DANANG PORT Connecting for mutual prosperity
ANNUAL REPORT 2018
DANANG PORT “Connecting for mutual prosperity”
CONTENTS
I. GENERAL INFORMATION
1. General information 3 2. Business lines and locations of the 4 business 3. Information about management model, business organization and 6 management apparatus 4. Development orientations 9
5. Risks 9 II. YEARLY OPERATIONS
1. Situation of production and business 12 operations 2. Organization and Human resource 12 3. Investment activities, project 16 implementation 4. Financial situation 17 5. Shareholders structure, change in the 18 owner’s equity III. REPORT AND 6. Report related impact of the Company ASSESSMENT OF THE BOARD on the environment and society 19 OF DIRECTORS
1. Assessment of business 22 performance 2. Financial Situation 23 3. Improvements in organizational 25 structure, policies, management 4. Development plans in the future 26 IV. ASSESSMENT OF THE BOARD OF MANAGEMENT
1. Assessments of the Board of 29 Management on the Company’s operation 2. Assessment of Board of Management on 29 Board of Directors’ performance V. CORPORATE 3. Plans, orientations of the Board of Management 30 GOVERNANCE
1. Board of Management 32 2. Board of Supervisors 33 3. Transactions, remunerations and interests of the Board of Management, 34 Board of Directors and Board of VI. FINANCIAL Supervisors STATEMENTS
1. Auditor’s opinions 2. Audited financial statements
ANNUAL REPORT 2018 DANANG PORT JOINT STOCK COMPANY
PART I
General information 2
ANNUAL REPORT 2018 DANANG PORT JOINT STOCK COMPANY
1 General information - Trading name: DANANG PORT JOINT STOCK COMPANY - The Enterprise Registration Certificate has been amended six times, the most recent of which is Enterprise Registration Certificate No. 0400101972 dated 14 February 2019. The Enterprise Registration Certificate was issued by the Da Nang Department of Planning and Investment. - Share capital as at 31/12/2018: 990.000.000.000 VND. - Address: 26 Bach Dang, Thach Thang Ward, Hai Chau District, Da Nang City, Vietnam - Telephone: 0236.3 8222 512 - Fax: 0236.3 822 565 - Tax code: 0400101972 - E-mail: [email protected] - Website: www.danangport.com - Securities code: CDN PROCESS OF ESTABLISHMENT AND DEVELOPMENT
19/01/1976 Ministry of Transport assigned the Department of Maritime Administration to directly manage Danang Port to directly according to the Decision No. 222- QD/TC 15/06/1993 To implement the Decree No. 388/HDBT dated November 20th, 1991 of the Council of Ministers, the Ministry of Transport issued the Decision No. 1163/QD-TCLD with reference to the establishment of State-owned enterprise – Danang Port under Vietnam Maritime Administration. 08/05/1998 The Prime Minister issued the Decision No. 91/1998/QD-TTg to transfer Danang Port as a member of Vietnam National Shipping Lines. 12/10/2007 The Minister of Ministry of Transport issued the Decision No. 3089/QD-BGTVT with reference to the transfer of Danang Port - from independent cost-accounting member company under Vietnam National Shipping Lines into Danang Port One- member Limited Company. 01/04/2008 Danang Port completed the procedures for conversion and business registration, officially operated under the model of one member limited liability company. 06/05/2014 Vietnam National Shipping Lines issued the Decision No. 216/QD-HHVN dated May 6th 2014 by the Board of Members of Vietnam National Shipping Lines with reference to the approval of equitization plan and transferring Danang Port One-member Limited Company to Joint Stock Company. 25/07/2014 Danang Planning and Investment Department issued the second business registration certificate to officially transform Danang Port One-member Limited Company to Danang Port Joint Stock Company.
3
ANNUAL REPORT 2018 DANANG PORT JOINT STOCK COMPANY
2 Business lines and locations of the business According to the Enterprise Registration Certificate No. 0400101972 issued by Danang Department of Planning and Investment for the sixth time of registration on February 14, 2019, the Company's business lines include: - Loading and unloading cargo by road, seaport and river port; - Direct support services for waterway transportation; - Shipping agency, sea transportation; port services; - Support and towage services, transportation, preservation; tally, delivery, receipt; - Logistics services; Multimodal transportation; - Storage and warehouses service in bonded warehouses, frozen warehouses, and other warehouses; - Restaurants and mobile catering services; - Trading in solid, liquid, gas fuels and related products; - Retailing goods in specialized stores; - Repair of machinery and equipment; - Build a house; other civil engineering works; - Construction investment and office and real estate leasing business; - Motor vehicle rental; Danang Port is located in Da Nang City, a dynamic city that plays a central socio-economic role in Central Vietnam, with its natural geographic location located in Da Nang Bay with 12 km2 wide, depth of 10 - 17 meters, surrounded by Hai Van mountain and Son Tra peninsula, airtight with 450 meters long breakwater is convenient for ships to anchor and do cargo year-round. With a history of over 100 years of establishment and development, Danang Port is currently the largest seaport in Central Vietnam. The road traffic system is connected between the Port with Danang International Airport, Railway Station, the rear area is very spacious and airy, convenient for the import and export of goods for the region. Goods exported - imported through the Port, according to 1A National Highway to the provinces in the North and South of the City, according to 14B Highway to the Central Highland provinces and countries of Laos, Cambodia, and Thailand. Danang Port has 01 main port - Tien Sa Port. Tien Sa port is a natural deep-water seaport, with the largest depth of 14 meters, total length of the berth is 1700 meters with total 9 berths. Tien Sa port is capable of receiving general cargo ships of up to 70,000 DWT, container ships of up to 4,000 teus and passenger ships of 150,000 GRT. Tien Sa port is considered one of the few ports in Vietnam with favorable natural conditions and potential to develop into a big seaport.
