The Kingdom’s leading economic zone, listed last year as the first private Cambodian company on the Cambodian Stock Exchange, received strong support from its shareholders
Phnom Penh, 24th April 2017 – On Friday 21st, Phnom Penh SEZ Plc. board of directors presented the fiscal year 2017 and briefed on the status of ongoing development plans.
“The year 2016 was the beginning of an important milestone for Phnom Penh SEZ PLC due to becoming the first private Cambodian company to be listed on the Cambodia Securities Exchange on date May 30, 2016. It has been the long continuing success story since our commencement in 2007. We have never changed our ambition to be the leading Special Economic Zone Developer (“SEZ”) in the Kingdom, principally involving in the business of operating and managing of SEZ with the main purpose of developing industrial land for sale or lease,” said Lok Chumteav Okhna Lim Chhiv Ho, Chairwoman of Phnom Penh SEZ Plc. in her introduction speech.
Due to a sluggish global economic climate last year, sales revenue dropped significantly from fiscal year 2015. “Obviously, we had a reduction of sales revenue in 2016 compared to 2015. Our net profit for 2016 is about US$ 1.45 million,” says Mr. Fong Nee Wai, Chief Financial Officer of Phnom Penh SEZ Plc. “However, we have increased our percentage gross profit margin. Our total assets increased substantially from using IPO proceeds to purchase more land and invest in land development and infrastructure”. Additionally, Nee Wai highlighted the improvement of debt-to-equity ratio to 0.55X compared to 0.78X in 2015.
During the AGM, Phnom Penh SEZ shareholders have approved the minutes of Extraordinary General Meeting from last year, as well as the 2016 financial statement (ended 31 December 2016) and the revised articles of incorporation. All resolutions were overwhelmingly embraced by a large majority. In the meantime, the initial board of directors have been reelected and appointed for two more years.
The AGM was also a great occasion for Phnom Penh SEZ board of directors to present the company’s future development plans to the shareholders. The industrial estate is currently diversifying its offerings to investors into the Cambodian economy by expanding its business model: “The key challenge we’ve faced last year was the difficulty to get some deals with important land investors.” says Hiroshi Uematsu, Chief Executive Officer of Phnom Penh SEZ Plc. “In order to further growth of our business, we need to highlight on two strategic moves. First is the expansion of Phnom Penh SEZ and Poipet PP SEZ. The second is to diversify our business activities to receive new revenue streams beyond land sales, including electricity, water supply, rental factory/warehouse, construction and services. By benchmarking the revenue breakdown with top-tier industrial estate developer in Thailand, their revenue from land sales are below 50%. We ambitiously endeavor to increase non-land sales recurring income”