Media tycoon has no way out after suffering losses

The VN-Index has been in the top of the world's strongest stock indexes since the beginning of the year with an increase of more than 16%. Over the past year, the index has increased by nearly 50% despite the Covid-19 pandemic.

According to the Ho Chi Minh City Stock Exchange (HOSE), Tran Uyen Phuong, daughter of Tran Quy Thanh, who is the owner of Vietnam's No. 1 beverage group Tan Hiep Phat, has registered to sell 4 million YEG shares of Yeah1 Group JSC from May 24 to June 23, through order matching or agreement.

Phuong is the second largest shareholder in Yeah1 with 6.9 million shares, equivalent to 22.06% of capital in YEG. If these shares are sold, her ownership will decrease from nearly 21.6% to nearly 8.8%. Previously, Phuong paid VND50,000 per share to become a major shareholder of Yeah1.

This information caused many investors to be more cautious about Yeah1. In early April, YEG status changed from warning to supervision by HOSE. This is another step backwards for the Yeah1 Group after two years of losses.

The YEG price continued to fall from nearly VND350,000 when it was listed in mid-2018 to the current level of VND21,000 per share. YEG continuously set “falling records” when Vietnam's stock market was busy with billions of USD worth of shares transferred each session.

The VN-Index has been in the top of the world's strongest stock indexes since the beginning of the year with an increase of more than 16%. Over the past year, the index has increased by nearly 50% despite the Covid-19 pandemic.

Yeah1 had losses for two consecutive years, with over VND385 billion of losses in 2019 and VND182 billion in 2020.

Thua lỗ triền miên, ông trùm truyền thông Việt chưa lối thoát

Yeah1’s boss Nguyen Anh Nhuong Tong.

Yeah1's loss-making business is related to the multi-channel network crisis with Youtube.

 

In March 2019, Yeah1 had to sell all 100% of shares in ScaleLab (headquarters in Holywood) to the former owners, Brenner Pass Investment Corp., for $12 million after buying 100% of the shares of ScaleLab in January 2019 at the same price.

Yeah1 was forced to sell ScaleLab after being penalized by YouTube.

Specifically, YouTube terminated the Content Hosting Agreement (CHSA) from March 31, 2019 for financial investment companies/subsidiaries with business activities related to YouTube Adsense of Yeah1, including SpringMe Pte. Ltd., Yeah1 Network Pte Ltd and ScaleLab LLC.

These are all foreign companies that Yeah1 of Mr. Nguyen Anh Nhuong Tong had acquired before.

In 2020, YEG had a net loss of nearly VND180 billion through expanding its existing media ecosystem to the consumer ecosystem. Yeah1 needs capital to initially invest in goods, personnel and business strategies that lead to increased costs. The new business segment is still in the stage of finding markets and partners. Even though it has revenue, it is still unable to cover costs in a short time.

Yeah1 recently expanded its business into the field of providing food, beverages and electronics. The company has approved a plan under which its subsidiary - Giga1 - contributes capital with partners to establish two other subsidiaries, Gigagoods JSC and Gigawin Distribution CTGCP. Gigagoods has charter capital of VND1.8 trillion, and focuses on the distribution of food, beverage and personal care products. Gigawin's main business is the distribution of electronic and refrigeration products.

V. Ha

Foreign investors will soon return to Vietnam's stock market: HSBC

Foreign investors will soon return to Vietnam's stock market: HSBC

Vietnam’s stock market is expected to continue to grow, helped by strong economic growth and increasing local liquidity. The positive outlook will attract foreign investors back to the market, according to HSBC.

 
 

Other News

.
ADB lowers Vietnamese growth forecast for 2021 to 5.8%
ADB lowers Vietnamese growth forecast for 2021 to 5.8%
BUSINESSicon  20/07/2021 

The Asian Development Bank (ADB) has just released its growth forecast for the year, with Vietnam’s growth revised down to 5.8% from the previous figure of 6.7% put forward in April.

Railway sector needs $10.4 bln to expand network in next decade
Railway sector needs $10.4 bln to expand network in next decade
BUSINESSicon  19/07/2021 

The Ministry of Transport (MoT) has proposed total investment of 240 trillion VND (10.4 billion USD) for the expansion of the railway network from now until 2030, to be sourced by the State budget and other legal sources.

Vietnam-China bilateral trade: overcoming chronic weaknesses
Vietnam-China bilateral trade: overcoming chronic weaknesses
FEATUREicon  19/07/2021 

According to data from the Vietnam General Department of Customs, Vietnam’s total import-export value by June 15, 2021 had reached US$288.68 billion, up 33%, or $71.55 billion, year on year.

