Ho Chi Minh City, April 6, 2021, Digiworld Coporation (“DGW”) held the Annual General Meeting of Shareholders 2021.
2020 is considered a year of great difficulties and challenges for the world economy in general, including Vietnam due to the impact of the Covid-19 pandemic. However, Vietnam is proud and fortunate to maintain its growth rate with a GDP growth rate of 2.91%.
With the spirit of turning challenges into opportunities, Digiworld has made a spectacular transformation. For the whole year of 2020, Digiworld achieved total net revenue of 12,535 billion dong and after-tax profit of 267 billion dong, an increase of 48% and 64% respectively over last year. With this business result, the company has completed 123% of revenue and 132% of profit for the whole year's plan.
According to audited data, as of December 31, 2020, Digiworld's total assets reached more than VND 3,068 billion, an increase of more than 660 billion dong compared to the beginning of the year; its cash and cash equivalents increased sharply from 131 billion dong at the beginning of the year to over 878 billion dong; its receivables nearly doubled to more than 1130 billion dong; its inventories fell nearly by half to more than 827 billion dong. Notably, short-term debts continued to increase from 1,475 billion dong to 1,905 billion dong, an increase of nearly 30% compared to the beginning of the year - of which, short-term loans and financial lease debts were 629.6 billion dong; Undistributed after-tax profit was more than 670 billion dong.
Digiworld's Board of Directors has passed the resolution on the business plan for 2021 with the revenue of 15,200 billion dong and the profit of 300 billion dong. In which, the mobile phone segment still accounts for the largest proportion, followed by laptops, office equipment and consumer products.
In order to accomplish this business goal, Digiworld follows the motto "Learning non-stop, turning challenges into opportunities". Firstly, despite nearly 25 years of establishment and development, Digiworld will never stop learning, applying and approaching new things. Digiworld is well aware that the bigger the business, the more and faster it must learn, with practice accompanying knowledge.
Secondly, for the year 2021 in particular and the future in general, with the complicated developments of Covid-19, the economy will take time to recover. With the spirit of "turning challenges into opportunities", Digiworld is confident that it can find for itself the right path even in the harshest of circumstances, adapt quickly and seize opportunities to take full advantage of its forte.
Besides, the role and responsibility of the Board of Directors (BOD) are even greater in building strategies and sustainable development for Digiworld. The company has gradually applied good practices such as establishing specialized subcommittees to support the Board of Directors to be more effective such as: Audit Committee, Investment and Development Subcommittee, Compensation and Benefit Subcommittee. According to plan, Digiworld will also continue to improve corporate governance in accordance with international standards, while enhancing the role of risk management and control in financial management, accounting, auditing as well as transparency in the company's operations, the role of the independent member of the Board of Directors.
Recently, Digiworld announced its plan to pay dividends for 2020 in cash of 10% and to issue shares from equity at the ratio of 1:1 (1 share equals 1 new share). Expected implementation time is quarter II - quarter III of 2021.
As stated in the document announced before the General Meeting of Shareholders, Digiworld plans to issue shares under Employee Stock Ownership Plan (ESOP) in 2021. The maximum quantity is 2.5% of outstanding shares at the price of 10,000 VND/share. The Board of Directors also proposed a plan to issue share options to employees at the exercise price of 120,000 VND/share to encourage employees to contribute to company value growth and associate themlselves with shareholder interests.
Mr. Doan Hong Viet, General Director of Digiworld stated: “In 2021, Digiworld is expected to continue to achieve positive growth thanks to the strategy of premiumizing the laptop and mobile phone market, as well as seizing the opportunity associated with the Government's programs of national digital transformation and 5G network development”.
Besides, organizational development is a goal that Digiworld focuses on. Firstly, the strategy in attracting talents is to look for young talents, to create a dynamic and creative force that is ready to take on new opportunities. Secondly, the goal that Digiworld is consistently pursuing is to connect internal affairs with practical activities, creating the best working environment for each individual to maximize their capabilities and sticking with the organization.
At the same time, with the determination to build a sustainable business, Digiworld always focuses on the economic, environmental and social sectors based on the company's 3C development strategy, including: People - Foundation - Opportunity. In which, "People" is the most important factor, a basis to develop business opportunities; "Foundation" is a strong financial basis and a clear management process; "Opportunity" is the capture of new opportunities for Digiworld to appear and dominate the market. This 3C strategy is a solid basis to realize Digiworld's orientations in the coming years.