Yeah1 Group (HSX: YEG) has continually divested subsidiaries to restructure the company according to plans set at the end of 2020.
|Yeah1 Group is divesting subsidiaries to restructure for profitability |
Accordingly, Yeah1 has just approved a plan to cooperate with a partner to jointly develop the commercial business at Giga1 Commercial and Technology JSC (Giga1).
AdditionalklyPlus, Yeah1 has also approved the transfer of 51 per cent of YEG voting shares in Giga1 with the transfer price no lower than the book value in the latest financial statement.
On June 23, Dragon Entertainment JSC, a subsidiary of Yeah1 Group, also signed a contract to transfer its entire capital at Yeah1 Network Pte., Ltd. to an enterprise established in Singapore.
Accordingly, Yeah1 Network Pte., Ltd. is no longer an indirect subsidiary of Yeah1. Moreover, five other companies that have a stake in Yeah1 Network Pte., Ltd. are no longer indirect subsidiaries or affiliated companies of Yeah1 Group.
These five companies include Springme Pte., Ltd., Yeah1 Network Hong Kong Ltd., Something Big Pte., Ltd., Thoughtful Network Pte., Ltd., and ScaleLab Pte., Ltd.
At the end of April, Yeah1 approved the transfer of all 510,000 shares at ON+ Communications JSC with a transfer price equal to the initial investment cost of VND5.1 billion ($221,740). After this transaction, ON+ Communications is no longer a subsidiary of Yeah1.
In the first quarter of 2021, Yeah1’s revenue reached VND288.7 billion ($12.55 million), up 12.3 per cent and profit after tax was negative VND52.5 billion ($2.28 million). Of this, gross profit margin dropped sharply from 23.3 to only 13.1 per cent.
Besides this, gross profit decreased 36.6 per cent to VND37.9 billion ($1.65 million), selling expenses increased 53.4 per cent on-year to VND56.8 billion ($2.47 million), administrative expenses increased 36.9 per cent to VND56.8 billion.
As of March 31, Yeah1's total assets decreased 4.2 per cent compared to the beginning of the year to VND1.327 trillion ($57.7 million).
Yeah1 has experienced two consecutive years of losses, if it reports losses for the third year, it will be forced to delist from HSX.