Mobile World continuously dissolves subsidiaries, Chairman Tai has just 'taken profit' on another 1 million shares

Chairman Tai sold another 1 million MWG shares.

Recently, Mr. Nguyen Duc Tai - Chairman of the Board of Directors of Mobile World Joint Stock Company (code: MWG) continued to sell 1 million more MWG shares. After the transaction, the number of shares Mr. Tai holds will decrease to 32.4 million shares, equivalent to 2.22% of charter capital. The transaction period takes place from September 9, 2024 to September 19, 2024.

Also in June 2024, Mr. Tai successfully sold 2 million MWG shares right before the company paid a cash dividend of 5%.

Chairman Tai "took profit" on another 1 million MWG shares after strong price increases since the beginning of the year (Photo TL)

Chairman Tai's stock sale transaction took place in the context of MWG's strong recovery in the first half of 2024. From a price range of just over VND 40,000/share, MWG jumped to VND 70,000/share at the end of August 2024.

In the trading session on September 20, 2024, MWG code recorded a price of VND 68,000/share, an increase of more than 60% compared to the beginning of the year.

A notable point is that at the bottom area that MWG created in November-December 2024, Chairman Tai registered to buy 1 million and 500,000 MWG shares twice. However, after that, Mr. Tai only bought 110,000 and 200,000 shares, much lower than the initial registered amount.

However, "buying low and selling high" with MWG shares has brought this chairman a considerable profit.

Profits recover, MWG can complete the year plan early

Regarding business activities, in the second quarter of 2024, Mobile World recorded net revenue of VND 34,134.1 billion, an increase of 15.8% over the same period. Gross profit reached VND 7,307.7 billion, gross profit margin improved from 18.5% to 21.4%.

Notably, financial revenue during the period remained relatively stable, reaching VND580 billion. In contrast, financial expenses were reduced from VND375.2 billion to VND293.7 billion, significantly improving business results.

Selling expenses and administrative expenses were recorded at VND5,056.4 billion and VND813.3 billion, respectively. After deducting expenses and taxes, MWG recorded a profit after tax of VND1,172.4 billion.

In the first 6 months of the year, MWG recorded net revenue of VND 65,620.6 billion, up 16% over the same period. Accumulated profit after tax reached VND 2,075.4 billion, up 52 times over the same period last year. Compared to the plan set at the beginning of the year, MWG has completed 86.5% of the annual profit target. Thus, it is highly likely that the unit can complete the 2024 business plan early.

Dissolving a series of subsidiaries, MWG abandoned the "dreams" of Chairman Tai

MWG's profit growth is assessed by many experts as due to the impact of the gradually recovering domestic retail market.

However, the structure of companies in the group's ecosystem is also changing with many names being dissolved.

In the first 6 months of 2024, MWG dissolved Toan Tin Logistics, a freight transport unit established in November 2021. This used to be a company serving the logistics sector for the Bach Hoa Xanh, The Gioi Di Dong and An Khang pharmacy chains.

Or like 4KFarm, the unit that Chairman Tai had high expectations for in the 2020 Annual General Meeting of Shareholders, pursuing the clean vegetable growing model, had to close down. Chairman Tai's dream of making clean vegetables was also abandoned since then.

Most recently, in August 2024, MWG also "disbanded" the Tran Anh Digital World brand after 3 years of acquisition. This is a long-standing computer sales brand, appearing since 2002, with a peak period when it achieved revenue of up to 4,000 billion VND.

By early 2021, MWG had acquired 99.33% of shares in Tran Anh Digital World. MWG's financial statements in the second quarter of 2024 also recorded the value of the investment in this company at VND 861 billion with 30 large and small electronics supermarkets. However, MWG still had to close this brand with the reason given to restructure subsidiaries and optimize operations.

Source: https://www.congluan.vn/the-gioi-di-dong-lien-tuc-giai-the-cong-ty-con-chu-tich-nguyen-duc-tai-lai-vua-chot-loi-them-1-trieu-co-phieu-post313254.html