Techcombank will provide credit to WinCommerce up to 650 billion VND

Recently, Vietnam Technological and Commercial Joint Stock Bank (Techcombank - HoSE: TCB) announced Resolution 0629/2023/NQ on approving the granting of credit to WinCommerce General Trading Joint Stock Company.

Accordingly, the total medium and long-term credit is 800 billion VND, Techcombank participates up to 650 billion VND. The purpose is to pay for fixed asset investment costs (tangible and intangible) and other long-term investment costs to expand and upgrade WinCommerce's business network.

The loan term is 60 months from the first disbursement date. The collateral is unlisted shares of WinCommerce owned by VCM Trade and Service Development Joint Stock Company. Interest rates and fees are according to Techcombank's regulations.

In addition, the non-asset security is an unconditional and irrevocable guarantee by The Sherpa of WinCommerce's financial obligations arising from this credit facility to the credit providers.

WinCommerce General Trading Services Joint Stock Company was established in 2010, with current charter capital of VND 8,321 billion, with Mr. Truong Cong Thang as General Director and Legal Representative.

WinCommerce is a member of Masan Group, the owner of the WinMart/WinMart+ retail chain, which holds a network of more than 3,000 WinMart and WinMart+ supermarkets. In 2022, WinCommerce successfully restructured the entire WinMart/WinMart+ retail chain and completed the brand transformation in April.

Finance - Banking - Techcombank will provide credit to WinCommerce up to 650 billion VND — WinCommerce is a member of Masan Group, the owner of the WinMart/WinMart+ retail chain, which holds a network of more than 3,000 WinMart and WinMart+ supermarkets.

Regarding the business situation in the first 6 months of 2023, WinCommerce is losing more than 381 billion VND, a slight decrease compared to 541 billion VND in the same period last year, but still a poor business result in the current context.

WinCommerce's loss-making business situation comes amid the retail chain's continuous expansion in the number of stores. According to data from Masan's financial report, WinCommerce opened 152 new WinMart+ stores and 2 new WinMart supermarkets in the first 6 months of 2023, bringing the total number of points of sale to 3,511 nationwide for both mini-supermarkets and supermarkets.

Meanwhile, in the second quarter of 2023, WinCommerce recorded revenue of VND 7,182 billion, up 1.5% over the same period; bringing total revenue in the first 6 months of the year to VND 14,517 billion, up 2.5% over the same period.

Masan commented that although weak consumer sentiment affects sales productivity, WinCommerce's revenue recorded 1.5% YoY growth in the first half of 2023 and 2.5% YoY growth in the second quarter of 2023 while profits were largely protected.

In 2023, WinCommerce's management board aims to expand the number of WinMart+ stores by about 800 - 1,200. From there, the company aims for net revenue of about VND 36,000 billion - VND 40,500 billion, an increase of 23% - 38% over the same period.

WinCommerce hopes to expand gross margins by partnering with suppliers to market private-label, affordable products to lower-income households .

Source