Steelmaker Hoa Phat Group plans to increase its charter capital to VND15.2 trillion ($675.6 million) this year, double the current level of VND8.42 trillion.

Last week, the group announced its management board’s resolution to submit to the 2017 shareholder meeting. Accordingly, it targeted turnover and after-tax profit of 38 trillion VND and 5 trillion VND, respectively, for 2017.

Last year, Hoa Phat Group posted record turnover and after-tax profit of 34 trillion VND and 6.6 trillion VND, respectively, since its establishment. These figures presented a year-on-year increase of 34 percent and 89 percent in terms of turnover and profit, respectively.

The group’s management board also approved the offer of a 50 percent dividend for last year’s profit in the first and second quarters of the year.

It plans to issue an additional 250 million shares in the second quarter of the year. The mobilisation capital will be invested into the Hoa Phat Dung Quat iron and steel production complex in central Quang Ngai province and also be used for operations.

It also plans to restructure Hoa Phat Steel Company and Hoa Phat Energy Company. The group will increase its contribution capital at Hoa Phat Steel Company from the current 2.5 trillion VND to 3.5 trillion VND. 

In addition, it will transfer its 99.89 million shares at the Hoa Phat Energy Company worth a total of 998.9 billion VND to the Hoa Phat Steel Company.

VNA