1. Overall Information
BUSINESS REGISTRATION CERTIFICATE
No. 0301825452 issued by the Department of Planning and Investment of Ho Chi Minh City, first registration on 18/09/1999 and registration on changes for 22nd times on 12/01/2024
CHARTER CAPITAL
VND
ADDRESS
No. 253 Hoang Van Thu, Ward 2, Tan Binh District, Ho Chi Minh City.
PHONE NO.
+84 28 3822 7260
Website
www.searefico.com
STOCK CODE (HOSE)
2. HISTORY OF FOUNDATION AND DEVELOPMENT
2.1. HISTORY OF FOUNDATION AND DEVELOPMENT
Before 1999
1999 - 2009
2010 - 2019
2020 - 2023
2.2. LINES OF BUSINESS
With the vision to become the leading corporation in engineering and technology sector, focusing on those industries with high technology content and market potential, Searefico is known by domestic and foreign customers and partners for its excellent product and service quality and top management level.
Searefico Group offers a multi-industry ecosystem with a variety of products, solutions and services in M&E, real estate, industrial construction, warehouse rental, and industrial solutions for industrial refrigeration, automation, renewable energy, new environmentally friendly construction materials and financial investments.
2.3. SCOPE OF ACTIVITIES
The scope of activities of the Company stretches across the country, from the North to the South and island region of Vietnam. Industrial Refrigeration products and panels have been exported to foreign markets such as Indonesia, Philippines, Cambodia, India, Solomon Island and the South Pacific Region.
3. Operational model, organizational structure, information on Subsidiaries
3.1. Operational model
Searefico currently has 6 subsidiaries operating in a cohesive ecosystem and supporting each other to increase the competitiveness and optimize the use of resources:
- Searefico Engineering & Construction Joint Stock Company;
- Searee Refrigeration Electrical Engineering Corporation;
- Asia Refrigeration Industry Joint Stock Company;
- Greenpan Joint Stock Company;
- Phoenix Energy & Automation Joint Stock Company;
- Seareal Real Estate Joint Stock Company.
3.2. Organizational structure
(Issued together with Decision No. 004A/SRF/HĐQT/23 dated 28/03/2023)
3.3. Information on Subsidiaries
Company Name
Searefico Engineering & Construction Joint Stock Company
Address
No. 72-74 Nguyen Thi Minh Khai, Vo Thi Sau Ward, District 3, HCMC
Charter Capital
150 billion VND
SRF voting rights ratio
99.31%
Business lines
EPC General Contractor specializes in the design, all-in-one construction and maintenance of civil and industrial projects, including smart warehouses, automation lines, and high-tech lines.
Company Name
Searee Refrigeration Electrical Engineering Corporation
Address
Road No. 10, Hoa Khanh Industrial Zone, Lien Chieu District, Da Nang City
Website
www.searee.com
Charter Capital
50 billion VND
SRF voting rights ratio
73.70%
Business lines
Provide all-in-one services of design, construction and installation of mechanical and electrical high-class works (industrial refrigeration, air-conditioning system, electric system, fire-alarming system, fire prevention and fighting, elevator, etc.) for domestic and foreign civil and industrial works. Offer warehouses for lease in the industrial zones.
Company Name
Seareal Real Estate Joint Stock Company
Address
No. 72-74 Nguyen Thi Minh Khai, Vo Thi Sau Ward, District 3, HCMC
Charter Capital
100 billion VND
SRF voting rights ratio
98.40%
Business lines
Manage, operate, and invest in commercial real estate projects, particularly industrial zones.
Company Name
Asia Refrigeration Industry Joint Stock Company
Address
25 – 27 Trung Tam Street, Tan Tao Industrial Zone, Tan Tao A Ward, Binh Tan District, HCMC
Website
www.arico.com.vn
Charter Capital
120 billion VND
SRF voting rights ratio
84.00%
Business lines
Design and provide comprehensive solutions for the food processing industry; research, manufacture and provide advanced industrial refrigeration systems and equipment for domestic and foreign markets.
Company Name
Greenpan Joint Stock Company
Address
25 – 27 Trung Tam Street, Tan Tao Industrial Zone, Tan Tao A Ward, Binh Tan District, HCMC
Website
www.greenpan.com.vn
Charter Capital
105 billion VND
SRF voting rights ratio
52.50%
Business lines
Product insulation construction materials using modern industrial technologies; design and provide green solutions for domestic and international civil and industrial works.
