The news that Rang Dong Holding has temporarily suspended operations, with the entire board of directors and most of the employees resigning, has made many people feel regretful for a long-standing brand.
Rang Dong Holding is a prestigious, long-standing plastic brand, headquartered in Ho Chi Minh City - Photo: RDP
However, many readers mistake Rang Dong Holding for another similar brand, Rang Dong Light Bulb and Vacuum Flask Joint Stock Company.
Same name Rang Dong, same age, but different fates
After the article "The entire board of directors of Rang Dong resigns" was published, VTV - a reader of Tuoi Tre Online - regretted: Rang Dong light bulbs are famous for their quality.
Many other readers also expressed sadness and lamentation because they thought that Rang Dong light bulbs and thermoses, which were long-standing and reputable, suddenly fell into difficulty.
However, in reality, there are two companies on the stock exchange with the name Rang Dong. The company facing bankruptcy is Rang Dong Holding Joint Stock Company with the stock RDP. Meanwhile, Rang Dong Light Bulb and Vacuum Flask Joint Stock Company is listed on the stock exchange with the code RAL with a market price of 120,000 VND/share.
RAL, formerly known as Rang Dong Light Bulb and Thermos Flask Factory, was established in 1961. In 2004, this factory was equitized. The Rang Dong light bulb and thermos brand is now 64 years old.
RAL's headquarters is currently located in Thanh Xuan district, Hanoi. As the brand name suggests, RAL specializes in lighting equipment and thermos flasks along with many other types of electrical equipment.
Regarding the business situation, RAL's revenue for the whole year of 2024 reached VND 8,413 billion, a slight increase compared to the previous year. Profit after tax reached VND 591 billion. Although this profit only increased by more than 1% compared to the previous year, it set a record of the highest level ever for RAL.
The report shows that RAL's total assets at the end of 2024 reached VND 8,281 billion, while the other side of the balance sheet had liabilities at VND 4,979 billion.
Rang Dong Holding is a famous plastics company with 65 years of operation history, headquartered in District 11, Ho Chi Minh City, stock code RDP.
In 1960, the company was founded with the original name UFEOC (Union of French Far East Rubber Enterprises).
In 1977, it was transformed into Rang Dong Plastic Factory under the Pharmaceutical Technology Company under the Ministry of Light Industry. Later, the enterprise changed its name to Rang Dong Plastic Company (1985).
20 years later, Rang Dong Plastic Company was equitized. In 2019, Rang Dong Holding Joint Stock Company was officially established.
In the 2023 annual report to shareholders, Rang Dong Holding still sets the goal of becoming the leading plastic brand in Vietnam and being in the top 10 plastic packaging manufacturers in Asia.
Regarding business situation, RDP lost nearly 65 billion VND in the first 6 months of last year.
RDP shares fall to more than 1,000 VND, shareholders shocked
RDP shares listed on the HoSE of Rang Dong Holding are currently suspended from trading. The reason is that the company continues to violate information disclosure regulations, despite being subject to trading restrictions.
Explaining the reason for the delay in publishing many reports, RDP leaders said that from the second half of 2024 until now, the financial situation has encountered many difficulties, with bad debt jumping into the credit system.
"Currently, subsidiaries/member companies and the parent company (RDP) are all temporarily suspended, most of the staff have quit their jobs, leading to the inability to provide data to synthesize and prepare financial reports and corporate governance reports on time according to legal regulations," said the RDP leader.
Before being "frozen" in trading, RDP shares fell to 1,310 VND - among the stocks with the lowest market price on the stock exchange. On the stock market forum, some investors who had "held" RDP asked about the handling plan to ensure their rights.
According to current regulations, when a business goes bankrupt, its shares must be processed and converted into cash to pay off debts.
However, the priority of debt repayment for enterprises after liquidation of assets also includes many other subjects. Among them is debt repayment to creditors according to the principle if the value of assets is enough to pay the debts.
Rang Dong Holding on the brink of the abyss
RDP said that the Ho Chi Minh City People's Court has issued a notice accepting the petition to open bankruptcy proceedings against Rang Dong Holding, from January 2.
The petition was filed with the court by Rang Dong Films Joint Stock Company - a subsidiary in which RDP holds 97.75% of the capital. After accepting the petition, the Ho Chi Minh City People's Court requested RDP to present documents and papers. Among them, it must submit a list of assets and creditors as of January 2, 2025.
In the financial report for the second quarter of 2024, RDP said it had short-term loans from many banks with a total value of more than VND 1,026 billion at the end of June 2024.
Notably, in the payables section, RDP still owes Sojitz Pla-net Corporation more than 156.9 billion VND. This is the debt that RDP is forced to pay to Japanese shareholders after losing the lawsuit in 2023.
Source: https://tuoitre.vn/thuong-hieu-rang-dong-ben-bo-vuc-tham-nhieu-nguoi-nham-sang-doanh-nghiep-khac-20250304165235721.htm
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