4
ANNUAL REPORT 2018 DANANG PORT JOINT STOCK COMPANY
According to the development plan of Vietnam seaport system, Danang Port is defined as a major port in the region. In which, Tien Sa Port has a container wharf area with a system of warehouses, breakwaters, modern specialized equipment, serving goods trading and economic and tourist development for the hinterland, including the central provinces, Central Highlands, Southern Laos and Northeast Thailand through the East-West Economic Corridor. Danang Port is also identified as one of the main gateways to the East Sea of the Me Kong Sub-region (GMS). The Port Operation and Management System has been recognized by the BV - United Kingdom as an ISO 9001: 2000 standard, all activities of the Port are oriented to the practical benefits of customers. Currently, Danang Port is gradually implementing the environmental management system ISO 14001:2010 to protect the environment - one of the important factors for sustainable development. With the dynamic search for customers, building a partner network, promoting research as well as developing the market, the brand of Danang Port has gradually been established in maritime industry of and region. With these achievements, Danang Port was honored to be awarded by the government: Third-class Labor Medal, Second-class Labor Medal, First-class Labor Medal, Third-class Independence Medal, Second-class Independence Medal, Merit of Prime Minister in 2015. These are the awards that recognize the contribution and efforts of Danang Port’s employees, and it also helps Danang Port to be more confident for a bright future, to step on the path of development to become one of the leading modern
seaport of Vietnam and region. 5
ANNUAL REPORT 2018 DANANG PORT JOINT STOCK COMPANY
3 Information about management model, business organization and management apparatus Danang Port Joint Stock Company operates under the Charter of organization and operation of the Company approved by the General Meeting of Shareholders, according to the provisions of the Enterprise Law, under the management, supervision and administration of Board of Management, Supervisory Board and Board of Directors. The organizational structure of the Company follows the model of a joint stock company as follows: - General Meeting of Shareholders; - Board of Management; - Supervisory Board; - Board of Directors; ORGANIZATIONAL CHART
Board of Management
Supervisory Board
General Director
Deputy General Director Deputy General Director Administration, Shareholder Sales, Operation Relationship
Promotion – Sales Dept Tien Sa Terminal Investment Dept
General Operation Dept Administrative Dept
Planning - HR dept Investment Dept
Accounting - Technology Dept Finance Dept
Construction Dept 6
ANNUAL REPORT 2018 DANANG PORT JOINT STOCK COMPANY
BOARD OF MANAGEMENT
No. Name Position 1 Mr. Tran Le Tuan Chairman 2 Mr. Nguyen Huu Sia Member 3 Mr. Le Quang Duc Member 4 Mr. Phan Bao Loc Member 5 Mr. Tran Tuan Hai Member 6 Mr. Luong Dinh Minh Member
BOARD OF DIRECTORS
No. Name Position 1 Mr. Nguyen Huu Sia General Director Deputy General Director in 2 Mr. Duong Duc Xuan charge of Sales and Operation Deputy General Director in 3 Mr. Le Quang Duc charge of Administration, Shareholder Relationship
Explaination: General Meeting of Shareholders: The General Meeting of Shareholders is the highest authority of the Company. Annual General Meeting of Shareholders is held once a year. The General Meeting of Shareholders has the right to discuss and approve: Annual financial statements; Report of the Board of Directors; Report of Supervisory Board; Short-term and long-term development plans of the Company; Approving the number of members of the Board of Directors; Election, dismissal, removal and replacement of members of the Board of Directors and Supervisory Board; Supplement and amend the Company Charter; Approve the type of shares and the number of new shares issued for each class of shares; ... and decide on other matters within its authority in accordance with the law and the Company's Charter. Board of Management: Board of Management is a managerial body of the company, business activities and other works of the company is under the supervision and direction of Board of Management. Board of Directors has full authority to exercise all rights on behalf of the Company except for authority of General Meeting of Shareholders. The number of members of Board of Management is seven (07) people. The term of Board of Management is five (05) years. The term of members of Board of Management shall not exceed five (05) years; Members of Board of Management can be re-elected with an unlimited number of terms. Total number of independent and non-executive members of Board of Management must account for at least one third (1/3) of total number of members of Board of Management. Minimum number of independent and non-executive members of Board of Management is determined by method of rounding down. Members of Board of Management are selected by General Meeting of Shareholders according to the principle of direct election and closed ballot. Supervisory Board: Supervisory Board is elected by General Meeting of Shareholders, on behalf of shareholders to check and supervise business, management and administration activities of the Company. Number of members of Supervisory Board is three (03) people. Members of Supervisory Board are not members of
accounting and financial department of the Company and are not members or employees of the independent 7
ANNUAL REPORT 2018 DANANG PORT JOINT STOCK COMPANY auditing company which is conducting the audit of the Company's financial statements. Members of Supervisory Board are not people who are related to members of Board of Management, General Director and other managers of the Company. Supervisory Board shall appoint one (01) member to be the Head. Executive Board: Including General Director and Deputy General Directors. The General Director is the legal representative of the Company. General Director: General Director is the person who runs daily business of the Company, General Director is supervised by Board of Management and responsible to Board of Management and General Meeting of Shareholders, responsible to the law on the performance of assigned tasks and authority and must report to these agencies when requested. General Director is appointed by Board of Management. The term of General Director is three (03) years and maybe reappointed. The appointment may expire based on the provisions of the labor contract. General Director is not a person who is prohibited by law from holding this position. Deputy General Directors: Assisting General Director in directing, operating and implementing each area of management of the Company as assigned and authorized by General Director, responsible to General Director and the law for the assigned or authorized tasks. Departments: + Human Resource Department; + Technology Department; + Construction Department; + Planning - Investment Department; + Accounting - Finance Department; + Sales Department; + Operation Department; + General Administrative Department; + Promotion – Investment Department Affiliations: + Tien Sa Port Danang Port hold under 50% chartered capital: + Danang Port Logistics JSC; + Danang Port Tugboat JSC. Management Structure: Parent Company: Vietnam National Shipping Lines – 01 Dao Duy Anh – Dong Da Dist – Ha Noi. The
contributed capital is 742,500,000,000 VND (75.00%). 8
ANNUAL REPORT 2018 DANANG PORT JOINT STOCK COMPANY
Associates:
Contributed capital
No. Company name Address Value Ratio Relation (mVND) (%)
45 Yet Kieu, Tho Quang Danang Port Logistics 1 Ward, Son Tra District, 19,907.66 45 Associates JSC Da Nang City 02 3/2, Thuan Phuoc Danang Port Tugboat 2 Ward, Hai Chau District, 10,182.15 36 Associates JSC Da Nang City
4 Development orientations Target for the period from 2016 to 2020 Danang port is developing towards a Green Port, according to 2 main activities: Port exploitation and Logistics services outside the port. Port operation includes: exploiting container ships, tourist ships and specialized vessels with large tonnage; Exploiting logistics services outside the port includes: warehouse services, CFS warehouse, bonded warehouse, goods distribution center, ... Danang Port will be a modern seaport with the capacity to exploit container No. 1 in the Central, in the top 10 of Vietnam's container seaports and develop logistics services to contribute to building Da Nang into a regional logistics center of Central Vietnam. Visionn for the period from 2020 to 2030 At the beginning of 2022, Danang Port begin to build Lien Chieu Port with 2 container terminals. At the beginning of 2024, it will be completed and begin to be used to transfer a part of Tien Sa Port's cargo through Lien Chieu Port. At the same time, Tien Sa Port will be converted a part of its function, becoming a seaport that has both container and tourism exploitation. Period 2025 - 2030: in Tien Sa area, forming a tourist wharf to receive a ship of 150,000 GT and become the biggest tourist port in the Central. Logistics services accounts for equal proportion of port operation. Danang Port will be the trading gateway of the Central Region - Central Highlands, the focal point for linking international trade activities with Central Vietnam. Danang Port will operate as a logistics and service center of Central Vietnam.
5 Risks Economic risks World economy - finance in 2018 has many complicated developments. Positive macro-economic signals made the FED raise interest rates for the first time in nearly a decade and revealed a roadmap to increase interest rates in a cautious and gradual manner. However, from the end of the fourth quarter of 2018, US's manufacturing sector showed signs of slowing down. Fed's expected interest rate in 2018 will be only 1% or less. European economy recovered slowly under the impact of a sharp decline in
prices of goods. Meanwhile, economic stimulus measures of ECB have not been as effective as expected. 9
ANNUAL REPORT 2018 DANANG PORT JOINT STOCK COMPANY
The Chinese economy is increasingly showing signs of slowdown in the context of the transformation of growth model does not take place as smoothly as expected. In 2018, GDP is estimated to increase by 6.7%. Recovery of manufacturing sector is uneven with dominance of FDI sector. Domestic consumer and investment demand recovered moderately. Besides advantages, Vietnamese economy continues to face risks from major fluctuations in the world. The competition of local ports as well as regional ports is growing, especially Chu Lai-Truong Hai Port. With above economic risks, it will directly affect to the production and business activities of Vietnamese enterprises in general, and Danang Port is not outside this impact. Social risks Traffic conflicts on the roads leading to Tien Sa Port have not been resolved, the government still prohibits container trucks during certain peak hours. Risks of exchange rates and interest rates Danang Port is subject to interest rate risk from foreign currency loans for the project of expanding Tien Sa port - Phase 1. Other risks Other risks (such as natural disasters, epidemics, fires, wars ...) are unforeseen risks. Although it is very unlikely, if any, it will have a big impact on the business situation and cause damage to people
and property of enterprises, especially enterprises operating in field of seaport exploitation. 10
ANNUAL REPORT 2018 DANANG PORT JOINT STOCK COMPANY
PART II
Yearly Operations 11
ANNUAL REPORT 2018 DANANG PORT JOINT STOCK COMPANY
1 Situation of production and business operations
Perfomance No. Items Units Target 2018 Performace/target 2018 1 Quantity Ton 8,819,000 8,650,000 98.08% In which: Container Tues 375,000 370,017 98.67% 2 Total revenue mVND 682,000 718,090 105.27% 3 Profit before tax mVND 178,200 183,384 102.91%
In 2018, output through Danang Port reached 8.65 million tons, reaching 98.08% compared to target of 2018 (8.819 million tons) and up 7.88% compared to 2017. In particular, containers reached 370,017 teus, reaching 98.67% of target and up 6.02% compared to 2017. Turnover in 2018 reached over 718.09 bVND, an increase of 15.80% in compared with 2017 and an increase of 5.27% compared to target. Profit reached 183.38 bVND, increased by 12.96% compared to 2017, an increase of 2.91% compared to target.
