Nurturing the Future - Siam Brothers Vietnam's 2024 Annual General Meeting of Shareholders

On the morning of April 22, 2024, Siam Brothers Vietnam (stock code on HOSE: SBV) held its 2024 Annual General Meeting of Shareholders with the participation of 23 major shareholders representing 20,582,231 shares, accounting for 75.33% of the total voting shares of the Company.

The shareholders' meeting saw the attendance of many familiar shareholders, including customers, investors, and distributors who have been with the company since its early days of exploring the Vietnamese market. Together, they have helped Siam Brothers Vietnam become the first company in the fishing gear, ropes, and marine logistics sector to be listed on the Ho Chi Minh City Stock Exchange, jointly taking the company to international markets.

The meeting focused on four main topics:

1. Message from the Board of Directors and the CEO
2. General Information
3. Operational Status in 2023 and Plans for 2024
4. Management Reports

The detailed agenda of the 2024 Annual General Meeting of Shareholders of Siam Brothers Vietnam is as follows:

1. Message

Mr. Veerapong Sawatyanon, Chairman of the Board of Directors of Siam Brothers Vietnam Joint Stock Company, highlighted the difficulties the company is facing, such as the slow economic recovery, price fluctuations, and supply chain disruptions. Major economies are grappling with rising interest rates and inflation. Additionally, the fishing industry continues to face challenges from climate change, resource management, and market competition. Despite these challenges, Mr. Veerapong emphasized the company's advantages and opportunities, including its deep understanding of the Vietnamese market and its ongoing mission to become the leading provider of fishing gear and marine logistics solutions in Vietnam. The company aims to expand into agriculture and aquaculture, and develop new products to meet increasing human demands.

Mr. Veerapong Sawatyanon - Chairman of the Board of Directors of Siam Brothers Vietnam Joint Stock Company made a speech.

Mrs. Khanh Ngo Tu Dong, CEO of Siam Brothers Vietnam, delivered important messages during the meeting. She noted that in the face of market fluctuations, businesses in general face challenges related to supply and demand, pricing, and financial management. However, through persistent efforts and flexible policies, dynamic business strategies, Siam Brothers Vietnam has identified new opportunities and potentials in this dynamic market by innovating products, expanding markets, and seeking new forms of cooperation. These efforts have helped the company's products reach more continents and countries, with large contracts signed with major retailers such as King Fisher (UK), Birgma (Sweden), Suki (Germany), Land and Sea (USA), and others. 

Mrs. Khanh Ngo Tu Dong - CEO of Siam Brothers Vietnam Joint Stock Company made a speech.

During the meeting, both Mr. Veerapong and Mrs. Khanh Ngo Tu Dong expressed deep gratitude to the shareholders, customers, and partners who have always trusted and accompanied the company. The company is committed to striving further to nurture new opportunities, adapt to new changes, and conquer new goals.

2. General Information

Siam Brothers Vietnam maintains its slogan:

"A strong belief - A great durability - Bountiful harvests"

An important issue that is reiterated annually at the company's meetings is the presentation of the company's slogan, vision, mission, and core values. This will continue to be highlighted every year at the Annual General Meeting of Shareholders to ensure that the Siam Brothers Vietnam team and its partners never forget the fundamental values that constitute Siam Brothers Vietnam. The company also outlines its development direction according to its main objectives, medium and long-term development strategies, and sustainable development goals (environmental, social, and community). One of the company's subsidiaries within its ecosystem is used to enhance activities of recycling output waste into input materials, and in the near future, it will collect plastic waste from the markets where the company's products are consumed for recycling and reuse, contributing to reducing plastic waste. The company also clearly states the existing risks it faces, such as fluctuations in raw material sources, changes in the market and demand, environmental risks and marine protection, changes in policies and regulations, technological risks, and financial risks, so that shareholders can grasp the situation, understand, and sympathize with the company's efforts in facing upcoming challenges.

Regarding the organizational structure, Siam Brothers Vietnam retains the core management team that has been with the company for many years, such as Mrs. Khanh Ngo Tu Dong – the company's CEO, Mr. Long Tran Thanh – Acting Commercial Director, Mr. Huy Nguyen Duc – Production Director, and Mr. Dung Tran Ngoc – Chief Accountant. There are slight changes in the personnel in various departments, with an increase in the number of employees with university and postgraduate degrees. The workforce has also been rejuvenated in departments such as sales, marketing, etc., to better capture trends. 

Management Framework of Siam Brothers Vietnam

3. Performance of 2023 và Plan of 2024

The revenue structure in 2023 did not change significantly compared to 2022. The proportion of agricultural ropes decreased (from 2% in 2022 to 1.2% in 2023), while the proportion of export ropes and fishing gear increased (export ropes by 1%, fishing gear by 1.5%), and the proportion of domestic fishing ropes remained relatively stable. This structural change aligns with the company's direction set in 2022, positioning Siam Brothers Vietnam as a comprehensive provider of fishing gear solutions, not just a rope seller, and expanding its international market. The company’s export rope market has expanded significantly compared to 2022, successfully reaching large customers in the multipurpose rope segment.

