACO’s consolidated revenue is expected to reach VND82,953 billion, consolidated profit of VND7,075 billion and total budget contribution of VND22,686 billion.
THACO’s 2018 Annual General Meeting of Shareholders ended successfully by passing the meeting minute and resolutions, as well as electing new members of THACO’s Board of Directors and appointing the new CEO. Later that day, THACO’s post-2018 strategies and Executive Board were introduced. Mr. Pham Van Tai was appointed as THACO’s CEO; Mr. Tran Bao Son was appointed as THACO’s Deputy General Director; Mr. Thai Duy Hung was appointed as Senior Advisor to THACO’s Chairman. Chairman Tran Ba Duong handed over the decisions to the newly-appointed.
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