2 Organization and Human resource
Shares carrying voting No. Name Position rights 1 Nguyen Huu Sia* General Director 7,953,200 shares Deputy General 2 Duong Duc Xuan 10,100 shares Director Deputy General 3 Le Quang Duc 7,965,900 shares Director
Note: (*) Mr. Nguyen Huu Sia retired on February 2rd, 2019 12
13
Director General Deputy , Party of Member : now til 6/2016 -
2/2016 2/2016 - Division Sa Tien of Director , Party of Member 6/2016: –
Production and
7/2015 7/2015 - Deputy Director of Tien Sa Division. Sa Tien of Director Deputy , Party of Member 1/2016: –
Languages Exploitation
. Division Sa Tien of
Foreign Foreign of charge
Xuan
, Deputy Director Director Deputy , Department at Party the of Secretary Deputy 6/2015: – 7/2014 -
Bachelor of of Bachelor in Director
Duc Duc 2 1964 0,01%
Tien Sa Division Sa Tien . , , Economics General
Duong Duong
2010 2010 - , Deputy Director of of Director Deputy , epartment D at Party the of Secretary Deputy 6/2004: – Labor Labor Deputy
Bachelor of of Bachelor , member 2008 2008 - Deputy Director of Tien Sa Division Sa Tien of Director Deputy , Party of Member 2010: – .
Party’s Party’s
2004 2004 - Deputy Director of Tien Sa Division Sa Tien of Director Deputy , Party of Member 2008: –
ort P Danang – Center Operation of Manager 2003: – 1993 -
. Division Sa Tien - warehouse of manager Deputy 1993: – 1991 -
. Division Sa Tien of Staff 1991: – 1988 -
company the of Secretary Party 1/2/2019: - T7/2015 -
port Danang of Director General : now til T7/2014 -
. port Danang of Director
Languages
Deputy General General Deputy , BoD of member 05/2010), from ( Party of Committee Standing
Director Foreign Foreign
Member of of Member , Party of Committee Executive of Member T7/2014: – 01/2008 -
General General , BoD Sia Bachelor of of Bachelor -
. port Danang of Director Member of of Member 1959 Huu 1 Administration 12,05%
Deputy General General Deputy , Party of Committee Executive of Member 12/2007: – 7/2004 - , , Secretary Nguyen Business Business
’s Party Economics in in Economics Port Danang of Accountant Chief 6/2004: – 4/1997 -
Master of of Master
Port Danang of t Dep Accounting of Head Vice 3/1997: – 7/1992 -
Division Sa Tien of Director Deputy 6/1992: – 1/1986 -
Port Danang of t Dep Accounting at Accountant 1985: – 1982 -
Birth
Position of Name SEQ work the Summarizing Qualification Ratio
Year Year
Directors of Board
2018 REPORT ANNUAL COMPANY STOCK JOINT PORT DANANG
14
T7/2015 T7/2015 - Secretary Deputy Party’s : now til
Deputy General Director General Deputy , BoD of member : now til T7/2014 - rt. Po Danang –
. Port Danang – Committee Standing Union of member , Director General Deputy
01/2014 01/2014 - , , BoD of member , Party of Committee Executive of Member T7/2014: –
Danang Port Danang .
ebr f BoD of member Union Union of member , Accountant Chief , – Committee Standing
Executive Committee Committee Executive of Member 12/2013: – 01/2008 - 2010), 2010), from ( Party of
Port Danang
– Committee Executive Union of member , Accountant Chief 12/2007: – 5/2006 - Relationship
Investor Investor Port. Danang
Administration, Administration, – Dept Accounting of Head Deputy , cell arty P of ecretary S 4/2006: – 11/2004 -
charge of of charge Duc
. ublisher P
Accounting
Director in in Director 1967 Quang 3 12,06%
Danang Education Education Danang - Factory Printing Phat Hoa at president Union , Director
Bachelor of of Bachelor
General General Le Member of BoD, Deputy Deputy BoD, of Member , cell arty P f o ecretary S Deputy 10/2004: – 3/2002 -
Deputy Deputy
. ublisher P Education Danang at Union Youth
, , Secretary
Secretary of Ho Chi Minh Communist Communist Minh Chi Ho of Secretary , ublisher P Education Danang - Factory
Deputy Deputy ’s Party
Hoa Phat Printing Printing Phat Hoa at president vice Union , Accountant Chief 02/2002: – 10/2001 -
. ublisher P Education
at Danang Danang at Union Youth Communist Minh Chi Ho of Secretary , ublisher P Education
Danang Danang - Factory Printing Phat Hoa at Accountant Chief 09/2001: – 3/1997 -
. ublisher P
at Danang Education Education Danang at Union Youth Communist Minh Chi Ho of Secretary ; ublisher P
tion tion Educa Danang , Dept Release - Planning of Specialist 02/1997: – 11/1994 -
Province Danang – Nam Quang of Taxation
Department of of Department , dept tax Construction - ry Indust of Specialist 10/1994: – 11/1991 -
Birth
Summarizing the work the Summarizing cation - Qualifi Position of Name SEQ Ratio
Year Year
2018 REPORT ANNUAL COMPANY STOCK JOINT PORT DANANG
15
. dedication and efficiency their
overseas travel programs, to help improve the cohesion and create a spirit of enthusiasm, maintain and im and maintain enthusiasm, of spirit a create and cohesion the improve help to programs, travel overseas prove prove
Every year, the employees who have a great contribution to Danang Port are allowed to participate in in participate to allowed are Port Danang to contribution great a have who employees the year, Every
employees. of lives
Port has also reorganized meals, upgraded the kitchen kitchen the upgraded meals, reorganized also has Port Danang working. continue to , ensuring the the ensuring , Port Sa Tien at
to take care of the spiritual life of employees of life spiritual the of care take to continued energy recovery recovery energy and rest to time have employees helped ,
vacation organized Port Danang 2018, n I ang Port Port ang Dan . City Nang Da and City An Hoi in employees for s
. integration
abroad such as Japan, Singapore, Thailand, Brunei ...... Brunei Thailand, Singapore, Japan, as such abroad in order to improve competitiveness and international international and competitiveness improve to order in
g, in 2018, 2018, in g, trainin domestic with parallel In Port also sent many employees to participate in seminars seminars in participate to employees many sent also Port Danang
with the reality and development needs of the Port, mastering Port, the of needs development and reality the with . equipment and technologies modern
to implement training programs in accordance accordance in programs training implement to Company Training Port New with cooperated has Port Danang
ach modern technology. technology. modern ach appro gradually to staff technical for programs training planned has Port Danang
leadership skills. leadership Improving , Culture Corporate and Managing, - Self Officer, Financial Chief
used on specific and necessary issues such as CEO, HR Director, Production Manager, Manager, Production Director, HR CEO, as such issues necessary and specific on used foc had courses training
teaching experie teaching with lecturers prestigious by courses training many d organize to ... VCCI PACE, nce. These These nce.
