- Coal thermal power32.5%
- Hydropower29.0%
- Gas Thermal Power9.2%
- Renewable energy26.4%
- Imported electricity0.7%
- Oil thermal power1.9%
- Others0.2%
Overview OF ECONOMY AND electricity industry in 2022
In 2022, in the context of the world’s political and economic landscape with many unpredictable changes, Vietnam’s economy still reached important achievements when GDP increased by 8.02% from the previous year and recorded the highest growth rate over 10 recent years thanks to the economic recovery.
In 2022, Vietnam’s economy strongly recovered with macroeconomic stability, effectively controlled inflation and guaranteed major balances. As reported by General Statistics Office, Vietnam’s GDP reached USD 409 billion for the first time, increasing by 8.02% from 2021 as the economy recovered and reached the highest growth rate in the period 2011 - 2022. Foreign Direct Investment (FDI) reached nearly USD 22.4 billion, up 13.5% from 2021. This is the highest amount of FDI in 5 recent years. Average consumer price index (CPI) in the fourth quarter of 2022 increased by 4.41% over the same period. In 2022, CPI increased by 3.15% from 2021, reaching the target set by the National Assembly.
ACCORDING TO VIETNAM ELECTRICITY (EVN), BY THE END OF 2022, TOTAL INSTALLED CAPACITY (WITH COD) OF THE ENTIRE ELECTRICITY SYSTEM ACHIEVED APPROXIMATELY 77,800MW, AN INCREASE OF NEARLY 1,400MW COMPARED TO 2021.
108 POWER PLANTS
join in electricity market, accounting
for 38% with a total installed capacity of
0MW
In 2022, the world witnessed major changes such as zero-covid policy in China, geopolitical conflicts in Europe, high inflation in most countries, tightening monetary policy in some countries that are important business partners of Vietnam, and so on, causing remarkable impacts to the global supply chain, and directly affecting the operation of the electricity industry. In particular, the high fuel price has increased electricity production cost and directly affected EVN’s financial balance assurance. Construction investment continues to face many obstacles due to the lack of synchronization in current regulations as well as difficulties in forest land conversion, land clearance and approval of investment policies for power projects.
Given that situation, EVN has received the attention and direction from the Government, Prime Minister, Commission for the Management of State Capital at Enterprises as well as the ministries, branches and localities. All EVN’s leaders and employees have made great efforts to overcome difficulties and ensure power supply for the country’s socio-economic development.
According to EVN, by the end of 2022, total power installed capacity of (with COD) of the entire system reached approximately 77,800MW, an increase of nearly 1,400MW compared to 2021. In which, total power capacity of renewable energy sources is approximately 20,165MW, accounting for 26.4%. Vietnam’s power system ranks first in ASEAN in term of power capacity.
In 2022, the electricity produced and imported in the entire system reached 268.4 billion kWh, up 5.26% from 2021. Maximum extra load capacity of the entire system numbered at 45,434MW, up 4.41%. Electricity produced and purchased by EVN valued at 261.2 billion kWh, up 6.08%. Commercial electricity of the Group reached 242.3 billion kWh, reaching 99.97% of the plan, up 7.53% from 2021.
TOTAL POWER INSTALLED CAPACITY
≈ 0
MW
up 1,400 MW from 2021
TOTAL POWER CAPACITY OF RENEWAL ENERGY SOURCES
0
MW
accounting for 26.4% with a total installed capacity
ELECTRICITY OUTPUT
-
Electricity produced
and imported0
billion kWh
up 5.26%
from 2021 -
Commercial electricity
0
billion kWh
up 7.53%
from 2021
POWER CAPACITY STRUCTURE OF THE ENTIRE SYSTEM
Vietnam’s electricity industry outlook
DEVELOPING ELECTRICITY INDUSTRY AS VIETNAM’S
COMMITMENTS
AT COP26
Vietnam made a commitment to net zero emissions by 2050, at COP26. This commitment demonstrates the determination of the Government to implement the targets of shifting from traditional fossil energy sources to green and clean energies, reducing greenhouse gas emissions and mitigating climate change.
Key medium and long-term goals and tasks of EVNGENCO3
OVERALL GOALS
- Operating EVNGENCO3’s power units to meet the mobilization method of the National Load Dispatch Center.
- Ensuring the profit target is approved by the General Meeting of Shareholders.
- Implementing investment promotion and investment cooperation in new power source projects.
- Implementing Corporations restructuring plan to advance the financial capability meeting the project financing requirements for newly approved power projects.
- Ensuring occupations and improve material life and psychological well-being of our employees.
KEY TASKS
- Ensuring a stable, reliable and economical operation of power plants.
- Optimizing costs, ensuring production and business results.
- Implementing investment promotion for LNG-to-power plant at Long Son Power Complex; surveying to make project investment and applying for investment policies for Srepok 3 Extension hydropower plant and Buon Kuop Extension hydropower plant; cooperating and investing capital to small Hydropower Complex in the Northwest region; researching on investment in onshore/offshore wind and other renewable energies according to Power Development Plan VIII.
- Continuing to look for long-term partners to consume stably ash and slag of Vinh Tan 2 and Mong Duong 1 thermal power plants in large volumes.
- Continuing to improve professional governance, training and developing human resources into a learning organization; arranging workforces professionally and optimally, linking salary, income and career development opportunities with KPI.
