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IDJ Financial 2007 Annual Report (01/17/2008)
I. Brief summary of the foundation
1. Foundation
Taking advantage of the position of IDJ Connection – a leading company in the field of investment and M&A connection in Vietnam, reputation and goodwill of founding shareholders, on March 15th 2007, IDJ Financial was founded, immediately receiving special attention from the investment community.
2. Corporate snapshot
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Company name: IDJ International Financial Investment and Enterprise Development Jsc.
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Transaction name: IDJ Financial
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Address: Floor 14, Harec Building, 4A Lang Ha street, Ba Dinh District, Hanoi
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Tel: (84-4) 772 2518 Fax: (84-4) 772 2519
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The chartered capital: VND 149.6 billion
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Business Registration Certificate: No. 0103016173 issued by Hanoi Dept of Planning and Investment on March 15th 2007
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Representative Office: Floor 1, My Vinh Building, 250 Nguyen Thi Minh Khai, Precinct 6, District 3, Ho Chi Minh city.
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Tax Code: 0102186593
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Public company status: Registration filed with State Securities Commission on 15th May, 2007.
II. Company structure
III. Key positions and Management Team
Shareholders’ Meeting
Shareholders’ Meeting is the highest decision-making body, deciding issues within its mandate as stipulated in the laws and the company’s charter.
By 31st December 2007, IDJ Financial has 403 shareholders, of which 20 are founding shareholders and 383 ordinary ones. The biggest shareholder is IDJ Connection.
Board of Directors
Board of Directors is the governing body of IDJ Financial, mandated to decide on the Company’s objectives and strategic issues, except those falling within mandate of the Shareholders’ Meeting.
The Board of Directors currently comprises 5 people:
1. Mr. Tran Duc Thanh - Chairperson
2. Mr. Pham Xuan Ha - Board Member
3. Mr. Do Trung Thien - Board Member
4. Mr. Yoshihiro Matsuo - Board Member
5. Mr. Tran Trong Hieu - Board Member
Board of Management
1. Mr. Tran Trong Hieu - MBA - CEO, General Director
2. Mr. Pham Ba Ngoc - First Deputy Director General - Managing Director
3. Ms. Ngo Hong Diep - Second Deputy Director General and Public Relations Director
4. Mr. Nguyen Van Tuyen - Investment and Project Development Director
5. Ms. Do Phuong Nguyen - Chief Accountant
Supervisory Board
The Supervisory Board was elected by Shareholders’ Meeting, chartered to assure the interests of shareholders and supervising the company’s activities.
Its members include:
1. Mr. Le Nhu Anh – Board Chair
2. Ms. Pham Thi Thai – Member
3. Mr. Nguyen The Huong – Member
Advisory Panel
The Advisory Panel members are elected by the Board of Directors and Board of Management. Its role is to support the company in making important investment decisions.
The Advisory Panel included members of Board of Directors and 2 individuals appointed later on in 2007, i.e. Mr. Victor Bao – Marketing Director, Equipoint Financial Network (United States) and Mr. Nguyen Huu Dung – Director of Thy Trading and Services Co.Ltd.
IV. Operation results in 2007
Despite the fact that the company has only been in operation for 9 months by 31st December 2007, IDJ Financial has carried out a huge workload and made important achievements, including:
- Building up a system, including human resource development
- Carrying out business and investment activities
- Establishing cooperation relations with investors at home and abroad
- Promoting IDJ Financial’s image
Major achievements includes:
1. Human Resource Development
Benefiting from its information channels and local market knowledge, the company amplifies its competitive advantages by attaching importance to human resource development and attracting talents and training people.
By the end of December 2007, IDJ Financial has developed a team of 30 people, of which 22 are full-time and the rest are part-time employed. These are all young and dynamic, well-trained, knowledgeable and professional people.
Staff Classification by Qualifications
| Qualifications |
Quantity |
Percentage |
| Master’s degree standard |
07 |
23.3 |
| Bachelor of Arts/ Sciences |
21 |
70 |
| Lower Education (College, Vocational Training, High school Graduate) |
2 |
6.7 |
IDJ Financial plans to recruit more 10 senior experts in 2008.
