Major Financial Benchmarks
VND million
VND million
VND million
NET REVENUE
NET PROFIT AFTER TAX
OWNER’S EQUITY
1
14,871,
1
362,
1
1,535,
NET REVENUE AND GROWTH RATE 2014 – 2018
Chairman's Message
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Dear honorable shareholders, leaders and all employees of SAVICO!
First of all, the Board of Directors of SAVICO would like to express our sincere thanks to your support and accompanying during the last time. Particularly, we would like to express our gratitude to the leaders and all the employees of SAVICO as well as the member companies for your increasing efforts to overcome difficulties and take advantages of the market to enable SAVICO to gain outstanding achievements in 2018.
SAVICO is the pioneer among the enterprises operating in trading and services in Ho Chi Minh City in particular and in Vietnam in general. SAVICO’s collective is committed to increasingly working hard and renovating to make dream come true – SAVICO IS THE LEADER IN SERVICE BUSINESS IN VIETNAM, INTEGRATING IN THE REGION AND IN THE WORLD. We can affirm that we have never neglected implementing this commitment.
On the way to make dream come true, the happiness has come with SAVICO when there are more and more customers satisfying with the products and services provided by SAVICO. We are happy to create jobs for more people and, together with the manufacturers, we train a team of skillful workers meeting the regional and international standards. We are happy to create a working environment of humanity, not only giving them good jobs but also giving them opportunities for starting up and building their career with SAVICO. We are also happy when SAVICO increasingly develops and brings more and more added values to the Shareholders as well as contributing to the economic growth of Ho Chi Minh City and the nation.
It is the support, cooperation and trust of shareholders together with the dedication of the leaders and the employees have brought SAVICO’s achievements todays. We always believe that all achievements are common ones and we are delighted to share the joy and happiness with all shareholders and generations of leaders and employees of SAVICO system with the deepest gratitude.
SAVICO's development journey continues with challenging goals in many difficulties and obstacles in the market in 2019. However, we continue to take the spirit of “BREAKTHROUGH THINKING DRIVES VALUES” as a viewpoint to lead the system as well as committing to always engaging promoting internal strength to make dreams come true. Therefore, we hope that the leaders and employees of the whole system are assured, united and promote the existing values of SAVICO. We hope that shareholders will continue to trust, accompany and support us to achieve the business plan targets for 2019 so that SAVICO will grow strongly, stably and sustainably.
Yours faithfully!
Chairman
Nguyen Binh Minh
SAVICO's development journey continues with challenging goals in many difficulties and obstacles in the market in 2019. However, we continue to take the spirit of “BREAKTHROUGH THINKING DRIVES VALUES” as a viewpoint to lead the system as well as committing to always engaging promoting internal strength to make dreams come true.
Vision, Mission and Core values of the Company are reviewed annually by the Board of Directors, in which the Mission has been adjusted in the first periodic meeting of 2018.
MISSION
To bring prestigious products and services to our consumers, improving the quality of life.
MISSION
To bring prestigious products and services to our consumers, improving the quality of life.
VISION
To become the leading investment corporation specializing in services in Vietnam, integration into regional as well as international business networks.
VISION
To become the leading investment corporation specializing in services in Vietnam, integration into regional as well as international business networks.
CORE VALUES
TRANSPARENCY: In transactions, actions and business.
RESPECT: Shareholders, Investors, Customers, Partners…
RESPONSIBILITY: Complying with the Law, actively contributing to the community and society.
CREATION: Always looking for opportunities, self-innovating to increase reputation and business efficiency.
SOLIDARITY: Consensus to overcome challenges; self-renewal, actively seeking opportunities, creating success.
CORE VALUES
TRANSPARENCY: In transactions, actions and business.
RESPECT: Shareholders, Investors, Customers, Partners…
RESPONSIBILITY: Complying with the Law, actively contributing to the community and society.
CREATION: Always looking for opportunities, self-innovating to increase reputation and business efficiency.
SOLIDARITY: Consensus to overcome challenges; self-renewal, actively seeking opportunities, creating success.