Port cooperated directly with prestigious training institutions such as Crestcom Vietnam, Vietnam, Crestcom as such institutions training prestigious with directly cooperated Port Danang 2018, In
labor protection. labor for equipment adequate ensure meal, shift - mid support power, work restore to policies
The company applies Labor Law for employees. In addition, the company also buys health insurance, insurance, health buys also company the addition, In employees. for Law Labor applies company The
. mVND/person/year 21 : salary average , employees 653 : employees of Number
: employees for policies in anges ch and policies of Summary
. Port Sa Tien at employees
: 64 employees at 26 Bach Dang Office Dang Bach 26 at employees 64 : which in , employees 653 had Port Danang 31/12/2018, At 589 589 ,
: employees of Number
2018 REPORT ANNUAL DANANG PORT JOINT STOCK COMPANY STOCK JOINT PORT DANANG
16
rable, reaching the profit target profit the reaching rable, favo be to continued companies associated of situation business The .
City Nang Da
JSC
2 Assosiate 36 15 10,182. District, Chau Hai Ward,
Port Tugboat Tugboat Port Danang
Phuoc Thuan , 3/2 02
City Nang Da
JSC
1 Assosiate 45 66 19,907. District, Tra Son Ward,
Danang Port Logistics Logistics Port
45 Yet Kieu, Tho Quang Quang Tho Kieu, Yet 45
(%) (mVND)
Ratio Value Address name Company No. Relation
capital Contributed
Investment in subsidiaries and assosiates and subsidiaries in Investment
n the process of implementation of process the n i system: conveyor chip .
30% of the volume has been completed, expected to be completed in the th the in completed be to expected completed, been has volume the of 30% ird quarter of 2019; Wood Wood 2019; of quarter ird
3 specialized trailers: completed and put into use; Upgrading IT Items: Items: IT Upgrading use; into put and completed trailers: specialized 3 0 and tractors 04 Investing as:
191, ( IT and equipment Machinery, + Port implemented projects such such projects implemented Port Danang 2018, In : ) mVND 669
transshipment of goods by waterway at Lien Chieu Lien at waterway by goods of transshipment .
Logistics Service Center project in Hoa Hoa in project Center Service Logistics The project of of project The and district Vang Hoa commune, Nhon
Port will use a consulting company and seek investment partners for partners investment seek and company consulting a use will Port Danang - the the projects: wo t
Navy’s Zone 3 Command 3 Zone Navy’s Environment, project. the of 2 Step implement to
Danang 1, step Completed : 1) (Step Port is cooperating with Department of Natural Resources and and Resources Natural of Department with cooperating is Port
Building a number of items at at items of number a Building - 150,000 GT GT 150,000 to up ships cruise receive to Port Sa Tien - Berth 3
rd
Upgrade and Expand Tien Sa Port (Phase Port Sa Tien Expand and Upgrade - 28/07/2018. at use into putting omplete C 2):
ooking for partners in the Logistics Service Center project. Center Service Logistics the in partners for ooking L Chieu; Lien at erway wat
o 5,0 G (tp ) Cro rnsimn termi transshipment Cargo 1); (Step GT 150,000 to up ships cruise receive to Port Sa Tien nal by by nal
Building a number of items at at items of number a Building 2); (Phase Port Sa Tien Expanding and Upgrading of oject pr - Berth 3
rd
Port focused on implementing the the implementing on focused Port Danang 2018, In : ) mVND 113 69, ( investment Construction +
2018: in implemented s Project
II). Phase ( port Sa Tien xpand E and Upgrade : 2016 from d continue Project : which In
78 260. bVND 2018: in value invesment Total
: constructions and
invested large large invested Company the , stowage and berths of capacity the strengthen to order n i 2018, In assets assets
Project Investment
implementation project activities, Investment 3
2018 REPORT ANNUAL DANANG PORT JOINT STOCK COMPANY STOCK JOINT PORT DANANG
17
) Statements Financial Audited 2018 and 2017 : Source (
26 0. 26 0. sales Net / operation from Profit +
09 0. 11 0. (ROA) assets on Return +
(ROE) equity on Return + 12 0. 16 0.
(ROS) sales on Return + 21 0. 22 0.
ratios Profitability
turnover Asset + 43 0. 52 . 0
turnover Inventory + 19 49. 03 5. 4
indicators Effficiency
Equity / Debt + 33 0. 38 . 0
Assets Total / Debt + 25 0. 28 . 0
ratios Debt
ratio Quick + 33 2. 13 . 2
ratio Current + 38 2. 17 . 2
ratios Liquidity
indicatiors financial Main
206 , 484 , 147 092 , 308 , 566 , 131 tax after Profit 12 758 ,
757 , 384 , 183 327 , 300 , 144 , 162 tax before Profit 13 765 ,
145 , 239 , 1 301 , 878 , 231 , 5 income Other (76) 356 ,
612 , 145 , 182 026 , 422 , 912 , 156 profit operating Net 16 409 ,
517 , 741 , 694 666 , 436 , 116 , 601 sales Net 16 124 ,
365 , 403 , 626 , 1 222 , 554 , 838 , 286 , 1 assets Total 26 267 ,
VND VND situation Financial %
2018 2017 Indicators Rate
situation Financial 4
2018 REPORT ANNUAL DANANG PORT JOINT STOCK COMPANY STOCK JOINT PORT DANANG
18
NA : securities Other
Transaction of treasury share treasury of Transaction NA :
NA : equity owner’s the in hange C
rganizations O 86% 0. 000 , 800 , 360 , 8 080 , 836 5
16% 0. 000 , 500 , 635 , 1 550 , 163 11 s ndividual I
shareholder oreign F 2 000 , 300 , 996 , 9 630 , 999 16
rganizations O 63% 75. 000 , 000 , 763 , 748 300 , 876 , 74 5
608 s ndividual I 35% 23. 000 , 700 , 240 , 231 070 , 124 , 23
613 hareholders s Domestic 1 100% 000 , 000 , 000 , 990 000 , 000 , 99
(%) ) (VND
shareholders structure
No. shares of No.
No. of of No. Shareholder Ratio Value
According to the list of shareholders on January 3 January on shareholders of list the to According source: ( ) VSD by provided 2019, ,
rd
criteria
hareholder structure classified according to dom to according classified structure hareholder S individuals individuals organizations/ foreign and estic
shareholders Other 4 13.33% share Ordinary
Thu Duc District Duc Thu City Minh Chi Ho ,
Hai Van Vu 3 76% 5. share Ordinary
49 Street 15 Street 49 , , Ward Chieu Linh 1, Zone ,
Ho Chi Minh City Minh Chi Ho
Mai Thi Lam 2 91% 5. share Ordinary
24 24 , , 3 District , 6 Ward , Thao Quoc Tran
Noi Lines Shipping
Ordinary 1 00% 75. share
Ha Ha , District Da Dong , Anh Duy Dao 01 National Vietnam
(%)
Type of share of Type Address name Shareholder’s No.
Ratio
, 2019, provided by VSD by provided 2019, , 3 January on shareholders of list the to According : (source )
rd
ratio ownership by structure hareholder S
structure Shareholders
. Charter company's the to according transfer to restricted are shares
Port Joint Stock Company currently has 99,000,000 shares in circulation, of which 583,300 583,300 which of circulation, in shares 99,000,000 has currently Company Stock Joint Port Danang
Share
equity owner’s the in change structure, Shareholders 5
2018 REPORT ANNUAL DANANG PORT JOINT STOCK COMPANY STOCK JOINT PORT DANANG
19
. equipment and technologies
programs in accordance with the reality and development needs of the Port, mastering modern modern mastering Port, the of needs development and reality the with accordance in programs
Danang technology. rt has cooperated with New Port Training Company to implement training training implement to Company Training Port New with cooperated has rt Po
Danang Port has planned training programs for technical staff to gradually approach modern modern approach gradually to staff technical for programs training planned has Port Danang +
. skills leadership Improving Culture, Corporate
Managing, and and Managing, - Self Officer, Financial Chief Manager, Production Director, HR CEO, as such
ues ues iss necessary and specific on focused had courses training These experience. teaching with
Crestcom Vietnam, PACE, VCCI ... to organized many training courses by prestigious lecturers lecturers prestigious by courses training many organized to ... VCCI PACE, Vietnam, Crestcom
Port cooperated directly with prestigious training institutions such as as such institutions training prestigious with directly cooperated Port Danang 2018, In +
: Training -
…
policies to restore work power, support mid support power, work restore to policies shift meal, ensure adequate equipment for labor protection protection labor for equipment adequate ensure meal, shift -
The company applies Labor Law for employees. In addition, the company also buys health insurance, insurance, health buys also company the addition, In employees. for Law Labor applies company The -
Number of employees: 653 employees, average salary: 21 mVND/person/year 21 salary: average employees, 653 employees: of Number - .
employees to related Policies
compliance with environmental regulations environmental with compliance - non to due violations no had company the 2018, In - .
