On June 6th, European Plastics Joint Stock Company (EuP) successfully organized its 2020 Annual Shareholder Meeting at Emeralda Resort, Ninh Binh.
EuP’s 2020 targets are achieving 20% growth rate and recovering business from Coronavirus in June
The Meeting reviewed the business performance in 2019, approved the 2020 business plan and reports related to its management and operation activities as well.
Reviewing 2019’s business performance
In 2019, the company recorded a high net profit, an increase of 25% compared to 2018. The company achieved its revenue and profit targets.
At the beginning of the meeting, Chairman Hoang Quoc Huy said that the most common concerns over the general market and 2020 business development plan.
2020 business plan
The coronavirus (also known as COVID-19) pandemic spreads globally. The initial outbreak of the coronavirus in China disrupted global supply chains and has many negative effects on business.
Fortunately, the virus has a light impact on EuP’s business so far, even though China is our biggest market of filler masterbatch.
The decrease in purchasing power
The purchasing power of the economy will decline due to the domino effect: (i) decrease in exports, (ii) decrease in jobs (some companies even reduce 90% of their job), and (iii) decrease in income.
This decline may last for a year or more, businesses that maintain total profit in 2020 over 80% of total profit in 2019 are good and quite strong.
EuP’s business goals
Fortunately, the Coronavirus did not cause a decrease in plastics demand, it even resulted in fast-growing demand for plastic use.
EuP’s annual growth rate is about 30 to 35 percent; however, this year we decrease the rate to 20 percent due to the effect of coronavirus on our exporting business.
We expect to start recovering our business in June 2020, and have a soak in revenue in the last months of 2020.
Hope that everybody will be strong enough to go through this difficult time.