- Ensuring security and defense; actively implementing anti-corruption and waste prevention; strengthening internal control.
EVNGENCO3 medium and long-term strategic orientation
ORIENTATION TO MARKET SHARE MAINTENANCE AND DEVELOPMENT
Understanding its roles and position in the electricity market, in order to serve the long-term development goals and maintain an appropriate market share in the coming period, EVNGENCO3 has been implementing the following main orientations.
Power generation: Maximizing the existing power generation sources and gradually implementing fuel conversion according to Resolution No. 121/NQ-HDQT dated 19 September 2022 on development strategy for the period of 2022-2030, vision to 2035.
- Coal thermal power: With the motto of diversifying and taking initiative in fuel supply sources, continuing to look for suitable sources of anthracite coal in the world to use directly for the plants, gradually reducing dependence on increasingly scarce sources of domestic coal, researching on conversion of mixed operation with Ammonia, Biomass to reduce emissions.
- Gas thermal power: Buying more imported LNG to promote the efficiency of Phu My and Ba Ria thermal power plants with environmentally friendly technology. Researching to upgrade/invest new technology for conversion of mixed operation with Hydrogen in the future.
- Investment in power projects: Shifting to clean energy. With strong orientations and financial position, EVNGENCO3 aims to grow and maintain installed capacity accounting for more than 10% in the power system, and contribute about 15% of annual electricity output by developing and investing about 2,700MW of new power sources using LNG, small/medium hydropower and onshore/offshore wind.
ORIENTATION ON ENERGY TRANSITION AND CONSTRUCTION INVESTMENT
GIVEN AWARENESS OF SUSTAINABLE DEVELOPMENT GOALS, EVNGENCO3 HAS DEFINED CLEAN ENERGY TRANSITION AS THE FUTURE DEVELOPMENT ORIENTATION TO CONTRIBUTING TO CLIMATE CHANGE MITIGATION.
ORGANIZATION ON EVNGENCO3 RECONSTRUCTION
DURING ITS ESTABLISHMENT AND DEVELOPMENT, THE ENTERPRISE ALWAYS HAS TO FACE THE RISKS AND CHALLENGES COMING FROM THE EXTERNAL ENVIRONMENT AND FROM THE INNER ENTERPRISE. THEREFORE, RESTRUCTURING TO IMPROVE ADAPTIVITY AND OPERATION EFFICIENCY AS WELL AS START A NEW CYCLE OF BUSINESS DEVELOPMENT IS VERY NECESSARY IN NEW ERA.
DEVELOPMENT ORIENTATION OF SERVICE PROVISION
REPAIR - O&M OPERATION SERVICES
With more than 25 years of repairing thermal power plants of manufacturers i.e., MPW, GE, Siemens, Doosan, SEC, etc., EPS (a branch of EVNGENCO3) has continuously accumulated experience, handled technologies and developed markets. At present, EPS has carried out regular repair and major repair of power plants under EVNGENCO3 and EVN with a total capacity of nearly 6,700 MW.
In addition to maintaining the market, EPS is constantly trained in repair and maintenance of turbines, generators, boilers, wind turbines, manufacturing technology, boiler operation optimization technology, dynamic balance, etc. in advanced countries around the world to provide full operation and maintenance services for domestic and foreign power plants.
HUMAN RESOURCES DEVELOPMENT ORIENTATION
HUMAN RESOURCES
Foundation for EVNGENCO3
TO MOVE FURTHER
People are always the root of innovation and make a significant contribution to development, particularly in the context of strong digital transformation and that the entire Vietnam electricity industry is focusing on energy transition, towards zero carbon emissions as committed by the Prime Minister at COP26.
Shared by Mr. Tran Dinh Nhan
President & CEO of EVN at EVN Organization & HR Conference.
BUSINESS PERFORMANCE IN 2022
DIFFICULTIES IN 2022
-
![]()
The world’s coal prices unusually increased highly, leading to difficulties in fuel supply. The domestic gas fuel prices also increased in line with the world’s oil prices and the decline in gas resources have affected the mobilization of gas-fired power plants under the Corporation. -
![]()
Renewable energy sources (wind power, solar power) accounted for a large proportion and were prioritized, especially the influence of solar power from 9 a.m. to 4 p.m. everyday. -
![]()
Gas power plants had to operate at minimum capacity or were under Daily Start/Stop operation. -
![]()
Business results faced certain challenges due to fluctuations in exchange rates and interest rates.
ACHIEVEMENTS IN 2022:
EVNGENCO3’s electricity output in 2022
0
billion kWh
reaching 101.23% of the plan
In 2022, facing many difficulties and challenges due to fluctuations affecting fuel prices and supply, thanks to increasing efforts and high determination of the leaders and employees, EVNGENCO3 has achieved encouraging results, to be specific:
- EVNGENCO3’s electricity output in 2022 (including dependent accounting units and subsidiaries and affiliates in which EVNGENCO3 assigns representatives) reached 32.242 billion kWh, reaching 101.23% of the plan. In spite of fuel and coal supply shortage, EVNGENCO3 still ensured the power output plan, proving the Corporation’s flexibility and adaptability in operation.