HCM City faces severe shortage of vegetables, eggs
HCM City faces severe shortage of vegetables, eggs
BUSINESSicon  19/07/2021 

Vegetables and eggs are in short supply in HCM City due to disruptions in supply chains caused by COVID-19.

Vietnam named among world’s top 20 host economies for FDI for first time
Vietnam named among world’s top 20 host economies for FDI for first time
BUSINESSicon  19/07/2021 

Vietnam was named among the world’s top 20 host economies for foreign direct investment (FDI) for the first time in 2020 with an inflow of 16 billion USD.

VIETNAM BUSINESS NEWS JULY 19
VIETNAM BUSINESS NEWS JULY 19
BUSINESSicon  19/07/2021 

Shares to move sideways with low liquidity

Major transport projects to get underway this year, others to be completed
Major transport projects to get underway this year, others to be completed
BUSINESSicon  18/07/2021 

The Ministry of Transport plans to begin work on nine major infrastructure projects in the south this year to reduce traffic congestion and improve connectivity.

Support for businesses vital for economic recovery
Support for businesses vital for economic recovery
BUSINESSicon  18/07/2021 

During the current ongoing Covid-19 pandemic, it is of utmost importance that government authorities introduce policies that provide maximum support to keep businesses afloat, and sustain the economy as well.

Many hotels in HCMC increase room capacity
Many hotels in HCMC increase room capacity
BUSINESSicon  18/07/2021 

Many hotel owners in Ho Chi Minh City yesterday said that the number of booked hotel rooms has increased from 10 percent to 20 percent.

Hanoi targets GRDP growth up to 7.5% in 2021
Hanoi targets GRDP growth up to 7.5% in 2021
BUSINESSicon  18/07/2021 

Hanoi will take advantage of a shift in investment capital worldwide to attract foreign direct investment into the city.

ASEAN, Czech Republic look to standardise customs procedures
ASEAN, Czech Republic look to standardise customs procedures
BUSINESSicon  18/07/2021 

The Association of Southeast Asia Nations (ASEAN) Committee in coordination with the Customs Administration of the Czech Republic has held a webinar to introduce the electronic customs of the European country.

SBV allows banks to expand credit room
SBV allows banks to expand credit room
BUSINESSicon  18/07/2021 

The State Bank of Viet Nam (SBV) has just officially approved credit room extension for some banks.

Live streamers compelled to register with MIC if new draft decree adopted
Live streamers compelled to register with MIC if new draft decree adopted
BUSINESSicon  18/07/2021 

The Ministry of Information and Communications has proposed that only licensed social networking sites and accounts should be allowed to livestream to generate revenue.

VIETNAM BUSINESS NEWS JULY 18
VIETNAM BUSINESS NEWS JULY 18
BUSINESSicon  18/07/2021 

Over 425 million tonnes of cargo handled at seaports in seven months

Vietnamese top list of most online shoppers in SEA
Vietnamese top list of most online shoppers in SEA
BUSINESSicon  17/07/2021 

Vietnam has the highest number of people shopping on e-commerce platforms in the Southeast Asia region with some 49.3 million people, according to the E-commerce White Book 2021 released by the Vietnam E-Commerce and Digital Economy Agency.

Vietnam ‘promised land’ for digital banking
Vietnam ‘promised land’ for digital banking
BUSINESSicon  17/07/2021 

Vietnam is among the regional countries that are seeing new digital bank models, experts have said.

Textile and garment makers seek multitude of options
Textile and garment makers seek multitude of options
BUSINESSicon  17/07/2021 

As the current outbreak of the pandemic remains complicated, textile and garment makers fear lasting impacts on their operations, 

Bumps ahead for the giants of transport
Bumps ahead for the giants of transport
BUSINESSicon  17/07/2021 

After enduring months of losses, state-owned transport giants Vietnam Railways and Vietnam Airlines are pinning hopes on a financial lifebuoy to recover from the incurred losses – but even significant support may not be enough for them.

Tardy public spending will hinder post-pandemic economic recovery
Tardy public spending will hinder post-pandemic economic recovery
BUSINESSicon  17/07/2021 

The COVID-19 health crisis and the resulting economic downturn has thrown a spanner in the works of already tardy public spending, hindering Vietnam’s efforts to revive its post-pandemic economy and speed up slowing GDP growth.

Vietnam moving out of the epidemic more slowly than others, needs new policies
Vietnam moving out of the epidemic more slowly than others, needs new policies
FEATUREicon  18/07/2021 

Prime Minister Pham Minh Chinh affirmed that Vietnam’s development goals have not changed and agreed with the two GDP growth scenarios for 2021 developed by the Ministry of Planning and Investment.

 
 
 
Leave your comment on an article

OR QUICK LOGIN