General Meeting of Shareholders of “AutoKrAZ” has been held today, March 30 2017.
Shareholders of “AutoKrAZ” heard and approved report of General Director on the company’s financial and business operations in 2016 and key activity area for 2017, report and findings of Board of Auditors, annual financial report of “AutoKrAZ”, report of Supervisory Board, change of company type from public joint-stock company to private company, income statement of “AutoKrAZ” for 2016 and fund generation in 2017.
According to General Director the company reported net profit of UAH 1 billion 232m for financial year. The company reports increase in production of the following products from 2015: trailers by 47 percent, semi-trailers by 20 percent, castings by 20 percent, spare parts by 4 percent.
Chassis cab trucks used for conversion into special vehicles provided with various equipment account for 63 percent of the total amount of vehicles made in 2016, with 26 percent of drop side trucks, 9 percent of tractor trucks and 2 percent of dump trucks.
33 percent of vehicles were supplied to foreign countries, 20 percent to CIS countries and 47 percent to domestic market.
General Director emphasized that quality management system certification to ISO/TS 16949:2009 was a very important event for improvement of production process, defect prevention and loss reduction.
Financial Director in his report said that due to efforts taken to reduce production cost and flexible pricing policy for sales of vehicles in the markets the company earned operating profit for financial year but in other business lines the company incurred losses that exceed this figure.
In this regard General Meeting of Shareholders of “AutoKrAZ” decided not to raise reserve fund, dividend reserve fund and production development fund because of loss for 2016 due to lack of funding source. The meeting approved the following profit distribution for 2017: 5 percent for reserve fund, 95 percent for production development fund. Offered profit distribution is driven by urgent need for modernization as its future development depends on it.
The company’s plan for current year read out by General Director during General Meeting of Shareholders provides for the following:
- production ramp-up and increase in sales up to 1200 units, with priority on military vehicles to improve the country’s defence capacity;
- further work to create advanced models, with priority on extension of lineup of special vehicles for the army and lineup of medium-duty trucks for municipal services;
- further work on market penetration;
- taking further steps to improve quality of KrAZ products on all production stages;
- improvement of production process and implementation of energy-saving solutions.
General Meeting of Shareholders of “AutoKrAZ” decided to change type from public joint-stock company to private company, amended the Statute under the existing laws, approved restated Statute, elected members of Supervisory Board and Board of Auditors.
