Mr. Le Phuoc Vu was allowed to purchase 10% of Hoa Sen's ESOP shares.

The allocation ratio for senior management is 26%. Among them, Chairman of the Board Le Phuoc Vu is the largest buyer, with 10% of the 5 million shares to be issued, equivalent to 500,000 shares. Following Mr. Vu are Mr. Tran Ngoc Chu, Executive Vice Chairman of the Board of Directors, and Mr. Vu Van Thanh, General Director, who will purchase 400,000 shares (8%) and 150,000 shares (6%) respectively.

The senior executive and senior advisor groups were acquired with 20% and 10% stakes respectively. The senior assistant group acquired 23%. The remainder was allocated to middle and senior management.

According to the plan, Hoa Sen will issue 5 million shares under the employee stock option program (ESOP), equivalent to 0.81% of the total outstanding shares. The issue price is VND 10,000 per share, which is half the current market price of the shares traded on the stock exchange.

The shares are expected to be issued in the third or fourth quarter of 2024, after approval from the State Securities Commission. These shares will be subject to a one-year transfer restriction from the completion of the issuance. Following the issuance, the company's charter capital will increase from VND 6,159 billion to VND 6,209 billion.

In terms of business performance, in the third quarter of the 2023-2024 fiscal year (from April 1, 2024 to June 30, 2024), Hoa Sen recorded net revenue of VND 10,840 billion, an increase of 25.4% compared to the same period last year. Gross profit during this period was approximately VND 1,337 billion, an increase of 50% compared to VND 892 billion in the same period last year. The gross profit margin reached 12.3%, an increase of 2 percentage points compared to the same period. After deducting expenses, Hoa Sen's pre-tax profit was over VND 287 billion and after- tax profit was VND 273 billion, respectively 22.5 times and 18.3 times higher than the same period last year.

For the first nine months of the fiscal year (from October 1, 2023 to June 30, 2024), Hoa Sen recorded net revenue of VND 29,163 billion, an increase of 23.8% compared to the same period last year. Gross profit was approximately VND 3,405 billion, an increase of 71% compared to the same period last year. The profit margin was nearly 11.7%, a significant increase compared to the 8.4% achieved in the same period last year. The company reported a pre-tax profit of VND 717 billion and an after- tax profit of VND 696 billion, while in the same period last year it incurred losses of VND 352 billion and VND 410 billion respectively.

For the 2023-2024 fiscal year, Hoa Sen has set its business plan with two scenarios. Specifically, Scenario 1 aims for a sales volume of 1,625 thousand tons, a 13.3% increase compared to the same period. Revenue is projected at VND 34,000 billion, a 7.4% increase compared to the same period, and after-tax profit is projected at VND 400 billion, more than 12 times higher than the previous fiscal year.

Scenario 2 targets an estimated total sales volume of 1,730 thousand tons, a 20.7% increase year-on-year. Revenue is projected to reach VND 36,000 billion, an increase of nearly 14%, and after-tax profit is expected to reach VND 500 billion, more than 15 times higher than the previous fiscal year.

Thus, at the end of the first nine months of the fiscal year, Hoa Sen had completed 87.2% of its revenue plan according to scenario 1 and 82.4% according to scenario 2. Profits accordingly reached 174% and 139% of the annual targets, respectively.

According to an analysis report by KB Securities Vietnam in June, Hoa Sen would benefit most if anti-dumping measures against imported galvanized steel from China and South Korea were applied, thanks to its number 1 and number 2 market shares in galvanized steel sheets (28.4%) and steel pipes (12.4%).

In addition, domestic consumption is showing signs of recovery, with consumption of galvanized steel sheets and steel pipes increasing by 29% and 28% respectively compared to the previous month. Domestic consumption is expected to recover strongly in the second half of this year thanks to the gradual recovery of the residential real estate sector, which will lead to the implementation of new projects that will stimulate domestic steel demand.