Starting life as a refrigeration electrical engineering factory, REE Corporation has developed into a multi-industry corporation after nearly half a century, covering refrigeration electrical engineering, real estate, electricity and water infrastructure.
Currently, the group is aiming to develop clean and green energy to meet the changing times.
From refrigeration mechanical factory to multi-industry corporation
Established in 1977, two years after the country was reunified, REE Corporation, listed on the Ho Chi Minh Stock Exchange as REE, is known as a pioneer and a successful example of privatization, usually known as equitization in Vietnam, by listing on the stock market.
REE Corporation was one of the first firms to go public in Vietnam, in 1993. In 2000, when Vietnam's stock market came into operation, REE was the first enterprise to list shares.
Over the years, the group has left its mark and brands on all the fields it is involved in.
In the traditional field that gave REE its reputation - refrigeration electrical engineering, REE M&E is a technical service provider, equipment supplier and mechanical electrical contractor with more than 45 years of experience, implementing large national projects such as Ben Thanh Metro Station in Ho Chi Minh City and the T2 passenger terminal at Phu Bai International Airport in Thua Thien-Hue province. Meanwhile, Reetech is the first Vietnamese air conditioner brand and has been present in the market for over 30 years.
The real estate segment is marked with E.town office buildings with a total floor area of 144,854 square meters and an occupancy rate of nearly 98%. In 2021, REE started construction of E.town 6 building - a clean, green office building meeting "LEED Platinum" standards. Expected to come into operation from the fourth quarter of 2023, it will increase the corporation’s office area to 181,652 square meters. In addition, REE has deployed residential real estate projects through member units such as Saigonres and REE Land.
In the field of electricity and water infrastructure, REE is known as a merger & acquisition "shark" (M&As) in the power industry, with deals including Vinh Son-Song Hinh Hydropower JSC, Thac Mo Hydropower JSC and Thac Ba Hydropower JSC. Now REE is engaged in the fields of hydropower, solar power, wind power and thermal power with a total generation capacity per ownership ratio of 1,051 megawatts.
The company also holds stakes in water supply companies with a total water production capacity corresponding to an ownership ratio of 450,000 cubic meters per day.
General director Huynh Thanh Hai said that REE's mission set in its early days was to develop the brands associated with business efficiency. Since then, REE has continuously transformed and improved itself to adapt to changes in the market, but always maintained and enhanced its core value.
Targeting average annual growth of 15% in 2023-2027
Since it was listed more than 20 years ago, REE's business performance has shown ups and downs but always on an uptrend. In 2022 alone, the corporation posted record business results with revenue of VND9,372 billion ($386 million) and a net profit of VND2,693 billion ($111 million), up 61% and 45%, respectively, compared to 2021.
This result was mainly thanks to the energy segment with the first full year of operations at Thuong Kon Tum hydropower plant (220 MW) and three wind power plants, namely Trai Vinh V103, Phu Lac 2 and Loi Hai 2 with a total capacity of 126 MW, along with favorable hydrological conditions and electricity prices 44% higher.
On the contrary, the refrigeration electrical engineering and real estate segments weakened, reflecting the prolonged difficulties of the real estate and construction markets.
In the 2018-2022 period, the energy segment made a breakthrough with revenue expanding from VND834 billion to VND5,365 billion ($220.26 million), gradually becoming a pillar to replace the traditional refrigeration electrical engineering segment whose revenue decreased from VND3,427 billion to VND2,816 billion. The real estate segment was quite stable thanks to office leasing activities, while the water field’s contribution was not significant.
In the first nine months of 2023, REE reported revenue of VND6,505 billion ($267.06 million), up 3.2% over the same period last year. In particular, the refrigeration electrical engineering and trade segments saw a good recovery, increasing 26% in revenue to VND2,981 billion thanks to revenues from electrical engineering and solar power projects. Revenue from office leasing rose 4% thanks to increased rental prices. The energy segment’s revenue decreased 6.4% to VND3,564 billion when hydrological conditions were unfavorable.
However, its net profit dropped 15% to VND1,684 billion ($69.14 million) as the company made additional provisions for bad debts in the refrigeration electrical engineering segment amid the struggling real estate market.
As of September 30, its total assets reached VND34,589 billion ($1.42 billion), focusing on tangible fixed assets and investments in joint ventures and affiliated companies. The corporation had more than VND3,500 billion in cash and deposits; and nearly VND11,000 billion in debt, equal to 52% of equity.
In the next five-year period (2023-2027), REE will focus on further developing its existing areas and expanding to new fields of liquid and solid waste treatment and environmental protection.
REE’s board of directors has set a growth target for the next five years of 15% per year on average.
On the stock market, REE closed Monday at VND56,800 ($2.33) per share, an increase of 0.18% from the previous session.