From Vietnam’s strategic resources to global industrial materials
Ho Chi Minh City, June 29, 2020, Masan High-Tech Materials (HNX-UpCOM: “MSR”) (the “Company”), one of Vietnam’s largest integrated industrial mineral and chemical producers held its 2020 Annual General Meeting.
I. The meeting was successfully concluded with the following matters submitted and approved by the AGM attendance:
- The Board of Directors’ report on management and performance results of the Board of Directors in 2019.
- The Supervisory Board’s report on the Company’s business results and performance results of the Board of Directors and the Chief Executive Officer in 2019.
- 2019 financial statements of the Company audited by KPMG Company Limited.
- The business plan of Company in 2020.
- The appointment of KPMG Company Limited as the Company’s auditing firm in 2020.
- To approve the compensation for members of the Board of Directors and the Supervisory Board in 2020.
- The transactions between the Company and its related parties (Related Party Transactions).
- The distribution of dividends of 2019.
- The plan for new shares issuance of the Company.
- The resignation of Dr. Nguyen Dang Quang from the Board of Directors, and the number of members of the Board of Directors of the Company for the remaining duration of the term 2016-2021 being 04 (four).
- The change of Company (from Masan Resources to Masan High-Tech Materials.) .)
- The detailed report on the results of dividend distribution to shareholders by mean of shares issuance at the ratio of 10% (as approved by Resolution of the 2019 Annual General Meeting of Shareholders dated 19 April 2019) that the Company completed in December 2019; and
- The amendment of Company Charter upon the share issuance for distribution dividend to shareholders that the Company completed in December 2019 and other procedures thereof.
II. The following aspects of Company’s business performance are highlighted during the AGM:
- Going Global: The acquisition of H.C Starck Group’s Tungsten Business which shall provide the Company with advanced manufacturing centers in each of the key market geographies of NAFTA, EU and APAC with production sites in Germany, Canada, and China; a world-class recycling technology platform which is both expandable and replicable across locations. The company through its existing and expanded product range is now well placed; to benefit from increasing future demand for its products; to support increasing demand for high tech materials that support technological advances; to deliver into the industrial infrastructure demands of rapid urbanization in many developing countries; and to service the infrastructure refurbishment programs in developed countries.
- Financial Performance: In 2019, Net Revenues from operations of VND 4,706 billion were down 31% compared to our net revenue in 2018, reflecting the challenging business environment in 2019. Weakening global demand and a slowdown in global manufacturing, strongly compounded by the trade war between China and the United States resulted in a year of lower prices for all our commodities. Tungsten and Bismuth were further impacted by the Chinese Government sale during September 2019 of significant inventories held in the Fanya Exchange Stockpile. Average price for the year were down by 22%, 3%, 8% and 32% for Tungsten, Fluorspar, Copper and Bismuth respectively.
- Strong, stable operating performance at lowest cost of production: The Company maintained its throughput in the Nui Phao Mineral Processing facility at 3.78 million tonnes, down by 2.8% on 2018’s record throughput of 3.89 million tonnes. The Company were able to offset some of the impact of the lower prices and volumes through focus on cost control, achieving a 12% reduction in cash costs year on year, equivalent to approximately US$ 14 million. During the year the Company also finally settled the long running arbitration with Jacobs E&C Australia Pty Ltd.
- Looking forward: As we look forward into 2020 the year is looking like a difficult one ahead. At the time of this AGM the world is in the midst of the global COVID-19 pandemic. This will be a challenging time for governments, businesses, communities and people. At Masan High-Tech Materials we have well developed business continuity plans that have been enacted and will underpin our ability to navigate this global crisis.
ABOUT MASAN HIGH-TECH MATERIALS
Masan High-Tech Materials (formerly Masan Resources), is a leading supplier of critical minerals including tungsten, fluorspar and bismuth. Masan High-Tech Materials is currently operating the world class polymetallic mineral resource and chemical processing plant in Northern Vietnam. Masan High-Tech Materials’s vision is to show the world that a Vietnamese company can lead the transformation of the global high-tech materials market.
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