Tiki burned through $22 million from VNG

September 12, 2019 | 17:05
As of late June, VNG's VND506 billion ($22 million) investment in Tiki has been fully lost.
tiki burned through 22 million from vng
VNG's $22 million investment in Tiki is fully gone

VNG Corporation, which holds 24.6 per cent of e-commerce platform Tiki, has just released its consolidated financial statement audited by Ernst & Young Vietnam.

During the first six months of this year, VNG gained VND2.524 trillion ($109.74 million) in revenue, up 22 per cent on-year. Of this, revenue from online games rose by 22 per cent on-year, and made up 81 per cent of the total revenue. Revenue from online advertising also increased by 32 per cent to VND413 billion ($17.96 million).

Costs of the first half increased very little, while the loss from affiliated companies reduced by VND71 billion ($3.1 million) on-year to VND28 billion ($1.22 million). Thereby, VNG's profit in the first six months rose by 31 per cent to VND315 billion ($13.7 million). At the end of the first half, the total assets of VNG were VND5.764 trillion ($250.61 million).



Thanh Son



Investment value as of June 30, 2019





Accumulated profit (loss) from affiliated companies

As of December 31, 2018





Profit (loss) from affiliated companies





As of June 30, 2019





Value remaining

As of December 31, 2018





As of June 30, 2019





(Unit: VND billion)

VNG has invested VND522 billion ($22.7 million) into affiliated companies. Of this, VND506 billion ($22 million) went into e-commerce platform Tiki and has already been lost.

Tiki was established in January 2010 and raised its charter capital to VND188 billion ($8.17 million) from VND163 billion ($7.1 million). To date, 41 per cent of its charter capital is owned by 14 foreign companies and individuals, including Singapore’s JD.com International which holds 25.65 per cent.

The competition among e-commerce platforms is getting fierce with Tiki, Lazada, Shopee, and Sendo all suffering big losses in a war of attrition. Tiki’s losses increased year by year, from VND179 billion ($7.78 million) in 2016 to VND282 billion ($12.26 million) in 2017 and VND757 billion ($32.9 million) in 2018.

Additionally, All Best Asia Group Ltd. (ABA) specialising in developing software in Hong Kong, where VNG holds 50 per cent, made a loss of VND15 billion ($652,000).

Thanh Son Co., Ltd. specialising in game cards and mobile phone cards, in which VNG has 49 per cent of the charter capital, is the only affiliated company recording a 16.5-fold profit compared to the original investment.

VNG has affiliated with 14 subsidiaries, including four in Hong Kong, Singapore, and Myanmar, specialising in online games, social networks (OTT Zalo, Zing, 123Go, 123Phim), e-finance and e-payment (123Pay, ZaloPay), and cloud computing.

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