On July 7, 2023, the General Meeting of Shareholders of VNG Corporation approved the 2023 business plan with a target of net revenue of VND 9,281 billion, an increase of 19% over the same period in 2022 (VND 7,801 billion).
Notably, VNG's planned after-tax profit is expected to be only negative VND572 billion, a sharp decrease of 63% compared to 2022 (negative VND1,534 billion). VNG said that the loss has decreased significantly thanks to revenue growth, efforts to optimize operating costs as well as caution in new investments.
In 2022, VNG invested nearly VND 1,000 billion in the VNG Data Center project with a total floor area of 7,800m2 in District 7, Ho Chi Minh City. This is one of three data centers in Vietnam that currently meet UpTime Tier III standards, expandable to 1,600 racks to promptly respond to the current strong digital transformation process. In addition, the company also consults and cooperates strategically with startups that it has invested in, with the expectation of developing the domestic technology community and ecosystem.
According to the 2023 business development strategy shared at the shareholders' meeting, VNG continues to improve the technological capacity of key products, aiming for the goal of "Go Global" and identifying Digital Business as the development focus to serve corporate customers in the coming time.
Specifically, in the online games segment, VNGGames continues to increase its recognition in markets outside of Vietnam and focuses mainly on Southeast Asia. The company still makes full use of its strengths in publishing online games to quickly expand its market share in new markets while optimizing operating costs. VNGGames also aims to cooperate with international partners, promoting long-term investment to maintain good quality games and long life cycles. VNGGames also launches and operates more than 80 self-developed games at home and abroad.
VNG said that Zalo continues to invest in core products to improve user experience, deepen AI capabilities and set a goal of bringing Vietnamese virtual assistant Kiki to TV in 2023. In 2022 alone, Zalo processed more than 1.7 billion messages per day, reaching more than 73 million regular users. The business support platform Zalo Official Account has grown with 40,000 verified accounts and the number of notification messages sent from these accounts increased by more than 400% compared to the same period in 2021.
ZaloPay e-payment is positioned by VNG as a one-stop payment gateway provider, linked with global partners such as Grab, TikTok, Baemin, Lazada, Shopify. ZaloPay also identifies its current business strategy as focusing on bringing convenience to both sellers and buyers with the simplest operations, instead of depending on promotional programs. In 2022, ZaloPay achieved positive results with total wallet transactions increasing by 31% over the same period in 2021 and the number of monthly users increasing by 46%.
From 2023, in addition to the 3 pillars of Online Games, Zalo, ZaloPay and digital transformation (VNG Digital Business) will become VNG's core business. Currently, VNG Digital Business is providing high-tech products and services for business customers, including VNG Cloud (Cloud Computing), VNG Data Center (Data Center), vCloudcam (Smart Camera), PRISM (Smart Infrastructure Management Solution), TrueID (Unit developing eKYC electronic user identification application), Digital Business Security (Unit providing specialized security solutions).
In addition, VNG also submitted to the shareholders' meeting a plan to reduce charter capital to handle the repurchased shares according to the company's decision and in compliance with current laws. Accordingly, the new charter capital is VND 287,360,000,000, corresponding to a total of 28,736,000 shares in circulation on the market.
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