Tran Anh closes weak fourth quarter of financial year
Tran Anh closes weak fourth quarter of financial year
The light improvement reported in the first month of this year could not offset Tran Anh Digital World JSC's (Tran Anh) bleak business results throughout the financial year ending on March 31.
According to the financial statement of Tran Anh, in the fourth quarter of the financial year ending on March 31, revenue from sales and services was VND1.05 trillion ($46.1 million), 8 per cent less than in the previous year.
Besides, although sales and operation management expenses decreased, Tran Anh was still VND7.5 billion ($329,336) in loss, while in the same period of the last financial year the firm made VND9 billion ($395,203) in profit.
Besides, consolidated net revenue reached VND3.52 trillion ($154.56 million), down 14 per cent on-year.
According to Tran Kinh Doanh, general director of Mobile World Investment Corporation (MWG), in late-2017 MWG had to interfere with Tran Anh’s business operations (Tran Anh stayed in charge of its stores). The leaked information on the merger negatively influenced customer behaviour and shrunk the company’s revenue.
However, in the first quarter of this year, Tran Anh reported improving business results with a revenue of VND308 billion ($13.53 million), up VND103 billion ($4.5 million) compared to the average monthly revenue of VND205 billion ($9.01 million) recorded last year and equalling 4 per cent of MWG.
Tran Anh Digital is a Hanoi-based enterprise which trades in and provides maintenance services for computers, electronics, household appliances, and telecommunications equipment in Vietnam.
Earlier this year, MWG announced the completion of its acquisition of Tran Anh, becoming the dominant shareholder with a stake exceeding 90 per cent.
MWG bought shares from nine previous shareholders in Tran Anh, including the largest shareholder Nojima Corporation, which held 7.7 million shares or 30.9 per cent of the capital, as well as Tran Xuan Kien, chairman of the board of directors who held 5.6 million shares or 22.7 per cent, and Do Thi Thu Huong and six other individual shareholders who held 5.3 million shares or 21.5 per cent.
