HSX puts Yeah1 on alert again

August 20, 2020 | 14:40

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The Ho Chi Minh City Stock Exchange has once again issued an alert for Yeah1 (HSX: YEG) despite the company's efforts to rebound this year.

This is the second time the HSX issues an alert for Yeah1

HSX has just issued a warning for YEG that is currently traded at VND49,800 ($2.17) and will consider further measures once it publishes its consolidated financial report this year.

The company has just announced its audited financial statement with after-tax profit dropping to VND2.5 billion ($108,700) from VND6.2 billion ($269,570). In addition, the after-tax profit of the parent company – also the largest shareholder – dropped to VND402 million ($17,480) from VND4.2 billion ($182,610).

Along with that, the accumulated losses as of June 30 were more than VND560 million ($24,350), but the firm cleared the deficit with paid-in capital.

This is not the first time the ticker is put on alert. HSX on March 31 decided to put Yeah1 Group's shares on alert from April 8 because of its tremendous losses last year. As soon as YouTube announced stopping work with the group in March 2019, 35 per cent of the shares' value evaporated immediately.

2020 is an important transitional year when VNG is fending for revival, reflected by the partnership with the local soft drink manufacturer Tan Hiep Phat to develop applications on Yeah1’s digital platforms and roll out a series of marketing programmes.

The company launched the Mega1 platform that is expected to receive dozens of millions of users from its channel and a fan page on YouTube and Facebook.

Yeah1 most recently introduced the manufacturer-to-consumer platform called Giga 1, which is hoped to raise sellers' revenue by significantly reducing sales costs. The company is calling for capital for the platform, with expectations of mobilising VND500 billion ($21.74 million).

By Van Anh

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