PRODUCTION AND BUSINESS RESULTS IN 2022 OF THE CORPORATION’S PARENT COMPANY
| No. | Indicators | Unit | Plan 2022 | Actual 2022 | Actual/Plan (%) |
|---|---|---|---|---|---|
|
1
|
Total revenue | billion VND | 45,417 | 46,382 | 102.13% |
|
2
|
Total cost | billion VND | 43,199 | 43,681 | 101.12% |
|
3
|
Total profit before tax | billion VND | 2,218 | 2,701 | 121.78% |
|
4
|
Dividend | % | 11% | Ensuring ratio of 11% | 100% |
Remarks:
- The Corporation achieved the targets assigned by the Annual General Meeting. The 2022 dividend will be submitted to 2023 Annual General Meeting for approval.
- Payment to the State budget in 2022 of the Corporation’s Parent Company is VND 2,079 billion.
FINANCIAL SITUATION
REVENUE
Revenue of power plants under the Corporation in 2022 reached VND 45,342 billion, up 29.8% compared to 2021 due to the increase in coal and gas fuel prices compared to 2021.
| No. | Revenue from sales and services | 2021 | 2022 | Increase/Decrease (%) |
|---|---|---|---|---|
|
1
|
Electricity revenue of Parent company | 34,925 | 45,342 | 29.8% |
|
1.1
|
Phu My Thermal Power Company | 15,519 | 20,132 | 29.7% |
|
1.2
|
Buon Kuop Hydropower Company | 1,764 | 3,010 | 70.7% |
|
1.3
|
Vinh Tan Thermal Power Company | 9,289 | 11,033 | 18.8% |
|
1.4
|
Mong Duong Thermal Power Company | 8,353 | 11,166 | 33.7% |
|
2
|
Revenue in subsidiary and other revenue | 2,833 | 1,945 | -31.3% |
| Total consolidated revenue | 37,758 | 47,287 | 25.2% |
| Phu My Thermal Power Company | 15.519 | 20.132 | 29,7% |
| Buon Kuop Hydropower Company | 1.764 | 3.010 | 70,7% |
| Vinh Tan Thermal Power Company | 9.289 | 11.033 | 18,8% |
| Mong Duong Thermal Power Company | 8.353 | 11.166 | 33,7% |
| Total | 34.925 | 45.342 | 29,8% |
| Total | 2.833 | 1.945 | -31,3% |
| Total | 37.758 | 47.287 | 25,2% |
Total consolidated
revenue
(billion VND)
0
Profit
before tax
(billion VND)
0
Profit
after tax
(billion VND)
0
Profit
| No. | Items | Actual 2021 | Plan 2022 | Actual 2022 | TH/KH2022 | Increase/Decrease (%) |
|---|---|---|---|---|---|---|
| Parent company | ||||||
|
1
|
Profit on electricity production (Excluding Exchange rate difference) | 2,516 | 1,905 | 3,236 | 169.85% | 28.66% |
|
2
|
Profit before tax | 3,726 | 2,218 | 2,701 | 121.78% | -27.51% |
|
3
|
Profit after tax | 3,022 | 1,827 | 2,207 | 120.81% | -26.96% |
| Consolidation | ||||||
|
1
|
Profit on electricity production (Excluding Exchange rate difference) | 2,612 | 1,970 | 3,293 | 167.09% | 26.05% |
|
2
|
Profit before tax | 3,912 | 2,334 | 3,057 | 131.01% | -21.85% |
|
3
|
Profit after tax | 3,179 | 1,920 | 2,550 | 132.84% | -19.79% |
| Profit on electricity production (Excluding Exchange rate difference) | 2,516 | 1,905 | 3,236 | 169.85% | 28.64% |
| Profit before tax | 3,726 | 2,218 | 2,701 | 121.78% | -27.51% |
| Profit after tax | 3,022 | 1,827 | 2,207 | 120.81% | -26.96% |
| Profit on electricity production (Excluding Exchange rate difference) | 2,612 | 1,970 | 3,293 | 167.09% | 26.05% |
| Profit before tax | 3,912 | 2,334 | 3,057 | 131.01% | -21.85% |
| Profit after tax | 3,179 | 1,920 | 2,550 | 132.84% | -19.79% |
In 2022, the Corporation implemented the solutions for production optimization. Thanks to that, profit from power generation (excluded exchange rate difference) reached VND 3,236 billion, completing 169.85% of the plan, up 28.64% from 2021. In 2022 the Corporation’s Parent company reached VND 2,701 billion, completing 121.78% of the plan but decreasing by 27.51% from 2021. Profit after tax of Parent company reached VND 2,207 VND, completing 120.81% of the plan approved by Annual General Meeting.
