Geleximco of tycoon Vu Van Tien spent several trillions to buy an electronics company whose business is going downhill.

Geleximco won the auction for more than 38.5 million Viettronics shares worth more than VND2,562 billion. This price is nearly 2.7 times higher than the starting price.

Geleximco Group headquarters at Peakview building, 36 Hoang Cau, Dong Da district, Hanoi - Photo: SHN website

The Hanoi Stock Exchange (HNX) has announced the results of the auction of shares of Vietnam Electronics and Information Technology Corporation (Viettronics - VEC) owned by the State Capital Investment Corporation (SCIC).

Geleximco acquires once-famous electronics company

More than 38.5 million Viettronics shares (equivalent to nearly 88% of charter capital) were offered for sale at a starting price of more than VND964 billion, equivalent to VND25,000/share. The auction was conducted with 4 investors, including 2 domestic organizations and 2 domestic individuals.

Geleximco Group, chaired by Mr. Vu Van Tien, won the entire auction with a total amount spent of more than 2,562 billion VND. This price is nearly 2.7 times higher than the starting price, corresponding to a valuation of about 2,900 billion VND. Meanwhile, the company's capitalization is currently trading on the UpCOM floor at about 1,000 billion VND.

Geleximco said its participation in the Viettronics share auction aims to realize the goal of developing the technology sector, especially semiconductor chip technology.

Viettronics, formerly the Electronics Research Department under the Ministry of Mechanics and Metallurgy (now the Ministry of Industry and Trade ), was established in October 1970. On October 27, 1995, Vietnam Electronics and Information Technology Corporation was established under the model of Corporation 90, operating in 3 main areas: consumer electronics, specialized electronics and information technology.

On March 1, 2007, this corporation officially came into operation with a new model. The state capital was assigned to SCIC for management.

The company has subsidiaries including Viettronics Tan Binh Joint Stock Company, Viettronics Thu Duc, Bien Hoa Electronics Joint Stock Company, Binh Hoa Electronics Joint Stock Company, Viettronics Construction Joint Stock Company, Viettronics Industrial College, Viettronics Industrial Joint Stock Company.

Poor business results

According to its self-introduction, Viettronics used to be one of the pioneers in the fields of electronics, energy, industry and information technology, with 13 member enterprises with annual revenue of about 100 million USD, and export processing reaching about 30 million USD/year.

However, Viettronics' business results have not been positive recently. In the first half of 2025, the company recorded VND 161.4 billion in net revenue, an increase of 42% over the same period in 2024. Profit after tax reached VND 756 million, an improvement compared to the loss of VND 7.8 billion in the first half of 2024.

Considering the period from 2011 to present, the company's net revenue peaked at nearly VND 1,410 billion in 2016. After that, net revenue gradually decreased and was only over VND 296 billion in 2024.

Similarly, after-tax profit decreased from nearly VND209 billion in 2011 to nearly VND333 million in 2024.

Viettronics' business results - Chart: NGUYEN NGUYEN

Viettronics' total assets as of June 30, 2025 were nearly VND753 billion, almost unchanged from the beginning of the year. Most of the assets focused on short-term receivables, short-term financial investments, cash and fixed assets.

Specifically, the enterprise recorded a customer receivable of nearly VND 143 billion from AKA Vietnam Joint Stock Company, Khang Phuc Investment, Trading and Import-Export Company Limited, Southern Power Corporation Limited Branch - Southern Power Project Management Board.

In addition, the financial report also stated that the value of Viettronics' investment real estate as of June 30 was VND16.3 billion. The company has not yet determined the fair value of this item because there is no need to convert or liquidate the investment real estate.

Viettronics has a lot of land

Viettronics currently owns many large-scale land plots such as Lot 14-E5, Cau Giay New Urban Area (4,300m²), 9,000m² to build Viettronics College of Technology. In addition, Viettronics' subsidiaries also own many large land plots in Ho Chi Minh City, Dong Nai , Bien Hoa.

Geleximco Group currently has a charter capital of VND10,900 billion, operating in many fields from industrial production, real estate, banking and finance, and trade and services. In 2023, the enterprise achieved VND73.8 billion in profit after tax, an increase of nearly 12% over the previous year.

As of December 31, 2023, Geleximco's equity reached VND 12,295 billion, an increase of nearly VND 780 billion over the same period. The return on equity (ROE) was 0.6%.

The debt to equity ratio is 1.52 times. Therefore, the total assets of the enterprise at the end of 2023 will reach about 30,983 billion VND.

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Source: https://tuoitre.vn/geleximco-cua-dai-gia-vu-van-tien-chi-vai-nghin-ti-mua-cong-ty-dien-tu-kinh-doanh-lao-doc-20251029102925843.htm