Ho Chi Minh City, June 29, 2020, Digiworld Corporation (DGW) organized the Annual General Meeting of Shareholders 2020.
In 2019, Digiworld excellently surpassed the year plan, achieving revenue of VND 8,488 billion, and profit after tax of VND 163 billion, soaring 43% and 48% year on year.
Digiworld’s capital structure is reasonably used when the rate of the debt over total assets ratio in 2019 is at 0.26%, significantly reduced compared to 0.38% in 2018. Meanwhile, the rate of debt over equity in 2019 is reduced from 1.09 (in 2018) to 0.67. Based on these results, it can be seen that the company is pursuing a safer financing policy, gradually reducing the proportion of debt, focusing on business development from the capital derived from business efficiency.
Besides, the ability to use working capital effectively increased rapidly to reach 5.74 in 2019 compared to 5.07 in 2018. This proves that the company has implemented better inventory management policies, which helps to reduce the pressure on the demand for loans for working capital annually. The receivable turnover ratio of the company in 2019 also increased to 14.32 compared to 10.96 in 2018. In 2019, growth of revenue reached 42.96%, higher than the growth of receivable turnover (10.5%), which shows the ability to recover debts has been improved.
Also, thanks to better control of operating expenses, gross profit margin and profit before tax ratio in 2019 reached 6.45% and 2.46% (compared to 2018 at 6.21% and 2.31%).
Behind these developing figures are the vision and the right strategy of Digiworld’s Board of Directors with a good foundation of corporate governance. Accordingly, to operate the company effectively, Digiworld always takes the initiative in market developments, focuses on managing risks of lines of business, and has appropriate management methods. Therefore, since the 2000s, Digiworld has been interested in investing in the SAP ERP management system. Digiworld is now proud to be one of the Vietnamese enterprises successfully operating the standard SAP ERP system which helps the company optimize its expenses. Especially, this system also helps to make the company’s finance transparent, update new data constantly and independently.
In addition, the role and responsibilities of the Board of Directors are much greater in building strategies for the sustainable development of Digiworld. The company is gradually applying good practices such as establishing Specialized Committees to support BOD more effectively such as Audit Sub-committee, Investment and Development Sub-committee, Human Resources and Remuneration Sub-committee. According to the plan, Digiworld also continues to improve corporate governance following international standards. Meanwhile, the company also enhances the role of governance and risk control in finance, accounting, and auditing management as well as transparency in the operation of the company and the role of the independent Board members.
Therefore, in the first months of 2020, despite the impact of the COVID - 19 pandemic, Digiworld has still stood firmly and developed thanks to the solidity of business resources and appropriate strategic adjustments. In fact, after the first six months of 2020, Digiworld recorded positive business results: revenue reached more than VND 4,850 billion (increased 42% over the same period), and profit after tax reached more than VND 91 billion (increased 48% over the same period). In spite of the fluctuating market, Digiworld still approves its business plan in 2020 with a revenue target of VND 10,200 billion and profit after tax of VND 202 billion, corresponding to a growth of 20% and 25% compared to with the results in 2019. In other words, after the first six months, the company has completed 48% of the revenue plan and 45% of the profit after tax plan of 2020.
Mr. Doan Hong Viet, Chairman and General Director of Digiworld said: “The context of global investment activities is changing and responsible investment trends are increasingly concerned by investors, which poses new challenges and new opportunities for listed businesses. Hence, to become more attractive to new resources, listed enterprises must show their good governance role. Digiworld also determined that corporate governance is not a short-term work but is a continuous improvement process. Therefore, we regularly review the company’s management structure, processes, and regulations to promptly make amendments and supplements following the new provisions of Vietnamese law and international practices, which helps to manage and integrate more effectively. With the determination to build a sustainable enterprise, Digiworld always focuses on economic, environmental and social aspects based on the 3C Development strategy including Human (Con người)- Foundation (Cơ sở) - Opportunity (Cơ hội). In this strategy, “Human” is the most essential factor which is the fulcrum to develop opportunities in business; “Foundation” is the strong financial foundation, clear management process; “Opportunity” is the capture of new opportunities which is the prerequisite that helps Digiworld brand emerge and dominate the market. The 3C strategy is the solid foundation for Digiworld to realize its directions in the coming years.”
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