KEY FINANCIAL INDICATORS
| Indicators | Unit | 2021 | 2022 | Increase/Decrease (%) |
|---|---|---|---|---|
| Solvency | ||||
| Current ratio | Time | 1.8 | 1.5 | (0.26) |
| Quick ratio | Time | 1.51 | 1.40 | (0.11) |
| Cash ratio | Time | 0.23 | 0.13 | (0.10) |
| Property structure | ||||
| Current assets/Total assets | % | 27.70% | 30.63% | 7.93% |
| Long-term assets/Total assets | % | 72.30% | 69.37% | -2.93% |
| Capital structure | ||||
| Liabilities/Total Equity | % | 74.38% | 73.36% | -1,02% |
| Equity capital/Total capital | % | 25.62% | 26.64% | 1.02% |
| Liabilities/Equity Ratio | Time | 2.90 | 2.75 | (0.15) |
| Operational capability | ||||
| Total asset turnover | Time | 0.54 | 0.70 | 0.16 |
| Fixed asset turnover | Time | 0.81 | 1.11 | 0.30 |
| Profitability | ||||
| Return on Total Assets (ROA) | % | 4.51% | 3.80% | -0.71% |
| Return on Equity (ROE) | % | 19.64% | 14.55% | -5.09% |
| Capital adequacy ratio | Time | 1.16 | 1.01 | (0.15) |
| Current ratio | Time | 1.8 | 1.5 | (0.26) |
| Quick ratio | Time | 1.51 | 1.40 | (0.11) |
| Cash ratio | Time | 0.23 | 0.13 | (0.10) |
| Current assets/Total assets | % | 27.70% | 30.63% | 7.93% |
| Long-term assets/Total assets | % | 72.30% | 69.37% | -2.93% |
| Liabilities/Total Equity | % | 74.38% | 73.36% | -1.02% |
| Equity capital/Total capital | % | 25.62% | 26.64% | 1.02% |
| Liabilities/Equity Ratio | Time | 2.90 | 2.75 | (0.15) |
| Total asset turnover | Time | 0.54 | 0.70 | 0.16 |
| Fixed asset turnover | Time | 0.81 | 1.11 | 0.30 |
| Return on Total Assets (ROA) | % | 4.51% | 3.80% | -0.71% |
| Return on Equity (ROE) | % | 19.64% | 14.55% | -5.09% |
| Capital adequacy ratio | Time | 1.16 | 1.01 | (0.15) |
ASSESSMENT ON FINANCIAL POSITION IN 2022
Solvency: In 2022, EVNGENCO3’s current ratio is 1.5 times, quick ratio is 1.4 times, a slight decrease compared to 2021. In recent years, EVNGENCO3 always maintains short-term ratio and quick ratio > 1, showing EVNGENCO3’s ability to ensure payment of due debts.
Capital structure: EVNGENCO3 is a leading enterprise in the electricity generating and trading industry. The financial specific characteristic of power plants is the relatively high debt structure. EVNGENCO3 has a stable revenue from electricity production and business activities, the Corporation builds a regular long-term debt repayment schedule. In 2022, liabilities account for 73.36% of the Corporation’s total capital, decreased 1.02% compared to 2021. EVNGENCO3’s capital structure is gradually becoming healthier, financial leverage is gradually decreasing over the years. The debt/equity ratio decreased from 3.87 times (December 31, 2020) to 2.75 times (December 31, 2022), ensuring financial safety.
Operation capability: Total asset turnover and fixed asset turnover ratio increased by 0.16 times and 0.3 times respectively compared to 2021, showing the increasing operation efficiency of asset. With the characteristics of business activities using large fixed assets, EVNGENCO3 always focuses on the management of operating costs in order to increase the operational efficiency of the assets. At the same time, maintenance and repair activities of fixed assets have always been focused by EVNGENCO3 over the years.
Profitability: The profitability indicators of EVNGENCO3 decreased compared to the same period in 2021. In 2022, ROE decreased from 19.64% to 14.55% and ROA decreased from 4.51% to 3.88%.
Conclusion: Overall, EVNGENCO3 has recorded a year of stable electricity production despite high fuel prices and strong exchange rate fluctuations in 2022. In addition to significantly improving the debt ratio, EVNGENCO3 also maintained its profitability as well as the effective use of assets and owners’ equity.
ORGANIZATION AND HUMAN RESOURCES
Members of the Board of Management
| Board of Management | Position | |
|---|---|---|
|
1
|
Mr. Le Van Danh
|
President & CEO
|
|
2
|
Mr. Cao Minh Trung
|
Vice President of Repair and Technology
|
|
3
|
Mr. Nguyen Thanh Trung Duong
|
Vice President of Business -Electricity market
|
|
4
|
Ms. Nguyen Thi Thanh Huong
|
Vice President of Economics - Finance
|
|
5
|
Mr. Vo Minh Thang
|
Vice President of Investment - Construction
|
|
6
|
Ms. Vu Phuong Thao
|
Chief Accountant
|
Changes in the Board of Management in 2022
In 2022, EVNGENCO3 had no change in the Board of Management.
HUMAN RESOURCES
The Corporation has regularly arranged optimally, recruited and used labor less than the assigned plan, the average electricity production and business labor is 2,055 people (plan is 2,075 people), of which the parent company is 1,392 people (plan is 1,393 people). As of December 31, 2022, the number of employees of the Corporation and its affiliated units is 2,071 people. Accordingly:
Gender classification
Qualification classification
Labor productivity met the assigned plan:
| No. | Target | Unit | Plan 2022 | Actual 2022 |
|---|---|---|---|---|
|
1
|
Electricity production/labor | Million kWh/person | 13.37 | 13.97 |
| In which, the parent company | Million kWh/person | 19.65 | 20.22 | |
|
2
|
Number of employees/units of installed capacity | Person/MW | 0.35 | 0.35 |
| In which, the parent company | Person/MW | 0.25 | 0.25 |
Policies for employees
Working hour at EVNGENCO3 is 8 hours/day. Each week, employees are entitled to at least 48 consecutive resting hours. All of officers and employees who are entitled to public holidays, leave and private leave are entitled to their full salary according to the provisions of the Labor Law.
Incentives and benefits: The Corporation ensures physical and mental life for employees.