. s regulation protection environmental ith w Compliance
) VAT include (not VND 697 1,252,404, cost: Water -
consumption Water
) VAT include (not VND 860 8,480,276, : cost lectricity E -
liters 828,410.28 Diesel: -
consumption Energy
materials raw of Management
society and environment the on Company the of impact related Report 6
2018 REPORT ANNUAL DANANG PORT JOINT STOCK COMPANY STOCK JOINT PORT DANANG
20
patients at Da Nang Tuberculosis and Mental Hospital. Mental and Tuberculosis Nang Da at patients
Port organizes the program "Loving Rice" for for Rice" "Loving program the organizes Port Danang month, Every . People of Care for Center Danang
to the elderly people being taken care of at the the at of care taken being people elderly the to milk) sets, television inch - (49 gifts ve ga and ed visit and
hink of its source its of hink T water, drink you When " program cultural a d organize to Center Cultural Nang Da ", ",
Port cooperated with with cooperated Port Danang , occasion this On city. Nang Da and province Nam Quang in meteries ce
Cemetery 9, Khe Xanh Cemetery). The company’s l company’s The Cemetery). Xanh Khe 9, Cemetery Cemetery, Son (Truong Province eaders also visited visited also eaders
's Trade Union visited cemeteries in Quang Tri Tri Quang in cemeteries visited Union Trade 's Vinalines and Port Danang activities, gratitude In
. circumstances family poor and s achievement academic good had who
insurance cards to children children to cards insurance health 30 bicycles, 35 donated ; VND 360,000,000 of value total with ) District
Hai Chau District, Son Tra District, Ngu Hanh Son Son Hanh Ngu District, Tra Son District, Chau Hai ( City Danang of districts 3 to s house gratitude
Danang 2018, in , community local the to responsibility our fulfill to order In Port donated 6 6 donated Port
responsibilities Community
. integration international and competitiveness
participate in seminars abroad such as Japan, Singapore, Thailand, Brunei ... in order to improve improve to order in ... Brunei Thailand, Singapore, Japan, as such abroad seminars in participate
sent many employees to to employees many sent also Port Danang 2018, in training, domestic with parallel In +
2018 REPORT ANNUAL DANANG PORT JOINT STOCK COMPANY STOCK JOINT PORT DANANG
21
THE BOARD OF DIRECTORS OF BOARD THE
REPORT AND ASSESSMENT OF OF ASSESSMENT AND REPORT
II I PART
2018 REPORT ANNUAL DANANG PORT JOINT STOCK COMPANY STOCK JOINT PORT DANANG
22
. s employee towards policies many has port Danang
e 2018. July in use into put and completed been has which , ) II phase ( Port Sa Tien xpanding
ing and and ing upgrad of project the including projects, important many implemented port Danang
years. following the in company the of
cruise ships and large tonnage vessels, bringing encouraging results, set results, encouraging bringing vessels, tonnage large and ships cruise ting the stage for development development for stage the ting
In 2018, 2018, In on container services, services, container on focusing orientation, right the with efforts great made Port Danang
2017. to compared 106.02% reached Container
h. The output through Danang Port reached 98.08% compared to 2017. In which, which, In 2017. to compared 98.08% reached Port Danang through output The h. growt positive had still
Port Port Danang but transport, sea world and Vietnamese to related difficulties were there year Last
2017, with 199,491 199,491 with 2017, 2017. to compared 34.98% of increase an , passengers
The number of cruise of number The rough the port was 106 times, an increase of 30.86% compared to to compared 30.86% of increase an times, 106 was port the rough th ships
. target to compared
, increased by 12.96% compared to 2017, an increase of 2.91% 2.91% of increase an 2017, to compared 12.96% by increased , bVND 183.38 reached Profit
target to compared 5.27% of increase an .
2018 reached over 718.09 b 718.09 over reached 2018 in Turnover 2017 and and 2017 with compared in 15.80% of increase an , VND
reached 370,017 teus, reaching 98.67% of of 98.67% reaching teus, 370,017 reached . 2017 to compared 6.02% up and target
2018 (8.819 million tons) and up 7.88% compared to 2017. In particular, containers containers particular, In 2017. to compared 7.88% up and tons) million (8.819 2018 of target to compared
Danang through output 2018, In Port reached 8.65 million tons of goods, reaching 98.08% 98.08% reaching goods, of tons million 8.65 reached Port
384 384 , 183 200 , 178 mVND tax before Profit 3 91% . 102
090 090 , 718 000 , 682 mVND revenue Total 2 27% . 105
017 , 370 000 , 375 Tues Container : which In 67% . 98
000 , 650 , 8 000 , 819 , 8 Ton Quantity 1 08% . 98
2018 2018 target
Units Items No.
Perfomance Perfomance Target Performace/
performance bussiness of Assessment 1
2018 REPORT ANNUAL DANANG PORT JOINT STOCK COMPANY STOCK JOINT PORT DANANG
23
100 233 560 , 100 balance Closing 793 ,
560 , 100 - 560 , 100 balance Opening
value book Net
759 , 2 759 , 2 - balance Closing
36 36 - year the for Charge
balance Opening 723 , 2 723 , 2 -
amortization Accumulated
552 , 103 992 , 2 560 , 100 balance Closing
Additions 269 269 -
283 , 103 723 , 2 560 , 100 balance Opening
Cost
Items Total Software rights use Land
mVND : Unit
assets fixed Intangible +
244 , 634 balance Closing 072 , 014 , 1 31 182 , 1 059 , 2 556 , 376
617 , 177 balance Opening 465 , 392 48 320 380 , 2 100 , 212
value book Net
367 , 496 balance Closing 318 , 013 , 1 787 , 1 467 , 10 587 , 94 109 , 410
875 , 57 year the for Charge 252 , 123 18 373 113 , 2 872 , 62
492 , 438 balance Opening 066 , 890 769 , 1 094 , 10 474 , 92 237 , 347
depreciation Accumulated
611 , 130 , 1 balance Closing 391 , 027 , 2 818 , 1 650 , 11 646 , 96 665 , 786
progress
182 - 766 , 226 503 , 514 in construction 451 , 741 -
from Transfer
054 , 1 792 , 1 562 - Additions 408 , 3 -
818 , 1 414 , 10 855 , 94 337 , 559 108 , 616 balance Opening 531 , 282 , 1
Cost
equipment
equipment vehicles
Others and Buildings Items Total
Office Office Motor
Machinery Machinery
mVND : Unit
assets fixed Tangible +
Assets
Situation Financial 2
2018 REPORT ANNUAL DANANG PORT JOINT STOCK COMPANY STOCK JOINT PORT DANANG
24
Total 059 , 158 , 150 , 23 968 , 690 , 261 , 28
Others 176 , 382 , 864 049 , 719 , 534
082 , 277 , 800 , 19 082 , 277 , 750 , 24 payables Dividend
fees union Trade 741 , 132 , 505 777 , 328 , 996
production discontinued for Subsidies 460 , 427 , 382 460 , 427 , 382 employees to
Subsidies for demolishment and relocation and demolishment for Subsidies 600 , 938 , 597 , 1 600 , 938 , 597 , 1
Items 31/12/2018 31/12/2017
VND Unit:
term - short – payables Other +
687 , 5 Total 085 , 787 , 443 , 11 162) , 310 , 259 , (115 177 , 103 , 015 , 121 070 , 994 ,
Others 792 , 317 , 168 111) , 013 , 835 , (1 903 , 330 , 003 , 2 -
fees rental Land 660 , 027 , 764 , 1 376) , 825 , 948 , (3 036 , 853 , 712 , 5 -
726 , 2 tax income Personal 840 , 994 , 216 , 2 156) , 011 , 802 , (8 844 , 876 , 292 , 8 152 , 129 ,
961 , 2 tax income Corporate 793 , 446 , 294 , 7 147) , 776 , 172 , (32 022 , 358 , 505 , 36 918 , 864 ,
tax added Value - 372) , 684 , 500 , (68 372 , 684 , 500 , 68 -
Opening balance Opening Items balance Closing Paid/deducted Incurred
VND Unit:
Treasury State to payable others and Taxes +
930 , 915 , 322 , 117 Total 258 , 873 , 964 , 95
931 , 592 , 033 , 6 V Region – Ltd. Co., Petroleum 572 , 681 , 153 , 10
685 , 238 , 226 , 2 JSC Logistics Port Danang 731 , 753 , 575 , 3
534 , 020 , 523 , 7 JSC Tugboat Port Danang 643 , 732 , 526 , 7
416 , 524 , 883 , 19 Ltd. Co., Services and Trading Thy Huynh 000 , 800 , 52
570 , 504 , 248 , 27 JSC Construction Water Hanoi 094 , 827 , 041 , 18
794 , 034 , 408 , 54 JSC Consultant and Construction Xuan Phu 218 , 078 , 614 , 56
31/12/2017 Items 31/12/2018
VND Unit:
term - short – suppliers to payable Accounts +
Liabilities
2018 REPORT ANNUAL DANANG PORT JOINT STOCK COMPANY STOCK JOINT PORT DANANG
25
productivity. Company's the
ete the COC COC the ete compl to and quickly released. COC has changed the attitude of employees and increased increased and employees of attitude the changed has COC released. quickly and
After completing the statement of vision, mission, value of the company, company, the of value mission, vision, of statement the completing After continuing continuing is Port Danang
ny's vision, mission and values and mission vision, ny's compa the .
