Tran Anh reveals larger loss before MWG merger

Tran Anh Digital's net loss is VND4.8 billion larger than previously stated

Apparently, there has been a notable discrepancy between Tran Anh Digital’s 2017 first half financial statement and the previous self-reported financial statement that highlighted a larger net loss right before the merger with MWG.

The board of directors (BoD) at Tran Anh Digital pointed out that the recently leaked information on the merger negatively influenced customer behaviour and shrunk the company’s revenue.

The company’s BoD also attributed the post-audit discrepancy to the readjusted trade discounts given to providers until, which increased the cost of goods sold and decreased accumulated profit, before-tax profit, and after-tax profit.

Nguyen Duc Tai, co-founder cum chairman and CEO of MWG, recently confirmed that negotiations on the acquisition of Tran Anh Digital were basically finished. The negotiation stated that Tran Anh Digital’s shareholders had approved of MWG purchasing over 25 per cent of the company’s charter capital, with the caveat that the corporation will not submit a takeover bid, and to eliminate the listed stock on the Hanoi Stock Exchange.

On September 30, the company’s total assets reached VND824 billion ($36.3 million), which was a 30.5 per cent drop since the beginning of 2017.

The primary cause for this was the plunging inventory, and plummeting short-term assets and short-term accounts receivable.

According to the official financial statement, the company earned a net revenue of VND1.825 trillion ($80.3 million), 7.2 per cent less than in the first half of 2016.

The cost of goods sold reported a VND1.57 trillion ($69.1) rise, whilst accumulated profit reached VND225 billion ($9.9 million), 2.7 per cent down against the same category in the self-reported financial statement.

Additionally, due to the surging costs of sales, financial costs, and corporate management, Tran Anh Digital’s financial situation encountered a major setback.

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.

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