Annual General Meeting of Traphaco Joint Stock Company in 2020

On March 26^th, 2020, Traphaco Joint Stock Company (code: TRA) successfully organized the Annual General Meeting of Shareholders in 2020 with a voting share rate of 86.27%, in two forms of live face-to-face meetings and online. The meeting was organized in accordance with the law on disease prevention, specifically applying medical examination, measuring the full body, 100% of shareholders wore masks, sitting 2 meters away each other, ensuring the safety and the rights for shareholders when attending the meeting, under the complicated situation of Covid-19 virus.

The Meeting agreed to approve the following contents: Specifically, the 2019 Report of the Board of Directors, the Supervisory Board, the audited consolidated financial statements; Mission directions for 2020; Profit distribution plan for 2019 and 2020; Adding business registration lines, etc. The meeting approved business plans, including consolidated revenue targets of VND 2,000 billion, increases 16% compared to 2019, consolidated profit after tax of 180 billion dong, increases 9% compared to 2019.

The General Meeting of Shareholders approved the dismissal of the position of the Board member for Mr. Nguyen Quoc Huy, Mr. Ji Chang Won, and Mr. Lee Choong Hwan; dismissed the position of Supervisory Board member for Ms. Tran Thi Ly. The Congress additionally elected Mr. Vu Tri Thuc, Mr. Lee Tae Yon, and Mr. Chung Ji Kwang as members of the Board of Directors, Mr. Kwon Ki Bum as a member of the Supervisory Board of Traphaco Joint Stock Company for the term 2016 - 2020.

Entering 2020, the company continues to face difficulties and challenges, as complicated epidemics that change consumption and living behaviors of the citizens and customers. Discussed and agreed by major shareholders and the Board of Directors, in 2020, Traphaco continues to promote 5 major solutions of 2019 and to embrace new opportunities.

Mr. Tran Tuc Ma, General Director of the company shared that Traphaco identified 2020 as the year of "Building a new phase of Traphaco’s culture" in order to conquer new challenging goals, requiring Traphaco’s members to have new souls, new spirits and follow the new principles of Traphaco’s culture in the upcoming time.

The Congress approved indicators

The Board of Directors congratulated new approved members of BOD and Supervisory Board

The congress was successfully completed, taking place in accordance with Traphaco's annual plan, within 90 days, showing the positiveness of the organization, ensuring shareholders' interests, deciding to develop Traphaco to implement the rights and responsibilities of shareholders according to the nation’s law.

---------------------------------------------

For details, please contact us:

Ms. Dao Thuy Ha, Marketing Director, Traphaco Joint Stock Company:

Headquarters: 75 Yen Ninh, Ba Dinh District, Hanoi, Vietnam

Address: Alley 15, Ngoc Hoi Street, Hoang Liet Ward, Hoang Mai District, Hanoi

Phone: 18006612 / Email: info@traphaco.com.vn

ADDITIONAL INFORMATION

For 2019, Traphaco has faced continuous difficulties and challenging. The company faced fierce competition, such as the situation of fake and counterfeit products following Traphaco's key products that creates significant pressure on the distribution system. According to the Consolidated Financial Statements, the consolidated revenue in 2019 reached 1,710.4 billion VND (reached 92.5% of the plan), the consolidated profit reached 170.6 billion VND (100.4% of the plan). Although the company did not meet its revenue plan, the company achieved its profit plan thanks to efforts in managing all the expenses.

In 2019, Traphaco selected as the year of "Corporate Governance", the whole company focused on implementing 05 major solutions in accordance with strategic objectives, building a foundation to create growth opportunities for the period 2020 - 2025: Strategic Objectives of the company was implemented right from the beginning of the year, transformed into a division KPI; Focus and innovate Marketing activities; Associate KPIs with salary for sales system; Set limits to control and optimize costs; Development of ETC channel through the establishment of a Hospital Sales Department and appointment of the Deputy General Director responsible for the development of the ETC channel.

With these achieved results, the company continues to receive many titles and major awards such as the National Quality Gold Award, Traphaco Hung Yen Co., Ltd. is recognized as a Science and Technology Enterprise with preferential policies incentive of the State, First-Class Labor Medal for Trade Union of Traphaco Company.

Currently, the ETC market is the main growth engine of Vietnam's pharmaceutical market. To ensure long-term development with a high average growth rate compared to the market, Traphaco needs to maintain its leading position in traditional medicine and promote development in the western medicine market. To accomplish this goal, the Company implements a strategy of focusing on investing in the production of western medicine products with specific goals and synchronous solutions in the period of 2020-2025. The company is committed to make necessary investments including: Training, recruiting high-level personnel, especially in the field of research and development; Promote technology transfer cooperation with major pharmaceutical companies in the world; Assigning appropriate resources to developing new pharmaceutical products suitable to the market; Developing a distribution system that responds quickly to market demand, especially for consumers; Expand the list of new western products through strengthening cooperation with multinational pharmaceutical companies; Ensure compound annual growth rate revenue, high profit compared to the market.

In 2020, the company will receive technology transfer for 10-15 new products from Daewong partner. At the same time, the company continues to seek and expand strategic partners to receive transfer, diversify products and serve the strategy of developing western medicine products.

Mr. Chung Ji Kwang - Member of the Board of Directors shared: "It is my honor and pleasure to become the member of Traphaco Board of Directors and I will conduct the responsibility of Board of Directors member accordingly, for the Traphaco’s best interest".

Mr. Lee Tae Yon expressed: "As I have researched, ETC channel accounts for only 8% of sales revenue among the top 10 brands in Traphco's portfolio. But I don't think that is Traphco's weakness but on the contrary, it is a good opportunity because we will all have a goal to achieve".

If the Covid-19 epidemic in the upcoming time is no longer causing too hard and prolonged impact, then with the existing positioning and capabilities, 5 major solutions combined with new phase Traphaco’s Culture will create strong growth not only for 2020 but also for the following years. This is the basis for the company to remain steadfast with the vision to 2025: Traphaco is the No. 1 pharmaceutical company in Vietnam in terms of revenue and profit growth. The Meeting also agreed to approve the business plan for 2020 with revenue and profit after tax of 2,000 billion VND and 180 billion VND respectively, thereby determining the total revenue growth and profit after tax respectively with 2019 at 16% and 9% respectively. At the same time, the Meeting also approved the dividend plan for 2020 that is still at 30%.