Report of the Chairman of the Board of “Xalqaro Hamkorlik Markazi” JSC on Results of Financial and Economic Activities at the end of III quarter of 2014 The Board of “Xalqaro Hamkorlik Markazi” JSC takes required measures for high-quality development of the services to be rendered by the Company, improvement of corporate governance, and increase in transparency of the Company’s business, escalation of business ranges and profitability, as well as assurance of high level of the employees’ competence. The following key indicators are obtained following the results of the Company’s financial and economic activities over a period of 9 months of 2014: in mln. UZS
|No.||Name of item||9 months of 2013||2014|
|January-September forecast||9 months actuality||Expected at 2014 end (as per Business Plan)|
|1.||Gross revenues||8083,6||9 023,0||9 160,9||12 185,5|
|2.||Expenses||7305,9||8 442,8||8 339,3||11 431,1|
The regular measures for increase in workload of the Company’s buildings and introduction of supplementary services are taken with a view to ensuring steady operation and strengthening of stability in competitive environment and sector of services to be rendered by the Company, and in order to increase in revenues. Utilization of the Company’s buildings space as of October 1, 2014 is as follows: – International Business Center – 19 599.11 sq. m or workload at the level of 91.58%; – “Tashkent plaza” Trade Center – 691.16 sq. m or workload at the level of 32.17%; – “Uzinkomtsentr” Information Center – 533.85 sq. m or workload at the level of 42.67%; – International Trade Center – 1 321.67 sq. m or workload at the level of 116.45%. In addition, four (4) occupational lease agreements are concluded with new lessees in III quarter of this year, namely: the Representative Office of “VAO” OJSC (Latvia), the Representative Office of “Universal Health Care” (UAE), “Bilimdon Nashriyoti” LLC and “Maxsus Matbuot” LLC for total area of rented premise of 67.78 sq. m. One of the main areas of the Company business is the protocol service. So, several events have been arranged within 3rd quarter of 2014 in the conference halls of the Company, including: – 3rd meeting of the Subcommittee on Trade and Economic Cooperation and 2nd meeting of the Subcommittee on Scientific and Technological Cooperation of Uzbek-China ISC arranged by MFERIT of the Republic of Uzbekistan together with the Committee for Coordination of Science and Technology Development under the Cabinet of Ministers of the Republic of Uzbekistan, – Round table with the participation of business quarters of Uzbekistan and Japan arranged by MFERIT of the Republic of Uzbekistan, – 10th meeting of the Joint Uzbek-Turkmen Commission on Trade and Economic, Scientific and Technological and Cultural Cooperation arranged by MFERIT of the Republic of Uzbekistan, etc. Complex of measures for improvement and landscaping of the Ankhor Canal landside was implemented in pursuance of the Minutes of Visiting Conference on Tashkent improvement and landscaping No.05-05/09-13 dated 31.01.2014, approved by the Deputy Prime Minister of the Republic of Uzbekistan (B.Zakirov). In particular, according to the order of the Minister of FERIT of the Republic of Uzbekistan (E.Ganiyev) No.MN-38/20-363 dated 25.03.2014, “Xalqaro Hamkorlik Markazi” JSC has completed construction of three moorings and procured two pleasure boats in view of their further operation. One of the procured boats was registered in accordance with the established procedure (No.01А892 dated 23.06.2014). Improvement of financial and economic activities of “Navoiy” Branch of “Silk Road Palace” Hotel Complex is continued. All agreements have been prolonged at the beginning of this year with escalation of accommodation cost by 10%, and new work contract were concluded. Consequently, following the results of accounting period the profit in the amount of 556 thousand UZS was received due to conclusion of new agreements and escalation of accommodation cost. With a view of improvement of the Company operating efficiency the following activities will be performed in IV quarter of 2014 in such areas as:
Protocol Service plans implementing of the following governmental events in IV quarter of this year: meeting of Uzbek-British Intergovernmental Trade and Industry Commission, meeting of Uzbek-Georgian Economic Cooperation Commission, break-out sessions within the framework of 8th International Industrial Fair and Cooperation Exchange, Uzbek-Korean Round Table, etc.
Measures necessary for the Company’s expenditures optimization will be continued on the part of executive agency and relevant subdivisions of the Company. Receiving of gross revenues in the amount of 12 185.5 mln. UZS and net profit in the amount of 808.81 mln UZS is planned as a result of performed activity at the end of 2014.
Invitations to cooperation were sent out to travel companies within 2014 with a view of expansion in the number of clients and, consequently, hotel income. Performing of the following activities is planned in IV quarter of 2014: – Conclusion of contract with SEU “Catering” for provision of aircraft maintenance services and passenger and ground supply of NJSC “Uzbekiston Xavo Yo’llari”; – Enhancement of cooperation with “Silk Stars” LLC – leading agency in the filed of effective advertising and on-line hotel reservation; – Installation of the local heat supply system on the part of lessee, further introduction of the hotel swimming pool lease services taking into account installation of preheating plant for winter season.
Effective and successful business of the Company to a large extent depends on its working competent employees. With a view to upgrade qualification of the employees and creation of conditions necessary for effective work the Company’s employees attend refresher course on a regular basis in the vocational rehabilitation center under MFERIT, the State Competition Committee, Association of Accountants and Auditors of Uzbekistan, National Securitie