The incentives and benefits include: Salary and bonuses for employees corresponding to the level and nature of work; ensure that social insurance and unemployment insurance deductions are fully implemented in accordance with law; organize periodic health checks for all employees. We also regularly check and adjust welfare policies, create more practical incentives to ensure the welfare of all employees.
INVESTMENT IN AND IMPLEMENTATION OF PROJECTS
EVNGENCO3 focuses on project investment and construction, for examples, upgrading coal port and oil port of Vinh Tan 2 Thermal Power Plant, solar power projects serving the plants by themselves, investment preparation for Long Son Power Complex, small and medium hydropower projects, and offshore wind power technology training. Total value of investment implemented in 2022 reached 86.41% of the plan.
Total value of investment
implemented in 2022 reached
0%
of the plan
| Implementation 2022 (million VND) | ||||||
|---|---|---|---|---|---|---|
| No. | Item | Plan 2022 | Implementation | Withdrawal | % Implementation/plan | % Withdrawal/plan |
| 1 | Principal repayment | 4,851,413 | 5,028,227 | 5,028,227 | 103.64 | 103.64 |
| 2 | Capital contributed to power projects | 199,849 | - | - | 0 | 0 |
| 3 | Net investment | 918,568 | 130,021 | 108,588 | 14.15 | 11.82 |
| Total | 5,969,830 | 5,158,248 | 86.41 | 86.05 | ||
Besides the achievements, there are still some shortcomings as follows
- The investment and construction works are encountered with procedures, so not ensuring the schedule and completion quality still at low level.
Operation and financial position of subsidiaries and associates
| 2022 (million VND) | |||||
|---|---|---|---|---|---|
| No. | Subsidiaries in which EVNGENCO3 has capital contribution | Electricity output
(million kWh) |
Revenue | Profit after tax | ROE (%) |
| 1 | Ba Ria Thermal Power JSC | 168.58 | 599,408 | 70,744 | 12% |
| 2 | Ninh Binh Thermal Power JSC | 409.07 | 932.671 | 24.264 | 19% |
| 3 | Vinh Son - Song Hinh Hydropower JSC | 2,616.15 | 3,094,609 | 1,264,845 | 54% |
| 4 | Thac Ba Hydropower JSC | 408.83 | 742,224 | 378,788 | 59% |
| 5 | Se San 3a Hydropower JSC | 498.39 | 422,655 | 130,899 | 47% |
| 6 | GE-PMTP Power Service Limited Liability Company | - | 236,358 | 32,146 | 6.4% |
Electricity production in 2022 of subsidiaries and affiliated companies of EVNGENCO3 reached 4.101 billion kWh, accounting for 121.33% of the plan.
- In 2022, all joint stock companies are profitable, preserving and developing capital.
- Profit after tax in 2022 of these units exceeded the plan assigned by the General Meeting of Shareholders such as VSH reaching 241%, TBC reaching 230% and the ratio of profit after tax/charter capital of some units is high such as TBC 59 %, VSH 54%, and S3A 47%.
Invest in technology development, improve operational efficiency
ACCELERATING DIGITAL TRANSFORMATION TO COMPLETE 24 TASKS FOR 2021-2022
TYPICAL DIGITAL TRANSFORMATION COMPLETED IN 2022
- RMS remote monitoring and diagnostic system for Vinh Tan 2 and Mong Duong 1 thermal power plants.
- Fully implement repair and maintenance of equipment according to RCM method for power plants.
- Hydrological data collection and flood warning system with main items such as building flow forecasting model, training neural network for reservoirs, building digital maps for work display, landmarks, warning stations, flood area, website integration, building flood maps in downstream areas, and so on.
- Elogbook software for power plants with outstanding functions such as: Parameter management, Operation log, Worksheet management, Operation sheet, allowing voice input, device identification via RFID. QR Code, shift delivery by digital signature...
TYPICAL DIGITAL TRANSFORMATION COMPLETED IN 2022
- Updating data of PMIS software, exceeding the plan assigned by EVN: The total number of equipment systems of power plants imported into PMIS is 126,128, reaching 100% of digitized equipment (up 17.2% compared to 2021) for 06 data fields.
- Completing project management with main tasks such as application of electronic project log, application of BIM progress management software, digitalization of equipment procurement management for the project, etc.
- Putting into use 90 Dashboards on BI management and operating reporting system to serve the needs of daily exploitation, analysis, and evaluation of data in the fields of operation.
- Deploying to digitize 14 internal processes on Base.vn platform.
- Deploying mobile application for employees - SmartEVN in the entire Corporation.
- Smart material warehouse management software (WMS) and standardization of material codes (eCAT): building and putting into trial operation of WMS software at Buon Kuop Hydropower Company from 19 December 2022 before applying in the whole Corporation.
Report and assessment of the Board of Directors
ASSESSMENT ON BUSINESS PERFORMANCE
In 2022, EVNGENCO3 was determined to effectively implement solutions to improve technical standards, optimize production and business costs, effectively implement targets and tasks, and contribute to the development of the electricity industry in Vietnam.
- EVNGENCO3’s power plants ensure safe operation, meeting the mobilization requirements of the National Load Dispatch Center (A0), strictly complying with the regulations on environment and electricity market with high efficiency. At the same time, make the most of all resources to ensure the improvement of equipment repair and maintenance capacity towards improving reliable and stable operation of equipment and electrical systems (RCM).
- In 2022, the total electricity output of the Corporation reached 32.242 billion kWh, accounting for 101.23% of the plan.
