Taseco AIRS Shareholders' Meeting: Still paying 30% of 2019 dividend in cash thanks to large cash balance

Taseco Airs cautiously built its 2020 business plan target with total revenue reaching VND575 billion and pre-tax profit reaching VND12.3 billion.

Taseco Airs ended 2019 by exceeding its business plan targets. Consolidated revenue reached nearly VND 1,141 billion, up 31.9% compared to 2018; pre-tax profit reached VND 263.16 billion, up 29.16% compared to 2018, exceeding the plan by 7.11%. In addition, total assets and consolidated equity both increased, to more than VND 664 billion and VND 873.7 billion, respectively. The cash dividend rate in 2019 was 30%.

In particular, Taseco Airs completed the purchase of additional capital and took a controlling stake in Jalux – Taseco Duty Free Company Limited.

In 2020, the business activities of the entire system faced many difficulties due to the Covid-19 pandemic, a series of stores, business locations, and factories of the Company had to temporarily close, stop operations, or operate at a standstill... The Board of Directors and the Board of Management of the Company determined that after 15 years of continuous growth and development, at this time, it is necessary to focus on restructuring the human resources apparatus, reducing labor, strengthening training, improving management, controlling goods, building a centralized purchasing system, developing products with private brands and promoting investment, repairing assets, business facilities, machinery, equipment... to be ready to promote business development after the pandemic ends.

With the rapid recovery of domestic flights and the expected reopening of international flights between Vietnam and countries that have controlled the epidemic in mid-September 2020, Taseco Airs has cautiously set its 2020 business plan targets with total revenue reaching VND575 billion and pre-tax profit reaching VND12.3 billion. The company plans not to pay dividends for the 2020 fiscal year.

The highlight of Taseco Airs in 2020 is the development of additional Vip Lounge service with the opening of 1 Vip Lounge at the Domestic Terminal, Noi Bai International Airport in May 2020 and the expected operation of 1 more Vip Lounge at the Domestic Terminal, Da Nang International Airport from October 2020.

Answering the shareholders' question at the General Meeting about whether to pay additional cash dividends in 2019 or not because this is a very difficult time for the company, it is necessary to retain cash to overcome difficulties. Mr. Pham Ngoc Thanh - Chairman of the Board of Directors of the company said: With the current cash amount of about 300 billion VND, after paying additional dividends in 2019, the company is completely confident that it will still effectively manage the remaining cash flow to develop the non-aviation service business sector through capital investment, buying shares of other organizations and enterprises to expand the market, contributing to completing the Company's non-aviation service supply chain at airports in the coming time.

At the Congress, shareholders voted to approve the contents of the submission and report of the Board of Directors, the Board of Management and the Supervisory Board with a very high number of votes in agreement (reaching 99.63%). The Congress also agreed to elect an additional member of the Supervisory Board, Ms. Pham Thi Kieu Trang, to replace Ms. Dang Kim Ngan, who resigned for personal reasons.

According to cafef.vn