VNG Founder Le Hong Minh has sold nearly 1 million shares to BigV.

VNG founder Le Hong Minh sells nearly 1 million shares

According to information from the Hanoi Stock Exchange (HNX), it was announced that on August 22, 2023, Mr. Le Hong Minh, Member of the Board of Directors, General Director and Founder of VNG Corporation (Code VNZ) sold nearly 1 million VNZ shares.

Specifically, Mr. Minh sold 983,783 VNZ shares. After this transaction, Mr. Minh still holds 2,542,054 shares. Mr. Le Hong Minh's ownership ratio at VNG decreased from 12.27% to 8.85%.

VNG CEO Le Hong Minh has just sold nearly 1 million VNZ shares (Photo TL)

The transaction was executed in the form of an agreement with a total value of VND 929 billion. This is equivalent to each VNZ share being sold at VND 944,700/share. At the trading session on August 25, 2023, VNZ shares were priced at VND 1,238,500/share.

The company that bought Mr. Le Hong Minh's shares is BigV Technology JSC. After the above transaction, BigV increased its ownership to 6.11 million shares, equivalent to 21.26% of charter capital. BigV is also the unit that has continuously bought VNZ shares in the recent past.

VNZ shareholders are in turmoil, the company has just submitted a listing application on the US stock exchange.

In recent days, the shareholder structure of VNG Corporation has continuously changed. In which, the unit holding the controlling shares, VNG Limited, has sold shares, reducing the ownership ratio from 61.1% to only 49%.

Meanwhile, BigV shareholders, after "failing to buy" 7.1 million treasury shares of VNG Corporation, had to continuously buy VNZ shares to increase their ownership to 21.36%.

Also during this time, VNG Limited, the company that owns a large amount of VNZ shares, registered under form F1, sent to the US Securities and Exchange Commission (SEC) to register for IPO. The stock's trading code is VNG.

The underwriters for VNG include Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and BofA Securities, Inc. The transaction size and IPO price range have not yet been announced.

Losing for many consecutive quarters, VNG just escaped loss in Q2/2023

In terms of business results, VNG has continuously recorded losses for many quarters. Specifically, VNG has continuously suffered losses for 1 year from the first quarter of 2022 to the end of the first quarter of 2023. In the business periods, the peak loss fell in the fourth quarter of 2022 with a negative VND 547.4 billion. In 2022 alone, VNG suffered a loss of up to VND 1,533.9 billion.

By the first quarter of 2023, VNG's revenue reached VND 1,852.5 billion, but its after-tax loss had decreased to only negative VND 90.1 billion.

VNG's loss situation has just stopped in the second quarter of 2023. Revenue in the second quarter of 2023 reached VND 2,245.9 billion, an increase of more than 11% over the same period. Gross profit reached VND 1,099.3 billion. Gross profit margin reached 48.9%.

Financial revenue in the period reached VND24.4 billion, down half compared to the same period. Meanwhile, financial expenses increased 11 times, from VND7.5 billion to VND83.7 billion. Business activities at affiliated companies also recorded a loss of VND22.1 billion.

VNG's selling expenses and administrative expenses in the second quarter of 2023 accounted for a relatively large proportion, at VND554.3 billion and VND344.4 billion, respectively. The company's after-tax profit reached VND50.2 billion. Although this is a large number, compared to the scale of revenue and profits achieved before, it is insignificant. Therefore, it can be considered that in the second quarter, VNG just barely "escaped the loss".

Source: https://www.congluan.vn/founder-le-hong-minh-cua-vng-da-ban-gan-xong-1-trieu-co-phieu-cho-bigv-post261939.html