VPG AIMS TO BE A LARGE ENTERPRISE IN THE COAL SUPPLY INDUSTRY

To be successful in the business, in addition to ensuring the supply and maintaining the trust of customers in the context of scarce supply and highly volatile prices. The Company has implemented many large Thermal coal projects contributing to strong growth in 2022 Sourcing stable iron ore and coke to ensure the best profit margin VPG is a large Enterprise operating in the field of mineral supply such as iron ore, coke, titanium, etc. In which, iron ore and coke are two traditional commodities, making great contributions to VPG's business results in the last year. However, since the beginning of 2022, the price iron ore and coke on the world market has increased sharply, causing challenges to many businesses in this segment, including VPG. Talking to us, VPG’s representative said that to have success in trading these two specific products, VPG has many strategies in both sourcing and maintaining trust with traditional customers even in the context of scarce market supply or highly volatile prices. On the other hand, VPG also always emphasizes the development of quality human resources, understanding, analyzing, and evaluating as well as grasping the inevitable laws of the market; then giving preparation steps, and different solutions, to catch up with market trends. The point of view on principles, the attitude of cooperation in customer relationships, along with the acumen and understanding of the industry have helped the Company stay at the forefront of solutions, and market judgment in order to make appropriate decisions at the right time to bring stable and sustainable value and profits. Additionally, to ensure the best profit margin in case the high prices of iron ore and coke prices, VPG said that it will look for a stable supply, good quality to compete, maintain the traditional customer relationship as well as trust of customers first. “Our business motto is what do we sell to customers, what do customers get from using our goods? If it is true that when customers use our goods for production, it brings economic efficiency and high-profit rates, then they will certainly give priority to choosing goods provided by VPG even if the purchase price per unit of goods is equal to or even slightly higher than the market value being traded. This business perspective has made a difference in brand value between Viet Phat and other customers who provide similar products in the market. It is also this that has created a prestigious and sustainable VPG like today”, added the Company representative. Song Hau Thermal power package will start to record revenue from 05/2022 On March 17, 2022, the branch of Vietnam Oil and Gas Group - Song Hau 1 Petroleum Power Project Management Board (bid solicitor) has just announced that it has selected a contractor to implement the Package of Coal Supply for the commercial operation of Song Hau 1 Thermal Power Plant in 2022. Accordingly, the joint venture between Viet Phat Import-Export Trade Investment Joint Stock Company - Dan Ka Mineral Joint Stock Company - SUEK AG Company won the bid for nearly VND12,000 billion. The Company representative said that the coal for the commercial operation of Song Hau 1 Thermal Power Plant in 2022 is imported from Indonesia, so it will not be affected by the conflict between Russia – Ukraine. In addition, the joint venture with 2 contractor members (Dan Ka Mineral Joint Stock Company - SUEK AG Company) won the bid and signed a contract to supply coal for Song Hau 1 Thermal power plant opening up a new business opportunity for VPG, creating a premise for the Company to deeply participate and expand further into the domestic thermal coal market. “This contract is implemented in 365 days, Viet Phat started implementing and recognizing revenue from May 2022, besides the profit of this thermal coal contract along with the benefit from the high price of coke and iron ore, the profit in April is estimated at about VND 85 billion. Revenue and profit are expected to grow strongly compared to 2021", the Company representative added. It is known that the bidding package for the project to provide coal for Song Hau 1 Thermal power plant is also a factor for VPG to plan a "breakthrough" business this year. Specifically, in 2022, VPG is expected to bring in VND8,621 billion in revenue, an increase of 123% compared to 2021. With the recognition of revenue and profit from the coal segment, VPG is expected to grow explosively in the year. To implement the business plan in 2022, in December, the Company signed with a partner 24,000 tons of coke and 400,000 tons of iron ore. At that time, the price of iron ore was about 104 USD/ton, currently about 160 USD/ton - an increase of more than 50%. Coke prices similarly increased by 50% compared to December 2021. It is expected to contribute large revenue for the first 6 months of 2022. In the 3rd period from 2022 to 2025, VPG plans to invest in 2 ports in Hai Duong and Hai Phong to develop logistics and serve the needs of warehouses and good storage. Strong development in the field of coal with many advantages in terms of prepared warehouses as mentioned above. Furthermore, following the success of the Vinh Niem Real Estate projects, VPG will continue to implement a similar project in Hai Phong.