ESTABLISHMENT AND DEVELOPMENT HISTORY
In 2018, focused on innovating management and leadership thinking; continued to invest in developing distribution and service activities in the automotive industry, maintained and developed stable revenues from real estate services as well as promoting the support function of this field in the field of Services – Trading.
1982
SAIGON GENERAL SERVICE CORPORATION (SAVICO) was formerly a State - owned company established on 01 September 1982 named District 1 Service Company.
1986
Changed the Company’s name from District 1 Service Company to SAIGON GENERAL SERVICE CORPORATION (SAVICO).
1990
Invested and developed business services of automobile, motorbike, tourism, transportation – taxi, etc. creating the foundation for the development of the Service - Trading system onwards.
1995
Expanded business to Real Estate Services and put it in the core business activities of the Company.
1998
Step by step shifted operations to the investment company model - starting with the capital contribution or buying shares of companies; built and developed distribution agents of cars and motorcycles of prestigious brands such as Toyota, Ford, Suzuki, Chevrolet, etc.
2005
Equitized and operated as a Joint Stock Company from 04 January 2005. The Company's activities focus on three areas: Commercial Services, Real Estate Services and Financial Services.
2006
On 21 December 2006, the Company's shares were officially listed in Hanoi Securities Trading Center (HNX) with the stock code SVC.
2009
On 01 June 2009, the Company changed its securities to Ho Chi Minh City Stock Exchange (HOSE) with stock code SVC.
2016
Expanded into trading vehicles with Hino brands and traded high-end vehicles with Volvo brand.
2017
Promoted the development of distribution and service activities in the automotive industry.
The total number of new car dealers in this period is 22, bringing the total number of car dealers in SAVICO to 41 agents.
2018
Focused on innovating management and leadership thinking; continued to invest in developing distribution and service activities in the automotive industry, bringing the total number of current car dealers to 48; maintained and developed stable revenues from real estate services as well as promoting the support function of this field in the field of Services – Trading.
State shareholders
40.78%
Domestic shareholders
11.04%
Foreign shareholders
47.66%
Shareholders structure
TOTAL OUTSTANDING SHARES
24,975,507
SHARES
Maintaining the position of Vietnam’s No.1 automobile distributor with total market share at least of 10% of total automobile market in Vietnam by 2020.
Trade-service continue to be main business line of the company, real estate service contributes significantly to the stable performance of the company.
Total market share at least of 10%
of total automobile market in Vietnam by 2020
With the spirit of “BREAKTHROUGH THINKING - DRIVES VALUES”, each executive member of the SAVICO have positive changes in thinking, to take drastic and appropriate actions in order to create strong motivation for staff, increase the creativity and efficiency to speed up the business performance with remarkable results.
Total car sales
Total car sales of SAVICO network in 2018 is equivalent to 10.9%
of total car sales reported by VAMA - increased 1% to compare with 2017
Cash dividend rate
Increase the cash dividend rate for 2018 from 12% as planned to 15% (of par value).
Investments in other entities of the network
Increase investments in other entities of the network are nearly VND 200 billion.
The operations of the Board of Directors
In 2018, the Board of Directors has operated in accordance with the provisions of Law, Company’s Charter and achieved the best business performance in the ability for the Company. The work under the authority of the Board of Directors is resolved by members with the spirit of concentration, prudence, responsibility and protection of the interests of the Company and Shareholders.
BUSINESS PLAN OF 2019
Build up the network development roadmap in localities and companies in network. Mobilizing all resources of financial and human resources to develop and expand the network in accordance with set schedule and actively develop land banking for project development. Implement increase charter capital for the Company and enterprises companies in the network to enhance financial capability and business' financial position. Strengthening the cooperation and investment relations with strategic partners, connecting with investors interested in business activities of the Company. Enhancing the management role of the parent Company to member companies. Promote corporate culture, strengthen internal cohesion, ensure the development of the network system in the future. Build up goals, vision and business strategy for the term of 2020 - 2025.