2. Business Activities and Investment Portfolio
The three major business activities of the company in 2007 includes:
- Enterprise/Project Investment and Development
- Securities Trading
- Analysis and Advisory
Enterprise/Project Investment: Self-positioned to become strategic/major shareholders of the invested enterprises, IDJ Financial has screened more than 300 businesses over the last 9 months to develop a selective investment portfolio, which includes:
(i) AEC – IDJ Education Investment Development Jsc. (IDJ Education)
With IDJ Financial being the largest shareholder (accounting for 70% of the founding capital), IDJ Education targets the high-end education services. The company now owns and develops a high-standard primary and secondary school project in a 2.6ha site in Hanoi Ciputra International City. The project has received lots of attention from the investment community, not only due to its strategic location but also because of the high rates of returns seen in other international standard schools in the country. IDJ Education is committed to professional and transparent corporate governance, and is scheduled to list in the stock exchange once fully complying with requirements made by SSC.
(ii) Underground Works Construction Jsc (Vinavico)
Being a member of Vinaconex Group, Vinavico is now among the leaders in the field of underground works and tunnel construction nation-wide. Years of experience in the area has helped the company to put together a skilled labour force of up to 1.000 people, dozens of high-profile engineers and managers, and enabled it to master the most advanced technologies in the field. Bidding statistics has demonstrated that Vinavico appears to surpass other local competitors in terms of technologies and equipment. With a chartered capital of VND 50 bn, total assets amounting to VND 300bn, modern equipment and technologies, the company is expected to announce yearly earnings of up to VND 500 bn in 2007 and is projected to a target revenue of VND 1,200 bn by 2010. Vinavico now represents 30% of the local underground works construction market, and is one of the three leaders of the country in this field. As such, the company itself can become an independent contractor of hydro-power station construction projects. Vinavico is now expanding into new areas, including new materials, mechanical production, telecom, management technology, mining… Highly valuing the position and potential of Vinavico, IDJ Financial has decided to become a major of the company, holding 5% of its chartered capital. Vinavico is now listed in HASTC.
(iii) Vinavico Infrastruction Development and Investment Jsc. (Vinavico – IDI)
Realizing the opportunities in real-estate and infrastructure development sector, IDJ Financial has joined hands with Vinavico and two other financial investment institutions to set up Vinavico – IDI, which targets the investment and development of real estate and industrial zones within Vinaconex’s master plan nation-wide, especially those along Lang – Hoa Lac Highway. In addition to the advantage from Vinaconex, the company also gathers the strengths of its shareholders to exploit opportunities in Hanoi and Ho Chi Minh City. Vinavico – IDJ has a chartered capital of VND 80 bn, of which IDJ Financial represents 20%. Coming into operation since 1 Nov 2007, the company now invests in a real estate project in Trung Hoa – Nhan Chinh, the new centre of Hanoi
(iv) Vinavico Mining and Construction Investment Jsc (Vinavico – Incom)
The status of a major shareholder of Vinavico has enabled IDJ Financial to see and grasp opportunities in ground and underground works construction, as such IDJ Financial has invested in Vinavico – Incom, a company with a chartered capital of VND 20 bn, of which IDJ Financial accounts for 14%. At present, the company serves as sub-contractors of the open works in underground works and hydro-power projects; earnings in 2007 is estimated to reach VND 80 bn dong. In addition, the company is completing necessary procedures for a mining project in Yen Bai.
(v) An Phat Plastic and Packing Jsc.
This is one of the leading companies in plastic production in the North, pioneering plastic recycling and plastic bags exporting. The first factory is based in Hai Duong and is now developing its second factory. An Phat has the advantage of a young and dynamic leadership. The estimated rate of returns in 2007 is 30-35%. The company is scheduled to list in HASTC in April 2008. IDJ Financial holds 25% of the company’s chartered capital.
Securities Trading
In addition in becoming strategic/major shareholders, IDJ Financial also invests in listed and OTC enterprises. Currently 25% of the company’s capital is put into 6 listed enterprises.
