SMC - All for Trademark Building

After 20 years of distributing steel products, SMC has a strong foothold in the market. The most important factor is to put forward exact forecasts and objectives in combination with flexible situation resettlements and suitable implementation of business development solutions. Since early 2005, SMC officially operated in the form of a joint stock company. The company has actively advocated two essential criteria to lay the strong development ground: Operating as an “official steel distributor” and applying the “ISO 9001:2000 quality management system”. The entire company operates in a common system with many processes of various units but still ensure the best services and products for customers. In particular, SMC introduces clear and consistent quality policies to attract more customers, maintain stable development and receive more good appreciation from customers. The administration apparatus of the company has reached a higher level than before. The close and organic relationship with domestic producers enables SMC to become a reliable partner of many investors, contractors, retailers and consumers as well as receive precious supports from its partners.

 

In 2005, SMC focused on broadcasting and building up trademark to gain its best possible position. For instance, in 2005, the company gained a revenue of VND1,558.4 billion (US$97.4 million) and pre-tax profit of VND7.433 billion (US$465,000) and corporate income tax of VND2.117 billion (US$125,000). The dividend payment to shareholder is 12 per cent and the profit on a share is VND17,883 (US$1.11). In addition, SMC marketed steel sheets manufactured by Phu My Steel Sheet Company. This is a new potential commodity item of SMC. The company is investing in steel processing and outsourcing factor with a total investment capital of over VND40 billion (US$2.5 million), including VND20 billion for the construction of 6,000-square metre workshop on a 2-ha campus, to make mechanical products, set up a goods transhipment area, produce several steel product categories, process and outsource steel sheets. The factory is scheduled for operation in October 2006 in Phu My Industrial Park of Ba Ria-Vung Tau Province. In addition, SMC also sets up its branch in Hanoi and gradually upgrades it into a representative office, thus, acting as a bridge of SMC in Northern provinces and investing in suitable business scopes.

 

SMC is completing its financial system to get a stock market listing licence. Can you detail this project?
Correct. The healthy financial development of SMC in recent yeas has been essential for the listing of its shares on the stock market. We initiatively hired a leading auditing firm in Vietnam to consult and instruct necessary procedures for the listing; of course, public and transparent financial reports are the first requirements. Initially, shareholders and the Directors Board have consented and determined to send SMC on the stock market because this is also the right track for its strong expansion in the future and widening of a strong capital channel. At the same time, the listing on the stock market can also make the SMC trademark more popular, affirm the position, prestige and development of the company and create a new large capital mobilisation channel. By 2009, the chartered capital will be raised to VND180-200 billion (US$11.25-12.5 million) to ensure rights and interests of investors. The biggest victory is the maintenance of continual high growth, the excess of profit targets as well as the establishment of a new SMC on the market.
Xuan Hoe