The Gioi Di Dong 'kills' Tran Anh electronics chain

The Gioi Di Dong decided to dissolve Tran Anh to optimize operations. This used to be a famous electronics chain in the Northern market.

Tran Anh used to be a famous electronics chain in the Northern market. Photo: Tran Anh Electronics.

On August 19, Mobile World Investment Corporation (HoSE: MWG) issued a resolution approving the decision to dissolve its subsidiary.

Accordingly, the dissolved subsidiary is Tran Anh Digital World Joint Stock Company, business registration number 0101217009, address at 1st floor, CT2 building, Eco Green City - CT4.CT9, Tay Nam Kim Giang 1 new urban area, Tan Trieu commune, Thanh Tri district, Hanoi city.

The reason for dissolution is that Mobile World restructured its subsidiary to optimize operations.

The Gioi So Tran Anh is a company operating in the field of electronics retail. It used to be the leading distributor in the field of information technology and electronics equipment in the Northern market. During the period 2007-2017, the company's revenue grew continuously and reached a record of more than 4,000 billion VND in 2016.

Since the end of 2018, Tran Anh has converted its business model to a partnership model through leasing premises, offices, assets and brands. Inventory is no longer recorded and assets are mainly deposits in banks to earn annual interest.

By early 2021, Mobile World officially acquired Tran Anh and continuously bought small shares to increase its ownership ratio to over 99% of capital. At the time of acquisition by MWG, Tran Anh owned a system of more than 30 supermarkets and held about 17% of the market share in the Northern region.

Although the supermarkets are large in scale and located in prime locations, in reality, Tran Anh Electronics' operating efficiency is not high, and annual profits are always low.

One year after being acquired, Tran Anh shares were delisted on September 14, 2018, closing at VND34,900/unit, equivalent to a capitalization of about 865 billion dong .

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