On April 21, 2018, Cuu Long Pharmaceutical Joint Stock Company held the Annual General Meeting (AGM) in 2018 at Floor 5 – Times Tower – HACC1 Complex – 35 Le Van Luong – Thanh Xuan District. – Hanoi.
The meeting approved the report on business results in 2017 and the business plan of 2018; audited financial statements for 2017; statement on the issuance of employee stock ownership plan (ESOP 2018); statement on authorizing the Board to convert convertible bonds into shares; statement on FIT Group having the right to own up to 80% of the voting rights of Cuu Long Pharmaceuticals as well as other matters under the authority of the General Meeting of Shareholders.
In 2017, DCL’s net revenue was 765.3 billion VND, 84% of the plan, but increased by 4% compared to 2016, revenue decline due to the ETC channel focusing on bidding good product group, the Pharmaceutical Law 2016 putting pressure on prices as well as Decree 54 regulating the bidding for drugstores in hospitals. Control over overdue debt also limits the ability to supply goods while the capsule factory runs at full capacity but is still insufficient to meet the demand in the market.
DCL’s profit after tax for 2017 is nearly 75 billion VND, reaching 78% of the plan as in 2017 DCL has successfully owned the Euvipharm Pharmaceutical Joint Stock Company, which is in the process of restoring its business operations, the cost of production was low, the cost of capital, the cost of sales increased due to the rebuilding of the distribution channel and the restructuring of the organization to increase management costs. In addition, DCL’s cost of sales increased compared to 2016 due to the promotion of sales system development, brand development, investment in sales management software. At the same time, DCL’s investment costs have also increased due to the investment in biological equivalents, the addition of equipment and machinery to factories to optimize the quality of products with the most competitive prices on the market.
In the year 2018, the business plan of Cuu Long Pharmaceuticals is set up with net sales of 963 billion VND, up 26%; profit after tax is 86 billion VND, an increase of 15% compared to 2017. With specific plans and targets, in 2018, DCL will focus on investing more strongly in production and business activities with the foundation of optimal production capacity, increasing bio-comparative products, researching new products in line with market trends, improving the sales system, standardizing the human resources capability, to professionally managing the administration and ensuring a strong financial situation. The company will continue to study the feasibility of the construction of an amalgamated factory expected to start in 2019. High-tech medical equipment factory will also be launched, expected to start in the third quarter of 2018 and continue to invest in the production of capsule 4 based on the market demand.
Since becoming a member of FIT Group, receiving investment and strategic planning from the parent company, DCL has made great strides in the development of large potential projects. With ongoing efforts, DCL promises to step up to become one of the leading pharmaceutical companies in Vietnam, highly rated by patients, employees and partners for innovative, accessible and best-in-class products and services, with the mission of connecting and improving the lives of our communities through optimal health solutions. And 2018 will be an important year when some projects are finished and put into operation, expected to greatly contribute to the increase of revenue for the company as well as other large projects to be invested in the groundbreaking contribution to the foundation for firm development in the future, helping the company to grow and develop.
