No school, no profit for pen maker (TLG)
No school, no profit for pen maker (TLG)
Pen maker Thien Long Group recorded a Q1 net loss of VND20 billion ($860,000) as schools closed over the Covid-19 pandemic.
Students at a school in southern Can Tho City use Thien Long's crayons. Photo courtesy of TLG.
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This is the first time that the group, TLG, is posting a loss after 10 years of going public.
The group’s first quarter financial statement records approximate net revenues of VND470 billion (around $20.2 million), down 20 percent over the same period last year, with domestic market sales seeing a double digit negative growth. This market accounts for nearly 70 percent of TLG's revenue structure.
The coronavirus pandemic has impacted the company's business operations with the prolonged schools closure across the country and around the world, resulting in lower product consumption, the group said.
The leading Vietnamese pen maker also saw its total assets value decrease slightly from the beginning of the year to about VND2.26 trillion (nearly $97.1 million).
The company estimates reduced net revenues and profit this year of around VND3.2 trillion (around $137.5 million) and VND325 billion (nearly $14 million), respectively. These figures are based on the government's decision to allow students in Vietnam to return to school on Monday.
