Mobile World dissolves two subsidiaries in the fields of agriculture and logistics

As part of a comprehensive restructuring plan towards "reducing quantity and increasing quality", Mobile World's board of directors has just decided to dissolve two subsidiaries operating in the fields of agriculture and logistics to optimize operations.

Mobile World Investment Corporation (stock code: MWG) has just announced the dissolution of 4KFarm Joint Stock Company and Toan Tin Logistics Joint Stock Company to restructure the group of subsidiaries to optimize operations.

4KFarm (formerly Vifarm) is a high-tech agricultural development project of Mobile World since 2020, headquartered in Ba Ria - Vung Tau. This company has a capital of 162 billion VND, of which Mobile World holds an almost absolute proportion.

This company pursues a high-tech agricultural model based on the 4-no criteria: no pesticides, no growth stimulants, no preservatives, and no genetic modification. According to the introduction at the time of launch, 4KFarm considers farmers as direct partners, sending a team of experts to transfer technology to farmers. The company commits to guarantee output, and clean vegetable products are delivered to consumers through the Bach Hoa Xanh chain.

Mr. Nguyen Duc Tai, Chairman of the Board of Directors of Mobile World, once said that 4KFarm was his dream and contained many expectations. However, in the 2023 annual report, Mobile World said that 4KFarm "basically ceased operations due to business results that did not meet expectations and were not consistent with the general development orientation of the group".

As for Toan Tin Logistics, this company has a charter capital of about 100 billion VND and is headquartered in District 1, Ho Chi Minh City. The mission of this company when it is still operating is to provide logistics services and warehouse management for subsidiaries in the group as well as for external customers.

In the 2023 annual report, Mobile World said that Toan Tin Logistics is in the process of restructuring, transferring operations to specialized blocks in other member companies to optimize support for each subsidiary.

The dissolution of two subsidiaries is the latest move by the leading electronics retail company in Vietnam in its restructuring efforts. Mobile World currently has nine subsidiaries after dissolving these two member units. In addition, the company also significantly reduced its staff in the early stages of this year. Specifically, as of March 31, 2024, Mobile World recorded 60,561 employees, a decrease of 4,853 employees compared to the beginning of the year (at the beginning of the year, there were 65,414 employees).

The Gioi Di Dong's Board of Directors said earlier this year that the important direction for 2024 is to comprehensively restructure in the direction of "reducing quantity, increasing quality" to strengthen internal strength, ready to break through for a period of sustainable growth.

In the first quarter of the year, the company recorded revenue of VND31,486 billion, an increase of more than 16% over the same period, while profit after tax increased 41.4 times to nearly VND903 billion. With this result, the company completed about 37.6% of the previously set profit target of VND2,400 billion.

Source: https://baodautu.vn/the-gioi-di-dong-giai-the-2-cong-ty-con-linh-vuc-nong-nghiep-va-logistics-d214806.html