Rang Dong thermos products - Photo: THANH BINH
Rang Dong Light Source and Vacuum Flask Joint Stock Company (RAL) has just announced the resolution of the 2025 annual general meeting of shareholders.
According to the resolution, Rang Dong set its revenue target for 2025 at VND 6,100 billion, down more than 27% compared to 2024. This is also the lowest expected revenue since 2022.
Pre-tax profit this year is expected to be only 395 billion VND, down 37%, hitting the bottom since 2019.
According to RAL's leadership, the business plan is built on the assumption that the market situation this year will continue to be difficult.
"Domestic inflationary pressure, exchange rate for the large economy , surplus foreign goods, especially Chinese goods flooding into Vietnam, at the same time they move many factories to Vietnam for production, so competition is extremely fierce. Not to mention the race in science, technology and artificial intelligence", said the RAL leadership.
Notably, one of the factors affecting RAL's business results this year is the new tax policy.
Accordingly, the abolition of lump-sum tax and the shift to revenue-based tax calculation has led distributors to propose a direct discount mechanism on the selling price. This, according to Rang Dong Company's calculations, could reduce revenue by about 10%.
Not only is the domestic market facing difficulties, RAL’s export activities also face many risks. For the LED lighting segment, the company is concerned that the risk of the US increasing import taxes will reduce competitiveness. Meanwhile, the US is the company’s largest export market, accounting for 53% of export revenue.
In addition, RAL's thermos products exported to the Middle East were affected by geopolitical instability in the Red Sea and sharply increased logistics costs.
The difficult situation was partly reflected in the financial report for the first quarter of 2025, when revenue reached only over 1,500 billion VND, while pre-tax profit was 113 billion VND, down 46% and 45% respectively compared to the same period.
Therefore, the focus of RAL in 2025 is to consolidate the system, collect debts, focus on comprehensive restructuring of the company, make breakthroughs in science and technology, innovate, and dual transformation including digital and green transformation.
Responding to shareholders about the Hoa Lac project investment, RAL's board of directors said progress is slower than the original plan due to complicated procedures.
Specifically, the transfer of the management agency of Hoa Lac High-Tech Park from the Ministry of Science and Technology to the Hanoi People's Committee. However, RAL leaders said that the delay was also "lucky", because if the factory went into operation early in the current context of weak consumption, there would be "no place for increased output".
Source: https://tuoitre.vn/bo-thue-khoan-rang-dong-phan-tich-ly-do-giam-doanh-thu-20250614090315799.htm
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