Port cooperates with a consulting company to conduct training courses for leaders, give a slogan, declare declare slogan, a give leaders, for courses training conduct to company consulting a with cooperates Port
One of the highlights of the past year is the fact that that fact the is year past the of highlights the of One Danang . COC built gradually has Port Danang
(COC) Conduct of Code
performance assessment through KPI, creating a favorable a creating KPI, through assessment performance . KPIs implementing for environment
assessment tool through Google's cloud technology platform. This tool has helped simplify the work work the simplify helped has tool This platform. technology cloud Google's through tool assessment
In order to improve the effectiveness of KPI application, application, KPI of effectiveness the improve to order In Port has built an online KPI KPI online an built has Port Danang
ementation and gradually apply gradually and ementation impl of idual. indiv each to apply and departments their to
the departments to assess the performance of KPI. Up to now, now, to Up KPI. of performance the assess to departments the aware of the method method the of aware are departments all
ort continued ort P Danang year, ast p the In to coordinate with consulting companies to train and guide guide and train to companies consulting with coordinate to
contributes to increase business efficiency and service quality. service and efficiency business increase to contributes
r ae nSAT rtrat ipeet h P the implement to criteria SMART on based are management of improvement the process, A - C - D -
acording to to acording bordinate su to tasks and objectives Management By Process (MBP). The management levels levels management The (MBP). Process By Management
departments have been assigned objectives and tasks (MBO) and all level 2 leaders have assigned assigned have leaders 2 level all and (MBO) tasks and objectives assigned been have departments
ort has applied and increased management activities towards modern management, all all management, modern towards activities management increased and applied has ort P Danang
KPI to according performance work Evaluate
ý management policies, structure, organizational in Improvements 3
917 , 358 , 156 , 194 Total 848 , 643 , 916 , 211
000 , 325 , 838 , 122 (VND) Fund Investment and Development Nang Da 000 , 000 , 000 , 150
931 , 694 , 431 , 59 (JPY) Branch Nang Da – Bank Development Vietnam 078 , 315 , 553 , 49
931 , 019 , 270 , 182 borrowings term - Long 078 , 315 , 533 , 199
986 , 338 , 886 , 11 (JPY) Branch Nang Da – Bank Development Vietnam 770 , 328 , 383 , 12
986 , 338 , 886 , 11 borrowings term - Short 770 , 328 , 383 , 12
31/12/2017 Items 31/12/2018
VND Unit:
Borrowings +
2018 REPORT ANNUAL DANANG PORT JOINT STOCK COMPANY STOCK JOINT PORT DANANG
26
chain and build logistics solutions to create value added towards target customers target towards added value create to solutions logistics build and chain .
Build solutions to meet customer meet to solutions Build ships. cruise and vessels load ly ly supp the in services improve needs, ’s
Promote exploitation activit exploitation Promote : container ships, large large ships, container : company the of point strong 3 to according ies
projects. port implementing in cooperate to partners ek se companies, logistics s, companie
with shipping shipping with Cooperating ... center logistics depot, with association system, agent of Development
website. website. upgrading Port, Danang of dentity i brand build policy, care customer Completing
...
Central Highlands, Hue, Quang Binh, Quang Tri and markets in the East the in markets and Tri Quang Binh, Quang Hue, Highlands, Central West Economic Corridor 1, 2 2 1, Corridor Economic West -
international shipping lines and important customers. Looking for customers in potential markets: North North markets: potential in customers for Looking customers. important and lines shipping international
to increase marketing activities, build and promote the brand of Danang Port with with Port Danang of brand the promote and build activities, marketing increase to Continuing
plan Business
Development plans in the future the in plans Development
4
. dedication and efficiency their improve
in overseas travel programs, to help improve the cohesion and create a spirit of enthusiasm, maintain and and maintain enthusiasm, of spirit a create and cohesion the improve help to programs, travel overseas in
Every year, the employees who have a great contribution to Danang Port are allowed to participate participate to allowed are Port Danang to contribution great a have who employees the year, Every
ng the lives of employees of lives the ng ensuri Port, Sa Tien at .
and energy recovery to continue working. working. continue to recovery energy and Port has also reorganized meals, upgraded the kitchen kitchen the upgraded meals, reorganized also has Port Danang
Port continued to take care of the spiritual life of employees, helped employees have time to rest rest to time have employees helped employees, of life spiritual the of care take to continued Port Danang
ot raie vctos o epoes n o A Hoi in employees for vacations organized Port Danang 2018, In n City and Da Nang City. City. Nang Da and City n
employees for life mproving I
. integration international and
in seminars abroad such as Japan, Singapore, Thailand, Brunei ... in order to improve competitiveness competitiveness improve to order in ... Brunei Thailand, Singapore, Japan, as such abroad seminars in
In parallel with domestic training, in 2018, 2018, in training, domestic with parallel In many employees to participate participate to employees many sent also Port Danang
. equipment and technologies
programs in accordance with the reality and development needs of the Port, mastering modern modern mastering Port, the of needs development and reality the with accordance in programs
has cooperated with New Port Training Company to implement training training implement to Company Training Port New with cooperated has Port Danang technology.
Danang Port has planned training programs for technical staff to gradually approach modern modern approach gradually to staff technical for programs training planned has Port Danang
. skills leadership Improving
Managing, and Corporate Culture, Culture, Corporate and Managing, - Self Officer, Financial Chief Manager, Production Director,
ues such as CEO, HR HR CEO, as such ues iss necessary and specific on focused had courses training These experience.
