Traphaco JSC : holds General Meeting of Shareholders 2017

On March 30 2017, Traphaco Joint Stock Company successfully organized the Shareholders' General Meeting 2017.

The meeting approved the report on the company's business operation in 2016 and the production and business plan for 2017; the strategic development report on sustainable development for the period of 2017-2020, the report on the issuance of bonus shares, and other important documents.

In 2016, Traphaco implemented the key theme of the year, called 'Technological Innovation - Product Development', through which focusing its resources on technological renovation projects and information technology application as the foundation for product development and market expansion.

The company sped up the construction and installation of machinery and technology transfer at the Vietnam Pharmaceutical Factory with a total investment of nearly VND500 billion (approximately $25 million), aiming at reaching high standards such as GMP-PIC/GMP-EU in order to ensure timely implementation of the project as it had committed to shareholders.

Traphaco successfully implemented the Enterprise Resource Planning (ERP) and at the same time it completed the development strategy for the period of 2017-2020, which sets specific goals for each period in order to become the top pharmaceutical enterprise in Vietnam in terms of revenue and profit growth.

In 2016, Traphaco still maintained a high growth rate, earning a total consolidated revenue of up to VND1,998 billion and a consolidated net profit of VND210 billion, up 17% year on year. The average income of its employees also increased by 10%.

According to the IMS report, in the OTC group Traphaco ranked second in revenue, occupying 3.4% of the market, with two products (Boganic and cerebral hemorrhagic product) in the top 10 products of the pharmaceutical market.

Last year Traphaco also focused on consolidating the corporate governance infrastructure, improving corporate governance regulations through supplementing and amending the company's charter and internal management regulations on the principle of compliance with law, being scientific, clear and transparent. Among them are the regulations on the operation of the Board of Directors, the rules on management of operation and transactions with related parties.

In order to maintain the momentum of growth and realize its strategic goals, Traphaco sets 2017 as the year of 'Effectiveness' with the slogan 'Effectiveness is the goal - Determination is the solution'.

Traphaco sets targets for 2017 as follow: earning consolidated revenue of VND2,000 billion, consolidated net profit of VND242 billion; Implementing the Sustainable Development Strategy for 2017-2020; Putting the Vietnam Pharmaceutical Factory into commercial operation in the third quarter of 2017; Developing the southern market, establishing 4 more branches in the provinces of Thai Nguyen, Yen Bai, Kien Giang and Thua Thien Hue; Through the capital representatives to direct the operation of subsidiaries in association with the parent company's strategy; continuing to develop the prestige and strength of Traphaco brand.

At the shareholders' general meeting 2017, participants made a lot of comments on the business results in 2016 and suggestions to the business plan for 2017. Shareholders also raised specific questions about the new development strategy of Traphaco, about the company's new pharmaceutical factory, the marketing strategy and the plan to develop the southern market, as well as the issues of wages, bonus shares and other issues of common concern.

The Presidium answered all shareholders' questions and noted shareholders' opinions on the company's operations, governance and financial operations. The Board of Directors said that it is expected to increase Traphaco's ownership in Traphaco CNC but after considering the related factors and to ensure the interests of Traphaco shareholders at this time, the Board decided to not yet implement this plan.

The Board of Directors planned to issue bonus shares for existing shareholders at a ratio of 10:2 and issue bonus shares to raise capital in 2018, 2020. The Board of Directors also revealed information about selling more shares for foreign shareholders on the basis of ensuring the interests of its existing shareholders.

Traphaco's sustainable development strategy for the period of 2017-2020 is based on a thorough analysis of internal and external factors, opportunities - challenges, strengths and weaknesses of the company. The strategy is designed in detail, with specific goals for each year. In order to achieve those goals, the company has developed comprehensive solutions which are feasible. Notably, the Chief Executive Officer is the chief designer of the strategy and the one who instructs the implementation of the strategy.

The Board of Directors shared information about the new plant, which specializes on producing high-tech pharmaceutical products, aiming to expand the ETC market segment. In addition, the company is trying to asking for tax exemption for the new plant. Regarding the product development strategy of the new plant, Traphaco will base on each specific product line to choose the appropriate methods. For the southern market, the company will utilize the experience of success in the North to develop the southern market effectively.

The Shareholders' General Meeting 2018 will make decision on giving bonus shares to Traphaco employees.

The Board of Directors noted shareholders' opinions and will consider them carefully. The Human Resources Sub-committee assisted the Executive Board to hire consultants for the 3P payroll project and recruitment issues. It is expected that the 3Ps payroll project will be implemented on trial in the fourth quarter of 2017 and will be officially applied in the first quarter of 2018.

The meeting voted and passed the reports, directions, strategies for sustainable development and other important documents. The meeting also voted and approved the full text of the resolution of the General Meeting of Shareholders 2017 with 100% of votes.

Some pictures of the 2017 shareholders' general meeting: