Today, April 3, General Meeting of Shareholders of Private Joint-Stock Company has taken place.

Shareholders listened to and approved a income and expense statement for 2017  from General Director Mr.Chernyak and main business lines for 2018, report and conclusions of Board of Internal Auditors for 2017, annual accounting statements, report of Supervisory Board, statement of the company’s earnings for 2017.  

According to the General Director the company reached net revenue of UAH 1bn. 48m for tax year. Drop side trucks account for 41 percent, vast majority of vehicles built in 2017, chassis cabs for conversion into completed vehicles account for 38 percent, truck tractors account for 17 percent, dump trucks for 3 percent, timber trucks for 1 percent.

81 percent of vehicles have been sold in the domestic market, 5 percent in foreign markets and 14 percent in the market of CIS countries. Sales in the civilian sector of Ukraine tripled from 2016.

Among important events of tax year the Director mentioned compliance audit during validity period of certificate obtained in November 2016 that confirms compliance with requirements of ISO/TS 16949:2009 standard. To improve quality of products, supply contracts contain requirement to maintain Quality Management System in compliance with   ISO/TS16949:2009.

Capital investments of UAH 1,8m in 2017 were channeled to purchase equipment, tools, fixtures and jigs necessary for production process, upgrade and rebuild of property, plant and equipment. About UAH 29m were spent for current and capital repair of facilities and equipment, UAH 7 458 000 went to maintain polyclinic, shared households, canteen, Palace of Culture and other facilities.  

In his report the Financial Director emphasized that increased expenses and poor production level within tax year, continuous rise in exchange rate and interests accrued on credit resulted in significant losses in tax year for “AutoKrAZ”.  

In this regard, General Meeting of Shareholders decided as follows: with respect to losses incurred in 2017 no money will be allocated to reserve, dividends and production development funds due to absence.

The plan for this year in report read by the General Director at the meeting of shareholders includes the following:

• production ramp-up and increase in sales by holding positions in the domestic market and increase in export orders;
• further efforts to adapt Euro-6 engine, development of advanced models, primarily for the needs of Ukrainian army, and compact vehicles for municipal applications for import substitution and market representation;
• intensification of entry into new markets;
• further efforts to improve quality of KrAZ products on all the stages of production cycle;
• development of manufacturing processes and implementation of energy-saving technologies.

The General Meeting of Shareholders decided to terminate the powers of Chairman and members of the Supervisory Board, approved terms of agreements to enter into with new members of the Supervisory Board.  Powers of Chairman and members of the Board of Internal Auditors and agreements entered into with them as members of have been terminated under the current legislation.