JVC reports positive results for 2016 and aims high for 2017

Japan Vietnam Medical Instrument Joint Stock Company (JVC) has reported positive results one year after  restructuring and set optimistic targets for 2017, while insisting on a close relationship with Japanese investors.

JVC’s annual general meeting took place on August 31, 2017

On August 31, 2017, JVC held its annual general meeting (AGM) to announce numerous noteworthy operation results after one year of restructuration. At the same time, the Japanese Investment Fund of Dream Incubator (DI) also confirmed cooperating with and supporting JVC in its upcoming activities.

The meeting was attended by 35 shareholders representing 60.8 per cent of the voting shares. At the meeting, the shareholders voted on important issues of the company, such as business plan in 2017, and the selection of independent auditors, and discussed many topics related to corporate management and governance.

The meeting was attended by 35 shareholders

As reported at the meeting, JVC has attained significant business results after a year of relentless efforts to restructure and transform the company. Specifically, JVC has gradually regained the trust of suppliers and customers and losses dropped from more than VND1.3 trillion ($57.2 million) in 2015 to only VND31.7 billion ($1.4 billion) in 2016. Total provisioning also dropped from over VND1.3 trillion ($57.2 million) in 2015 to just VND23 billion ($1 million) in 2016.

Based on this momentum, JVC’s board of directors has set a revenue growth target of over 20 per cent, including net revenue going from approximately VND500 billion ($22 million) in 2016 to VND630 billion ($27.72 million) in 2017, equivalent to a 26 per cent increase, and net profit of VND19 billion ($836,000), equivalent to a 159 per cent increase over 2016.

According to JVC chairman Pham Quang Huy, 2016 saw essential changes that are vital to the company’s development.

“After a series of efforts of restructuring, including building up human resources, adding more products, and expanding the distribution market, JVC has emerged from the crisis, regaining customers’ confidence and achieving outstanding business results. The figures are proof that our strategy was correct and that we are back on track to recover and grow stronger than ever in the upcoming years,” Huy said and emphasised the goal of building up an effective and transparent governance system in accordance with the norms of a public company, with actual revenue and net profit reports.

Reporting on 2016 operations and the business plan for 2017, JVC general director Ngo Thanh Son also highlighted the results achieved during the comprehensive restructuring in the past year. Some outstanding results include exceeding the assigned revenue target, boosting gross profit margins by implementing high-efficiency projects, significantly cutting after-tax loss, and basically completing the review and provision for bad assets.

According to shareholders, the most important result JVC achieved in the past year is restoring the confidence of the partners and customers after the incidents of the previous management board. Particularly, with the strategy of fostering their distribution channel, JVC has become the exclusive distributor in Vietnam for some big medical equipment companies in the world. For instance, Hitachi (Japan) has enhanced their bilateral relationship. Fujifilm has also stabilised the distribution channel in the north with JVC, and Konica also entered a strong cooperation with JVC to develop the northern market.

Currently, JVC focuses on strengthening core products, while re-evaluating its product portfolio at the same time, adding on more products like the Sakura infection control system and the Fuji Sonosite ultrasound system.

Son also expressed the determination of the Board of Directors to achieve the goals set for 2017. “Strengthening human resources, building the brand, and boosting business growth are three key goals in 2017-2018. The consensus of the leadership team, the staff, together with the trust and support of customers and partners are a strong motivation to help JVC overcome our challenges and achieve our goals in the coming time.”

JVC’s chairman Pham Quang Huy talking at the AGM

JVC was established on September 27, 2001. After 15 years of construction and development, JVC has supplied and installed thousands of modern medical systems, especially ones used in imaging diagnostics, such as Magnetic Resonance Imaging System, Computed Tomography System, X-ray system, X-ray digitisation system, and ultrasound system.

By Trang Vu

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