The consolidated revenue reached VND 14,881 billion, achieving 105% of 2018 plan, increasing 8% YoY. The consolidated profit before tax reached VND 362 billion, achieving 145% of 2018 plan, increasing 108% to compare with 2017 due to an increase 17% of total car sales volume of automotive sector of the network.
14,590
VND Billion
13,347
VND Billion
545
VND Billion
Consolidated revenue from sales of goods and provision of services of automotive network was VND 14,590 billion, increasing 7.9% YoY.
Revenue from car sales was VND 13,347 billion, increasing 9.9% YoY.
Gross profit of car sales in 2018 reached VND 545 billion, up 38.6% as of the same period.
In 2018, the Board of Supervisors has held 7 meetings to plan, implement the supervision and approve the results of business operations monitoring of SAVICO in the period of 2017, the first 06 months of 2018, the first 9 months of 2018 and the year of 2018.
NPAT attributable to equity holders of the Company exceeded 44% of the plan and increased 112% compared to 2017.
Cash dividend of 2017 was paid at the rate of 12% of charter capital, equivalent to VND 29,970,608,400
By the end of 2018, SAVICO has 4,824 employees, up 12% as of 2017. In order to meet the increasing requirements of business network, in 2018, SAVICO has recruited many experienced and highly-skilled employee to gradually complete the company’s personnel structure.
100
Employees
Total staff in 2018
Total staff (YoY)
CORPORATE GOVERNANCE
Organizational Structure & Operation of BOD
BOD has closely followed market developments, monitored and gave timely support to General Director (GD), GD's support group and representatives at units that SAVICO contributes capital to implement policies approved by General Meeting of Shareholders and BOD.
Structure & Operation of BOS
Board of Supervisors was approved by General Meeting of Shareholders to additionally elect more member to Board of Supervisors to meet the company’s management requirements.
In 2018, Board of Supervisors has been supported by BOD, BOM and GD's support group to get updates of the company’s operation situation, information and document collection to serve inspection and supervision purposes.
Risk management
SAVICO’s business results are impacted by some elements incurred by macro-economic environment, automobile retail and real estate market. SAVICO has identified and had mitigation measures for 7 basic risks, included: strategic risk, personnel and succession personnel risk, macro-economic environment, automobile industry policies and its impact, policy of automobile manufacturers, severe competition, supply chain.
A CORPORATE RESPONSIBILITY REPORT
ECONOMIC EFFICIENCY
SAVICO’s revenue earned from sales and services (after-sale services of commercial and property leasing services), revenue from interim services and financial services is decreasing. With an orientation of trading-service as core business, SAVICO has effectively implemented service sector to ensure a stable and sustainable development with an annual average revenue growth in 2014-2018 period of 24.8%.
With a consolidated revenue increasing by 17.5%/year, total consolidated corporate income tax expense of SAVICO contributed to State Budget increases by 19%/year in 2014-2018, equivalent to VND30.8 billion in 2014 up to VND 62 billion in 2018.
Total contribution to
state budget increases by
19%/year
From VND 30.8 billion in 2014 up to VND 62 billion
in 2018
ENVIRONMENTAL TARGET
SOCIAL TARGET
In 2018, SAVICO system has positively participated in social activities, charitable activities; raising spirit of “the good leaves protect the worn-out leaves”, taking good care of family contributing to the revolution and people with difficult circumstances, humanitarian activities.
Giving 20 Tet gifts to
poor people in Thu Duc District
Paying visit and support House of Love for lonely elderly people at Camillo Center, District 8 with total value of VND 622.4 million.
FINANCIAL STATEMENTS
DOWNLOAD
2018 BUSINESS PERFORMANCE
CORPORATE GOVERNANCE
CORPORATE RESPONSIBILITY REPORT
FINANCIAL STATEMENTS
ANNUAL REPORT 2018
SAVICO INTRODUCTION
SAIGON GENERAL SERVICE CORPORATION
68 Nam Ky Khoi Nghia, District 1, Ho Chi Minh City
Tel: (84-28) 3821 3913 | Fax: (84-28) 3821 3553/3821 5992
Email: savico@savico.com.vn
www.savico.com.vn
