Traphaco Joint Stock Company Annual General Meeting 2023
Traphaco accelerates in 2023 with the power of digital transformation
On April 14th, 2023, Traphaco Joint Stock Company (Stock symbol: TRA) successfully held the Annual General Meeting of Shareholders in 2023. The meeting approved many important reports and conducted the election of 01 additional member of the Board of Directors.
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Mr. Chung Ji Kwang - Chairman of the Board of Directors delivers a welcome speech
The year 2022 is a very memorable year for Traphaco's Board of Managements and all employees because of the two major events: the 50th anniversary of Traphaco's tradition day and the honor of receiving the First Class Labor Medal. Those are worthy results after Traphaco's 50-year journey of serving the country, for Traphaco's members who always dedicate green products to care for the health of Vietnamese people.
After Covid-19, the risk of supply chain disruption continued due to the Russia-Ukraine conflict, China pursued the Zero-Covid policy, the oil price changed sharply, the risk of inflation increased, the market situation was complicated and unpredictable. The health sector's activities in 2022 face many difficulties in maintaining, granting registration numbers, bidding at public hospitals and many other activities.
In that context, Traphaco has flexibly adapted, stabilized production and business activities, seized opportunities, and enhanced competitive advantages in the market. In his welcome speech, Chairman Chung Ji Kwang assessed Traphaco's results in 2022 as an impressive result: "revenue grew strongly, reaching VND 2,399 billion (VND 2,160 billion in 2021) even in the most difficult times of the global pandemic. I would like to express my sincere gratitude to all staff and the Board of Management of Traphaco for their outstanding efforts in the past year. I am sure that Traphaco's shareholders also appreciate the dedication and professionalism that Traphaco's team has shown."
Clarifying the comments of Mr. Chung, Mrs. Dao Thuy Ha - member of the Board of Directors, Chief Operating Officer reported the results of production and business activities according to the targets assigned by the AGM in 2022. Accordingly, both net revenue and consolidated profit (after tax) grew by 11% compared to 2021, among the good growth groups in the market in terms of revenue and profit. The targets of registration number, new product development and other targets have all been completed and exceeded the set plan.
The company's leadership restructured the departments and business systems in the direction of separating Herbal Medicine and Non-Herbal Medicine, rebuilding working processes to be suitable with the new organizational model. In 2022, the successful implementation of the separation of 13 provinces is the basis for splitting the entire business system in 2023. With properly invested resources, the Non-Herbal Medicine segment witnessed a growth of 37% compared to that of the year. In 2021, the Herbal medicine segment grew by 7.5% over the same period.
In 2022, Traphaco launched 16 new products and quickly became an important factor in the growth of the period 2021-2022. Sales of new products in 2022 reached VND 74 billion, exceeding 54% of the plan. Sales of new products launched in the market from 2021 reached 156 billion, exceeding 140% of the plan. The company continues to promote its ETC business, expanding its diversified product portfolio across different disease sectors through technology transfer and mining products. Up to now, Traphaco has 6 products that have been announced bioequivalence (BE), and 4 products that have been researched and passed and are applying for BE, achieving 100% success rate of BE research product plan. This result contributes to Traphaco's process of continuously improving product quality and efficiency, creating a competitive advantage for Non-Herbal Medicine in bidding.
Corporate governance capacity is enhanced through the application of modern management technology such as: upgrading the DMS system to well support the management and operation of business restructuring from the very beginning; deploying intelligent BI reports, reviewing and evaluating deployed systems such as ERP, DMS, etc., proposing to develop digital transformation goals for the period 2023-2025.
In 2022, the company has enhanced customer care activities, communicating directly to pharmacies owners through a series of customer conferences, organizing communication, and updating new knowledge for customers via Zoom online. In particular, Traphaco successfully organized the 50th anniversary of the company's tradition and received the First-Class Labor Medal 2nd time, creating a great reputation and resonance in the industry, contributing to raising the brand level of Traphaco, arouse employees' pride in Traphaco tradition.
The enduring values of a sustainable 50-year pharmaceutical brand are not only measured by financial numbers, brand health studies, Traphaco's solid position is also confirmed through prestigious national and international stature awards in 2022 such as: Asia's Corporates Excellent and Sustainable Awards, 6th consecutive National Brand, Top 10 Vietnam Sustainable Enterprises CSI, Top 10 Prestigious Pharmaceutical Companies Vietnam, Top 50 best listed companies in Vietnam.
