Canh Dieu book publishing company is turning loss into profit due to factors related to Education Publishing House

According to the 2022 Financial Report of Vietnam Education Publishing and Equipment Investment Joint Stock Company (VEPIC), the company's total revenue is more than 615.7 billion VND, with after-tax profit of more than 46 billion VND.

VEPIC's revenue structure in 2022 mainly comes from book sales, accounting for nearly 98% of the company's total revenue.

Before making Canh Dieu textbooks, VEPIC's business results were not positive. In 2017, the company lost more than 1.8 billion VND. In 2018, the company recorded a loss of more than 10.3 billion VND. A year later, the loss continued to increase to 14.4 billion VND.

Revenue in these years was also very low, from 2017-2019 recorded only 4-6 billion VND per year.

Thus, compared to the period 2017-2019, in 2022, VEPIC's revenue increased by 100 times. 2020 marked a major turning point in VEPIC's business results, just after a very short time the enterprise participated in making Canh Dieu textbooks.

Kite textbooks bring in big revenue for VEPIC.

Information from the National Enterprise Registration System shows that VEPIC was established on July 27, 2016, with a charter capital of 34.5 billion VND.

A closer look at the company’s founding process reveals many unique features. The legal representative and also the company’s Board of Directors chairman at that time was Mr. Le Thanh Anh. This person shares the same name as a leader of the Education Publishing House.

VEPIC's initial shareholder structure included 3 main institutional shareholders: Phuong Nam Education Investment and Development JSC (SED) holding 34.72% of charter capital; Da Nang Education Investment and Development JSC (DAD) holding 17.36% of charter capital; Hanoi Education Investment and Development JSC (EID) holding 34.72% of charter capital. The total of the above 3 units held 86.8% of VEPIC's charter capital when it was first established, the rest were held by a number of other individuals.

Notably, in the Information Disclosure of the Vietnam Education Publishing House, until 2020, these were still 3 affiliated companies of this publishing house. In 2020, the two parties still transacted goods and services with an amount of 33.8 billion VND with Phuong Nam Education Investment and Development Joint Stock Company; 13.4 billion VND with Da Nang Education Investment and Development Joint Stock Company; 53.5 billion VND with Hanoi Education Investment and Development Joint Stock Company.

Shortly after its establishment, VEPIC increased its charter capital to over VND108 billion. The company's legal representative also changed from Mr. Le Thanh Anh to Mr. Ngo Tran Ai, former Chairman of the Board of Directors and General Director of Vietnam Education Publishing House.

Mr. Ngo Tran Ai held the position of General Director of Vietnam Education Publishing House from July 2003 to June 2014, Chairman of the Board of Members of Vietnam Education Publishing House from July 2003 to March 2015, senior advisor to the Board of Members, Board of Directors, Head of the Steering Committee for making new textbooks of Vietnam Education Publishing House from April 2015 to December 2016.

Mr. Ai's experience may be one of the reasons that helped this company compile and publish the Canh Dieu textbook series, ending the textbook monopoly of the Education Publishing House.

In April 2017, the Resolution of the Board of Directors of VEPIC continued to approve the reduction of 50% of the capital contribution of the above 3 companies to reallocate the capital contribution of shareholders. The completion time is in April 2017.

After that, the shareholders who are affiliated companies of the Education Publishing House no longer hold controlling power at VEPIC company.

The explanatory notes to VEPIC's 2022 financial statements show that the shareholder structure includes many individual investors: Mr. Nguyen Viet Phuong holds 5.52%; Mr. Pham Thanh Nam holds 12.3%; Mr. Ngo Tran Nha Thy holds 4.12%; Ms. Doan Phung Thuy Lien holds 17.1%; Mr. Le Thanh Son holds 11.96%; Mr. Ngo Doan Trong Nghia holds 17.76%; other shareholders hold 31.24%.

Mr. Ngo Tran Ai is currently the Chairman of the Board of Directors and General Director of VEPIC. Among the other leaders of this company, there are also many people who come from the Education Publishing House.

From loss to profit, revenue increased a hundredfold thanks to the Canh Dieu textbook series . The company that makes the Canh Dieu textbook series went from loss to huge profit right after making this textbook series.

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