Mai Linh reports loss of 6,000 employees in first half

September 26, 2017 | 21:22

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In the race for market share between traditional taxies and Uber and Grab, along with Vinasun, Mai Linh Group also saw a decrease in employees and net revenue in the first half of this year, according to newswire Vnexpress.

Both Mai Linh Group and Vinasun are on a downward spiral

Mai Linh Group has released bleak business results in the first six months of this year. Accordingly, the number of Mai Linh employees decreased by approximately 6,000 to 24,000, decreasing 20 per cent on-year.

Besides, the company’s net revenue was VND1.72 trillion ($75.4 million), decreasing 5 per cent on-year. Profit from other activities decreased by 16 per cent, to VND29 billion ($1.29 million), only half of what it was in the first half of last year.

Furthermore, as of the end of June 2017, the company bore an accumulated loss of VND800 billion ($35.1 million), equaling 80 per cent of its chartered capital. In first six months alone, its net loss from business operations was VND47.5 billion ($2.08 million), doubling the figure on-year due to a sharp increase in sales and management expenditures.

Back in 2016, the company’s revenue was VND3.73 trillion ($164.65 million), rising 32.3 per cent on-year. However, its pre-tax profit was VND61.12 billion ($2.74 million), a sharp 62 per cent fall due to increasing financial and management expenditures.

Regarding Vinasun, in the second quarter of this year, the company’s net revenue reached VND810 billion ($35.7 million) only, a record low since 2014. Besides, quarterly after-tax profit fell by 50 per cent on-year, to VND16 billion ($706,299). The cumulative figure for the first six months was VND1.9 trillion ($706.29 million), signifying a decrease of 15 per cent.

Within the first six months of this year, the number of Vinasun employees decreased by approximately 8,000 to 9,179.

According to a Vinasun representative, the company’s business results may remain gloomy until the end of this year.

Along with these bleak results, stock values also plunges. On August 25, Mai Linh Group listed 48.6 million shares on the UPCoM, with the ticker MLN, at the initial price of VND11,500 ($0.5) apiece. However, MLN has been on a constant plunge. Notably, at the end of the last trading session on September 26, it went for VND3,900 ($0.17), 66.3 per cent less than on the first trading day.

Similarly, since early 2017, the price of Vinasun’s stock VNS listed on HoSE fell by 41.9 per cent. On January 3, 2017, VNS was traded at VND32,700 ($1.4), but on September 26, it went for only VND19,000 ($0.83).

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