Analysis and Advisory
An analysis and advisory team has taken shape in 2007, mainly meeting in-house demands. In the coming time, this team will be expanding to provide high-quality, tailor-made analysis and advisory services to outsiders, especially Vietnamese businesses.
3. Partnership
Investors Relationship
Within 9 months, IDJ Financial has rapidly and firmly built up cooperation ties with a number of local and foreign investment institutions, notably with:
- Asiavantage – an offshore Japanese investment fund
- Japan – Vietnam Growth Fund: an investment fund with members being Japanese institutions, with capital, technology and market strengths.
IDJ Financial has concluded MoU on Partnership with these two funds and has shared some investment opportunities.
- EquiPoint Financial Network: An MoU was signed in April 2007 and later on, in June 2007, a Letter of Intent on Investment Cooperation and Loans has been concluded during the state visit of President Nguyen Minh Triet to the US. Accordingly, EquipPoint Financial Networks expects to invest USD 10 ml in IDJ Financial’s projects and will represent IDJ Financial in the US to call for investments. EquiPoint also agrees to transfer part of its shares to IDJ Financial, paving the way for the company to step into the international financial and investment markets.
IDJ Financial is also working closely with Japanese, Korean and Singaporean investment institutions to expand investment opportunities.
Public Relations:
In 2007, public relations activities have been well orchestrated to deliver a high effect, contributing to enhancing the company’s image in the society and especially in the business and investment community.
4. Income in 2007
By 31 December 2007, after 9 months in operation, the company’s income before tax is VND 37.7 bn (thirty seven billion seven hundred million dong), or an ROE of 25%, and an income tax amount to be paid of VND 10 bn.
This result should be seen in the overall picture with average rates of returns of listed companies be estimated at 24%/year (JP Morgan – Asia Pacific Equity Research – 06 Dec 2007).
To ensure transparency and enhance the confidence for our shareholders and investors, IDJ Financial has contracted KPMG – one of the Big Four auditors – to provide auditing services for the company. It is scheduled that auditing works shall be completed in March 2008 and a full annual reports with financial statements shall be provided on or before the company’s Annual Shareholders’ Meeting.
V. CORPORATE STRATEGY AND PLAN IN 2008
In 2008, IDJ Financial will make better use of its advantages in terms of local market knowledge, good reputation with the government and the business community, a strong team and a wide network resulting from the well-known investment and M&A connection channel. The Board of Directors shall meet on 15 Jan 2008 to design and approve a comprehensive strategy for the company in 2008.
Based on the performance in 2007 and the analysis of the macro situation as well as of internal situation in 2008, the Management Team has outlined the 2008 business plan, some major items are provided below:
1. Potential and upcoming investment projects
Taking opportunities brought about by the well-known web page www.muabandoanhnghiep.com.vnand its broad network of shareholders, IDJ Financial will focus on the following areas:
(i) Investing in real-estate projects
The company is intensely negotiating for big projects in Hanoi and Ho Chi Minh City in cooperation with other investors, at the same time fulfilling procedures for independent projects in these two cities.
(ii) Investing in highly potential enterprises, especially those with listing plans
Becoming public companies and listing are now a wide trend among the Vietnamese companies. IDJ Financial will screen, select and invest in lucrative enterprises which meets the company’s investment criteria and support these businesses to better develop. At present, IDJ Financial is working intensely with 30 enteprises in different sectors with a view to arriving at a suitable portfolio in 2008.
(iii) Developing Analysis and Advisory services, especially investment and M&A advisory
IDJ Financial will attract more talents for this team and find out a strategic partner with experience in this area to provide professional, tailor-made and comprehensive investment and M&A advisory services for Vietnamese enterprises. Our services shall include advice in corporate governance, marketing and PR, partner selection and negotiation, legal advice and advice in other aspect of an investment or M&A process.
2. Profit Objective in 2008
Based on the foundations established in 2007 and the business plan in 2008, the company’s management team sets out a target of ROE of 30% in 2008 and becoming one of the leading financial investment institutions in the country in terms of reputation and effectiveness.
Jan 2nd 2008
Board of Management
IDJ Financial |