- EVNGENCO3 strives to maintain a healthy capital structure, suitable to the business environment, but must be flexible to make the most of market opportunities to be able to mobilize good capital. At the same time, flexibly choosing different financial instruments of debt and capital markets, enhancing capital efficiency to ensure that cash flow is used appropriately with the best cost of capital.
- In 2022, the Corporation’s revenue reached VND 48,156 billion, reaching 102.25% of the plan and equal to 122.67% over the same period in 2021. Parent company’s revenue in 2022 reached VND 46,382 billion, equaling 102.13% of the plan and equal to 125.11% over the same period in 2021.
- Profit before tax of the Corporation reached VND 3,057 billion, completing 131.01% of the year plan and equal to 78.15% of 2021. The Parent company’s pre-tax profit in 2022 reached VND 2,701 billion, completing 121.78% of the 2022 plan and equal to 72.49% of 2021.
- In 2022, the Corporation’s parent company contributed to the state budget VND 2,079 billion.
- EVNGENCO3 always aims to develop a compact, flexible & effective management apparatus. Therefore, strengthening governance capacity is one of the key strategies in 2023. To do that, the Board of Management has set the following main orientations:
- Streamlining the apparatus, the system of regulations and processes to increase productivity and efficiency.
- Carrying out training and development of human resources, including focus on internal training, on-the-job training and special training courses abroad.
- Researching and applying 4.0 technology to experience and governance to create new breakthroughs.
FINANCIAL SITUATION
ASSETS
- As of December 31, 2022, the Corporation’s total assets reached VND 66,218 billion, a decrease of VND 1,739 billion, equivalent to a decrease of 2.6% compared to the same period in 2021. In which:
- Current assets reached VND 20,281 billion, an increase of VND 1,457 billion, equivalent to an increase of 7.7% compared to the same period in 2021.
- Long-term assets reached VND 45,937 billion, a decrease of VND 3,196 billion, equivalent to a decrease of 6.5% compared to the same period in 2021.
LIABILITIES
- As of December 31, 2022, the Corporation’s liabilities were VND 48,575 billion, a decrease of VND 1,973 billion, equivalent to a decrease of 3.9% over the same period.
2023 FINANCIAL PLAN
Continuing to develop and implementing financial plans and improving the capacity and attractiveness of EVNGENCO3 in the market.
| Target | Unit | Plan 2023 |
|---|---|---|
| Total revenue | billion VND | 4,456 |
| Total cost | billion VND | 45,985 |
| Total profit (excluding foreign exchange differences) | billion VND | 2,472 |
| In which: | ||
| Profit from electricity production and business (excluding foreign exchange differences) | billion VND | 1,976 |
| Profits from financial and other activities | billion VND | 495 |
The distribution of profits (including dividend payment) will be decided by the Annual General Meeting.
REPORT AND EVALUATION OF THE BOARD OF DIRECTORS
PRODUCTION AND BUSINESS ACTIVITIES OF THE CORPORATION
Target for implementation in 2022 of the Parent company compared to the AGM’s plan
- The Corporation has achieved and exceeded the targets assigned at the Annual General Meeting 2022.
- Environmental work is guaranteed and maintained by the Corporation.
GENERAL ASSESSMENT OF THE CORPORATION’S PERFORMANCE
In 2022, BOD has directed the Corporation to achieve and exceed the targets and tasks according to Resolution No. 81/NQ-DHDCD dated 15 June 2022 of the Annual General Meeting, to be specific:
- BOD has closely directed and promptly resolved the major issue and urgent tasks as well as long-term orientation to ensure the Corporation’s operation in careful manner. The resolutions and decisions of the BOD are approved and issued on the basis of high consensus (100%) by BOD members. BOD also regularly maintain the inspection, audit and supervision to the BOM’s activities, ensuring to complete targets and tasks assigned by AGM.
- BOD has organized, implemented and managed the production, business, and investment activities in the Corporation in a timely and effective manner in accordance with the functions, duties and powers stipulated in the Corporations Charter, and performed the work in accordance with the provisions of the Corporation’s Charter in line with the decentralization and direction of BOD.
SUPERVISORY ACTIVITIES OF BOARD OF DIRECTORS FOR THE BOARD OF MANAGEMENT
-
1BOD always monitors the activities of BOM, promptly dealing with recommendations/suggestions of the BOM and the contents under the authority of the BOD in order to create favorable conditions for BOMs execution.
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2BOD uses an advisory apparatus to assist the Corporation to ensure that the work in the Corporation complies with the functions and duties in the Charter, internal management regulations of the Corporation and the related Laws.
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3BOD participates in weekly and monthly meetings, closely monitors the production and business activities of the units in the Corporation, and promptly directs to ensure the targets assigned by the Annual General Meeting.
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4BOD directed and coordinates with BOM in the implementation of resolutions and decisions of the BOD.
EVALUATION OF THE BOARD OF DIRECTORS ON THE ACTIVITIES OF THE BOARD OF MANAGEMENT
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1Board of Management complies with the provisions of the law, the charter and the regulations and resolutions of the Board of Directors.
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2Execution of the Board of Management is consistent with the orientation of the Board of Directors and always adheres to reality, is creative, proactively solves difficulties and generates profits at the best level. The Board of Management has taken positive measures to improve management and operation activities, reflected in the issued regulations.