Vietnam, PACE, VCCI ... to organized many training courses by prestigious lecturers with teaching teaching with lecturers prestigious by courses training many organized to ... VCCI PACE, Vietnam,
Port cooperated directly with prestigious training institutions such as Crestcom Crestcom as such institutions training prestigious with directly cooperated Port Danang 2018, In
: Training
. resource human quality good
All employees are recruited through recruitment exams to creat to exams recruitment through recruited are employees All target. company’s the complete to e a a e
recruited 27 employees, focusing on adding human resources to Tien Sa Port Port Sa Tien to resources human adding on focusing employees, 27 recruited Port Danang 2018, In
: Recruitment
training and Recruitment
2018 REPORT ANNUAL DANANG PORT JOINT STOCK COMPANY STOCK JOINT PORT DANANG
27
. trailers
Prhsn 0 seilzd reach specialized 01 Purchasing ; ard Y Sa 06 tractor trucks and 06 specialized specialized 06 and trucks tractor 06 Purchasing stacker; -
and renov and Repairing : 2019 in projects Tien Tien renovating - Upgrading Terminal; Sa Tien - 2 No. wharf ating
ties and equipment are 65.8 bVND, IT investment is 12.210 bVND and provision is 5 bVND 5 is provision and bVND 12.210 is investment IT bVND, 65.8 are equipment and ties facili Key Key .
tment is expected to be 146.88 bVND. bVND. 146.88 be to expected is tment inves total 2019, In , , VND b 63.96 is construction which, In
2019 in plan Investment
eating a solid legal corridor for business for corridor legal solid a eating Cr control. risk and control .
the effectiveness of internal control: Standardize processes and procedures on business business on procedures and processes Standardize control: internal of effectiveness the Improving
. cost and time
year, the company encourages innovation towards modernization to increase labor productivity, productivity, labor increase to modernization towards innovation encourages company the year, save save
: Bidding process, Purchasing process, process, Purchasing process, Bidding : processes of Standardization Every Every ,… process Operation
COC in out set spirit the follow and employee each to COC disseminate to continues .
based payroll based - KPI appling gradually company, the of employee each to KPI ng Appli . Danang Port Port Danang .
the time and number of meetings of number and time the reducing leaders, of time making - decision the shortening .
Reviewing and completing regulations and procedures to increase the effectiveness in operating, operating, in effectiveness the increase to procedures and regulations completing and Reviewing
. site production the at ositions p different at worked have tions posi
potential leaders internally. The rotation focuses on the site, ensuring that all level 2 management management 2 level all that ensuring site, the on focuses rotation The internally. leaders potential
assess, seek and detect detect and seek assess, - cross examine, will we time, same the At system. the complete to regularly and
leadership. Staff rotation is done periodically periodically done is rotation Staff leadership. level - middle reducing manner, efficient streamlined, a in
focus on building a corporate governance model, rearranging departments departments rearranging model, governance corporate a building on focus Port Danang 2019, In
Capacity Management Strengthening
. street Quyen Ngo on flow traffic
e Tien Sa P Sa Tien e outsid system depot r containe Developing years. following the and 2019 in the reduce to ort
Investment in equipment, infrastructure to improve handling capacity, complete business targets targets business complete capacity, handling improve to infrastructure equipment, in Investment
2018 REPORT ANNUAL DANANG PORT JOINT STOCK COMPANY STOCK JOINT PORT DANANG
28
the Company’s operation Company’s the
the Board of Management Management of Board the on
Assessments of of Assessments
IV PART
2018 REPORT ANNUAL DANANG PORT JOINT STOCK COMPANY STOCK JOINT PORT DANANG
29
. exploitation
quality of seaport seaport of quality improving and plans usiness b deploying in initiative the taked Director General
. business company's the control ffectively e
and issued internal documents in its authority to to authority its in documents internal issued and activities business operating in flexible was
Directors of Board market. of disadvantages nd a advantages of aware well was Directors of Board
Charter and the law. the and Charter
Management and strictly complied strictly and Management of Board of direction Shareholders, of Meeting General with the the with
e company in accordance with resolutions of of resolutions with accordance in company e th of activities business implemented Directors of Board
ementing the tasks assigned by by assigned tasks the ementing impl fully and orientations objectives, . Management of Board
has also complied with the regulations on governance, administration, adherence to to adherence administration, governance, on regulations the with complied also has Directors the the
In 2018, Board of Directors made great efforts to achieve good business performance. performance. business good achieve to efforts great made Directors of Board 2018, In Board of of Board
Management of Board of Assessment performance ’ Directors of Board on 2
e of community responsibilities community of e performanc Good .
The average income of employees is guaranteed stable. guaranteed is employees of income average The
investment. of loss and
3 specialized trailers specialized 3 0 and tractors There is no outstanding debt in investment activities and no waste waste no and activities investment in debt outstanding no is There .
cts implemented in 2018 in implemented cts proje Other Investing 04 04 Investing , system conveyor chip Wood , Items IT Upgrading :
pgrading and expanding Tien Sa Port (Phase 2) (Phase Port Sa Tien expanding and pgrading u .
, equipment investment is 191 191 is investment equipment , bVND 69 is investment , mainly focusing on the project of of project the on focusing mainly , bVND
oa inve Total : investment on Results ch, construction construction ch, whi In . bVND 260 is 2018 in disbursed stment
Payments to the state treasury reached VND 67.72 billion, an increase of 35% compared to 2017 to compared 35% of increase an billion, 67.72 VND reached treasury state the to Payments .
. 11%
Resolution of the Annual General Meeting of Shareholders in 2018, dividend is is dividend 2018, in Shareholders of Meeting General Annual the of Resolution the to According
bVND) (172,2 2018 in Shareholders of Meeting General
approved approved with comparing in % 102 reaching bVND, 183.38 reached tax before Profit Annual Annual by target
Annual General Meeting of Shareholders in 2018 in Shareholders of Meeting General Annual by target approved to compared 105% . bVND) (660
74 74 94. 6 reached services of provision and goods of sales from Revenue : which In reaching , bVND
bVND). (682 2018 in Shareholders of Meeting General Annual
approved approved to compared 5.27% reaching bVND, 718.09 over reached 2018 in Turnover by by target
. 17 20 to compared 6.02% up teus, 370,017
In particular, containers reached reached containers particular, In . 2017 to compared 7.88% up tons, million 8,65 reached Port Danang
o ae od growth good have to continued Port Danang , performance business Regarding output through through output :
relatively positive results positive relatively achieved and growth sustainable pursue to continued ort P Danang 2018, In .
operation Company’s the on Management of Board the of Assessments 1
2018 REPORT ANNUAL DANANG PORT JOINT STOCK COMPANY STOCK JOINT PORT DANANG
30
encourages innovation towards modernization to increase labor productivity, save time and cost and time save productivity, labor increase to modernization towards innovation encourages .
eview, develop and issue internal regulations to standardize operating pr operating standardize to regulations internal issue and develop eview, r to continue DNP ; ; ocedures
continues to disseminate COC to each employee and follow the spirit set out in COC in out set spirit the follow and employee each to COC disseminate to continues .
to each employee of the company, gradually appling KPI appling gradually company, the of employee each to KPI Appling based payroll. Danang Port Port Danang payroll. based -
regulations as well as seaport security seaport as well as regulations business .
