Tran Anh maintains losses after merging with MWG
15:25 | 04/03/2019 Print Article
Tran Anh Digital World JSC's net revenue in the first eight months of the fiscal year fell 55 per cent to VND2.273 trillion ($98.8 million).
|Tran Anh is step-by-step disappearing after the merger with MWG |
A year after merging with Mobile World Group (MWG), Tran Anh (UpCOM: TAG) has just announced financial statement from April 1, 2018 to December 31, 2018, showing losses of more than VND4 billion ($174,000).
Specifically, Tran Anh's net revenue in the first eight months were reduced by 55 per cent to VND2.273 trillion ($98.8 million), half of which (about $44.5 millin) came from the parent company.
Particularly, in the last three months of the year, the company’s revenue declined sharply to VND37.5 billion ($1.6 million) from VND1.699 trillion ($73.9 million), while gross profit dropped to VND589 million ($25,600) from dozens of millions of dollars. However, costs were cut sharply, so Tran Anh’s losses reduced to a little over VND4 billion ($174,000) as of the end 2018.
Tran Anh officially merged with Dien May Xanh (under the management of The Gioi Di Dong – MWG) on January 3, 2018 with the ownership of MWG in Tran Anh at 99.3 per cent. Tran Anh also recorded no inventory at the time of merging with MWG. According to the financial statement, the value of commercial advantages from this well-known deal was more than VND613 billion ($26.7 million), but the total liabilities that Tran Anh transferred to the parent company were around VND1 trillion ($43.5 million).
Meanwhile, Tran Anh has cancelled all advertisement activities for its brand on social media for the last few months, where they ceased posting about the Tran Anh brand and only share recipes, kitchen tips, and instructions for using household appliances. The website of the company also redirects visitors to Dien May Xanh, making the Tran Anh brand disappear step-by-step.
Back in 2005-2006, Tran Anh was one of the leading retailers for computer and electronics equipment in the northern market, with fast-growing annual profit. However, the company lost millions of dollars by constantly expanding its network before being acquired by MWG.