Mobile World (MWG) dissolves computer sales company Digital World Tran Anh after 3 years of acquisition

Mobile World dissolves Tran Anh Digital World after 3 years of acquisition

Tran Anh Digital World Joint Stock Company, formerly Tran Anh Trading and Service Company Limited, was established in 2002. The company is a famous unit in the field of distributing IT and electrical equipment in the North with revenue at its peak reaching 4,000 billion VND.

By early 2021, Mobile World (MWG) had officially acquired shares of Tran Anh Digital World. Transactions to increase ownership ratio continuously took place, helping MWG own up to 99.33% of Tran Anh Digital World's charter capital. In the Q2/2024 financial statement, Mobile World recorded the original value of the investment in Tran Anh Digital World at VND 861 billion.

Although at the time of acquisition, Tran Anh electronics chain had up to 30 electronics supermarkets, up to now, the Board of Directors of Mobile World has had to approve the decision to dissolve this company. The reason for dissolving Tran Anh was given to restructure subsidiaries to optimize operations.

Mobile World dissolves Tran Anh Digital World after 3 years of acquisition (Photo TL)

In 2024, besides Tran Anh Digital World, MWG also consecutively dissolved other subsidiaries in the ecosystem, typically Toan Tin Logistics and 4KFarm.

In which, Toan Tin Logistic Joint Stock Company is the unit in charge of the logistics sector for the ecosystem of Mobile World, established on November 10, 2021. The company's address is located at 128 Tran Quang Khai, Tan Dinh Ward, District 1, Ho Chi Minh City.

4KFarm was once identified by Chairman Nguyen Duc Tai as his "dream" at the 2020 Shareholders' Meeting. The unit operates in the field of growing and processing clean agricultural products.

In the Q2/2024 financial statements, the investment in 4KFarm is still recorded at nearly VND 162 billion, but the provision for depreciation is up to VND 148.1 billion. Meanwhile, Toan Tin Logistics is recording an investment value of nearly VND 100 billion.

Profit recovered, completing 86.5% of the year plan

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. Profit after tax reached VND 1,172.4 billion, a sharp increase over the same period.

Thanks to the revenue growth, gross profit also increased to VND 7,307.7 billion, equivalent to an increase of VND 1,866.5 billion. Profit margin therefore also improved from 18.5% to 21.4%.

Financial revenue in the period was almost flat compared to last year, recording VND580.1 billion. Meanwhile, financial expenses decreased by 26% to VND293.7 billion. Sales expenses and additional administrative expenses totaled VND5,869.8 billion, a slight increase compared to the same period.

MWG's accumulated revenue in the first 6 months of the year recorded VND 65,620.6 billion, up 16% over the same period. Profit after tax reached VND 2,075.4 billion, up 52.6 times compared to 2023. Compared to the 2024 plan, MWG has completed 86.5% of the annual profit plan.

Source: https://www.congluan.vn/the-gioi-di-dong-mwg-giai-the-cong-ty-ban-may-tinh-the-gioi-so-tran-anh-sau-3-nam-thau-tom-post308438.html