Revenue in 2023 reached 445 billion VND, a decrease of 47 billion compared to 2022, achieving about 65.4% of the plan (estimated at 650 billion VND). The profit before tax in 2023 was 11.5 billion VND, a decrease of 6.5 billion compared to 2022, achieving about 17.7% of the plan (estimated at 65 billion VND). The Chairman and the CEO highlighted the decrease in revenue and profit before tax at the beginning of the meeting. 

A notable achievement in 2023 for Siam Brothers Vietnam was obtaining several important certifications and successfully completing ISO assessments. Among these, the Customs-Trade Partnership Against Terrorism (C-TPAT) certification is crucial for expanding into other continents, ensuring compliance with security and risk management standards, and enhancing the company’s reliability in international trade.

Despite the economic impact and business difficulties, Siam Brothers Vietnam continued its community and charitable activities, enhancing corporate responsibility. For many years, Siam Brothers Vietnam has strived to build a sustainable business tied to environmental, social, and community responsibilities. The "Connect Love - Connect Dreams" program has been maintained and developed by the company, sponsoring materials for training captains and chief engineers for the Institute of Marine Science & Technology - Nha Trang University, supporting the organization of a seminar on "Improving Health and Preventing Common Diseases for Coastal Residents" in Ly Son Island District - Quang Ngai, training 5S, Kaizen, and labor safety awareness for 100% of new workers, and cooperating with the Labor Federation of District 12 to give gifts to workers in difficult circumstances within the company.

The "Connect Love - Connect Dreams" program by Siam Brothers Vietnam (SBVN) at No Trang Long Primary School - Daklak

Siam Brothers Vietnam donated books to the Institute of Marine Science & Technology - Nha Trang University

Siam Brothers Vietnam supported the organization of the seminar "Improving Health and Preventing Common Diseases for Coastal Residents" in Ly Son Island District, Quang Ngai. 

A key focus of the annual meeting was the direction and development plan for 2024. The company may face difficulties in 2024 due to the complex and unpredictable global economic situation, with global economic growth, trade, and investment expected to continue slowing down. There will be a continued gradual reduction in extraction volumes. Over six years since Vietnam was issued a “yellow card” warning by the EU for its seafood industry, despite four inspections by EU delegations, the “yellow card” has not been lifted, causing ongoing challenges for Vietnamese seafood. The company also highlighted opportunities to be seized in 2024, such as the fifth inspection by the EU delegation in Vietnam, which could lead to the lifting of the “yellow card,” allowing Vietnam's seafood industry to recover. Additionally, the marine aquaculture development plan up to 2030, with a vision to 2045, shows promising signs. Based on market conditions, the company has set revenue and profit plans for 2024. 

To achieve the set business targets, the company will not only focus on expanding products and markets but also on improving its distribution system and implementing the sales management software that has been deployed. Additionally, the company will continue to invest in other software to improve management efficiency and reduce costs to increase operational profit. Given the current operational status and the global and national economic-political situation, the most urgent need for the company is to quickly complete restructuring and optimize production capacity, accelerate project implementation to boost revenue, and develop appropriate strategies to respond to unpredictable global developments.

4. Report from the Board of Directors

At the annual meeting, the subcommittees under the Board of Directors (BOD) presented their reports to the shareholders, including the following subcommittees:

• Audit Committee: Since the resignation of the Chairman of the Audit Committee, the committee's activities have been somewhat limited due to the lack of specialized direction. However, the Chairman, in collaboration with the remaining Independent BOD Member and other Subcommittees, has supported the committee's activities, ensuring contributions to internal control processes and providing financial decision-making advice.
• Strategic Subcommittee: This subcommittee has consistently communicated and directed the Management Board to follow the strategy of maintaining the market, streamlining the Distributor and Warehouse system nationwide, mobilizing resources to meet the demands of international customers, aiming for comprehensive development in export markets, supporting the implementation of important projects, and making swift decisions when issues arise.
• Human Resources Subcommittee: This subcommittee has assisted the Management Board in sustaining the activities and achievements built by consulting organizations regarding human resources. It has also restructured the organization to be leaner in certain functions while expanding core functions to meet specific departmental needs. They have recruited a new IT Director and a new Management Accountant, enhancing corporate governance efficiency through better resource allocation amid fluctuating conditions. Notably, the Human Resources Subcommittee has actively supported the BOD in searching for candidates for the Independent BOD Member position.
• Communications and Public Relations Subcommittee: This subcommittee has worked with the Marketing and CRM departments to complete applications related to brand image, enhance the corporate website, participate in several national-level communication programs, contribute to the Annual Report drafting process, and support brand identity direction for new products.

Subcommittees under the BOD

The 2024 Annual General Meeting of Shareholders of Siam Brothers Vietnam, themed "Nurturing the Future," concluded successfully. Once again, Siam Brothers Vietnam sincerely thanks our shareholders, distributors, and investors for their continued trust and support during both growth periods and challenging times. We hope that in the future, the company will continue to receive the interest, follow-up, and support of our customers and partners. We wish our shareholders, investors, and distributors a year of development and new achievements!