REPORT OF THE BOARD OF SUPERVISORS
- Supervising the Corporation and its subsidiaries in disclosing information according to regulations.
- Controlling and evaluating the results of implementation of the Resolution No. 52/NQ-DHDCD dated 27 May 2021 of the Annual General Meeting 2021, to be done from 23 February 23 to 04 March 2022.
- Preparing report of the Board of Supervisors to submit to the Annual General Meeting 2022 (to be done in April 2022).
- Appraising salary budget finalization report for electricity production in 2021 of the Corporation (to be done in March 2022).
- Appraising the Corporation’s 2021 financial statements (to be done in March 2022).
- Appraising the Corporation’s 2022 interim financial statements (to be done in July 2022).
- Appraising the Corporation’s 2022 salary plan (to be done in May 2022).
- Proposing and recommending to the General Meeting of Shareholders to approve the 04 largest companies in Vietnam to be selected as an auditor for the financial statements of the whole Corporation in 2022 and the period in 2023 - 2025.
- Presiding and coordinating with the Internal Audit and Financial Supervision Department under the Corporation to supervise PwC auditor in conducting audit for the Corporation’s 2021 financial statements (to be done in 2021 and January and February 2022).
- Performing duties and authorities of Board of Supervisory in accordance with the laws, EVNGENCO3 Charter honestly and cautiously for the benefit of the Corporation and its shareholders.
- Meeting on 12 July 2022 for the first 6 months of 2022 (online meeting).
- Meeting on 29 November 2022 to review the supervision performance in 2022.
- Presiding and coordinating with the Internal Audit and Financial Supervision Department under the Corporation to supervise PwC auditor in conducting audit for the Corporation’s 2022 internal financial statements (to be done in July 2022) and supervise fix asset and inventory stock count at the units in the end of December 2022.
- Conducting direct audit of activities of Buon Kuop Hydropower Company from 24 to 30 November 2022.
- BOD has promptly and fully provided the BOD Resolutions and Decisions to the Board of Supervisors through E-office program. The Board of Management has created favorable conditions for the Board of Supervisors to gather information and documents related to production and business activities of the Corporation, upon request.
- The Board of Directors, the Board of Supervisors, the Board of Management and the managers of the Corporation have had a close cooperation relationship in the operation and management of production and business activities.
- In the process of performing its tasks, the Board of Supervisors has always received the attention and support from BOD, BOM and other member units of the Corporation fulfill its duties as assigned by the General Meeting of Shareholders.
- Fully participating in annual training courses on internal audit, financial supervision and compliance control organized by Vietnam Electricity.
- Attending meetings of the BOD and weekly and monthly meetings of the Corporation.
- None.
Shareholder structure and change in owner’s equity
Stock information
Stock symbol: PGV
Market capitalization
(billion VND)
0
(as of December 31, 2022)
Major shareholder
Vietnam Electricity (99.19%) - Equivalent to
0
million shares
Volume of outstanding shares
million shares
0
The Corporation has paid dividends in 2022: 5.5%
NUMBER OF RESTRICTED TRANSFERABLE SHARES AS REGULATED BY LAW OR BY LISTING ORGANIZATION
Based on
- List of shareholders as of 30 December 2022 by Vietnam Securities Depository Center.
- Official letter No. 2985/GENCO3-KH dated 20 October 2021 of Power Generation Corporation 3 adjusting types of securities for securities holders.
- Official letter No. 5464/CNVSD-DK dated 25 October 2021 of Vietnam Securities Depository Center - Ho Chi Minh City Branch on the change of securities type - stock code: PGV.
Number of restricted transferable shares hold by employees: 70,400 shares
- Reason for restricted transfer: these are the shares purchased equivalent to the numbers of years committed to work for the Corporation by the employees.
- Transfer restriction period: from 27 September 2018 (according to the Business Registration Certificate of Joint Stock Company) until the end of the working time committed by employees.
- The number of restricted transferable shares according to the number of years is as follows:
- The number of restricted transferable shares in 10 years, until 27 September 2028: 55,000 shares.
- The number of restricted transferable shares in 8 years, until 27 September 2026: 4,000 shares.
- The number of restricted transferable shares in 5 years, until 27 September 2023: 7,000 shares.
- The number of restricted transferable shares in 4 years, until 27 September 2022: 4,400 shares.
The number of shares committed to hold by members of the Board of Directors, Board of Management, Board of Supervisors, Chief Accountant, major shareholders related to internal shareholders is as follows:
| No. | Full name | Positions in listed organizations | Number of freely transferable shares |
Number of restricted transferable shares (1) |
Total number of shares owned (2) |
Ownership ratio (%) |
|---|---|---|---|---|---|---|
| 1 | Dinh Quoc Lam | Chairman | 23,455 | 5,000 | 28,455 | 0.003% |
| 2 | Le Van Danh | Member of the Board of Directors, President & CEO |
12,600 | - | 12,600 | 0.001% |
| 3 | Truong Quoc Phuc | Member of the Board of Directors | 6,720 | - | 6,720 | 0.0006% |
| 4 | Nguyen Minh Khoa | Member of the Board of Directors | - | - | - | - |
| 5 | Do Mong Hung | Member of the Board of Directors | - | - | - | - |
| 6 | Cao Minh Trung | Vice President | 23,415 | - | 23,415 | 0.002% |
| 7 | Nguyen Thanh Trung Duong | Vice President | 11,170 | 5.000 | 16,170 | 0.001% |
| 8 | Nguyen Thi Thanh Huong | Vice President | 10,080 | - | 10,080 | 0/001% |
| 9 | Vo Minh Thang | Vice President | 7,180 | 5,000 | 12,180 | 0.001% |
| 10 | Pham Hung Minh | Chief of the Board of Supervisors | - | - | - | - |
| 11 | Dau Duc Chien | Member of the Board of Supervisors | - | - | - | - |
| 12 | Vu Hai Ngoc | Member of the Board of Supervisors | - | - | - | - |
| 13 | Vu Phuong Thao | Chief Accountant | 945 | - | 945 | 0.0001% |
| Total | 95,565 | 15,000 | 110,565 | 0.01% |
Note:
(1) Restricted transferable share is the number of shares that employees can buy equivalent to the number of years committed to work for the Corporation under the equitization plan and are restricted from transfer equivalent to the number of years of commitment.
