HAI Agricultural Chemicals – Reform and Innovation

HAI Agricultural Chemicals Joint Stock Company is undergoing a strong restructuring of its organizational model, management operations, business methods, and production model to capture the pesticide market in Vietnam and the region.

In accordance with the Resolution of the 2014 Annual General Meeting of Shareholders of HAI Agricultural Chemicals Joint Stock Company, in addition to the top priority of exceeding revenue and profit targets in 2015, the Board of Directors and the General Management Board have immediately implemented other important solutions across all areas to support long-term production and business tasks, specifically:

Solutions related to Organization – Human Resources – Salaries:

Restructuring HAI's organizational model is a key task and the foundation for all other areas of HAI in the new development phase. A prime example of this set of solutions is the establishment of a Project Management Board at the beginning of January 2015, tasked with managing HAI's projects. The first project was "Restructuring HAI's organizational model to meet production and business objectives in the new phase." To date, HAI's new organizational model has been approved by the Board of Directors. The next step will be to rebuild the job descriptions for each individual and unit within HAI; and standardize operational procedures throughout the company. This project is expected to be completed by the end of August 2015.

HAI Real Estate Company Limited, established in the first quarter of 2015, is another example of the agility in business orientation of HAI's leadership. Real estate is a new field for HAI Agricultural Pharmaceuticals, but it is a strength of the FLC Group, of which HAI is a member. Immediately, HAI Real Estate was assigned to implement several FLC projects. Furthermore, under the management of HAI Real Estate, the use and exploitation of the Company's land, warehouses, and factories have become much more scientific and efficient than before.

By early June 2015, the Company's Communications Team was officially established to take over the communications work previously managed by the Project Management Board.

Driven by market development needs, the Board of Directors decided to expand HAI's operations into the Thanh Hoa market, marked by the establishment of the HAI Thanh Hoa branch at the end of June 2015.

To improve the efficiency of the company's business management and operations, the Board of Directors of HAI has directed the development and implementation of the project "Enhancing Business Management Efficiency with Software Tools: Office Management" and "Distribution Channel Management". This project will bring many practical benefits to users, including employees, managers, customers, partners, and investors of HAI. Currently, the "Office Management" module of this project is undergoing testing. According to the plan, the entire project will be implemented throughout the company by the end of 2015.

While waiting for the "Office Management" and "Distribution Channel Management" tools to become operational, the HAI leadership has applied Viber to quickly manage the work of all management levels. This tool immediately proved highly effective, ensuring smooth, up-to-date, and efficient information exchange among members of work teams, resolving many previous difficulties and obstacles caused by a lack of information.

A key task that the HAI leadership successfully accomplished in 2015 was reforming the income mechanism and welfare system for employees. Affirming the paramount importance of human resources, the HAI leadership adjusted the income mechanism to motivate and encourage job performance and improve the living standards of employees. The human resources department also reassigned personnel to match individual capabilities, maximizing employee efficiency. From the beginning of 2015 to the present, HAI has continuously organized training courses to enhance professional and managerial knowledge for staff at all levels to meet the demands of the new situation.

The company also focuses on implementing a policy of timely rewards and incentives for individuals and teams who excel in production and business tasks. In addition, the HAI Scholarship Fund was established in early May 2015 to encourage the studious spirit of the children of employees, thereby fostering a strong bond between employees and the company.

Communication Solutions Group:

Recognizing the importance and value of branding to a business, the "Comprehensive Brand Identity Solution" project was approved by the company's leadership at the beginning of Q2 2015 and will be completed in the first half of July 2015. A campaign to launch and introduce the new brand identity in August and September 2015, on a large scale across Ho Chi Minh City and 15 branches, is currently being planned.

In addition, communicating information to investors is an indispensable bridge to bring HAI closer to the market. HAI's leadership has decided to replace the old website with a new one using the latest technology (Responsive Web Design) to ensure good recognition on both computers and smartphones. With its simple, user-friendly, and aesthetically pleasing interface, this new website will facilitate quick and accurate interaction between the company and its customers and investors.

The new website is now complete and is undergoing testing and data updates from the old website.

In addition, HAI is focusing on strengthening its relationships with external media outlets to ensure that investors and customers receive timely, complete, and accurate updates on all of HAI's business activities.

Investment and Construction Solutions Group:

Restructuring its production and business operations, HAI prioritizes investment in its core business of plant protection products, alongside other areas such as supplying corn seeds, fertilizers, agricultural products, and agricultural services. Simultaneously, HAI divested from underperforming projects such as the Bon Dung Joint Stock Company project, its stock investments in Viet A Bank (VAB), etc., and focused its investment capital on key projects: the 28 Mac Dinh Chi complex building project in District 1; and the mixed-use apartment and office building project on Kinh Duong Vuong Street. The investment project for the HAI Minh Long pesticide manufacturing and processing plant (HAI has completed the acquisition of 100% of HAI Minh Long Co., Ltd. (acquiring 50% of the capital of Hoc Mon JSC)); the investment project to build agricultural product processing plants in three regions.

Repair and upgrading of the company's facilities and those of its member units are also being urgently implemented: HAI's headquarters at 28 Mac Dinh Chi Street is being renovated since the beginning of June 2015 and will be completed and put into use by the end of August 2015; the offices and warehouses of the five branches (Can Tho, Tien Giang, Dong Thap, An Giang, Dong Nai) are also being repaired and upgraded, and will be completed by the end of August 2015.

HAI Real Estate Company is currently assigned to implement several urban infrastructure and residential housing projects under the large-scale projects of the FLC Group. Thanh Hoa and Binh Dinh provinces.

As of June 26, 2015, the company had equipped its branches with one pickup truck and two trucks to support production and business activities. Three more pickup trucks and two trucks will be provided to branches in the near future.

The company is aggressively restructuring its organization and reorganizing its personnel, focusing investment on its strengths, streamlining its distribution system by reducing intermediate layers, strengthening marketing and communication efforts, and building a strong brand identity… With the above solutions, HAI's leadership expects a breakthrough in its 2015 production and business plan, bringing many tangible benefits to the company's shareholders.