PVFCCo – Phu My Increases Charter Capital, Accelerates Investment for Growth

On the morning of April 17, 2025, at the Conference Hall of Phu My Fertilizer Plant (Phu My City, Ba Ria – Vung Tau), the 2025 Annual General Meeting of Shareholders of PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo – Phu My, stock symbol: DPM) was successfully convened.

In attendance were representatives from major shareholder Vietnam Oil and Gas Group (Petrovietnam), including Mr. Bui Minh Tien – Member of the Board of Members. On behalf of DPM, there were Mr. Nguyen Xuan Hoa – Chairman of the Board of Directors; Mr. Phan Cong Thanh – Member of the Board of Directors, CEO of the Corporation, along with key executives, shareholders, and representatives of Deloitte Vietnam – the firm responsible for auditing DPM’s financial statements.

The meeting approved many important resolutions, laying the groundwork for the sustainable and long-term growth of DPM. Most notably, shareholders approved the issuance of an additional 288.6 million shares to existing shareholders, equivalent to 73.72% of current charter capital, funded from owners' equity. Post-issuance, DPM’s charter capital will increase from VND 3,914 billion to nearly VND 6,800 billion. This plan, to be executed within 2025, is a critical step to enhance financial capacity and meet capital needs for upcoming operations.

Demonstrating a strong commitment to breakthrough development in 2025, DPM also introduced an investment plan worth VND 1,040.5 billion, over 50% higher than the 2024 plan. These investments will prioritize chemical and high-tech projects to significantly improve competitiveness and support the Corporation’s comprehensive development.

To align with new strategic directions, shareholders approved the addition of several new business lines such as the production of ionized calcium powder, wholesale of metals and metal ores, among others.

Regarding the 2025 business and production plan, DPM has set specific objectives and measures, closely aligned with market opportunities and challenges in both the short and medium term. In production, the top priority is the safe and stable operation of the plant, along with the successful execution of a full-scale turnaround maintenance scheduled for 2025. On the business front, DPM aims to operate flexibly, expand international trade, explore new markets, and promote digital transformation in sales operations.

The shareholders also approved the 2025 production targets:

• Phu My Urea: 780,000 tons

• Phu My NPK: 165,000 tons

• Consolidated revenue: VND 12,876 billion

• Pre-tax profit: VND 410 billion

DPM’s leadership aims to exceed 2024 revenue levels, thereby positively contributing to Petrovietnam’s growth targets for 2025.

In 2024, DPM achieved notable success in business and production. The company continued to optimize production, reform its business model, revamp its brand identity, adopt market-responsive sales policies, and expand exports. As a result, DPM met and exceeded the performance targets set by the previous AGM. In Q1 2025, DPM started strong, surpassing quarterly business targets with significant growth in key indicators:

• Urea output: 224,805 tons (102% of Q1 target)

• NPK output: 44,263 tons (up 77% vs. Q1 plan, up 50% YoY)

• Urea sales: 236,353 tons (120% of Q1 target)

• NPK sales: 37,409 tons (154% of Q1 target, up 50% YoY)

• Q1 revenue: VND 3,692 billion (131% of Q1 plan, 29% of annual target, up 11% YoY)

• Pre-tax profit: VND 203 billion (257% of Q1 plan)

During the discussion session, shareholders raised concerns and provided suggestions related to DPM’s operations in 2025 and the coming years, which the meeting's presidium noted and responded to. Key topics of interest included the potential impacts of U.S. tax policies, gas sources and pricing, the efficiency of investment projects, and plans to expand or upgrade the plant’s capacity.

Speaking on behalf of Petrovietnam, Mr. Bui Minh Tien—a member of the Board of Directors—highly praised DPM’s performance in 2024 and expressed full support for the 2025 goals set by the Board of Directors. He emphasized that upcoming changes in national policies and Petrovietnam’s new development strategy under its rebranded identity as the Vietnam National Industrial and Energy Group will present both challenges and opportunities. In that context, DPM plays a key role in a foundational national industry: chemicals and fertilizers.

To ensure efficient and sustainable operations, Mr. Tien recommended that PVFCCo – Phu My:

• Finalize its development strategy for the 2035 horizon and 2050 vision

• Complete its business model reform

• Innovate governance and review existing processes to resolve bottlenecks

• Invest in R&D and digital transformation

• Strengthen human resource management to meet new requirements

Mr. Tien expressed confidence that PVFCCo—Phu My will achieve its expected growth and development trajectory with strong leadership, dedication from all employees, and continued support from shareholders.

On behalf of the Board of Directors and employees, Mr. Nguyen Xuan Hoa – Chairman of the Board – expressed gratitude to Petrovietnam leadership and all shareholders for their ongoing support. He affirmed that all feedback from the AGM will be thoroughly incorporated into DPM’s action plans for 2025 and beyond.