In the first quarter of the year, VNG completed the purchase of 641,559 shares of DayOne Company, equivalent to an ownership rate of 29.83%.
Scan QR code to pay on Zalo Pay. (Photo: PLO).
According to the newly released consolidated financial report, VNG JSC recorded a revenue of 1,489 billion dong in the first three months of the year, up 14 percent year-on-year. During the period, gross profit improved 18% to 678 billion.
But in the first quarter, the enterprise recorded a loss from exchange rate differences 6 times over the same period last year, selling expenses also increased by 63% to 512 billion VND and administrative expenses increased by 13%. 198 billion.
Expenses eroded the profit, so at the end of Q1, VNG saw a net loss of nearly 27 billion dong while the same period profit was 86 billion dong.
Synthesize business results of the first quarter of 2021 of VNG. (Source: VNG consolidated financial statements).
VNG’s cash flow report shows that, in the first quarter, due to a sharp increase in accounts payable from VND 110 billion to VND 183 billion and depreciation from VND 86 billion (2020) to VND 167 billion (2021), cash from operating activities is negative 105 billion dong.
Besides, in the first quarter of the year, the company also spent 110 billion dong to invest in other units. As reported earlier, VNG has completed the acquisition of 641,559 shares of DayOne Company, equivalent to 29.83% ownership.
Dayone is the owner of Got It, a startup specializing in gifting solutions in Vietnam. In October 2020, Got It launched the online gift giving service on the chat app Zalo.
As of March 31, 2021, VNG owns 17 subsidiaries including notable names such as VNG Software Development (100%), Long Dinh Entertainment (100%), Zion (60%). Among the most interested is Zion JOINT-CREDIT COMPANY – the owner of Zalo Pay e-wallet.
VNG’s 2020 annual report shows that Zalo Pay is losing 666 billion dong and this is a record loss from 2016 to now. Another unit, the e-commerce site Tiki, where VNG holds a 22.23% stake, also recorded a loss of VND3.8 billion last year. Before that in 2019, Tiki had a record loss of 1,766 billion dong.
Regarding VNG, as of March 31, 2021, VNG owns the scale of VNG’s total assets of VND 7,658 billion. In which, total cash and deposits are 4,265 billion Dong, accounting for nearly 56% of total corporate assets.
At the end of the quarter, VNG’s liabilities 1,590 billion. In which, short-term costs were nearly 734 billion VND, mainly software fees (380 billion VND), advertising costs (195 billion VND) and salary costs (77 billion VND).
VNG’s equity at the end of the first quarter was VND 6,069 billion, of which VND 358 billion of equity capital and more than VND 6,317 billion of undistributed profit after tax.
Source: vietnambiz.vn – Translated by fintel.vn