Company Name
Phoenix Energy & Automation Joint Stock Company
Address
No. 72-74 Nguyen Thi Minh Khai, Vo Thi Sau Ward, District 3, HCMC
Charter Capital
5 billion VND
SRF voting rights ratio
57.00%
Business lines
Provide consultancy, design, and installation of rooftop photovoltaic projects for civil and industrial zones; develop smart automation solutions of small to large scale.
4. DEVELOPMENT ORIENTATIONS
4.1. Objectives of the Company
Based on the corporate culture crystallized, inherited, and adapted from over 46 years of operation and development, and 27 years of tradition since the merger with Searee Da Nang, Searefico has planned its future sustainable development. With focus on the “HEARTINESS” with the employees and “TRUST” with the customers, we have devoted constant efforts to maximizing the benefits for our shareholders. Searefico prides itself on the integrity, transparency, legal compliance and excellence in business culture, earning the respect and admiration of both the business community and society.
As a multi-industry corporation in the M&E sector, Searefico focuses on the industries with high technology content and market potential;
Searefico maintains its leading position in the fields of automation, smart warehouses, high-tech M&E and industrial refrigeration. Searefico is well known by domestic and foreign customers and partners for top class quality (advanced solutions and technology) and for its offering of practical values to the customers in line with global development trends;
Operating in various sectors as part of Searefico ecosystem, the subsidiaries are highly autonomous, but always coordinate and support each other to create the union and increase their operational performance, resonated values, and unified strength in the spirit of ONE SEAREFICO;
Create a dynamic working environment, encouraging self-management practices, building suitable career development paths; offer adequate income to dedicated and talented employees; and share the same values in line with the unique culture of the Company;
Ensure sustainable development, information integrity, and legal compliance; associate business goals to social and environmental responsibilities by means of charitable activities, contributions, and sharing of experiences with the business community; and actively participate in the formulation of policies and technical standards in Vietnam.
4.2. Medium and Long-Term Development Strategy
Committing to the goal of sustainable development, Searefico considers people as the center, technology as the foundation and business culture as the basis for development. We offer cross-cutting strategies:
Diversifying the industries and improving core operational performance:
We not only improve performance in core industries but also expand into new fields with high economic potentials and low risks. This is completed by promoting M&A deals with businesses in various industries such as logistics, industrial real estate, smart warehouses, automation, new building materials, and renewable energy; nevertheless, it is imperative to ensure neither deviation from business directions nor fragmentation in business activities occurs.
Pioneering in offering advanced technology solutions in the operating industries:
Apply advanced technology solutions with access to state-of-art industrial technologies in line with global development trends and market penetration potential. Searefico not only offer internationalclass products in new investment projects but also continuously improves and innovates to become the leader that shapes the future market.
Creating a working environment to build up the people:
Develop an ideal working environment for employees to maximize their abilities; formulate the mechanisms and policies to encourage selfmanagement at the workplace and acknowledge the employees’ valuable works. The working environment has been built upon common awareness and passed down through many generations to gather those individuals with leadership aspirations, warrior spirit, agility, dedication, and sincerity.
Sustainable development:
Searefico constantly reviews and meets the expectations and interests of its stakeholder groups. In this way, we aim to balance the interests among shareholders, employees, and the community, ensuring a stable and developing future for all stakeholders.
Continuous improvement and optimization:
Promote continuous improvement and optimization of the administration and management systems; take the initiatives such as Searefico Reinvention Project (SRP), Knowledge Management Project (KMP), and Searefico Digitalization Project (SDP) with focus on superior management standards and practices compared to other providers in the same fields of activities.
4.3. Objectives of Sustainable Development
From opinions and plans to practical actions, from initial ideas to long-term commitments, that’s how we discuss, comprehend, and implement sustainable development. We are always aware of our mission of providing added values to the stakeholders, employees, customers, partners, shareholders, environment, community, and society.
Searefico focuses on creating a dynamic, creative, and humane working environment that always promotes and encourages those employees with the desire to become rich and the spirit of patriotism and national pride, which shall enable the employees to realize the values of their works and the organization’s expectations by offering promotion opportunities to them. At the same time, Searefico pays special attention to ensuring occupational safety and health for all members of its organization.
Ensure data integrity in our activities; preserve and use capital effectively; and maximize shareholders’ interests.
Providing quality products and services at competitive prices to meet the customers’ increasing demands. When associating each project or product to Searefico brand, Searefico focuses on and ensure the implementation of necessary actions to meet the expectations. Searefico is committed to accompanying the partners on win-win basis with fair treatment and integrity.