, ensuring operational safety for sustainable development, meeting meeting development, sustainable for safety operational ensuring , management risk ening Strength
performance business boost leaders, of competitiveness. increase and
operation and management methods to incre to methods management and operation improving and ing Build responsibility and capacity capacity and responsibility ase
services provided to customers, complete business targets in 2019 in targets business complete customers, to provided services .
improve exploitation capacity, increase productivity, labor efficiency and quality of of quality and efficiency labor productivity, increase capacity, exploitation improve company, the of
and invest and policy service customer et the requirements requirements the et me to platforms IT infrastructure, equipment, in
to promote marketing activities, brand promotion of of promotion brand activities, marketing promote to continue Port Danang , complete complete , Port Danang
2019. in Shareholders of Meeting General the by assigned tasks and objectives
ement activities to fulfill fulfill to activities ement manag and governance corporate enhance will Management of Board
bVND 2.88 16 2019: in target Investment
13% Dividend
bVND 210 tax before Profit
bVND 740.25 Revenue
Teus 400.000 output Container’s
Tons 000 9,150, Output
2019 in Target
Management of Board the of orientations Plans, 3
2018 REPORT ANNUAL DANANG PORT JOINT STOCK COMPANY STOCK JOINT PORT DANANG
31
governance Corporate
V PART
2018 REPORT ANNUAL DANANG PORT JOINT STOCK COMPANY STOCK JOINT PORT DANANG
32
. BOD of egulations r and Company the of Charter with accordance in obligations
a high sense of responsibility, well exercised the rights and and rights the exercised well responsibility, of sense high a ed shown D BO of embers M -
for reference and research before the meeting. the before research and reference for
Minutes of meetings meetings of Minutes - BOD members all to sent were documents related All prepared. fully were
. Law Enterprise and Charter ’s Company the of order the with accordance in out
carried carried were Meetings . activities business Company's the by required as organized were meetings
addition, irregular irregular addition, In . regulations to according meetings regular held Management of Board -
rganizing rganizing O : meetings
. Shareholders of Meeting General the by authorized as Statements
Financial Company's the audit to Company Auditing capable and experienced an Selecting -
; capital charter increase to shares of Issuance -
Paying dividends to shareholders annually shareholders to dividends Paying - ;
targets and implementing target implementing and targets annual the Completing - ; year next the for
according to resolution of of resolution to according profits of Distribution - ; Shareholders of Meeting General
Implementation of Resolution of of Resolution of Implementation : Shareholders of Meeting General
ral Meeting of Shareholders, promptly made appropriate decisions, and achieved good results. good achieved and decisions, appropriate made promptly Shareholders, of Meeting ral Gene
Management of Board year, the During Annual Annual of resolution implemented and with plied com
members according to each professional field. professional each to according members each to tasks assigning
organized with full with organized was Management of Board time activities, making collective decisions, and and decisions, collective making activities, time -
governance standards of of standards governance to according . company the
Management of Board shareholders. vely implemented roles and duties duties and roles implemented vely acti who members 06 has
is a a is Management of Board right of of right representing company, the of body regulatory highest
Management of Board of Activities
% 12 Member Hai Tuan Tran 6
% 12 Member Minh Dinh Luong 5
% 12 Member Loc Bao Phan 4
% 12 Member Duc Quang Le 3
% 12 Member Sia Huu Nguyen 2
% 15 Chairman Tuan Le Tran 1
representative shares representative
Position Name No.
Proportion of of Proportion
Management of Board of structure and Members
Management of Board 1
2018 REPORT ANNUAL DANANG PORT JOINT STOCK COMPANY STOCK JOINT PORT DANANG
33
: follows as specifically year, the during supervision and monitoring
uevsr Bad ed etns o sin ak t mmes fte Board the of members to tasks assign to meetings held Board Supervisory - ed conduct and planed ,
Law and relevant legal documents legal relevant and Law .
- Securities Securities of provisions with accordance in ormation inf of disclosure and implementation Supervise
timely advice as well as suggestions when detecting detecting when suggestions as well as advice timely , 2018 of . risks potential or problems
quarterly financial statements, non audited and audi and audited non statements, financial quarterly of Appraisal ; regimes policy financial statements statements financial ted
control compliance with current current with compliance control ; validity and reasonableness legality, for documents accounting Check -
effectiveness of using capital for investments for capital using of effectiveness Check ; activities .
shortcomings, thereby contri thereby shortcomings, ness ness busi in methods control risk of application in management the to buting
the rationality, legality, honesty in management and administration to detect potential risks or or risks potential detect to administration and management in honesty legality, rationality, the Check -
. Company the of documents other and
es, regulations regulations es, rul issuing for procedures and process Control ; Director of Board Management, of Board
Considere the appropriateness of resolutions and secisions issued by by issued secisions and resolutions of appropriateness the Considere ; Shareholders of Meeting General
esolution of of esolution r the lementing imp in Directors of Board and Management of Board of activities Control -
Participate and contribute opinions at the the at opinions contribute and Participate - . Managerment of Board of meetings
production and business activities in 2018 on significant aspects as follows as aspects significant on 2018 in activities business and production :
ompliance with regulations in management and administration of of administration and management in regulations with ompliance c the supervised and checked
Performing functions, duties and powers, Supervisory Board of of Board Supervisory powers, and duties functions, Performing Port Joint Stock Company has has Company Stock Joint Port Danang
Pursuant to Enterprise Law, Charter and rules and regulations of of regulations and rules and Charter Law, Enterprise to Pursuant Port Joint Stock Company; Company; Stock Joint Port Danang
Board Supervisory of Activities
Oanh Kieu Thi Tran 3 0% 14/4/2017 Member
Duong Duy Le 2 0% 24/7/2014 Member
Ha Nhi Thi Phan 1 0% 12/4/2017 Head
shares representative
Name No. appointment of Date Position
Proportion of of Proportion
Board Supervisory of structure and Members
Board Supervisory 2
has conditions to closely monitor and timely direct business activities business direct timely and monitor closely to conditions has Management .
ae o this on Based . situation business and investment financial, : Management of Board Board of of Board ,
ompany are closely monitore closely are ompany c the of activities management n ductio pro and management All - d by by d
activities. business in arising problems and difficulties resolve
inutes of the meeting to to meeting the of inutes m and resolutions the approving when consensus h hig had Management
management and supervision according to regulations to according supervision and management , leadership ood g have , request on Board of of Board .
fully participate in all sessions or respond respond or sessions all in participate fully , responsibility of sense the raised BOD of embers M -
Company. the of operation stable ensure to management of supervision
focused all efforts to promote solutions, strengthen governance and and governance strengthen solutions, promote to efforts all focused Management of Board -
: activities Company's the of ion irect D
2018 REPORT ANNUAL DANANG PORT JOINT STOCK COMPANY STOCK JOINT PORT DANANG
34
BTC of the Ministry of Finance of Ministry the of BTC - TT 121/2012/ No. Circular of guidance the under Regulation Governance
mlmnain f euain o croae governance corporate on regulations of Implementation issued the Corporate Corporate the issued company The :
Contracts or transactions with internal shareholders internal with transactions or Contracts incur not :
Transactions of internal shareholders internal of Transactions incur not :
Board
Oanh Kieu Thi Tran 8 000 , 000 , 3
Supervisory Supervisory of Member
Board
Duong Duy Le 7 000 , 000 , 3
Supervisory Supervisory of Member
Head of Supervisory Board Supervisory of Head Ha Nhi Thi Phan 6 000 , 500 , 4
Hai Tuan Tran 5 000 , 500 , 4 member BOD
Minh Dinh Luong 4 000 , 500 , 4 member BOD
Loc Bao Phan 3 000 , 500 , 4 member BOD
Duc Quang Le 2 000 , 500 , 4 member BOD
000 , 500 , 4 member BOD Sia Huu Nguyen 1
) (VND
Position Name No.
month / emuneration R
: benefits and remuneration rewards, Salary,
Supervisors of Board
remunerations and interests of the Board of Management, Board of Directors and and Directors of Board Management, of Board the of interests and remunerations Transactions, 3
siness activities in in activities siness bu supervising and Checking : 21/3/2019 – 18/3/2019 from 3: Phase + . 2018
. 2018 of months
siness activities in the first 9 first the in activities siness bu supervising and Checking 2018: 1/11/ - 30/10/2018 from : 2 Phase +
. 2018 of
2018: Checking and supervising business activities in the fi the in activities business supervising and Checking 2018: 29/8/ - /8/2018 27 from 1: Phase + rst 6 months months 6 rst
2018 REPORT ANNUAL DANANG PORT JOINT STOCK COMPANY STOCK JOINT PORT DANANG
35
2018 December 31
Financial Statements for the year ended year the for Statements Financial
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