(2) Total number of shares owned is the number of shares owned by an individual, excluding the number of shares representing the State’s ownership.
Shareholders structure
As of December 31, 2022, the charter capital structure of the Corporation is as follows:
| No. | Shareholder | Number of shareholders | Number of shares | Total value of shares at par value (VND) | Ownership ratio (%) |
|---|---|---|---|---|---|
|
1
|
Domestic shareholders | 1,998 | 1,123,274,956 | 11,232,749,560,000 | 99.98% |
|
1.1
|
Legal entities | 7 | 1,114,522,889 | 11,145,228,890,000 | 99.20% |
|
1.2
|
Individuals | 1,991 | 8,752,067 | 87,520,670,000 | 0.78% |
|
2
|
Foreign shareholders | 30 | 193,090 | 1,930,900,000 | 0.02% |
|
2.1
|
Legal entities | 5 | 147,600 | 1,476,000,000 | 0.01% |
|
2.2
|
Individuals | 25 | 45,490 | 454,900,000 | 0.004% |
| Total | 2,028 | 1,123,468,046 | 11,234,680,460,000 | 100% |
Internal shareholders information
| Full name - Position | Number of shares end of the period | Share ownership ratio at the end of the period | Note | |
|---|---|---|---|---|
| BOARD OF DIRECTORS | Mr. Dinh Quoc Lam - Chairman | 28,455 | 0.003% | |
| Mr. Le Van Danh - Member of BOD, President & CEO | 12,600 | 0.001% | ||
| Mr. Truong Quoc Phuc - Member of the BOD | 6,720 | 0.0006% | Resigned from 14 June 2022 | |
| Mr. Nguyen Minh Khoa - Member of the BOD | 0 | |||
| Mr. Do Mong Hung - Independent member of the BOD |
0 | |||
| BOARD OF SUPERVISORS | Mr. Pham Hung Minh – Chief of the Board of Supervisors | 0 | ||
| Ms. Vu Hai Ngoc – Member of the Board of Supervisors | 0 | |||
| Mr. Dau Duc Chien – Member of the Board of Supervisors | 0 | |||
| BOARD OF MANAGEMENT | Mr. Cao Minh Trung - Vice President | 23,415 | 0.002% | |
| Mr. Nguyen Thanh Trung Duong - Vice President, Chairman of BOD at Ninh Binh Thermal Power JSC | 16,170 | 0.001% | ||
| Ms. Nguyen Thi Thanh Huong - Vice President | 10,080 | 0.001% | ||
| Mr. Vo Minh Thang - Vice President | 12,180 | 0.001% | ||
| CHIEF ACCOUNTANT AND CORPORATE SECRETARY | Ms. Vu Phuong Thao - Chief Accountant | 945 | 0.0001% | |
| Ms. Chau Thi Duy Lan - In charge of Corporation Governance cum Corporation Secretary | 2,205 | 0.0002% |
OUTSTANDING INVESTOR RELATIONSHIP ACTIVITIES IN 2022
2022 is a milestone for Power Generation Corporation 3 when the stock symbol PGV was officially listed on HOSE on February 10, 2022. This confirms the stature of PGV in the Vietnam capital market and emphasizes the Corporation’s efforts in investor relations.
Typical IR activities:
- On February 10, 2022, successfully held the ceremony to award the listing decision and celebrate the official trading day of EVNGENCO3’s shares (stock symbol: PGV) with the participation of a large number of partners.
- EVNGENCO3 prioritized promoting online channels, including journalism. During the past year, all news about EVNGENCO3’s activities were continuously updated on newspapers with large market coverage, in order to quickly provide EVNGENCO3’s activities to investors during the quarantine period.
- For shareholders and investors to have more perspective on PGV stock symbol through leading analysts in the market. The Corporation has continuously updated its monthly investor relations bulletin, so that analysts can regularly issue analyzing reports of PGV.
The situation changes in the investment capital of the owner
Since operating under the model of a Joint Stock Company until now, the Corporation has paid share dividends in 2020 in shares (5% at the time of implementation: July 2021), the Corporation’s charter capital increased accordingly.
The Corporate’s capital increase brief
| No. | Date | Actually contributed before increase (VND) | Actually contributed after increase (VND) | Form of issuance |
|---|---|---|---|---|
1 |
July 2022 | 10,699,695,770,000 | 11,234,680,460,000 | Issuing share for dividend payment at 5% |
Trading status of treasury shares
Power Generation Joint Stock Corporation 3 has no treasury shares.