Through the presentation of Mr. Tran Tuc Ma - member of the Board of Directors, CEO of the company, the AGM approved the business plans for 2023, including:
- Consolidated revenue target is VND 2,600 billion, up 8.4% compared to 2022.
- Consolidated profit after tax was VND 326 billion, up 11.2% compared to 2022.
- Dividend rate maintained at 30% of charter capital in cash.
In 2023, Traphaco selected the message of the year: "Speed and digitization, connect for success", improve the company's governance capacity and competitiveness through speed business solutions, transform integrated number changer, specifically as follows:
- Improve management efficiency through assigning and evaluating work targets by KPI system.
- Continue to separate sales reps of Herbal Medicine and Non-Herbal Medicine throughout the OTC system.
- Deploying Digital Transformation, digitizing working processes and internal document systems: Implement comprehensive digitization of the management system, improve productivity, and increase the reporting speed of the system in real time; Invest in installing a journey monitoring system with delivery cars, reducing delivery time and improving customer experience.
- Continue the cost management system by budget planning.
- Invest heavily in R&D activities to develop new products in Non Herbal Medicine and Herbal Medicine and provide new services, focusing on products with bioequivalence research.
- Enhance technology transfer activities
- Implement salary regulation reform with a reputable consulting unit.
With clear orientations, specific action plans and determination to implement right from the beginning of the year, the Company is confident that 2023 will be a year of many successes and victories, a premise for the future with strongly developed in the new phase of Traphaco.
The AGM took place enthusiastically, the Presidium noted the opinions of the shareholders and fully and satisfactorily answered the issues of special concern to the shareholders such as: measures to maintain and increase market share of frozen products key drugs; the plan to put products on sale in modern chains, solutions to support traditional pharmacies to increase revenue; revenue growth plan in 2023, divided by Herbal medicines, Non Herbal medicines; solutions to achieve high efficiency in the field of Non Herbal medicines, improve profit margins; development plan and cost of bioequivalent drug development in 2023 and the next 3 years; suitable M&A opportunities in 2023…
On the same day, the AGM agreed on the dismissal of the position of member of the Board of Directors of the company with Mr. Nguyen Anh Tuan and agreed to additionally elect Mr. Dinh Quang Hoa (the candidate nominated by SCIC shareholders) to the Board of Directors for the period of 2021-2025 with the rate of 99.91% of valid votes.
In closing remarks, Mr. Chung Ji Kwang shared: “The Board of Directors and Executive Board are committed to strengthening governance activities and excellently implementing the objectives. We will continue to make more efforts in 2023. Through extensive dialogue with all stakeholders of Traphaco, I am confident that Traphaco will continue to maintain its leading position in the pharmaceutical industry in Vietnam and strengthen confidence trust in society”.
The meeting was a great success, was conducted in accordance with the law, demonstrated the consensus and will of all shareholders to continue promoting innovation, ensuring the harmony of interests of all stakeholders in the sustainable development of Traphaco.
Some pictures
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The Presidium runs the AGM
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Mrs. Dao Thuy Ha - Member of the Board of Directors, Chief Operating Officer presents the Report on Business & Production Performance Results in 2022
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Mr. Tran Tuc Ma - Member of the Board of Directors, CEO presents the business plan in 2023
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Mr. Nguyen Phu Khanh - Vice Chairman of the Board of Directors presents the Governance Report and Operation results of the Board of Directors in 2022
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Mr. Pham Hoang Anh - Chief of Finance & Planning Officer presents the Audited Consolidated Financial Statements for 2022
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Mrs. Nguyen Thi Luong Thanh - Head of the Supervisory Board presents the Report of the Supervisory Board in 2022 and Proposal to select an audit company for the financial statements in 2023.
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Mr Kim - Member of BOD, Executive Vice CEO presents Report on Profit Distribution in 2022 and Profit distribution plan in 2023
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BOD gives farewell flower to Mr. Nguyen Anh Tuan and congrats to Mr. Dinh Quang Hoa is elected to additional member of BOD
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Please refer to the detailed content of the results of the 2023 Annual General Meeting of Shareholders of Traphaco in the Minutes and Resolutions of the Annual General Meeting of Shareholders on the Company's website here:
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