Collect statistics, audit and impact assessment of a number of core activities that have impact on greenhouse gas emissions and obtain CO2e indicators to develop specific action programs. Continue the research and investment in green, clean and environmentally friendly technologies in response to the National Strategy on Green Growth and the National Action Plan on Green Growth for 2021-2030 period.
Commit to fully implementing the Company’s responsibilities and obligations to the society and community in compliance with business laws and professional standards; promote the organizational corporate culture; provide the guidance on applying SA 8000 social responsibility.
5. RISK FACTORS
In 2023, the role of risk management has been strengthened in the context of an increasingly complex and unpredictable business environment. The Board of Directors identified a number of categories of key risk factors. For each identified risk factor, we developed the solutions to prevent and minimize negative impacts on Searefico’s production and business activities.
Strategic risks
Searefico adopted a pivot strategy to optimize traditional M&E activities and expand into new business sectors, i.e. high-tech M&E, clean rooms and logistics, with many unpredictable risks. We carefully analysed the market and customer needs, adjusted the business plan, built a 5-year long-term strategy to grow in the right direction based on our inner strengths and resources, and increased the investment in technology and key personnel training activities. This resulted in the flexibility in adapting to and seizing new business opportunities and minimizing strategic risks in a challenging business context.
Financial risks
- Exchange rate risk: Searefico’s production and construction activities are under great pressure from exchange rate risk. By the end of 2023, USD/VND exchange rate grew by 2.7% over that in the beginning of the year. The production of industrial refrigeration equipment and construction of M&E works requires materials to be imported from abroad. Recognizing exchange rate risk from early of the year, the BOM of subsidiaries has taken initiative steps in managing this risk by entering future currency contracts with banks.
- Credit risk: In the context that banks are limiting the credit grant for projects. Searefico considers this as a risk and took proactive actions by actively working with banks and proving its strong financial health to maintain effective credit relationships. Meanwhile, Searefico also expands its financial approach by finding and associating with strategic investors. An important step in this strategy is the cooperation between a subsidiary of Searefico Group with Taisei Oncho, a strategic partner in the warehouse for rent development project in Da Nang, demonstrating its ability to diversify capital resources and build sustainable partnerships.
- Interest rate risk: Interest rate fluctuations can have impact on borrowing costs and net profit. To minimize this risk, Searefico has taken proactive management measures such as loan restructuring, alternative capital resources with stable and lower interest rates, and thorough analysis and forecast of future interest rate trends.
System risk
This risk is the result of incomplete management system or changes in the operating model. To mitigate this risk, Searefico has implemented a number of system improvements and reforms, and strengthened the inspection and supervision to make sure that all processes function smoothly and efficiently. Searefico also focused on training the employees on using new tools and software and formulating contingency plans for possible scenarios, thereby ensuring the continuity and stability in production and business activities.
Market risk
This risk has direct impact on the business operations, especially in the context of a challenging real estate market. With limited new projects and fierce competition in M&E sector, along with significant decline in the number of industrial refrigeration projects, Searefico has shifted its special focus toward capturing the customers’ needs through proactive business and bidding activities. Considering product quality assurance as the top priority, Searefico constantly inspects and improves the standards in each project while maintaining close relationships with the investors and consultants to promptly address all issues.
Searefico faced market risk as a result of not only unpredictable real estate market but also global geo-political disruptions. These disruptions have impact on the supply chain, leading to increased equipment prices and shortages of essential materials for production and business activities. To cope with this risk, Searefico has endeavoured to understand the customers’ needs, promote bid processes, and focus on maintaining product quality. Searefico also maintains close relationships with the suppliers and investors and strict control over construction progress to minimize the risk of market fluctuations.
Safety risks
Include such factors as occupational accidents, epidemics, natural disasters and environmental issues. To cope with these risks, Searefico has taken many management and prevention measures such as improving labour safety, strengthening disease prevention measures, preparing for natural disasters, and ensuring the compliance with environmental regulations. Searefico also applies risk management systems to identify problems from early stage and ensuring personnel safety and operational efficiency.
Searefico is developing a comprehensive risk management framework, including risk management principles, risk appetite and risk indicators along with risk management processes in line with international practices. A properly designed multi-level control system, along with effective communication channels to identify and proactively respond to risks, is the testament to Searefico’s strong commitment to risk management.